The foreign exchange market primarily refers to a market where various currencies are traded and investments and dis-investments are made all day long. The market presently is very well developed and well equipped. It is also regarded as the most dynamic and actively traded market in today’s world. Over the decades with the rapidly growing foreign exchange market has come up with a variety of services to enable smooth foreign exchange transactions. These variety of services are provided by various banks, financial institutions and traders in the foreign exchange market worldwide.
Some of the various Forex Services available in the market today are:
Transaction Process Outsourcing
TPO or transaction process outsourcing basically refers to outsourcing the foreign exchange related transactions to financial firms to make rate bookings. It is helpful to both small and large business firms who can be free from the job of dealing with banks to book their transactions and can get the best rates at zero pilferage with the hep of experts. The negotiation is done by professionals on the basis of the company. The clients can ensure complete transparency by availing the voice recordings of phone calls with the banks, they can know the exact time of the transaction to know that the rates are right.
Rate Audit is a service provided by limited financial firms where in the customer firm deals with the banks on their own and get rates fixed. However, once they have booked transactions they can check if the rates were right or the bank charged higher rates from the customers. This service is basically for past transactions. Users can check cash rates, spot rates, cancellations or forwards with the help of rate audit.
Rate check might seem to be similar to rate audit but the two are not the same. Rate check is a service for the current transactions that the businesses enter into. It refers to the real time dealing of the firm with the bank wherein the firms can check the current existing rates for various type of foreign exchange transactions and can negotiate on that basis with the banks to get the best available deal.
Another big and widely available service is that of money exchanging. This service today has a wide base due to the existence of tours and travels. People today travel around the world for a number of reasons and hence they require foreign currencies for the same. Thus, they have to exchange their domestic currencies for the foreign currencies. There are full-fledged money exchangers that are licensed by the reserve bank of India to exchange currencies. Multi-currency forex cards are also widely used for foreign travel these days.
Trade finance basically is a phenomenon widely used in international trade markets today. The exporters and importers use various financing techniques to finance their shipments. The services available are letter of credit, drafts, bill discounting etc.
Read more about Foreign Exchange Risk & Exposure