The guidance we received from Central FX has always been accurate, on our last deal with the rate being so high we bought a forward contract, resulting in a £12,000 saving compared to the rate we would have got once the contract matured.
Phil Hesketh, Managing Director
MG Trading Castlefield Ltd, based in Manchester, have years of experience as a leading global supplier specialising in high quality toiletry supplies.
Despite their business know-how, they lacked the guidance they required in FX trading. In fact, they had no real service from their bank at all.
The existing pricing was satisfactory, but they required more service in determining when to enter the market and for how much.
This level of expertise could only be gained through a FX expert, and they chose Central FX as their new resource.
With many negative figures emerging from sterling markets on the back of failed Brexit negotiations, Central FX explained to MG Trading that a forward contract could be utilised to prevent exchange rate losses on future purchases.
Together, a decision was made to use a forward contract, mainly due to the company’s USD exposure, given the negative factors of Brexit and interest rate surges from the US.
Central FX agreed to float MG Trading’s EUR exposure and trade at spot. A decision which significantly paid off, as they entered the market at 1.4018 with GBP USD now trading at 1.27.
MG Trading saved in the region of £12,000 by floating their EUR exposure and deciding to trade at spot, helping them to maximise their bottom line.
And by partnering with Central FX, the company were able to continue making more informed choices, and get service designed to suit the company’s individual foreign exchange needs. This ultimately meant improving the profitability of the business.