Foreign Exchange

FX Rate Integrity®

If you have to ask if you're paying too much in Foreign Exchange fees, you probably are. The fact is, most executives do not even consider they can lower their fees. Can you afford to be Indifferent about it? With Blades International's Foreign Exchange Rate Integrity® you can track your foreign exchange cost and your ForEx providers' profitability.

FREE FX Rate Review

Foreign Exchange Rate Integrity®:
FX Rate Integrity® Worksheet

To be provided by company To be completed by BII
Total Amount Sold Total Markup Weighted BPS Avg   Weighted BPS Avg with fee AVG %
$50,750.00 $2,091.23 438   448 4.30
Deal Time Timezone Date Sold Currency Amount Bought Currency Amount Exchange Rate Interbank Market Rate Dollar Markup Cost Costs in Basis Points Fee Dollar Markup + Fee Costs in Basis Points + fee %
11:06AM CST 05/28/16 USD $10,000.00 YEN 1,151,300.00 115.13 120.42 $439.30 439 10.00 449.30 449 4.49
12:19AM CST 05/04/16 USD $15,000.00 GBP 9,869.72 1.5198 1.4569 $620.81 414 10.00 630.81 421 4.21
10:34AM CST 05/29/16 USD $750.00 EUR 662.66 1.1318 1.0960 $23.72 316 10.00 33.72 450 4.50
12:50AM CST 05/30/16 USD $20,000.00 CAD 24,914.00 1.2457 1.2980 $805.86 403 10.00 815.86 408 4.08
3:56AM CST 05/12/16 USD $5,000.00 GBP 3,320.49 1.5058 1.4451 $201.55 403 10.00 211.55 423 4.23

Each Trade represents, on average, a $3 million Forward FX Hedging Transaction. The red bar reflects the old markup while the blue bar refleacts the new markup. The green bar represents the significant savings.

Leading FX Transaction Cost Analysis Team
Free
FX Markup Analysis!



Most Organizations do not truly understand how much they can save through diligent monitoring of their banks FX Fee Markups. With the daily fluctuations in the currency markets, and the need to control costs, can you afford to be "Indifferent"?

With Blades International's Foreign Exchange Rate Integrity® you can track your FOREIGN EXCHANGE COSTS, give us 15 minutes, and a little bit of information in a worksheet, and we'll evaluate your current activities, assess your volume and banking relationships for free.

For a FREE evaluation of your ForEx profitability, please ask for Sharon Martin, Danielle Flores, Jack Borland
or Bob Blades.

Contact us today at +1 713.977.7400 or www.bladesintl.com.

Introducing the Borland Curve

Learn more about FX Rate Integrity® in a feature article by Jack Borland titled "Who costs your firm more?".

View Article

Middle Market FX Markup Sample

FX Rate Integrity® worked well for this middle market client which dropped their Markups from 318bps to only 50bps.

Corporate FX Markup Sample

This Corporate client was able to use FX Rate Integrity® to lower its average Markups to only 7.5bps in light of its large volume.

View Case Studies:

FX Rate Integrity® works for corporate clients, middle market companies and banks. Please see where FX Rate Integrity® worked well for our clients in the Case Studies.

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About FX Rate Integrity®

FX Rate Integrity is a service developed to evaluate Markups for your Foreign Exchange (FX) transactions with your bank and to arrange for optimal, or appropriate FX pricing, which is regularly monitored and checked to make sure the Bank provides the best possible rate at the time of the exchange.

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Popular FAQs

Answer: A service to evaluate and maintain Markups for your Foreign Exchange transactions with your Bank. The service arranges for optimal or appropriate FX pricing, which is regularly monitored and checked to make sure the Bank provides FX Rate Integrity®. FX Providers are not required by law to represent their clients in a fiduciary sense. Accordingly, FX Rate Integrity® assures you get fair pricing.

Answer: From Bloomberg, Reuters, or other systems Blades International can determine precisely—down to the minute—what the Interbank market has been on a historical trade. We are able to take your latest 3, 6, or 12 months of FX rate history and determine how much your bank has marked up your FX prices. Banks make most of their money in FX on the markup they charge you the client.

Answer: Banks either set the rate by a Foreign Exchange Trader when you call on the phone, or, if you use a bank online system, they have a formula to arrange a Markup based on various factors.

The factors determining your FX rate include (1) the amount of the FX purchase, (2) your bank relationship, (3) how much volume you typically do, and (4) the specific currency, and other market factors. If you are "Indifferent" the Bank will likely have their computer model set a Foreign Exchange Markup that is—higher—than you should pay if you have a regular flow of spot Foreign Exchange purchases and are a good bank client.

Answer: You must have your FX Provider enter a binding relationship, negotiate reasonable spreads and then review your transactions after this agreement has been signed to ensure the provider continues to honor their commitment. Blades International uses their experience and access to the market to perform these functions with FX Rate Integrity®

Answer: The two most important variables are (1) your Bank relationships and (2) the size of the FX purchase. Other factors include (3) if it is one of the major currencies, versus an exotic or less frequently trader currency, or (4) if volatility in the market has increased. With our understanding of banking and how banks set FX markups for good clients Blades International can help you get what will be a Good markup for you and a Fair Markup for the bank. There is no need to give a Bank an excessive markup due to your Indifference.

Answer: No, most Middle Market and even smaller corporate type clients do not know their FX Markups. Large corporate clients that do a lot of FX business typically have large Treasury staffs and may have very sophisticated ways to manage their FX costs. Our service is for the small and middle market clients that have over $1Million in FX flow per year and large clients that see up to $100million or more per year in FX flow.

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