UK consumers, who send or receive foreign payments, could be paying well over the odds for their currency due to a lack of transparency in the foreign exchange sector. This coupled with the effects of the credit crunch, has caused a financial and currency specialist to highlight the issue of fairer pricing for British consumers.
The currency market (worth approximately $1,683 billion[1] a day in the UK) is completely unregulated and this could be leading to banks and foreign exchange companies failing to understand and comply properly with the Consumer Protection Regulations[2] which were introduced in May.
The regulations require all companies to openly tell consumers how a price will be calculated. Helen Scott, entrepreneur and managing director of 4X Currency Corporation, the world’s first online currency exchange company, believes that this should now be highlighted as an issue as the law may be being broken at the expense of the consumer. She is calling the Financial Ombudsman Service to look at this sector much more closely to try and bring some simplicity to currency pricing.
Helen adds: “It seems incredible in the age of the internet that consumers are able to openly compare the price of almost any other commodity except currency. Yes, rates move, but consumers should insist on asking how the rate will be calculated when they come to do the deal. Ask how much they will charge away from the rate given on the BBC website in percentage terms. Dealing rates vary enormously between providers, costing thousands on a simple overseas property purchase. We wouldn’t dream of buying a car, holiday or anything else without shopping around and getting the best deal - so why should be accept it with our hard earned cash.”
Jamie Hanley Partner at Leeds law firm Morrish and Co says: “Consumer protection is at the heart of government policy on regulatory reform. These Regulations simplify and standardise the law and are wide ranging. They outlaw unfair trading, and are designed to ensure that a consumer is able to make free and informed decisions. Transparency in business dealings is clearly at the heart of this. That the government is serious is illustrated by the fact that both the OFT and local trading standards are given wide powers to investigate and to take enforcement action. It covers all traders dealing with individual consumers. Banks and financial institutions are not immune from scrutiny under this regime.”
Helen concludes: “A lack of transparency just results in customers becoming more confused and ultimately they are unable to directly compare the costs of a transaction. I have found it hugely frustrating when speaking to people who have been confused by indicative rates provided rather than the dealing rate they finally receive. So I am calling on the Financial Ombudsman Service to look at this issue and ensure all providers are acting correctly. A truly transparent marketplace is good news for everyone including the consumer.”
4X (www.4xcurrency.com) operates in a unique and price transparent way, providing exchange rates that customers can actually obtain at that particular time, rather than rates that are merely indications based on the bank’s wholesale (interbank) rate. Dealing rates are posted clearly on the website and the exchange rate is updated up to three times a second, made possible by unique software.
· 4X Dealer™ is a registered trademark of 4X Currency Corporation
· 4X Dealer™ can process 2,000 trades per second and transfers can be made to any worldwide bank
· 4X Dealer™ has been designed especially with the business market in mind to enable companies to receive live, up-to-the-minute, market rates so that they select the most favourable ones available before making a transfer.
The new application provides business users that trade overseas with an easier and more accessible method of making foreign currency purchases. The online service accurately updates the user with live up to the second currency rates and allows deals to be made away from the office at any time and any place.
Helen Scott, managing director of 4X Currency comments: “We are really excited about creating a mobile version of our service for the BlackBerry platform. Unlike most foreign exchange providers, our service is completely transparent allowing our customers to see live dealing rates at any time. The main benefit of our system is that clients can actually watch the changing rate themselves and when they are happy they click the deal instruction and that’s the rate they get. This new application will mean that a deal can be made at the best rate, from any location whether it is travelling on a train or even whilst climbing a mountain.”
4X Currency (www.4xcurrency.com) is able to offer competitive rates because it developed the first unique online foreign exchange system. The service is free and easy to use and it allows the user to instantly make currency purchases without the need for long, complicated and costly phone calls to banks or currency providers.
Ends
Notes to editor:
· 4X operates in a unique and price transparent way, providing exchange rates that customers can actually obtain at that particular time, rather than rates that are merely indications based on the bank’s interbank rate
· 4X Dealer™ is a registered trademark of 4X Currency Corporation
- BlackBerry® is a registered trademark of Research In Motion
· 4X Dealer™ can process 2,000 trades per second and transfers can be made to any worldwide bank
· 4X Dealer™ has been designed especially with the business market in mind to enable companies to receive live, up-to-the-second, market rates so that they select the most favourable ones available before making a transfer.
4X Currency Corporation, the world’s first online currency exchange company, is holding a breakfast briefing, in association with UK Trade & Investment and Leeds Chamber of Commerce on Thursday July 3rd at the Radisson hotel in Leeds to help Yorkshire companies save money when importing and exporting.
The free one hour event will feature a number of specialist speakers from a range of organisations covering topics including identifying foreign opportunities, eliminating risks, demystifying international payments, foreign VAT recovery, international Leeds, dispute resolution on overseas trades and how to benefit from exchange rates.
4X Currency’s managing director, Helen Scott who will be speaking at the event comments: “We decided to hold this event as the credit crunch is really starting to bite and all local businesses could do with a helping hand and some useful advice on how to save money in this current climate. We are delighted to be working alongside UK Trade & Investment and Leeds Chamber of Commerce and I am sure our attendees will come away with some really useful tips which will help grow their foreign trade.”
Attendees of the event will also get the opportunity to network with other managing and finance directors during the course of the morning.
The event takes place on Thursday July 3rd at the Radisson Hotel, Leeds 7.30 - 9.00am
The speakers will be discussing the following:
· Recognise opportunities as the credit crunch bites (Colin Russell, UK Trade & Investment)
· Benefiting from the effect of the exchange rates on the pound - (Colin Smith, former head of foreign exchange Commerzbank)
· Dispute resolution on overseas trades (Gerard Khoshnaw, Head of Commercial Dispute Resolution, The Law Society’s Cross Border and International Reference Group, Nabarro)
· Look for an opportunity in foreign VAT recovery (Martyn Redman, Chairman, Eurocash Corporation)
· Reduce the costs dramatically from your foreign currency transactions (Helen Scott, managing director, 4X Currency Corporation)
4X is able to offer competitive rates because it has developed the first unique online foreign exchange system (4X Dealer™) which provides the end user with live dealing rates, and the ability to complete the currency purchase themselves. It’s free and easy to use and it allows the user to instantly make currency purchases without the need for long, complicated and costly phone calls to banks or other provider
4X won the Business of Tomorrow award at the Brighton and Hove Business Awards 2007 (BAHBAS)
4X operates in a unique and price transparent way, providing exchange rates that customers can actually obtain at that particular time, rather than rates that are merely indications based on the bank’s interbank rate
4X is a registered overseas money provider with HM Revenue and Customs
4X Dealer™ can process 2,000 trades per second and transfers can be made to any worldwide bank
4X Dealer™ has been designed especially with the business market in mind to enable companies to receive live, up-to-the-minute, market rates so that they select the most favourable ones available before making a transfer.
4X Currency Corporation, the world’s first online currency exchange company, has launched a new facility to offer its customers the opportunity to buy foreign currency up to twelve months before all the money needs to change hands, therefore removing any worries of fluctuations in the volatile currency market.
The new forward trading service will provide small businesses, which trade overseas, an easier way to predict and manage their cash flow more efficiently. The service has been developed as an enhancement of the company’s 4X Dealer platform. The new facility accurately updates the user with currency rates every five seconds.
Helen Scott, managing director of 4X Currency comments: “We have had our developers working on this project for some time and it means that if a business knows in six months that it will be receiving $200,000 from one of its American customers, it doesn’t have to worry about exchange rates anymore. Rather than take a chance on what $200,000 will be worth in six months time the business can decide to sell the dollars forward by six months.
“The business will then know exactly how many pounds it is going to receive for its dollars. It also works the same way if a business knows it has to pay for materials in a foreign currency. A business can buy the currency now on a forward contract and then it knows exactly how many pounds it has to pay, no matter what happens to the exchange rates in that time.”
The future date for the trade is agreed at the time of the forward contract. 4X offers its customers forward contracts of between one week and a year.
Helen adds: “The main benefit of our system is that clients can actually watch the changing rate themselves and when they are happy they click their mouse and that’s the rate they get. Forward rates are actually calculated by taking the current spot rate and applying a premium or discount to it, which is based on the interest rate difference in the two currencies. Customers just need to place a small deposit of 10% when the contract has been agreed and then the remaining 90% is still available to the business as capital to help it grow.”
Martin Lee, director at Mountainsun comments: “Our bankers offer a first rate service, but their rates are not as competitive and harder to access than 4X Currency’s. As a company we are trying to do everything electronically since that expands the day and we can do things when it suits us rather than when it suits others. 4X Currency has a real no nonsense attitude and you get an immediate response, which is exactly the way we like to do our business. To support our week-in week-out activities in foreign countries we need a quick, accessible and reliable service, which is just what we get from 4X Currency."
4X Currency (www.4xcurrency.com) is able to offer competitive rates because it developed the first unique online foreign exchange system (4X Dealer) which provides the end user with live dealing rates, and the ability to complete the currency purchase themselves. It’s free and easy to use and it allows the user to instantly make currency purchases without the need for long, complicated and costly phone calls to banks or other providers.
· 4X Currency operates in a unique and price transparent way, providing exchange rates that customers can actually obtain at that particular time, rather than rates that are merely indications based on the bank’s interbank rate
· 4X Currency is a registered overseas money provider with HM Revenue and Customs
· 4X Dealer™ is a registered trademark of 4X Currency Corporation
· 4X Dealer™ can process 2,000 trades per second and transfers can be made to any worldwide bank
· 4X Dealer™ has been designed especially with the business market in mind to enable companies to receive live, up-to-the-minute, market rates so that they select the most favourable ones available before making a transfer.
Multimedia information:
A full set of images are available for download at 4X Currency's Flickr account:
4X Dealer forward trading screen grabs:
USEFUL QUOTES
4X Currency Quote:
Mary Sheppard finance director at 4X Currency comments: "Forward contracts enable clients to lock into an exchange rate to cover currency needs for payments or receipts at a specified future date. This removes the uncertainty of currency fluctuations and helps to protect profits. Forward contracts are useful for ensuring that sales are priced at known foreign exchange rates. The price paid for supplies in foreign currency can also be stabilised by fixing the exchange rates through a forward contract.
Forward contracts provide a further advantage as clients are not required to pay most (90% generally) of the payment for the currency until the specific future date. Clients can therefore closely match the timing of their currency payment with the timing of their payments or receipts, reducing their short term borrowing requirements and associated interest payments to lenders.
A further great advantage of taking out a forward contract with 4X is that we offer very competitive forward rates, which create further savings for you. We also make it quick, easy and secure for you to take out a forward contract using 4X’s own on line free to use foreign exchange dealing platform 4X Dealer™."
Software Tech Quote:
Darren Brown, managing director of Cybertrak who built the software for the new system comments: "We had to create a well designed trading engine with a whole range of new system improvements. We had three genuine challenges which were firstly to make the GUI (Graphical user interface) quick and easy to use whilst still fitting the corporate style, despite the extra complexities. Secondly, to ensure that the speed of forward rates delivered to customers was optimal and finally the redesigning of the application deployment to the client, which means that future updates for customers are as simple as a click of a button."
"The initial set up required the usual paper trail now insisted upon by the financial sector, but 4x were good enough to remind and support this initial step. The software package is small and neat and has the benefit of retaining beneficiary details until payment needs to be made. Logging on and dealing is very quick and easy and the rates are very much more competitive than those offered by the High Street Banks. Queries and problems are dealt with compassionately and swiftly, which again is a vast improvement on the service from the main banks. We are pleased to have moved our forex to 4X and would have no hesitation in recommending your service to other companies."
"The service provided by 4X Currency Corporation has been exemplary in that it provides that rare combination of being highly efficient, flexible in meeting client requirements and, at the same time, was significantly cost effective. A recent requirement by my company to exchange sterling into euros, undertaken by Helen Scott (Managing Director), was accomplished with helpful and constructive advice. The net result being that the transaction was undertaken at a cost considerably lower than ones quoted by commercial banks, and at a time which saved this company some £3,000."
"4X Currency Corporation has provided me with a fast and cost effective service. I have traded between EUR GBP and USD sums between $40000 and $100000. 4X rates are always closer to the spot mid rate than my bank. I have saved as much as two-thirds of the cost that my bank would have charged and can recommend 4X to other businesses."
"4X Dealer is simple to install, easy to use and when I click on the icon to deal, I am confident that I am getting a great rate. The transparency offered by the online live rate being constantly updated reassures me that I am getting the current prices direct from the FX Markets."
4X Currency Corporation, the world’s first online foreign currency exchange company, has today announced it is opening a new headquarters in Leeds.
4X which also has an office in Brighton, provides an online platform (4X Dealer™), aimed at companies and consumers who need to covert currency and transfer it overseas. Because all of the trades are done instantly online by the customer costs are kept to a minimum.
Helen Scott, managing director of 4X said: “We are delighted to be setting up a second home here in Leeds. I am especially excited as this is my home town, so I have strong emotional ties to the city. However, the real reason we decided to move to Leeds is because it’s one of the biggest financial and business communities in the UK and we wanted to make sure 4X could tap into that.”
As 4X’s services are all online it doesn’t require any middlemen in the City on high salaries doing deals like the banks, which means it can provide much cheaper currency rates to its customers.
She added: “We are currently on a quest to try and make the foreign exchange industry much more transparent. We want to ensure the public are properly informed and understand the way currency deals are completed, as it can often be confusing. We have found that a lot of people decide to use their banks to change currency as it’s the easy option but they don’t realise they can save a substantial amount of money by hunting around. Our clients can actually watch the changing rate themselves and when they are happy with it they click their mouse and that’s the rate they receive – it’s a completely transparent service.”
4X is able to offer competitive rates because it has developed the first unique online foreign exchange system (4X Dealer™) which provides the end user with live dealing rates, and the ability to complete the currency purchase themselves. It’s free and easy to use and it allows the user to instantly make currency purchases without the need for long, complicated and costly phone calls to banks or other providers.
· 4X won the Business of Tomorrow award at the Brighton and Hove Business Awards 2007 (BAHBAS)
· 4X operates in a unique and price transparent way, providing exchange rates that customers can actually obtain at that particular time, rather than rates that are merely indications based on the bank’s interbank rate
· 4X is a registered overseas money provider with HM Revenue and Customs
· 4X Dealer™ can process 2,000 trades per second and transfers can be made to any worldwide bank
· 4X Dealer™ has been designed especially with the business market in mind to enable companies to receive live, up-to-the-minute, market rates so that they select the most favourable ones available before making a transfer.
4X, based in Brighton, provides an online platform (4X Dealer™), aimed at companies and consumers who need to convert currency and transfer it overseas. Because all of the trades are done instantly online by the customer costs are kept to a minimum.
The account will be lead by Wolfstar account director Chris Norton, who commented: “We are delighted to be working for 4X, their rates and service are so good we have used it already ourselves and have recommended it to several of our other clients. Our job will be to inform businesses that trade abroad and individuals who buy or own overseas properties, that 4X offers much cheaper exchange rates by doing everything online. They don’t have any middlemen in the City on high salaries doing their deals for them like the banks and their competitors. The problem we are going to face, especially in the business market, is that many people just use their bank and don’t even realise they have a problem. If we can show people the amount of money they can save on just one transfer, we will be half way there - as it really is a no-brainer.”
Wolfstar is a new consultancy, based in Leeds, which offers its clients multiple way communications solutions combining traditional public relations with social media and word of mouth communication techniques. Wolfstar will provide 4X with a twelve month strategic communications programme to raise awareness and understanding of the dealer platform amongst businesses and consumers.
Helen Scott, managing director of 4X comments: “As a company we are calling for the foreign exchange industry to become much more transparent, to allow for fairer competition and for more accurate rates to be published. We want to inform the public properly, so they completely understand the difference between the ‘dealing rates’, which is the actual price of the transaction and ‘indications’ which are only an approximation of the real rate. Our clients can watch the rate change themselves and when they are happy with it they click and that’s the rate they get – it’s completely transparent. We have hired Wolfstar to help us pass on these messages to get more companies and consumers to venture out from using their banks.”
4X is able to offer competitive rates because it has developed the first unique online foreign exchange system (4X Dealer™) which provides the end user with live dealing rates, and the ability to complete the currency purchase themselves. It’s free and easy to use and it allows the user to instantly make currency purchases without the need for long, complicated and costly phone calls to banks or other providers.
ENDS
For further media inquiries please contact Wolfstar +44 (0)113 394 7960
Stuart Bruce +44 (0)7852 135456 Skype stuartbrucepr stuartb@wolfstarconsultancy.com
Notes to editor:
· 4X won the Business of Tomorrow award at the Brighton and Hove Business Awards 2007 (BAHBAS)
· 4X operates in a unique and price transparent way, providing exchange rates that customers can actually obtain at that particular time, rather than rates that are merely indications based on the bank’s interbank rate
· 4X is a registered overseas money provider with HM Revenue and Customs
· 4X Dealer™ can process 2,000 trades per second and transfers can be made to any worldwide bank
· 4X Dealer™ has been designed especially with the business market in mind to enable companies to receive live, up-to-the-minute, market rates so that they select the most favourable ones available before making a transfer.
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