<figure class="image"><img src="https://content.mtfxgroup.com/uploads/medium_currency_risk_blog2_7f5a6c6665_83aaf979d2.webp" alt="Line chart showing a financial trend that moves from profit to loss. The red horizontal line divides the chart, with &quot;PROFIT&quot; above and &quot;LOSS&quot; below. The blue line dips sharply below the line, indicating a loss, then begins to recover."></figure><p><span style="color:hsl(0,0%,0%);">Whether you’re selling or buying overseas, much of your business strategy should include managing the effects of exchange rate changes. Foreign currency conversion fees can also increase the cost of doing business when purchasing raw materials and making supplier payments. &nbsp;</span></p><p><span style="color:hsl(0,0%,0%);">Know how foreign exchange rates can affect your bottom line and leverage that knowledge to make the best overseas deals. You are not only exchanging goods and services, but you are also exchanging the value of one currency for another.&nbsp;</span></p><h2><span style="color:hsl(0,0%,0%);">What should you know about exchange rates?</span></h2><p><span style="color:hsl(0,0%,0%);">Exchange rates fluctuate with the economic and political fortunes of countries. Volatility in the foreign currency exchange market results from the practice of currency pairing. That pairing is based on liquidity, trading volume, and volatility. Exotic pairings like </span><a target="_blank"  href="https://www.mtfxgroup.com/tools/currency-charts/?to=huf&amp;from=cad">USD/HUF</a><span style="color:hsl(0,0%,0%);"> (US dollar vs. Hungarian Forint) can be prone to high volatility due to local or global events.</span></p><p><span style="color:hsl(0,0%,0%);">Even in developed countries, speculators like George Soros have made fortunes on foreign exchange volatility. When Great Britain was forced to devalue the pound sterling, Soros took a short position on a $10 billion trade and ended up with a profit of $1 billion.</span></p><p><a target="_blank"  href="https://www.mtfxgroup.com/tools/live-exchange-rates/">Exchange rates</a><span style="color:hsl(0,0%,0%);"> can also have an indirect effect on a business, even when the business doesn’t deal in foreign exchange. For example, transportation costs are directly connected to the price of fuel. When fuel prices and foreign currency exchange rates fluctuate, the cost of doing business can be indirectly impacted.</span></p><p><span style="color:hsl(0,0%,0%);">Let’s explore the more direct impacts of foreign currency exchange rates on your business.</span></p><h2><span style="color:hsl(0,0%,0%);">How can foreign exchange transactions affect your business?</span></h2><p><span style="color:hsl(0,0%,0%);">For those who need to keep their business running profitably, currency fluctuations and exchange rate movements can be a big deal if your business:</span></p><ol><li><span style="color:hsl(0,0%,0%);">Depends on income from overseas operations.</span></li><li><span style="color:hsl(0,0%,0%);">Exports or imports services and goods to/from abroad.</span></li><li><span style="color:hsl(0,0%,0%);">Must pay invoices overseas.</span></li><li><span style="color:hsl(0,0%,0%);">Interacts in any way with foreign currencies.</span></li></ol><p><span style="color:hsl(0,0%,0%);">When closing a deal worth thousands of dollars, a fluctuation one way or the other of just a few cents on either side of the bottom line can be the tiebreaker in the success of the deal.</span></p><p><span style="color:hsl(0,0%,0%);"><strong>Do the math:</strong> if you ship a load of goods to an overseas buyer worth $50,000, a fluctuation of just 3 cents in the currency exchange rate could result in a $1,500 loss—or gain--depending on which side of the deal you’re on.</span></p><h2><span style="color:hsl(0,0%,0%);">What happens when your domestic currency exchange rate falls?</span></h2><p><span style="color:hsl(0,0%,0%);">You also need to be aware of how your currency compares to the rest of the world. If your currency devalues, the decrease in value of your currency can result in the following:&nbsp;</span></p><ul><li><span style="color:hsl(0,0%,0%);">Investing in overseas operations becomes more expensive.</span></li><li><span style="color:hsl(0,0%,0%);">Your business becomes more attractive to foreign investors.</span></li><li><span style="color:hsl(0,0%,0%);">Higher costs for imported goods can reduce the profits for importers, but attract investments for exporters.</span></li><li><span style="color:hsl(0,0%,0%);">Domestically produced products become more competitive against imports.</span></li><li><span style="color:hsl(0,0%,0%);">Capital expenditure, such as importing equipment, becomes more expensive.</span></li><li><span style="color:hsl(0,0%,0%);">Servicing foreign currency debt also becomes more expensive.</span></li></ul><h3><span style="color:hsl(0,0%,0%);">But when your domestic currency exchange rate rises, the opposite occurs:</span></h3><ul><li><span style="color:hsl(0,0%,0%);">Exports become less competitive, and the exporter's profitability is reduced.</span></li><li><span style="color:hsl(0,0%,0%);">The value of an investment in foreign businesses and monetary assets decreases.</span></li><li><span style="color:hsl(0,0%,0%);">The income from foreign currency from investments is reduced.</span></li><li><span style="color:hsl(0,0%,0%);">The cost of foreign raw materials decreases, and importers gain a competitive advantage.</span></li><li><span style="color:hsl(0,0%,0%);">The value of foreign currency liabilities and the cost of servicing those liabilities are lowered.</span></li><li><span style="color:hsl(0,0%,0%);">Capital expenditure costs on imported equipment go down.</span></li><li><span style="color:hsl(0,0%,0%);">Your business is less attractive to foreign investors.</span></li></ul><h2><span style="color:hsl(0,0%,0%);">Managing the effects of exchange rate changes with MTFX</span></h2><p><span style="color:hsl(0,0%,0%);">So, no matter which side of the currency exchange equation your business is on, exchange rates can affect your business’s bottom line.</span></p><p><span style="color:hsl(0,0%,0%);">Then there is the hassle and expense that come with banks getting involved in conversion or transaction fees. Banks typically reduce their own risk in handling foreign currency by charging their premium. They frequently use an intermediary bank, which adds its transaction fee in turn.</span></p><p><span style="color:hsl(0,0%,0%);">Also,&nbsp;</span><a target="_blank"  href="https://www.mtfxgroup.com/post/pay-overseas-suppliers-in-foreign-currency/">converting foreign exchange to a local currency</a><span style="color:hsl(0,0%,0%);"> has its advantages. You either have no choice or prefer to pay your overseas customer in the local currency. However, you need a simpler, less time-consuming way to send direct, fast payments.</span></p><p><span style="color:hsl(0,0%,0%);">Maybe you have a long-range overseas business expansion plan, but want to wait for a more favourable foreign exchange rate to make your big investment move. With a </span><a target="_blank"  href="https://www.mtfxgroup.com/business/risk-management/forward-contracts/">forward contract</a><span style="color:hsl(0,0%,0%);">, you can get today’s lower rate for future purchases without worrying about market volatility.</span></p><p><span style="color:hsl(0,0%,0%);">MTFX does all of the above and more for&nbsp;</span><a target="_blank"  href="https://www.mtfxgroup.com/industry-solutions/business/">small and medium-sized businesses</a><span style="color:hsl(0,0%,0%);"> across various industries. You will also receive up-to-date foreign currency exchange rates as well as daily/weekly/monthly market analysis from experts who are dedicated to helping your business stay ahead of foreign currency exchange volatility.</span></p><p><a target="_blank"  href="https://online.mtfxgroup.com/register/?source_page=currency-exchange-fluctuations-can-put-your-business-at-risk"><strong>Open an account with MTFX today</strong></a><span style="color:hsl(0,0%,0%);"><strong>&nbsp;to benefit from currency risk management in volatile markets and quick, easy money transfers.</strong></span></p><hr><h4><span style="color:hsl(0,0%,0%);">Popular related articles:</span></h4><ul><li><a target="_blank"  href="https://www.mtfxgroup.com/post/money-transfer-checklist-a-few-things-to-consider/">Money Transfer Checklist</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/are-you-a-multinational-then-you-should-have-a-strategic-fx-management-plan-in-place/">Best Strategic FX Management Plan</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/5-steps-in-the-overseas-payment-process/">5 Steps in Overseas Payment Process</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/4-steps-for-an-effective-hedging-strategy/">4 Steps for an Effective Hedging Strategy</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/how-to-minimize-currency-risk-for-overseas-money-transfers/">How to Minimize Currency Exchange Risk when Paying Overseas Suppliers</a></li></ul><h4><span style="color:hsl(0,0%,0%);">Sources:</span></h4><ol><li><a target="_blank"  href="https://www.investopedia.com/terms/s/short.asp">Investopedia</a></li></ol>

thumbnail_currency-risk-center.webp

currency-risk-center.webp

Currency Exchange Fluctuations Can Put your Business at Risk

<figure class="image"><img src="https://content.mtfxgroup.com/uploads/large_currency_conversion_7cb2e00ae1_16c7358fa6.webp" alt="Top-down view of a hand using a calculator next to an invoice form and a notepad listing amount, tax, and conversion—symbolizing international supplier payment calculations."></figure><p>When dealing with global suppliers, is it easier to pay them in their local currency or U.S. dollars? There may be no pat answer that applies to every country. In fact, many countries tie their currency value directly to the U.S. dollar, which can add stability to local exchange rates and speed up transactions.</p><h2>Advantages of Paying in Local Currency</h2><p>On the other hand, there are a number of advantages to paying your foreign vendors in their local currency. For example:</p><h3>Middlemen Take their Cuts:</h3><p>When you pay your foreign client in U.S. dollars, that money needs to be converted. That conversion takes place at the local bank, and everyone between you and the vendor takes their cut in transaction fees.</p><p>Then there are those irritating hidden fees, which everyone hates. In addition to the normal processing charges, there could be a conversion charge—and you can count on an exchange rate that will favor the bank.</p><h3>Conversion Takes Time and Irritates Customers:</h3><p>When the third-party institution converts the U.S. dollars, you are also looking at transaction delays and fielding impatient complaints. Paying in the local currency upfront can keep your business flowing on a reliable, even keel, keeping your suppliers happy with a faster cash flow.</p><h3>Fluctuating Exchange Rates are a Problem:</h3><p>Speaking of conversion rates, paying in U.S. dollars involves dealing with the volatility of exchange rates. From the time you are billed until the payment lands in the foreign bank account, the conversion rate differences could well eat into your profits.</p><p>As one safeguard against fluctuating <a target="_blank"  href="https://www.mtfxgroup.com/tools/mtfx-rate-calculator/">currency exchange rates</a>, your vendors, who also want to protect their profits, might pad their price quotes. That padding, of course, is in the vendor’s favor, so you’re paying more for your overseas products. Pay in local currency, and both you and the vendor know the exact price.</p><h3>Accounting Errors, Combined with Exchange Rates, can be Costly and Time-Consuming:</h3><p>Then there are those inevitable Accounting errors that take time to correct. With cross-border payments, correcting billing and payment errors can be time-consuming and costly. Sure, mistakes happen, but when correcting those mistakes includes complicated currency conversion—well, you get the picture.</p><h3>It's Easier and Simpler to Pay in Local Currency:</h3><p>Pay in foreign currency, and you can deal with problems without the additional headache of currency conversion. It’s a matter of simplifying reconciliation. If the mistake or dispute with a British vendor involves £10000 it’s simpler to just deal in pounds sterling rather than $13200, which one month ago could have been at an increased exchange rate of $13400.</p><h3>With Local Currency, there are Fewer Intermediaries.</h3><p>Your suppliers receive the funds faster. Using MTFX accelerates the process further with quick turnarounds, reducing the involvement of foreign financial institutions, and guarantees the best available <a target="_blank"  href="https://www.mtfxgroup.com/tools/live-exchange-rates/">currency exchange rate</a>.</p><h2>How MTFX Solves the Problem of Paying your Vendors in Local Currency?</h2><p>With <a target="_blank"  href="https://www.mtfxgroup.com/">MTFX</a>, as a business customer, you can send payments directly to your overseas vendors in the local currency with a secure online platform where you can send money worldwide in over 50 currencies to over 200 countries.</p><p>MTFX guarantees bank-beating exchange rates that are lower than banks. Its benefits for your business include:</p><ul><li>A business portal to manage all transactions and import invoices from your business accounting software—Manage your international payments more efficiently and seamlessly with a <a target="_blank"  href="https://www.mtfxgroup.com/business/global-payment-solutions/multi-currency-accounts/">multi-currency account</a>.</li><li>A platform for online entrepreneurs who want better access to the global market— level the playing field by paying your overseas online customers in their local currency.</li><li>Automatic <a target="_blank"  href="https://www.mtfxgroup.com/tools/currency-rate-alerts/">currency exchange rate alerts</a> to notify you when an exchange rate becomes more favorable—Don’t make that high-value deal without a timely heads up on currency exchange rates.</li><li><a target="_blank"  href="https://www.mtfxgroup.com/business/risk-management/forward-contracts/">Forward contracts</a> to lock in the desired rate for a future exchange—Stay in control of your business’s funds and protect against foreign exchange risks.</li><li><a target="_blank"  href="https://www.mtfxgroup.com/fx-daily/">Daily Market Analysis</a> and weekly Analysis from financial experts along with a monthly currency outlook—Stay current with timely updates and market intelligence in managing your currency accounts.</li></ul><h3>Let’s Get Started!</h3><p><a target="_blank"  href="https://online.mtfxgroup.com/register/?source_page=the-benefits-of-paying-overseas-suppliers-in-their-own-currency"><i><strong>Open an account </strong></i></a><i><strong>with MTFX today in just a few minutes and enjoy competitive exchange rates, low transfer fees, and easy transfers, when sending money anywhere in the world.</strong></i>&nbsp;</p><h3>Popular Related Articles</h3><ul><li><a target="_blank"  href="https://www.mtfxgroup.com/post/best-way-to-transfer-money-to-a-foreign-bank-account/">Best Way to Transfer Money to a Foreign Bank Account</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/invoice-international-clients-cheaper-faster-and-easier/">How to Invoice International clients - Cheaper, Faster and Easier</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/transferring-money-overseas-what-you-need-to-know/">Transferring Money Overseas: What You Need to Know</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/international-money-transfers-to-foreign-countries/">International Money Transfers to Foreign Countries: What You Need to Know</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/paper-cheques-still-have-a-role-in-the-digital-age-but-not-so-much-within-fx-transactions/">Paper Cheques Still Have a Role in the Digital Age--But Not So Much within FX Transactions</a></li></ul>

Top-down view of a hand using a calculator next to an invoice form and a notepad listing amount, tax, and conversion—symbolizing international supplier payment calculations.

medium_large_currency_conversion_7cb2e00ae1.webp

small_large_currency_conversion_7cb2e00ae1.webp

thumbnail_large_currency_conversion_7cb2e00ae1.webp

large_currency_conversion_7cb2e00ae1.webp

The Benefits of Paying Overseas Suppliers in their Own Currency

<figure class="image"><img src="https://content.mtfxgroup.com/uploads/medium_5_step_overseas_payment_a5b783232a_2117ec2dcf.webp" alt="fingerprint hero image"></figure><p>In an overseas payment transaction where you receive money from customers, the process is relatively straightforward. Your customers pay through a variety of methods and portals, and the money shows up in your account.</p><p>However, your outbound <a target="_blank"  href="https://www.mtfxgroup.com/transfer-money/">overseas payments</a> to suppliers, employees, etc., are more complicated. Your payments run a gauntlet of verification, foreign exchange filters, and compliance checks, which slow everything down and add additional costs of doing business.</p><p>You can either run that gauntlet on your own, or you can use a payment platform to automate and expedite your cross-border payments. The process includes the following basic steps:</p><h2>1. The Beginning, or the “Who”</h2><p>The payer has to collect all the necessary information on the payee or the beneficiary of the payment. That includes the person’s, or the company’s name, how they prefer to receive the funds, and where they are located. That will determine what country and currency in which they will receive the payment.</p><p>Then there is the added complication of how different countries identify their banks and what additional information they need as regards members’ accounts. For example, in the US, the payer needs to know the receiver’s bank routing number as well as the account number. Most of Europe, on the other hand, requires a single international bank account number for <a target="_blank"  href="https://www.mtfxgroup.com/business/global-payment-solutions/international-payments/">money transfers</a>.</p><p>The good news is that most internationally compatible payment systems account for those differences by altering required submission fields. That is where an automated third-party payment platform can help.</p><h2>2. Knowing What the Exchange Rate is</h2><p>Big banks offer an apparent convenience of static <a target="_blank"  href="https://www.mtfxgroup.com/">foreign exchange rates</a>. Those rates do not account for fluctuations in FX values, and the banks typically apply an inflation factor or “spread.” They make money on the spread, and they conceal those earnings in service and fee charges.</p><p>MTFX, on the other hand, updates <a target="_blank"  href="https://www.mtfxgroup.com/tools/live-exchange-rates/">currency exchange rates</a> in real-time. Users can use the latest exchange rates to approve this stage of the payment before continuing with the transaction.</p><h2>3. When and Where the Payer Submits the Payment</h2><p>At this point, the payer is ready to press the “send” button. This last step involves the user’s close check of all the transaction-specific data. The data must include everything the overseas country requires as compliance details necessary for processing the payment.</p><p>This step is a summary of the transaction. It itemizes the reasons for the fund transfer—the goods or services being purchased—and it confirms the exact amount of funds required in exchange for the latter.</p><p>This review of transaction details represents the tally of charges and must take into account accompanying local taxes and FX exchange rates described above.</p><h2>4. Why Compliance Checks and Screening are Necessary</h2><p>This is a screening stage where the host bank or payment provider like <a target="_blank"  href="https://www.mtfxgroup.com/">MTFX</a> initially receives the payment. The screening includes checks that include region-specific tests, including safeguards against identity fraud, among other protections.</p><p>Compliance checks, while varying slightly from country to country, usually include cross-checking transaction information for consistency with existing records as well as verifying the identity of the beneficiary of the payment.</p><h2>5. The End: The Transaction is Finished</h2><p>This is the end of the transaction. Funds are paid to the beneficiary’s account.</p><h2>Not so Fast. There could be an Additional Waiting Period…</h2><p>Even when the agreed-upon funds arrive in the beneficiary’s account, some countries impose a break in the process before the account holder can actually access the money. Many banks in Asia or Africa, for example, commonly ask for additional proof of a transaction invoice before they execute the final transaction.</p><h2>Expediting the Process with MTFX</h2><p>The 5-step process described above can move at a snail’s pace or lightning-fast, depending on whether multiple parties perform the steps manually, or if it is automated and transparent.</p><p>For example, if you passively accept bank FX exchange rates as a cost of doing business, you might be paying additional fees if that bank has to outsource its currency exchange services. Service fees and ancillary charges could add as much as 7 percent to your payment.</p><p>On the other hand, you can automate and expedite your overseas payments through a payment platform like MTFX. From start to finish your overseas business process can be simplified and unencumbered by high costs, delays, and compliance complications.</p><p>To learn more about how our platform does that, <a target="_blank"  href="https://online.mtfxgroup.com/register/?source_page=5-important-steps-in-the-overseas-payment-process">contact us</a>. We’ll save you time, money, and headaches and help widen your overseas business footprint.</p><h3><strong>Popular related articles; </strong></h3><ul><li><a target="_blank"  href="https://www.mtfxgroup.com/post/best-way-to-transfer-money-to-a-foreign-bank-account/">Best Way to Transfer Money to a Foreign Bank Account</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/invoice-international-clients-cheaper-faster-and-easier/">How to Invoice International clients - Cheaper, Faster and Easier</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/transferring-money-overseas-what-you-need-to-know/">Transferring Money Overseas: What You Need to Know</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/international-money-transfers-to-foreign-countries/">International Money Transfers to Foreign Countries: What You Need to Know</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/the-best-way-to-pay-your-global-workforce/">The Best Way to Pay your Global Workforce</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/paper-cheques-still-have-a-role-in-the-digital-age-but-not-so-much-within-fx-transactions/">Paper Cheques Still Have a Role in the Digital Age--But Not So Much within FX Transactions</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/still-using-a-bank-for-your-fx-business/">Still Using a Bank for your FX Business - Blog MTFX</a></li></ul><p><span style="color:hsl(0,0%,0%);">To ensure compliance, choose a platform that adheres to global AML and KYC regulations. Automated compliance tools and fraud detection systems can simplify the process and minimize risks.</span></p><h4><span style="color:hsl(0,0%,0%);">10. What are the benefits of using a multi-currency account for international payments?</span></h4><p><span style="color:hsl(0,0%,0%);">A multi-currency account allows businesses to hold and manage funds in multiple currencies, reducing conversion fees and processing times. It also provides flexibility for transactions with global suppliers and clients.</span></p>

small_medium_5_step_overseas_payment_a5b783232a.webp

thumbnail_medium_5_step_overseas_payment_a5b783232a.webp

medium_5_step_overseas_payment_a5b783232a.webp

5 Important Steps in the Overseas Payment Process

<figure class="image"><img src="https://content.mtfxgroup.com/uploads/medium_forign_exchange_market_9427391cf1_367b49976b.webp" alt="Two people analyzing financial data on a laptop screen, which displays colorful charts and graphs, representing foreign exchange trends and market insights."></figure><p>If you do business outside Canada, you need to know about currency foreign exchange or FX. If you are leaving FX rates and charges to chance, you are likely being overcharged.   &nbsp;</p><p>The good news is that where small businesses were once at the mercy of big financial institutions, modern technology has leveled the playing field in the world of FX. A basic understanding of how FX works will help you get a handle on your cash flow, keep more of your profits, and satisfy your overseas customers.&nbsp;</p><h2>The FX Market Is Huge &amp; Misunderstood</h2><p>The <a target="_blank"  href="https://www.mtfxgroup.com/tools/live-exchange-rates/">FX market</a> is bigger than Wall Street and the U.S. Federal Reserve combined. It is the largest financial market in the world in terms of trading volume (about $6.6 trillion). Unlike Wall Street, it is neither regulated by governments nor well understood by laypersons. &nbsp;</p><p>As an “immaterial entity” it provides a platform to exchange, buy and sell, and speculate on the currency. Most of the trading in FX is purely speculative. The most spectacular example of FX dealing earning someone a fortune was George Soros’s famous bet against the British pound in 1992. He won the bet and profited over $1.25 billion.&nbsp;</p><h2>What Affects The FX Market And Currency Value</h2><p>Currency is just another tradable good. It obeys the law of supply and demand, and its value falls and rises based on a variety of financial, political, and psychological factors. Along with those intangibles, changes in the value of a country’s currency depend on what is happening both inside and outside that country.  &nbsp;</p><p>Bank interest rates, unemployment, inflation, and local monetary policy and regulation also affect the currency’s value.  External <a target="_blank"  href="https://www.mtfxgroup.com/tools/economic-calendar/">market trends</a>, the international situation, and a country’s international reputation among speculators and investors also pile on to make currency value volatile.&nbsp;</p><h2>Exchange Rates Fluctuate, But International Exchange Stays Relatively Static</h2><p>A line graph of the value of a currency would look similar to the ups and downs of the Dow Jones daily average. Nevertheless, big financial institutions usually offer a relatively static and stable exchange rate for international payments. They can do that by adding an inflation factor that absorbs the ups and downs of the FX market.&nbsp;</p><p>Nevertheless, the FX market is stacked against businesses doing cross-border transactions. Businesses, rather than money exchangers, take all the risks because large financial institutions are autonomous. They are not required to provide transparency and only operate in their own self-interest.&nbsp;</p><p>&nbsp;</p><div class="raw-html-embed"><p style="text-align: center;"><a target="_blank"  rel="noopener" href="/#DynamicTable" target="_blank" class="btn cmn-register-btn cmn-blue" data-anchor="#DynamicTable">Check The Latest Currency Exchange Rates</a></p></div><p style="text-align:center;">&nbsp;</p><h2>The Ground Rules Are Changing, And The Tools Are There</h2><p>Returning to the good news, technological advances since George Soros broke the bank of England have leveled the playing field, and even the smallest business startups can get a handle on international FX.  The handle relies on getting a grip on understanding the FX system. &nbsp;</p><p>For the small business owner, the understanding begins with tapping into a stable and reliable payment process and finding a better international payment solution.  That solution will give small business owners more control over their revenue streams through real-time insight into currency exchange rates. That insight, in turn, will ultimately lower overseas prices for the customer and increase profits for the business.&nbsp;</p><h2>Are You Buying Or Selling Your Currency?</h2><p>When conducting cross-border business, you need to know whether your transaction involves FX buying or selling; i.e., what is the <i>base currency? </i>In FX trading, currency values appear in terms of a currency pair. The first currency in the pairing is the base currency. So the base currency determines the exchange rate quoted in a particular country. &nbsp;</p><p>For example: In trading <a target="_blank"  href="https://www.mtfxgroup.com/tools/currency-charts/?to=usd&amp;from=cad">CAD/USD</a>, the Canadian dollar is the base currency. The US dollar in this instance would be the secondary. Banks use those pairings to either bid on what they will pay for the base currency, or offer a selling price using the secondary currency. &nbsp;</p><p>So the difference between a bank’s bid and its offer to buy is the spread. The spread is the amount the bank will make on the deal. They influence that amount by bidding or offering on the low or high side, depending on how much they will save or earn. That difference hides in plain sight as the transaction fees, which accompany overseas business deals.&nbsp;</p><h2>The Key Is To Reduce The Spread</h2><p>Currency exchange rate fluctuations and opaque bank practices notwithstanding, you don’t have to be George Soros to gain control of your overseas cash transactions. You can trade at a <a target="_blank"  href="https://www.mtfxgroup.com/">lower fee</a> than offered by banks and FX brokers using a <a target="_blank"  href="https://www.mtfxgroup.com/"><strong>payment platform</strong></a><strong>.</strong>&nbsp;</p><p>Payment platforms have emerged as popular tools in today’s tech-savvy and consumer-oriented financial markets. Those platforms are an especially attractive option for businesses with finite resources and who would rather focus on making their product more competitive—without the encumbrance of keeping track of FX fluctuations and having to pass high transaction costs to their customers.&nbsp;</p><h2>Want To Learn More About Our Payment Platform?</h2><p>See how our payment platform can remove FX volatility from your overseas business cash flow. Contact us and we’ll show you how you no longer have to sacrifice revenue just to gain a better footing in your overseas markets. &nbsp;</p><div class="raw-html-embed"><p style="text-align: left;"><a target="_blank"  rel="noopener" href="https://online.mtfxgroup.com/register/?source_page=understanding-the-foreign-exchange-market" target="_blank" class="btn cmn-register-btn cmn-blue" data-anchor="?source_page=Understanding-The-Foreign-Exchange-Market">Sign Up Now</a></p></div><p>&nbsp;</p><p><strong>Popular related articles;</strong></p><ul><li><a target="_blank"  href="https://www.mtfxgroup.com/post/4-steps-for-an-effective-hedging-strategy/">4 steps for an effective hedging strategy</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/5-steps-in-the-overseas-payment-process/">5 Steps in Overseas Payment Process</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/are-you-a-multinational-then-you-should-have-a-strategic-fx-management-plan-in-place/">Best Strategic FX Management Plan&nbsp;</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/the-keys-to-managing-risk-in-volatile-markets/">The keys to managing risk in volatile markets&nbsp;</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/money-transfer-checklist-a-few-things-to-consider/">Money transfer checklist</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/is-billing-foreign-customers-in-their-local-currency-better/">Is Billing Foreign Customers In Their Local Currency Better?</a></li></ul>

Two people analyzing financial data on a laptop screen, which displays colorful charts and graphs, representing foreign exchange trends and market insights.

small_medium_forign_exchange_market_9427391cf1.webp

thumbnail_medium_forign_exchange_market_9427391cf1.webp

medium_forign_exchange_market_9427391cf1.webp

Understanding The Foreign Exchange Market

<figure class="image"><img src="https://content.mtfxgroup.com/uploads/medium_blogimgorangefreenpaid_179089f522_27290001ee.webp" alt="Illustration of a mobile phone sending digital coins to a wallet, with a green ‘PAID’ stamp on the left, symbolizing fast and easy international invoicing."></figure><p>You sell a great product. It does well outside your borders and your prospects for business expansion look good. </p><p>But you have a choke point in your payment process. Payments on your invoices are slowed, and sometimes fluctuations in <a target="_blank"  href="https://www.mtfxgroup.com/tools/live-exchange-rates/">currency exchange rates</a> pose a risk to the value of your product—and put repeat orders at risk.</p><p>Your overseas payment process may be the traditional method where you invoice in Canadian dollars or USD dollars, but your European customers shoulder the inconvenience (and cost) in navigating foreign currency exchange and <a target="_blank"  href="https://www.mtfxgroup.com/tools/mtfx-rate-calculator/?from=cad&amp;to=eur">conversion for their euros</a>.</p><p>That process forces your customers to figure out their local currency equivalency to the amount billed on your invoice. Then to settle the account they must pay you with an international wire transfer.</p><h2>Banks are Cutting into your Profits&nbsp;</h2><p>In between your overseas customer’s bank account and your business bank account, there are others taking their cut. That process is complicated as intermediaries add service charges and exchange rate fees. Consequently, fluctuating foreign exchange rates and payment processing fees at overseas banks reduce the number of funds you receive.</p><p>Your overseas customers shoulder the burden of additional cost and effort. That burden translates into the diminished quality of their experience with you.  Meanwhile, you take a concurrent hit when exchange rates go short and your budget projections, slide past the red line of profitability. Small businesses are vulnerable to cash flow glitches, and often fail when too much of the latter occurs.</p><h2>Global Collections are the Solution &nbsp;</h2><p>There is a way to handle your overseas business payments without hiring local talent to engage in bank negotiations and setting up multiple bank accounts.  It is called Global Collections.</p><p>Global Collections is an optimized accounts receivables solution. Here is how the process works, and why it is seamless:</p><ul><li><a target="_blank"  href="https://www.mtfxgroup.com/">MTFX</a> provides your company with local overseas account numbers in the locations where your customers reside.  We do that through international bank account numbers, in over 20 currencies.</li><li>Your overseas customers now have the option to pay you in their home currency. They pay your invoice immediately and conveniently. The burdens of currency conversion, and giving correspondent banks a percentage of the payment are lifted. You compete on a more even playing field.</li></ul><p>You provide this service to your customer without increasing your overhead. You do not have to do the legwork or pay someone to do the overseas bank negotiations in a foreign market. MTFX already has the technology and infrastructure in place.</p><h2>Your International Cash Flow Risk Management is now Under Control </h2><p>Now that you have streamlined your overseas payment process, you can get a better handle on your international cash flow and volatile exchange rates. As the local currency payments begin accumulating in your accounts, &nbsp;you can convert those funds to your own currency and shift them back home.  This is where a handy residual benefit kicks in Controlling FX transactions allows you to pocket optimal exchange rate margins, rather than charging your customers up to 4% in international wire exchanges. &nbsp;</p><p>So, the Global Collections feature accommodates both your customer’s expectations, as well as helps you maintain your own overseas cash flow on a flexible, even keel.&nbsp;</p><h2>Stop Stifling your Foreign Exchange Cash Flow&nbsp;</h2><p>MTFX is your full-service platform for <a target="_blank"  href="https://www.mtfxgroup.com/business/risk-management/forward-contracts/">risk management</a> in overseas transactions. Contact us and learn how our payment platform can expedite your overseas collections, give your customers flexible payment options, and eliminate exorbitant bank charges and fees.&nbsp;</p><p><a target="_blank"  href="https://online.mtfxgroup.com/register/?source_page=how-to-invoice-international-clients---cheaper,-faster-and-easier"><i><strong>Open your account</strong></i></a><i><strong>&nbsp;in less than five minutes and</strong></i><strong>&nbsp;</strong><i><strong>we'll show you how foreign exchange currency risk management can protect as well as increase your business's profits.</strong></i></p><p><strong>Popular Related articles;</strong></p><ul><li><a target="_blank"  href="https://www.mtfxgroup.com/post/managing-paying-income-taxes-abroad/">Managing Paying Income Taxes Abroad</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/how-exchange-rates-can-affect-your-business/">How Exchange Rates can Affect your Business?</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/global-collections-services-make-for-loyal-overseas-customers/">Global Collections Services Make for Loyal Overseas Customers</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/ensure-better-overseas-payment-processes-with-a-third-party-digital-platform/">Ensure Better Overseas Payment Processes with a Third-party Digital Platform</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/stop-wasting-money-paying-overseas-suppliers-in-us-dollars/">Stop wasting money paying overseas suppliers in US dollars - there are more cost-effective alternatives</a></li></ul>

Illustration of a mobile phone sending digital coins to a wallet, with a green ‘PAID’ stamp on the left, symbolizing fast and easy international invoicing.

small_medium_blogimgorangefreenpaid_179089f522.webp

thumbnail_medium_blogimgorangefreenpaid_179089f522.webp

medium_blogimgorangefreenpaid_179089f522.webp

How to Invoice International clients - Cheaper, Faster and Easier

<p>Explore strategies to streamline cross-border payments, manage FX risk, and grow your global operations. See how MTFX supports businesses with smarter, cost-effective payment solutions.</p>

Business Blogs

Explore smarter business money transfer solutions with MTFX. Gain expert insights on international payments, currency exchange, compliance, and cutting transfer costs.

Guides & Tips for Business Money Transfers with MTFX

United States flag icon representing USD or U.S. payments

us.svg

European Union flag icon representing EUR or EU-wide transactions

eu.svg

United Kingdom flag icon representing GBP or UK-based transactions

gb.svg

Japanese flag icon representing JPY or Japan-based transactions

jp.svg

German flag icon representing EUR or Germany-based transactions

de.svg

French flag icon representing EUR or France-based transactions

fr.svg

Italian flag icon representing EUR or Italy-based transactions

it.svg

Spanish flag icon representing EUR or Spain-based transactions

es.svg

Swiss flag icon representing CHF or Switzerland-based transactions

ch.svg

UAE flag icon representing AED or UAE-based transactions

uae-flag-icon.svg

Chinese flag icon representing CNY or China-based payments

cn.svg

Indian flag icon representing INR or India-based payments

in.svg

Canadian flag icon representing CAD or Canada-based payments

ca.svg

Hong Kong flag icon representing HKD or Hong Kong-based payments

hk.svg

Australian flag icon representing AUD or Australia-based transactions

au.svg

Singapore flag icon representing SGD or Singapore-based payments

sg.svg

Polish flag icon representing PLN or Poland-based transactions

pl.svg

South African flag icon representing ZAR or South Africa-based payments

za.svg

New Zealand flag icon representing NZD or New Zealand-based transactions

nz.svg

Turkish flag icon representing TRY or Turkey-based payments

tr.svg

<p>With MTFX, you can send money to over 190 countries in 50+ currencies—quickly, securely and at competitive rates.</p>

Popular currencies and destinations for sending money from Canada

<p>Create an account in minutes and make a transfer today.</p>

blogs-cta-A

Send money abroad

<p>Experience seamless global payments and discover how simple money transfers can be.</p>

blogs-cta-B

Best rates, low fees, and quick transfers

<p>Access tools to help you track, manage, and simplify your global payments.</p>

Person typing on a laptop displaying a world map with glowing connection points, symbolizing global communication, data flow, or international money transfers.

medium_11523056 (1).webp

small_11523056 (1).webp

thumbnail_11523056 (1).webp

11523056 (1).webp

blogs-cta-C

Stay connected <br> Keep updated <br> Make informed decisions

<p>MTFX’s rates are fair and transparent, which can save you thousands on your currency transfers. The rate you receive is based on the interbank market rate and, because we transact large volumes, we pass on the savings to our clients. Compare our rates to those of your bank and see what the difference really is. you will be surprised at how much you can save.</p>

Why are MTFX’s rates so competitive?

<p>We maintain a low, standard transfer fee of $15 for transactions less than $10,000. Any transactions over $10,000 will have no fees. Compare this fee with that of your bank, which will typically charge you $40-50 in transfer fees.</p>

What does MTFX charge to send money transfers?

<p>Dealing with MTFX is easy. Simply register with us online for instantaneous access to our online dealing platform. After you complete your registration, an MTFX currency specialist will call you to discuss your transfer and make sure the platform is set up and customized to meet your needs. For more information about our online platform, <a href="https://www.mtfxgroup.com/transfer-money/?_ga=2.192877219.829883386.1726729097-1644942358.1714661560">click here</a><a href="https://beta.mtfxgroup.com/transfer-money/">.</a> You can book your exchange rates with us 24/7, manage your beneficiaries, and send funds seamlessly from any device. We have made it that simple!</p>

What is the process of working with MTFX?

<p>Yes, MTFX supports both personal and business transfers, providing tailored solutions for a variety of transfer needs.</p>

What things to consider when buying overseas property?

<p>Yes, creating an MTFX account is quick and easy, giving you access to secure, efficient transfer options and additional services.</p>

What countries does MTFX support for property purchase transfers?

What documents do I need to transfer money for buying property?

Frequently asked questions

<p>Your daily snapshot of the Canadian dollar’s performance and events influencing its value.&nbsp;</p>

Man using a tablet in a modern kitchen with city skyline view, representing convenient access to competitive exchange rates with MTFX.

image 61 (1).svg

Canadian Dollar Daily Update

<p>Explore the week ahead with insights into trends shaping the Canadian dollar’s trajectory.</p>

Canadian Dollar Weekly Outlook

<p>Get a comprehensive forecast of the Canadian dollar’s movements for the month.&nbsp;</p>

Canadian Dollar Monthly Update

Read our latest FX forecasts

<p>Your money goes further with our competitive rates and transparent pricing.</p>

newsletter-default

Save more with every transfer

<p>Discover practical guides on sending money abroad, paying tuition, buying property overseas, and more. Learn how MTFX helps individuals save on international transfers with better rates.</p>

Personal Blogs

Discover the smartest ways to send money abroad with MTFX. Get insights on fees, savings, and tips for secure, fast personal transfers across 190+ countries in 50+ currencies. 

Secure & Fast Personal Money Transfers | Tips & Insights - MTFX

<p>Discover global trends, inspiring customer stories, and how to make the most of your international money transfers.</p>

Explore expert content on tag from MTFX Group. Get trusted advice, tips, and trends to navigate global payments, finance, and currency exchange with confidence.

tag insights, tips & guides – MTFX Blogs

Blogs

<p>Track key currency movements and plan your transfers with confidence.</p>

<p style="margin-left:0px;">Key economic events, announcements, and news.</p>

Economic Calendar

Daily Currency Performance

Monthly Currency Performance

FX Daily

FX Weekly

CAD Forecast

USD Forecast

Weekly Currency Performance Table

<p>Stay ahead of the markets with daily and weekly currency updates and monthly forecasts.</p>

Sign up for our newsletters

Currency market updates

FX tools at your fingertips

A panoramic view of Scottsdale's desert landscape, featuring modern homes nestled among cacti and rocky terrain under a clear blue sky.

large_Scottsdale_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_f8acd24483.webp

medium_Scottsdale_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_f8acd24483.webp

small_Scottsdale_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_f8acd24483.webp

thumbnail_Scottsdale_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_f8acd24483.webp

Scottsdale_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_f8acd24483.webp

A suburban view of Glendale, highlighting residential neighborhoods with tree-lined streets and the distant backdrop of desert mountains.​

large_Glendale, Arizona-A Brief Guide for Canadians Buying Property in Arizona.webp

medium_Glendale, Arizona-A Brief Guide for Canadians Buying Property in Arizona.webp

small_Glendale, Arizona-A Brief Guide for Canadians Buying Property in Arizona.webp

thumbnail_Glendale, Arizona-A Brief Guide for Canadians Buying Property in Arizona.webp

Glendale, Arizona-A Brief Guide for Canadians Buying Property in Arizona.webp

A picturesque scene of Sedona's red rock formations, with towering buttes, green vegetation, and a clear sky enhancing the natural beauty.

large_Sedona_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_50971982d3.webp

medium_Sedona_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_50971982d3.webp

small_Sedona_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_50971982d3.webp

thumbnail_Sedona_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_50971982d3.webp

Sedona_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_50971982d3.webp

An aerial shot of Phoenix's skyline, featuring modern skyscrapers, sprawling suburbs, and desert landscapes extending to the horizon.

large_Phoenix_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_77f5691b05.webp

medium_Phoenix_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_77f5691b05.webp

small_Phoenix_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_77f5691b05.webp

thumbnail_Phoenix_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_77f5691b05.webp

Phoenix_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_77f5691b05.webp

A vibrant view of downtown Tucson, showcasing historic adobe buildings, palm trees, and the backdrop of the Santa Catalina Mountains.

large_Tuscon_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_e0d546436b.webp

medium_Tuscon_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_e0d546436b.webp

small_Tuscon_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_e0d546436b.webp

thumbnail_Tuscon_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_e0d546436b.webp

Tuscon_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_e0d546436b.webp

A scenic image of Lake Havasu with calm blue waters, the London Bridge, and surrounding desert hills under a sunny sky.

large_Lake_Havasu_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_87746bf4f9.webp

medium_Lake_Havasu_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_87746bf4f9.webp

small_Lake_Havasu_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_87746bf4f9.webp

thumbnail_Lake_Havasu_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_87746bf4f9.webp

Lake_Havasu_Arizona_A_Brief_Guide_for_Canadians_Buying_Property_in_Arizona_87746bf4f9.webp

A Brief Guide for Canadians Buying Property in Arizona

A scenic view of Laguna Beach's coastline, featuring sandy shores, rocky cliffs, and the Pacific Ocean under a clear blue sky.

large_Laguna Beach-A Brief Guide for Canadians Buying Property in California.webp

medium_Laguna Beach-A Brief Guide for Canadians Buying Property in California.webp

small_Laguna Beach-A Brief Guide for Canadians Buying Property in California.webp

thumbnail_Laguna Beach-A Brief Guide for Canadians Buying Property in California.webp

Laguna Beach-A Brief Guide for Canadians Buying Property in California.webp

A vibrant image of San Diego's waterfront, featuring the downtown skyline, marina with docked boats, and clear blue skies.

large_San_Diego_A_Brief_Guide_for_Canadians_Buying_Property_in_California_27d4a2fe27.webp

medium_San_Diego_A_Brief_Guide_for_Canadians_Buying_Property_in_California_27d4a2fe27.webp

small_San_Diego_A_Brief_Guide_for_Canadians_Buying_Property_in_California_27d4a2fe27.webp

thumbnail_San_Diego_A_Brief_Guide_for_Canadians_Buying_Property_in_California_27d4a2fe27.webp

San_Diego_A_Brief_Guide_for_Canadians_Buying_Property_in_California_27d4a2fe27.webp

A coastal view of Orange County, displaying beachfront properties, sandy beaches, and the Pacific Ocean under a sunny sky.

large_Orange_County_A_Brief_Guide_for_Canadians_Buying_Property_in_California_b79f22315e.webp

medium_Orange_County_A_Brief_Guide_for_Canadians_Buying_Property_in_California_b79f22315e.webp

small_Orange_County_A_Brief_Guide_for_Canadians_Buying_Property_in_California_b79f22315e.webp

thumbnail_Orange_County_A_Brief_Guide_for_Canadians_Buying_Property_in_California_b79f22315e.webp

Orange_County_A_Brief_Guide_for_Canadians_Buying_Property_in_California_b79f22315e.webp

A picturesque scene of Palm Springs, featuring mid-century modern homes, palm trees, and the backdrop of the San Jacinto Mountains.

large_Palm_Springs_A_Brief_Guide_for_Canadians_Buying_Property_in_California_eb3775b93f.webp

medium_Palm_Springs_A_Brief_Guide_for_Canadians_Buying_Property_in_California_eb3775b93f.webp

small_Palm_Springs_A_Brief_Guide_for_Canadians_Buying_Property_in_California_eb3775b93f.webp

thumbnail_Palm_Springs_A_Brief_Guide_for_Canadians_Buying_Property_in_California_eb3775b93f.webp

Palm_Springs_A_Brief_Guide_for_Canadians_Buying_Property_in_California_eb3775b93f.webp

An aerial shot of San Francisco's cityscape, highlighting the Golden Gate Bridge, historic buildings, and surrounding bay waters.​