FXplained
Bank vs FX specialist
"Free international transfers" and "no fees" are common claims from both banks and apps. Neither is telling you where the actual cost sits — inside the exchange rate itself.
Banks
High street banks
Banks rarely charge a large upfront fee, because they don't need to — the rate markup does the work. It's common to see margins of 2–4% above the mid-market rate on business FX, hidden in a single number that looks reasonable if you've never checked it against anything else. Banks also tend to offer less flexibility on rate locks and forward contracts for smaller businesses.
Specialists
Specialist FX brokers
Specialists typically compete on a tighter margin — often 0.2–1.5%, depending on your volume and relationship — because currency risk management is their core business, not a side product. The trade-off: you're dealing with a smaller, less recognisable name, so due diligence on regulation (check the FCA register) matters more.
Apps
Consumer apps
Often the cheapest for small, occasional transfers, with transparent pricing shown upfront. Less well suited to regular business payments, larger volumes, or anything needing a dedicated relationship — support tends to be app-based rather than a person you can call.
The real comparison
It isn't "bank vs broker." It's: what's the all-in cost — rate margin plus fees — for your typical transfer size and frequency? A bank might genuinely be cheaper for one-off small payments. A specialist is usually cheaper at volume, and adds value through rate guidance and forward contracts that most banks won't offer SMEs. The only fair way to compare: get the mid-market rate, then ask each provider what their all-in cost is above it — not their marketing headline.