Protecting margins, managing cash flow more predictably and lowering friction with overseas payments – all are top priorities for any globally trading business. And all hinge on one thing going right: your currency risk management.
Many businesses understandably don’t have the resource in-house to ensure their FX operations run smoothly, so the right partner to help manage your currency risk can be invaluable asset. But finding that partner could be easier said than done. Yes, thousands of providers across Europe offer businesses FX services, but they certainly aren’t all created equal.
The next time you speak to a provider, figure out if they’ll meet your business’ needs in just four short questions.
What support can you offer me?
There’s a fine line in any global business between FX being a liability or a competitive advantage. Genuinely insightful, tailored support keeps you on the right side of that line and separates a provider that reacts to your problems from one that will help you prevent them.
So, prioritise partners like Lumon that can give you:
- The clarity on market movements you need to make informed FX decisions, with expert insights delivered directly to your inbox.
- Confidence your strategy will work for your business; solutions should be adapted to fit your goals, not just any organisation’s.
- A dedicated account manager, reachable by phone or email whenever you need guidance.
How does your pricing work?
If a provider won’t break down their pricing for you – or can’t tell you plainly what you’ll get for your money – that’s a problem. Pricing will inevitably vary depending on the fees and margins they charge, but transparency is key.
An important distinction to make with FX providers is cheapest is rarely best. Some providers may provide a lower rate at first glance, but a lack of tailored, targeted support could end up costing your business more in the long run. The emphasis in your search should be overall value for money, not just the cheapest rate.
How do you help protect my money?
Any provider can tell you they take security seriously. What you want to know is how, and the answer ought to be specific.
A reputable FX provider will have robust protections across throughout their operations, from the tech that handles your data to the regulations that govern how your funds are held.
That means asking about:
- Encryption protocols (such as multi-factor authentication) to protect your sensitive data from unauthorised access
- Fraud detection systems that actively monitor for suspicious activity, so threats are flagged before they cost you
- Regulatory compliance. In other words, how they meet the standards set by financial authorities to ensure your funds are handled correctly
If they’re evasive about any of the above measures, that’s a red flag. Conversely, a trustworthy provider will readily answer any questions you have, providing all the detail you need.
You can find out more here about Lumon’s regulatory information and safeguarding practices.
Why should I trust you?
While any provider can make promises, what you need to see is evidence they’ve delivered on them, consistently, for businesses like yours.
Ask them to tell you more about how long they’ve been operating, the breadth of clients they serve and whether they can point to real results for them. A provider with genuine experience will share this with zero hesitation.
The partner your business deserves
The right FX partner for your business is out there – ask these questions and you’ll find them.
With 25 years of experience in currency risk management and over 2,500 clients globally, Lumon can confidently answer all four. Speak to us today for a conversation on how we can help you take control of your currency risk.
Foreign exchange markets can be volatile and movements in exchange rates may result in increased costs or reduced revenue.
Disclaimer:
Each Lumon entity is regulated for different products and services within the jurisdictions in which it operates. The regulatory protections available to customers depend on the specific service provided and the Lumon entity with which the customer contracts. To find out more about Lumon’s entities please visit Legal & Regulation – Lumon.
This publication is provided for general information purposes only and does not constitute legal, tax or other professional advice from Lumon or its subsidiaries. It should not be relied upon as a substitute for obtaining advice from appropriate professional advisers. While care has been taken to ensure accuracy, no representation or warranty is given as to the completeness or timeliness of the information.
