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Should British business choose a bank or a broker to make overseas payments?
Last Updated: 21 January 2026
When it comes to choosing a currency provider, UK companies often struggle to pick between traditional, high-street banks and specialist currency brokers. Banks are the easy option, but do they provide value for money against more expensive but more bespoke brokers?
The answer is nuanced. Generally businesses will get a better service (and often a better outcome) by turning to a specialist. Even so, many companies that position themselves as brokers won’t assist with the more complex hedging requirements that support your cashflow into the future and keep your operations efficient and free of risk.
Because they’re tailored to different markets and use case, banks and brokers provide vastly different services to their customers. This article looks at the merits of each approach when it comes to hedging strategically and achieving robust free cashflow levels.
Table of contents
What banks offer
Using banks to take care of your FX requirements seems like a natural choice. After all, businesses typically have longstanding relationships with their banks. Not needing to go through tedious rounds of paperwork and compliance legwork is a big selling point, as is internal familiarity with the trading platform, performance reporting and chains of communication.
But being the large corporations they are, banks rely on their tech infrastructures to outsource client requests. That means they don’t take care of your individual requirements and leave it to you to deal with timing and risk mitigation.
Convenience comes at a cost, too. Banks will usually charge between 2-4% on most deals booked with them, meaning you’ll often receive an uncompetitive rate that doesn’t feel close to market value. And when you’re making large transactions, the difference between a pound to US dollar deal priced at 1.33 instead of 1.35 translates to thousands of pounds on your balance sheet.
Using banks for currency transfers is the easy choice. However, relying on spot deals leaves you at the mercy of market volatility and puts your cashflow at risk.
What brokers offer
Currency brokers offer specialist advice and some additional services, meaning they could be the answer if you’re looking for a more strategic approach to risk.
Brokers position themselves as a more consultative service than major banks. They will work with you to provide guidance, risk mitigation and execute the trade, but what they don’t do is offer ongoing support after the trade has gone through.
Treasury management is about more than just being able to spot an opportunity. It is of fundamental importance to UK companies that they are insulated from long-term risks to their cashflow and profitability. Brokers are a useful resource in some cases, but they are rarely equipped to set businesses up for long-term success.
What Smart Currency offers
At Smart Currency Business, our goal is to provide comprehensive treasury management solutions. That means we go beyond the services that banks and brokers offer, providing end-to-end support throughout each payment you make, from risk identification and mitigation to trade execution and ongoing support.
We are a specialist treasury management provider, and we pride ourselves on going the extra mile. Unlike banks and brokers, Smart Currency is invested in the ongoing health of your business and measures its performance on the value we provide beyond the first trade, not just up to it.
Smart Currency Business (a wholly owned brand of Smart Currency Exchange) is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017 (FRN 504509).
FAQs
Is Smart Currency Business a currency broker?
Yes, Smart Currency Business is technically a broker of FX payments. We use comprehensive solutions and hedging strategies to execute trades you request, but we also go one step further than traditional services with long-term support through a dedicated account manager team.
Why is relying on spot FX payments risky?
Booking spot (i.e. market rate) deals leaves you vulnerable to the exchange rate on the day you need to transfer. Not hedging correctly could see your business pay more than it should on a given transfer, although there is a chance exchange rates could move in your favour.
Why should I use an FX specialist over a bank or broker?
Currency specialists like Smart Currency Business provide consultative support through the entire payments journey. We can assist with risk identification, strategic support and trade execution – something few banks or brokers do.
