There are a number of currency providers out there, and you might be wondering why you should choose Global Reach over another. We’re here to outline what services we offer, how we look after your funds, and what to look for when choosing a payment service provider.
We’ve built our reputation by keeping our customers at the core of what we do—it means customers get an excellent service and can rest assured their money’s in a safe pair of hands. We continually put our customers first, and have a track record of happy clients, which is why we’ve been awarded Feefo’s Gold Trusted Service Award. Our Global Reach team offer transparent transfers, so what you’re quoted is what you’ll pay, and we never tag on extra costs or hidden fees. Global Reach is a trading name of Foreign Currency Exchange, which is authorised as an E-Money Institution by the Financial Conduct Authority (FCA), which we’ll explain in more detail below.
People trust their payment providers to move large sums of money overseas every day, and we make sure to comply with the rules and regulations, to do the right thing by our customers. Our brand is built on reputation, and it’s important to us that we don’t damage that, or upset the Financial Conduct Authority, by mistreating customers. Whether you're making your first currency transfer or have made overseas payments in the past, it’s important you know who your provider is, and how you’re protected.
We’re answering some of the most common questions about foreign exchange brokers, outlining what rules the FCA puts in place, what we at Global Reach do to keep our client funds protected, and why we do and don’t make some of the same claims as other providers.
What is the Financial Conduct Authority (FCA)?
The Financial Conduct Authority is the regulator for 59,000 financial services firms and financial markets in the UK. The FCA wants to ensure consumers are being treated fairly, by protecting them, enhancing market integrity, and promoting competition, which ultimately benefits consumers. Global Reach is a trading name of Foreign Currency Exchange, which is authorised by the FCA.
The FCA sets out four statutory objectives for businesses:
- To promote the understanding of the financial system to the public.
- To maintain confidence in the financial system.
- To ensure customers have an appropriate degree of protection.
- Reduce the likelihood that a business could be connected with financial crime.
Along with the four statutory objectives, the FCA has 11 principles which apply to every FCA authorised business. These are standards that all of these firms need to meet—failure to do so could result in a business losing its authorisation or other action.
Here are the FCA’s 11 principles for businesses:
1. A business must operate with integrity.
2. Any FCA authorised firm must conduct itself with skill, care, and diligence.
3. A business must show it has taken reasonable care in its management and control of affairs responsibly with quality risk management systems.
4. A firm must show financial prudence by keeping adequate financial resources available.
5. A business must show proper market conduct.
6. An FCA authorised firm must keep its customers’ interests in mind and treat them fairly.
7. Businesses need to communicate clearly, fairly, and in a way which isn’t misleading in its communications with clients.
8. Any conflicts of interests between a business and its customers, or a customer and another client need to be managed fairly.
9. A firm must create relationships of trust, where any guidance is suitable for the client in question.
10. If a company is responsible for client assets, adequate protection must be in place.
11. A business must also ensure it works with its regulators in a transparent and cooperative manner, disclosing any information the FCA may require, or need to know.
By choosing an FCA authorised currency provider that complies with the above principles and statutory objectives, clients can protect themselves, and their funds.
Who are you dealing with when using Global Reach?
Global Reach is a trading name of Foreign Currency Exchange, an FCA authorised E-Money Institution—requiring us to comply with the FCA’s principles for businesses and conduct of business standards to ensure we do the right thing by our customers.
Ensuring the safety of client monies is of the highest importance to us here at Global Reach. Because of this, we’re one of the only foreign exchange brokers to have implemented a combined method of safeguarding using both segregated trust accounts and A-rated London market insurers to protect client funds. It’s important to note that only funds known as ‘relevant funds’ are safeguarded. Depending on the model operated by the currency provider you choose, this may mean your funds are not protected from when they are sent by you to the provider, to when you receive your bought currency. Many firms do not consider customer funds to be relevant funds until after the currency exchange has taken place. It’s essential when you move money overseas to understand when and how your currency provider protects your funds, so you don’t get caught out. You can find out more about this in the Global Reach factsheet below.
What are the risks of working with someone who’s not licenced?
Some currency firms operate a model which keeps them outside the scope of regulation. This may allow them to reduce costs, but it’s important to note that they don’t have to adhere to the FCA’s rules and objectives, and will have no regulatory supervision or monitoring. This is also true of ‘white labels’, where one company will market and sell the service of an underlying provider as though it’s their own. While the provider is beholden to the rules, the third party is not.
Why do some providers say things others don’t?
Each currency provider has a different approach, and at Global Reach, we want to make sure we’re never misleading or confusing. That’s why you won’t see us make claims like ‘bank-beating exchange rates’, ‘save up to 5%’, or ‘best exchange rates’, even though our rates are highly competitive. We never want to be ambiguous, and always want to ensure we’re transparent with customers, so you know exactly where you stand and feel your money’s in a safe pair of hands. We always want to remain competitive, so we offer our customers excellent rates of exchange.
When choosing a payment provider to partner with, it’s worth doing your research to see how much protection you may have. Whether you're moving a thousand pounds, or several hundred thousand, it’s important not to get caught out at a cost to yourself. If you have any further questions about Global Reach and the rules and regulations we follow, you can contact the dedicated Trade Support team who can provide you with further information, on firstname.lastname@example.org.
*T&Cs apply, visit globalreachgroup.com/bestrateguarantee