Let’s start with a reality check: if you're a CFO, Finance Director, or Treasury Manager handling international payments and FX exposure, there’s a high chance your current setup is costing more than it should.

Maybe you're using your bank's “standard rate”, or you've stuck to spot contracts because they're quick. Perhaps no one's looked under the hood in 18 months.

Whatever the reason, most finance leaders only realise there's a problem after it's cost them thousands, or when a rate swing blindsides them.

Enter the FX Strategy Audit. 

Think of it as a financial health check for your currency operations - a chance to scrutinise your current process, stress-test your assumptions, and identify where inefficiencies are quietly eating into your margins.

Let’s break down how to do just that.

The Hidden Cost of Inaction

If we had a pound for every time we've heard this…

"Our FX setup is fine - it’s good enough for what we do, we’ve never had a problem."

Here’s the truth: "Good enough" FX processes are rarely good enough.

If your FX strategy hasn’t evolved in the last year, you're likely falling behind. And while it might feel easier to leave things as they are, doing nothing is still a decision, and for many businesses, it’s the most expensive one.

Here's why:

• Banks often charge hidden FX margins of 2–4%, quietly bundled into the rate.
• Spot contracts may leave you exposed to short-term volatility and foreign exchange risk.
• No proactive strategy means missed opportunities to hedge or plan cash flow.

A small margin might seem harmless until you run the numbers.

Moving £500,000 a year and overpaying by just 1%? That’s £5,000 gone. Every year. For nothing. The most costly FX mistakes don’t come from bad decisions; they come from making no decision at all.

Bottom line? In FX, small leaks sink big ships. So, how watertight is yours?

The FX Audit Framework

Ready to dive in? This is what you’ve been waiting for: a simple FX strategy audit framework to follow. Will it be a tick box exercise for your FX strategy, or maybe it will prompt a few questions?

Here’s your 7-step FX audit checklist to evaluate your current setup.

1. Are you comparing FX providers regularly?

If not, you're likely overpaying - especially if you are using traditional banks. Banks rarely offer competitive rates, especially for SMEs, so:

• Get quotes
• Compare margins
• Ask questions

Benchmark your rate against the real market rate (like mid-market + margin). If you’re unsure how to do that, ask your provider to show you their markup (or give us a call).

2. Do you have hedging in place?

If you’re relying only on spot rates, you’re exposed, but to what extent will depend on the type of business. Forward contracts, options, and hybrid structures offer cost certainty and reduce foreign exchange risk, especially useful for budgeting or large future payments.

Contrary to popular belief, your hedge doesn’t need to be complicated. Don’t get us wrong, it can get complex for some income/payment streams, but even covering 20–40% of expected FX needs can reduce risk significantly.

3. Are you aware of your annual FX cost?

Are you part of the many companies that don’t know how much FX is really costing them? If you are, you aren’t alone, but at the very least, you should be able to answer:

• What’s our average FX margin?
• What are we paying in fees?
• What’s our total annual exposure?

If you can’t, it's time to find out, and for many people, the truth could come as a shock!

4. Do you understand your exposure by currency, country, and cash flow?

There are many misconceptions in FX, one of which is that all exposures are equal - they’re not, oh, so very not. 

Some might be transactional, others structural, but you need to map it all out:

• What currencies are you transacting in?
• Which countries pose the most volatility?
• How predictable is your revenue and cost flow?

5. Do you have a plan for volatility?

Market events like Brexit, COVID, or central bank rate shifts can hammer unhedged exposures and elevate foreign exchange risk. Think of hedging like home insurance - you don’t buy it in the hope your house burns down, you buy it as protection, just in case.

Do you have a protocol for:

• Budgeting with worst-case FX scenarios?
• Communicating FX risks with internal stakeholders?
• Locking in rates ahead of known risks?

If not, you’re hoping, not hedging - leaving yourself open to uncosted risk.

6. Does your provider offer strategic input or just execution?

If your current provider isn’t proactively offering insight, updates, or tailored suggestions… they're just a glorified currency conversion tool. This may have been the default in years gone by, but it shouldn’t be today.

A good FX partner will help you interpret macro data, track geopolitical triggers, and plan ahead, not just respond when you call. Is it time to switch your approach to FX from reactive to proactive? Take a little control back?

7. Are your accounts and payments truly fee-free?

Hidden payment fees and inflated FX margins are often bundled together, out of sight, out of mind. At least until you start asking the awkward questions. 

You should get in the habit of scrutinising everything:

• Is there a fee per transaction?
• Are your accounts multi-currency with local payment rails?
• Can you pay/receive in key currencies same day?

If you have ticked all of the right boxes so far, good on you; if not, don’t worry as we can help you. 

Now, we move on to the topic of benchmarking. 

Do you really need to benchmark your FX providers? Oh, yes…..

How to Benchmark Your FX Provider

Evaluating your current FX provider isn’t just about rates, although that’s a great place to start. 

This is where we dig a little below the surface to reveal the inner workings of your FX provider, the details many will keep under their hats.

Here's how to compare:

1. Transparency on pricing

Do they show you the FX margin vs. mid-market? Can they provide a full breakdown? Have you ever asked?

At BLK.FX, for example, clients typically get margins around 0.5–0.7%, with zero hidden charges. What you see is what you get, upfront with total transparency.

2. Speed of payments

Can they offer same-day payments in key currencies (USD, EUR, GBP, CAD)? Do payments fail or arrive late? How much have these delays cost you in the past?

If your provider can’t guarantee this, it’s a red flag. We live in an era where you can download an app to your smartphone and send money around the world at the touch of a button. Should business banking be any different?

3. Breadth of currency accounts

Can you hold 35+ currencies in local accounts (with SWIFT and IBAN options)? Imagine the time and fees saved if you had multi-currency accounts?

Multi-currency flexibility reduces unnecessary conversions and lets you invoice or receive like a local. Avoiding additional currency risk and costs. 

4. Support and service

Is your account manager reachable? Do they understand your business? There is a difference between support and personal support. 

At BLK.FX, clients get 24/7 service and strategic support. No phone queues, no bot chats, just real people who know their stuff (and yours). That’s right. You shouldn't have to repeat your story to a different adviser every time you call.

One point of contact and the backing of a team behind them.

Red Flags in FX Strategy

If we cut to the chase, you don’t need a crystal ball to spot the signs that something’s off. 

Here are a few red flags you might have spotted in “hindsight”:

• You use spot contracts for everything

It’s simple, yes, but risky and expensive in volatile markets. If 100% of your exposure is unhedged, you're leaving your margins to chance. And if you’re unprotected, you’re effectively carrying unnecessary foreign exchange risk on every transaction.

• You haven’t switched or reviewed your provider in 12+ months

Markets change and businesses evolve. What worked a year ago may no longer be optimal, or you may simply have outgrown your FX provider. We review our investment portfolios (at least) annually; why not our service providers?

• You don’t know your effective FX margin

If you don’t know it, you haven’t even tried to negotiate, and you’re probably overpaying. Complacency with your personal finances can be costly; in business, it can be deadly, the difference between survival and closure. 

• Your provider isn’t regulated or can’t show you client reviews

Trust is essential in personal and business life; without it, what is your relationship based on? Look for a partner with visible, transparent client feedback, like Trustpilot and one willing and able to answer your questions.

Making the Switch - How Hard Is It?

Here’s the truth: switching FX providers is a lot easier than people think. 

Remember the days when you were scared to switch bank accounts? The ability to slide seamlessly into a new bank account was there long before the majority of us were even aware.

It starts with a quick FX strategy audit - a straightforward review of your current setup and requirements. From there:

• Setup is handled by your new provider (including onboarding)
• You keep complete control of your funds
• No downtime, no disruption

At BLK.FX, we routinely help clients switch from banks or legacy FX platforms with zero friction.

"We do the heavy lifting so you can focus on the bigger picture. It’s simple, seamless, and the results speak for themselves.”

FX Audit Case Studies (Examples of Impact)

Let’s look at some real-life examples of how a strategic FX strategy audit made a difference. We won’t bore you with the details, but here are the headlines:

Case 1: Mid-sized import/export firm – £1.5m FX volume

Before: Using bank spot rate with no hedging = £27,000 average overpayment annually
After audit: Switched to forward contracts + locked in margin at 0.6%
Outcome: Annual savings of over £20,000 and rate stability for planning

Case 2: Global DJ with property in Portugal

Before: Using a personal bank for EUR purchases - high fees and delayed payments
After audit: Switched to BLK.FX multi-currency account with same-day EUR payments
Outcome: Closed deal 24 hours faster, with ~£4,000 in FX savings

Case 3: Private equity fund moving capital in USD and EUR

Before: Fragmented FX across platforms; no central strategy
After audit: Consolidated accounts, strategic hedge for 60% of forecasted flows
Outcome: Reduced volatility exposure, improved audit trail, and better reporting

The ROI of Just a Little Time

Cards on the table, FX strategy isn’t always top of your to-do list, we get that. But here’s why it probably should be:

A short investment of time in reviewing your FX setup can unlock significant financial savings, tighter control, and fewer future headaches.

We’re not talking about weeks of deep analysis or writing a thesis on currency markets. We’re talking about carving out 30–60 minutes to assess what’s working, what’s not, and where simple changes could deliver major value.

Why it matters:

Financial Clarity: Know precisely what you’re paying, how you’re paying it, and whether you could be paying less.

Risk Management: Have a plan in place for volatility and foreign exchange risk before it bites, not after.

Budget Confidence: Get better forecasting visibility, especially when exchange rates fluctuate week to week.

Peace of Mind: Stop second-guessing and start making decisions based on real insight and strategic support.

“A stitch in time saves nine” has never been truer, especially when each stitch might save you thousands.

An FX strategy audit is not another admin task. It’s a strategic step that brings control, confidence, and clarity. Three things every CFO or finance lead deserves more of.

Summary: Don’t Let FX Strategy Be an Afterthought

If you've made it this far, you're clearly serious about optimising your FX approach.

The reality is: every business transacting across borders has foreign exchange risk to manage. The question isn’t whether you have it, but whether you're managing it effectively.

With rates shifting daily and global events moving faster than ever, your FX strategy needs to be an active conversation, not a line item you revisit once a year.

So, CFO to CFO… is it time to audit your FX?

Call to Action

Want expert eyes on your FX setup?

At BLK.FX, we offer a free, no-obligation FX strategy audit. We’ll walk you through:

• Where you’re overpaying
• How to protect your margins
• What a better setup could look like

Let’s simplify your FX strategy and save you thousands in the process.

👉 Book your FX strategy review now

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