Businesses Don’t Need Another FX Broker

There are thousands of FX brokers, and Orbis is not interested in becoming simply another one.

The traditional model is pretty straightforward. Call a client, ask if they need euros or dollars, give them a rate, book the trade, then call them again next week.

There’s obviously a place for execution. But Orbis believes SMEs should expect more than that now.

Understanding why the currency is being bought

If a business needs to buy €250,000, Orbis can provide an exchange rate. But that alone doesn’t reveal very much.

Orbis would rather understand: What’s the €250,000 for? When was the supplier price agreed? When does it need paying? Is this happening every month? What’s the annual exposure? What’s the margin on the product? What exchange rate was used when it was priced? What happens if sterling drops 5%?

That is where the real conversation starts, because Orbis can begin to understand the underlying risk.

Sometimes the FX isn’t even the real problem

This is something Orbis is seeing more and more.

A business comes to Orbis with an FX problem. Once everything is mapped out, it may become clear that part of the problem is actually cash flow.

Maybe the customer pays in 60 days but the overseas supplier wants payment in 30. Now there is a working-capital issue as well.

That opens up a completely different conversation. Could invoice finance help? Could trade finance help? Could the international payment structure be improved? Could the business collect foreign currency directly rather than constantly converting backwards and forwards?

That is far more valuable than simply trying to win the next €50,000 trade.

Broker → Adviser → Strategic Partner

This is something Orbis talks about internally.

First, an FX provider has to be a good broker. Understand the market. Understand the products. Understand execution.

Then it needs to become an adviser. Understand the client’s exposure and help the client make better decisions.

But ultimately, Orbis aims to sit in the third category:

Strategic partner.

A partner the CFO or FD can call and say:

“Here’s what the business is trying to do over the next 12 months. How can Orbis help?”

Maybe that’s FX. Maybe it’s collections. Maybe it’s funding. Maybe one of Orbis’ partners needs to be brought into the conversation.

That’s where Orbis believes the industry is heading. And it’s where Orbis is positioning the business.

So if the current relationship with an FX provider mainly consists of calls asking:

“Anything to buy today?”

Maybe it’s worth having a different conversation.