We’re pleased to report that more and more companies seem to be moving away from trusting their foreign exchange (FX) strategy and international payments to their bank or traditional FX broker.
The inherent lack of transparency that’s unfortunately all too prevalent within the FX industry is fundamentally unhelpful – and sometimes even downright damaging – for SMEs.
High street banks and large currency providers are coming under fire (and in the high-profile case of BNP Paribas in New York State, attracting phenomenally large fines) following recent news reports about the mis-selling of unnecessarily complex FX products to SMEs.
At home, this was particularly the case in the run-up to the UK’s EU Referendum last summer.
Such unethical activity in the marketplace has led to a number of legal cases in which British companies have alleged that they have been mis-sold complex FX derivatives by high street banks and FX brokers as an alternative to conventional currency hedging strategies.
At Godi, we do things differently. We believe that education is the crucial element in helping businesses to manage their foreign exchange dealings. So we adopt a knowledge first approach at all times – and we’re proud to be at the forefront of helping to promote integrity, effective trading and good practice in the foreign exchange market.
Thanks to greater competition in the finance sector, SMEs are now able to access specialist expertise and service that’s designed to suit their specific business needs.
Aided by the recent publication by the Bank of International Settlements (BIS) of its long-awaited FX Global Code – a 55-point Code of Conduct that’s expected to be adopted by professionals across the entire FX market to demonstrate their adherence to the highest ethical standards – specialist support for SMEs will hopefully also lead to much greater transparency in the industry.
This is long overdue. However, until the high street banks and large brokers decide to play fair (preferably also going a step further by signing up to the new Code), SMEs will still be at risk – not only from currency fluctuations, but also from the very FX providers that should be helping to protect their businesses.
You can learn more about banks’ and brokers’ unethical and unfair FX practices by downloading our white paper here.
Request a free review of your currency risk exposure
At Godi, we offer all SMEs a complimentary FX review, to help you better understand the effects of currency fluctuations and transaction fees on your specific business operations.
Our no-obligation review includes an assessment of your FX risk and cash flow, an audit of your current FX arrangements – including a price comparison versus your bank or current FX provider – and expert recommendations and strategies to help you to reduce your currency risk exposure.
Too many SMEs are falling victim to unfair foreign exchange business practices. Take control of your costs by taking advantage of our non-commitment FX review and audit today…
Let our friendly experts show you how you can create certainty in reliably unpredictable markets. For a complimentary, no-obligation review of your business risk and to explore your options, simply call us on 0203 326 9082 or email firstname.lastname@example.org