When a wealth manager introduces a client to a currency broker, a clear brief is often the difference between a smooth transfer and a rushed one. This guide explains, for wealth managers, what information helps a broker act quickly, how the timing and the main tools work, and how a client's money is protected, so you can hand over with confidence. It is part of our wider adviser's guide to FX. Medlock & Thames is a currency broker, so this is general information rather than advice on what any client should do.
When does a client need a currency broker?
Currency tends to surface around life events and large one off movements: a client buying a home abroad, receiving foreign income or a pension, relocating, selling an overseas asset, or moving a significant sum across currencies as part of a wider plan. In each case the amount is usually large enough that the rate on the day, and the spread built into it, makes a real difference to the client's position. That is the point at which a specialist currency desk adds value, by managing the conversion and the transfer rather than leaving it to a bank on the day.
What information helps a broker act quickly?
A good brief is short but specific. The most useful details are the currencies involved and the direction of the exchange, the amount, and the date or window when the money is needed. It also helps to say whether the payment is committed or only possible, where the funds currently sit, and where they need to end up, including the beneficiary account. Finally, flag that the client is ready for identity and source of funds checks. With those points in hand, a desk can quote and prepare quickly, rather than going back and forth while a deadline approaches.
How does the timing work?
The right tool depends on when the money is needed and how certain the timing is. A spot contract converts at today's rate for settlement within a day or two. A forward contract fixes today's rate for a future date, which suits a known commitment such as a completion. A flexible or window forward allows for uncertain timing by letting the client draw down across a range of dates. Recurring payments, such as a pension or maintenance, can be automated. We compare the main instruments in forward contracts and currency options and set out the mechanics in how a forward contract works. The choice is the client's; the desk explains the options and executes them.
What does a transfer cost?
The headline fee is rarely the real cost. Most providers, banks included, build their margin into the exchange rate itself through the spread, the difference between the rate they buy at and the rate they offer the client. A transfer advertised as fee free can still carry a poor rate. The practical test is the all in rate: how many pounds leave the client's account against how much arrives at the other end. It is also worth asking about any receiving bank charge that could be deducted abroad, so the figure budgeted is the figure that lands. On a large transfer, the difference between a typical bank rate and a specialist rate can be substantial.
How is the client's money protected?
A currency transfer involves a broker, who arranges the transaction, and an FCA authorised institution, who receives, holds, safeguards and pays out the money. Safeguarding means the institution must keep customer funds separate from its own, so they are identifiable as the client's and protected from the institution's creditors. One point matters before you make an introduction: the Financial Services Compensation Scheme does not cover payment services or electronic money, so the protection comes from safeguarding, not the FSCS. We set out the full chain in our regulation and compliance guide.
How does a wealth manager stay involved?
An introduction does not hand the relationship over. You continue to own the client relationship and the wider plan, while the currency desk handles only the conversion and the transfer. A good desk keeps you informed at each stage and refers any question that touches the wider plan back to you. The aim is a clean division of labour: you advise on the plan, the desk executes the currency, and the client decides.
According to Medlock & Thames
In our experience, the briefs that lead to the best outcomes give us three things at the outset: the amount, the direction, and the date the money is needed. With those, we can prepare everything else around the client's timetable. The introductions that go least smoothly are the ones that reach us on the day the payment is due, when there is no longer time to plan. Early and specific beats late and detailed every time.
Frequently asked questions
What is the single most useful thing to tell the broker first?
The amount, the currencies and direction, and the date the money is needed. Those three points let a desk quote and plan immediately, and everything else can follow from there.
Will you advise my client?
No. Medlock & Thames is a currency broker. We explain how the options work and execute the transaction through FCA authorised partners, but we do not provide regulated financial advice. The decision rests with the client, alongside the advice you give on the wider plan.
Can you work alongside my plan and platform?
Yes. The currency desk handles the conversion and transfer only, fitting around the client's wider arrangements. The funds are converted and delivered to the account required, while you continue to manage the relationship and the plan.
How are introductions handled?
We work alongside professional firms and are happy to talk through how an introduction is handled, including how the client is looked after and how we keep you informed. You can see how we work with advisers on our partnership page.
Is the client's money protected by the FSCS?
No. Payment services and electronic money are not covered by the FSCS. The client's money is protected by safeguarding, which keeps it separate from the institution's own funds. This is worth understanding before making an introduction.
Related articles
This guide is part of our Intermediary Intelligence series. For the overview, read our adviser's guide to FX. To compare the instruments, see forward contracts and currency options and how a forward contract works. For how client money is protected, see our regulation and compliance guide, and for the client facing service, personal currency.
