FX Platfoms: Spread versus timing?

FX trading platforms make life easier. They help you prove to your board that you’re getting the best rates by comparing deals. Plus, exporting trade details directly to your Treasury Management System saves time and reduces hassle. It’s fast, simple, and ticks all the boxes for transparency and reporting.  

The Problem:  ‍

But here’s the thing – if you only focus on the FX rate, you’re missing the bigger picture. Sure, getting the best spread on EUR/USD feels like a win. But for a company with a USD exposure of say 1 million EUR, the timing of your trade matters way more than a slightly better rate.  

This is where the market context comes in. Do you monitor  upcoming Fed decisions, political developments and upcoming economic reports? These factors can shift exchange rates dramatically, and that’s where the real risks (and opportunities) lie.

Why It Matters:  

No FX advisor can see the future, but the good ones are always watching the markets. They track trends, follow news, and keep you informed about what’s happening. This helps you make better decisions about when to trade, not just what rate to get.  

What You’re Missing:  

If you rely only on trading platforms, you might be missing opportunities. Platforms are great for getting the a good rate right now, but they don’t help you understand the bigger market picture.

The Takeaway:  

Timing your trade well can make a much bigger difference to your bottom line than a slightly tighter spread. FX isn’t just about finding the best rate – it’s about knowing when to act and why. A good FX advisor keeps you up to date, so you’re not just reacting but making smart, strategic moves.  

Before you hit “trade” next time, think: Am I just chasing a low rate, or am I managing my FX risks like a pro?

Working with someone who understands the market pays off – and it could save you money in the long run.

If this approach appeals to you, please reach out to discuss your FX risks.

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