If you're a CFO managing international payments through your bank, the amount you're overpaying depends entirely on your size - banks charge SMEs 2-3% while giving large corporates 0.1% for the exact same service. Yet the same SME could get 0.4% from a fintech in minutes. Or you can start with an FX broker with a tight spread and catch them overcharging a few months later.
This isn't about market dynamics; it's about providers exploiting your inertia. Add the cost of unhedged risk, and the real damage to your bottom line becomes clear. When comparing FX providers, whether banks vs FX brokers or Wise vs traditional FX, the landscape is deliberately opaque.
This comprehensive FX provider comparison guide reveals what each provider type really offers, their hidden agendas, and most importantly, how to choose an FX provider that matches your company's specific situation—whether you're running a £5M startup or a £500M enterprise.
Best for: Large corporates (£500M+ turnover), companies needing credit facilities, complex structured products
The Reality: Even for £100M turnover businesses, banks offer surprisingly basic transactional services. You'll get access to a platform with competitive spreads, but that's where the value ends. Despite their resources, banks treat FX as a profit centre, subsidising other services—meaning you're the product.
Pros:
Cons:
Hidden Truth: "Banks use FX margins to subsidise 'free' business accounts—if you're an SME paying 2-3% spreads, you're funding your own 'free' banking through hidden FX costs. Those free accounts aren't free; they're FX-subsidised."
Red Flag: If they can't show you live rates online or quote you spreads in real-time, you're overpaying. If they're pushing structured products as "risk management," run.
Best for: Price-sensitive businesses with simple spot/forward needs, traders comfortable managing their own risk
The Reality: The sector contains some legitimate players, but its reputation is deservedly tarnished by cowboys and sharks. While they'll beat bank pricing, many gladly sneak hidden fees on forwards or when leaving FX orders. Since their commission comes directly from your trading volume, the relationship is always about generating more trades, not managing your risk.
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Cons:
Hidden Truth: "Commission-driven model means they want you to trade more, not smarter. They're farming you for volume."
Red Flag: If they call about "market opportunities" weekly or send constant market volatility alerts urging action, they're treating you as a revenue source, not a client.
Best for: Small businesses (<£10M FX annually), payment-focused needs, cost-conscious startups
The Reality: When comparing Wise vs traditional FX providers, fintechs sell technology, not expertise. They've revolutionised payments with transparency and user experience, but if your growing business needs help managing cash flows or FX risks, their limitations become clear. Great for payments, dangerous for risk management.
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Cons:
Hidden Truth: "Great for payments, but leaving you exposed on risk management. If FX volatility can impact your margins, you've outgrown them."
Red Flag: If you're starting to notice FX gains & losses appearing in your income statement, you need risk management, which demands expertise—and that means upgrading to other providers. Fintechs can't help you here.
Best for: Mid-to-large companies needing expertise, complex hedging strategies, and one-off treasury projects
The Reality: These firms may provide genuine expertise but at a steep price—typically starting at £10-50K per engagement, often reaching six figures for comprehensive projects. Their project-based model works for specific initiatives but becomes expensive and impractical for ongoing needs. When your business evolves, you'll need to re-engage them, creating discontinuity in your risk management. Crucially, if you're a small business trying to access consultants on the cheap, you'll get junior analysts delivering boilerplate advice, not the senior expertise you actually need.
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Cons:
Hidden Truth: "The only model truly aligned with reducing your risk, but the economics don't work for SMEs. Pay their minimum and get templated advice from juniors; pay properly and spend six figures. There's no middle ground."
Red Flag: If they don't start by understanding your business model, cash conversion cycle, and risk tolerance, they're just expensive brokers.
Best for: Growing SMEs (£5-100M turnover), businesses needing expertise without enterprise costs
The Reality: A new category has emerged as the best FX provider for SMEs, combining fintech efficiency with treasury expertise. Companies like HedgeFlows bring institutional-level risk management tools and knowledge to smaller businesses at accessible price points. This model solves the expertise gap without the £50K consulting fees.
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Cons:
Hidden Truth: "The only model bringing institutional-level FX risk management to SMEs—what large corporates have had for decades, now accessible to growing businesses."
Red Flag: Make sure they have actual treasury expertise, not just good technology. Ask about their team's background in risk management.
| Factor | Banks | FX Brokers | Fintechs | Specialist Treasury | Hybrid (HedgeFlows) |
|---|---|---|---|---|---|
| SME FX Margins | 2-3% | 0.5-1% | 0.4-0.8% | n/a | 0.2-0.5% |
| Corporate FX Margins | 0.1% | 0.2-0.5% | N/A | n/a | 0.2-0.5% |
| Minimum Volume | None (but poor rates <£10M) | £100K | None | £10M+ | £500K |
| Hedging Products | Full range | Basic forwards | None | Full range | Core hedging suite |
| Risk Advisory | None (unless buying products) | Limited/Sales-driven | None | Comprehensive | Included |
| Technology/UX | Poor | Average | Excellent | Varies | Excellent |
| Execution Speed | Slow | Fast | Instant | Average | Fast |
| Transparency | Opaque | Semi-transparent | Fully transparent | Transparent | Fully transparent |
| Service Model | Transactional | Sales-focused | Self-service | Consultative | Tech-enabled advisory |
| Hidden Fees Risk | High | High | Low | Low | Low |
| Best For Revenue | £500M+ | £1-50M | <£10M | £50M+ | £5-100M |
<£1M FX annually → Wise/Revolut
£1-10M FX, stable/predictable → FX Broker
£5-100M FX, growing/complex → Hybrid Platform (HedgeFlows)
£50M+ FX, complex needs → Specialist Treasury
£500M+, multinational → Bank + Specialist
15%: Require comprehensive risk management
Every provider type has a business model that may conflict with your interests:
The key is choosing the conflict you can best manage given your situation.
Choosing an FX provider isn't about finding the perfect solution—it's about finding the right fit for your current situation. Most SME CFOs stick with expensive bank relationships out of inertia—paying 5-7x more than necessary (2-3% vs 0.4% available from fintechs)—while others choose payment-only fintechs without considering risk management implications.
The real question isn't "Who offers the best rates?" but "Whose business model best aligns with my company's FX needs?"
For growing businesses with meaningful FX exposure, the answer increasingly points toward hybrid providers who combine fintech efficiency with genuine risk management expertise—bringing both competitive pricing (0.4-0.8%) and professional treasury management to businesses that banks have historically overcharged.
The gap isn't about what's available to SMEs—it's about awareness. SMEs can access institutional-level pricing today. The tragedy is how many don't know it, continuing to subsidise their bank's other services through excessive FX margins.