Foreign exchange trading has grown by leaps & bounds over the years. Following this growth, the number of forex exchange service providers has also shot up. And amidst this breakneck competition, the providers entice prospective customers with a host of offerings.
But, as a prospective customer, you need to exercise some caution before you select the provider. The provider needs to match up to certain parameters before you can choose it. So, please keep the following points in mind when you choose the forex currency exchange provider:
Authorization Is Mandatory
The central regulatory authority of the country (e.g., the Reserve Bank of India) in India should have authorized the provider to carry on business in the country. The central regulatory body authorizes an entity after several checks & balances, to safeguard the interest of those who avail of the services of the providers.
Vintage Of The Provider
The forex exchange service provider must have been in business for a long enough duration. That adds to its credibility. Find out how long it has been in business & also its scale of operation, before choosing its service.
All Information Is Available Or Not
You know that you need to pay some fees when you avail of the services of a forex currency exchange provider. What you also need to know is what exactly you are paying for. The provider can break the fees up into transaction charges, delivery fees & maybe even an administrative charge. The provider might also attract you with a low initial rate, and once you are in, add on charges to transactions you conduct with the provider down the line.
You also need to know the buy rate (what you will get when you exchange the remaining foreign currency for your home currency) & the sell rate (what you will get when you exchange your home currency for the foreign currency you require) that the provider is offering. The provider should also inform you whether the rate that they are offering is conditional or not (e.g., a certain low rate is available only if you exchange a particular amount of currency, etc.).
So, you need to keep asking questions until you feel that the forex currency exchange provider has satisfactorily clarified your doubts.
Time Taken For The Transfer
You need to take into account the time that the forex currency exchange provider is seeking to complete the transfer. The duration might vary between a few minutes to a day or two. So if your need for the transfer is very urgent & immediate, choose a provider accordingly
You have obtained a prepaid Forex card from the provider. You need to be sure that major locations across the world would accept this card. If the card’s acceptability is limited to only a few destinations, then you might need to look for another provider.
Facility For Card Protection And Replacement
You have taken a forex card from the provider. And unfortunately, the card gets stolen or misplaced when you are abroad. The provider should have the facility of blocking the card immediately so that you do not suffer any damages. Also, the provider should arrange to replace your card free of cost.
Quality Of Customer Service
This should be a crucial determinant of your choice of forex exchange provider. Is it promptly answering your doubts & questions? Does it have a valid complaints & redressal system in place? Do they focus only on getting new customers, or they are equally responsive to their existing customers as well? The provider should score positive on these counts if they are keen to provide excellent quality customer service.
To conclude, these are some key parameters you should keep in mind when you plan to zero in on a forex currency exchange. Do some fact-finding from the various available sources before you select a particular currency exchange. The results will be favorable for sure.