A non-bank foreign exchange company also known as foreign exchange broker or simply forex broker is a company that offers currency exchange and international payments to private individuals and companies. The term is typically used for currency exchange companies that offer physical delivery rather than speculative trading. i.e., there is a physical delivery of currency to a bank account.
Foreign exchange companies are normally distinct from money transfer companies or remittance companies and bureaux de change as they typically perform high-value transfers unlike their money transfer counterparts that focus on high-volume low-value transfers generally by economic migrants back to their home country or to provide cash for travelers.
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It is estimated that in the UK, 14% of currency transfers/payments[1] are made via non-bank Foreign Exchange Companies. These companies' selling point is usually that they will offer better exchange rates or cheaper payments than the customer's bank. The 10 largest companies in the UK by net profit as at November 2010.[nb 1]
No. | Company | Accounting Date | Pre Tax Profit |
---|---|---|---|
1 | Travelex[nb 2] | 31 December 2009 | £10m (estimate) |
2 | Moneycorp[nb 3] | 31 August 2009 | £7,264,000 |
3 | HiFX | 30 June 2010 | £3,583,000 |
4 | Currencies Direct Ltd[nb 4] | 30 June 2009 | £3,178,000 |
5 | World First UK Ltd | 31 January 2010 | £2,172,496 |
6 | Foreign Currency Direct | 31 October 2009 | £1,886,165 |
7 | Global Currency Exchange Network | 31 March 2009 | £1,717,169 |
8 | No1 Currency Ltd[nb 5] | 31 March 2009 | £1,679,483 |
9 | AFEX | 31 December 2009 | £1,166,514 |
10 | Corporate FX | 31 December 2009 | £648,000 |