Most people making an international money transfer use their bank. It is the path of least resistance. What most people do not realise is how much that convenience costs.
The exchange rate margin: where the money actually goes
High street banks: Apply margins of 2–5% above the mid-market rate. On a £50,000 transfer, a 3% margin costs £1,500. On a £200,000 property transfer, it costs £6,000. The rate is presented as a single number — the margin is invisible.
Specialist currency brokers: Apply margins of 0.5–1.5%. On the same £200,000 transfer at 0.75%, the cost is £1,500 — a saving of £4,500 versus the bank.
Side-by-side: bank vs specialist broker
| High Street Bank | Specialist Currency Broker | |
|---|---|---|
| Exchange rate margin | 2–5% above mid-market | 0.5–1.5% above mid-market |
| Forward contracts | Rarely available | Standard |
| Market orders | No | Yes |
| Dedicated specialist | No | Yes |
| Transfer limits | Sometimes apply | None (IFA Markets FX) |
| Fee transparency | Margin hidden | Rate disclosed before commitment |
| Suitable for property purchases | No | Yes |
A worked example
Property in Spain: €350,000. Mid-market GBP/EUR: 1.17.
- Mid-market rate: £299,145
- High street bank (3% margin, rate 1.135): £308,370 — cost above mid-market: £9,225
- IFA Markets FX (0.75% margin, rate 1.161): £301,464 — cost above mid-market: £2,319
- Saving by using IFA Markets FX over a bank: £6,906
Forward contracts: the tool banks won't give personal customers
High street banks do not offer forward contracts to personal customers. If the rate moves against you in the 3–6 months between offer and completion, you absorb the full loss.
IFA Markets FX provides forward contracts up to 12 months ahead. GBP/EUR moved from 1.19 to 1.09 in an 8-month window in 2024. On a €350,000 property, that move is £26,983. A forward contract booked at 1.19 saves the buyer the entire sum.
When is a bank the right choice?
Rarely, for transfers above £5,000. The one legitimate scenario: compliance requirements mandating the transfer originate from an existing account. Even then, compare rates before committing.
What to look for in a specialist currency broker
- FCA regulation — Check register.fca.org.uk. Non-negotiable.
- Rate transparency — Broker discloses the rate and margin before you confirm.
- Forward contracts — Confirm availability for any transfer more than a week away.
- No hidden fees — Cost is the spread. Confirm no flat transfer fee.
- Dedicated specialist — Named contact for complex or large transfers.
Best specialist currency brokers from the UK
IFA Markets FX — Named specialist, interbank-aligned rates, forward contracts to 12 months, no limits, 142 currencies, 170+ countries. FCA via Sciopay Ltd (927951).
TorFX — Transfers from £2,000, personal account manager, forward contracts, cap at £500,000.
Currencies Direct — Since 1996, property focus, forward contracts, no limits.
OFX — Business high-volume payments, API integration, forward contracts.
What about Wise and Revolut?
Excellent for small, frequent transfers. Wise applies the mid-market rate — the most transparent consumer option available. But neither offers forward contracts. For above £10,000 or any property purchase, a specialist broker is the right choice.