Business Foreign Exchange

Corporate foreign exchange refers to the trading of currencies for international goods and services, in contrast to the vast majority of FX trades, which are purely speculative. This activity represents less than 2% of the $5.3 trillion exchanged daily on the global FX market, while speculative trading accounts for the remaining 98%.

Companies that operate across borders might carry out corporate foreign exchange. Exporting to a foreign market, buying or selling assets from abroad and paying employees and consultants are just some of the international transactions that require corporate foreign exchange. Some companies still manage these FX needs manually using banks or brokers as intermediaries, a rather inefficient process that too often involves hidden charges and spreads.

The advent of Fintech has seen new alternatives emerge. Technologically advanced companies are increasingly adopting more efficient FX risk management systems, like Dynamic Hedging, that allow them to automate their FX needs with minimal effort.