A non-bank foreign exchange company also known as foreign exchange broker or simply forex broker is a company that offers currency exchange and international payments to private individuals and companies. The term is typically used for currency exchange companies that offer physical delivery rather than speculative trading. i.e. there is a physical delivery of currency to a bank account.
Foreign exchange companies are normally distinct from money transfer companies or remittance companies and bureaux de change as they typically perform high-value transfers unlike their money transfer counterparts that focus on high-volume low-value transfers generally by economic migrants back to their home country or to provide cash for travelers. The transactions offered by foreign exchange companies are usually either spot transactions or forward transactions.[1]
Some foreign exchange companies, such as Moneycorp[2] and Global Reach,[3] offer foreign exchange options for business clients too. Given the increased regulation and capital requirements around foreign exchange products of this nature, the foreign exchange companies who offer these products do so through a separately regulated entity.