Foreign exchange audit

Using historical transaction data from your business, our expert team will show you how much you can save on your international payments.

Does your business operate internationally, importing or exporting globally?

If it does, your business will likely be exposed to currency risk.

The measure of risk depends on the foreign currencies you are either receiving or settling costs in and the extent to which the success of your business is tied to the international markets and your future plans for growth.

Currency risk means the value of these costs and payments can change with the fluctuating markets, which can move several per cent within a day.

What does an FX audit involve?

An FX audit is a way of measuring your business’s currency risk and assessing how and where your business can save money by managing it well.

When auditing our clients, our team will look at various data points to review historical transactions from your business over a 3, 6 or 12-month period and compare them to accurate information on the available exchange rate of the currencies you have used and traded in the past – as well as alternative service options.

What will our experts take into consideration?

Fees and charges

You need to be aware of several potential fees and charges when exchanging currency internationally.

Firstly, banks often have a transfer fee attached to sending money abroad, while there is also a fee associated with receiving money to your account in a different currency. This can be an issue if you’re receiving other currencies into your UK bank account, resulting in the bank automatically converting the funds. This could end up costing you thousands in unnecessary currency conversion fees over the course of a year.

You also need to be aware of other hidden costs. Some foreign exchange providers charge you to open a corporate account and hold various currencies, while others charge fixed fees on transfers. Currency Hedger’s fee structure doesn’t charge you to open a corporate account or to hold currencies, and there is little or no fee for business transfers.

Exchange rates

When exchanging large amounts of money, even small differences in rates can have a major impact on returns.

Market providers can vary by as much as 4.5% on major currency pairs and up to 8% on exotic currencies, significantly affecting the value received.

We source competitive pricing from a panel of 16 liquidity providers to help improve execution.

Currency tools

Exchange rate fluctuations over time can materially impact profitability, especially when invoices are settled over longer periods.

Our analysis reviews how spot and forward contracts could have been used to reduce costs and improve efficiency.

Why assess your FX risk?

A free FX risk assessment helps identify exposure and potential future cost fluctuations.

Our specialists provide insights, reports, and guidance to help estimate transaction costs and highlight savings opportunities.

This enables informed decision-making aligned with your risk appetite and objectives.

Develop your FX strategy

A currency health check provides a clear view of your exposure and transaction costs.

The audit report highlights key findings and helps build a structured FX strategy to reduce risk and improve financial control.

Need Help Managing Currency Risk?

Speak to Currency Hedger to structure your FX strategy.