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Foreign Exhange Brokering

For those of you that transfer funds, this may be of interest. I am have no connection and have never used this firm. This is not an advert for them. I asked them a question because I nearly lost money when an exchange broker went bust.

<a href="http://www.exchangerates.org.uk/info/questions/160/how-safe-is-money-while-it-is-being-transferred.html">How safe is money while it is being transferred?</a>

I assume the link will work, if not I will try something else.

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Permalink Reply by Richard & Siobain Harris on January 18, 2012 at 18:42

It didn't work, so an old fashioned copy & paste:

On Tuesday, 17th January 2012 richard harris asked the following question to our expert...

Dear Currency Expert

I am concerned about the safety of my money while it is in the hands of an exchange broker, such as TOR FX. If TOR FX was to get into serious difficulties while holding my money, would I be protected against the loss of my funds? I ask as this has happened before with another exchange trader.

On Wednesday, 18th January 2012 Samuel Allen replied with the following answer...

Dear richard harris

I can understand your initial concerns but there has been a lot of change in the industry over the past couple of years to the benefit of the client.

Up until 2009 the FSA didn’t regulate the FX industry and a couple of brokers went under with client funds because they chose not operate client segregated accounts. Now any broker transferring over €3m a month needs to regulated authorised by the Financial Services Authority under the Payment Service Regulations 2009 for the provision of payment services.

Even prior to the FSA regulation TorFX ensured all client funds were held in segregated accounts with their banking partner Barclays Bank Plc.

Exchangerates.org.uk would always recommend that any broker you use is FSA regulated and Authorised and if needed seek confirmation from the broker which they should be able to provide.

Additionally from TorFX:

Tor Currency Exchange Ltd ("TorFX") was established in 2004 and our company registration number is 5193147.

The business is profitable, has no debt and continues to grow strongly, with turnover exceeding £600,000,000 in 2010. In 2008 we achieved second place in the Sunday Times Fasttrack 100 awards, and again in 2010 we were awarded 23rd place.

TorFX is authorised and regulated by the Financial Services Authority under the Payment Service Regulations 2009 for the provision of payment services. Our FSA number is 517320. To verify our authorisation, you can visit the FSA Register and search by typing in our FSA number.

Firms authorised by the FSA under the PSR's are required to;

safeguard client funds in accordance with the regulations
maintain a defined level of regulatory capital at all times
apply stringent governance and risk management procedures throughout the business

TorFX operates segregated client accounts with Barclays Bank PLC in accordance with FSA rules on the safeguarding of client funds. These arrangements are independently verified by our auditors.

TorFX is licensed as a money transmitter by HM Revenue and Customs. Our MLR number is 12191606.

TorFX is also a member of the UK Money Transmitter’s Association.

Best Regards,

Samuel Allen