What is Commercial FX

Commercial FX companies are an alternative to the traditional banking system’s wire transfers. Similarly to banks, they are connected to financial messaging systems like SWIFT, allowing them to send money internationally between bank accounts.

What differentiates foreign exchange companies and banks is essentially pricing and service. Banks have high transfer fees, sizable spreads, and do not allow private clients direct access to the FX trading rooms; commercial FX firms are basically currency wholesalers: As such, they use smaller spreads, charge no fixed fees on international wire transfers, and enable clients to receive guidance and support directly from a licensed currency dealer.