Just as when dealing with a bank, a credit risk exists in the event of counterparty's default. To manage and reduce credit risk, counterparties sign legally binding contracts which prevents voluntary default. Nevertheless, if FXWELLS defaults, FXWELLS will completely refund any fees to the client. In the event that the client was at gain, the client is not impacted by the default since defaulting counterparts are not entitled to profit in this way. If the client was at loss, FXWELLS will not only refund the client the fees charged but will also pay such loss to the clilent.
No. FXWELLS is not a broker.
Our fee for setting up hedging positions depends on the size and time, but is usually less than five percent of the underlying transaction size, falling to 1.5% with for 1 month hedging.
Compare this to what a large bank will quote you, which can be as much as 10%, including collateral. Or compare this to your value-at-risk (often 10% to 15%): FXWELLS offers a very inexpensive way to protect this.
An important service we provide is third-party verification of the exchange rate, since pricing can be opaque and banks sometimes use this to their advantage. FXWELLS has access to inter-bank pricing, which enables us to show you what the bank is paying and could save your company a substantial amount of money.
Yes. Once an agreement has been entered into, Clients may request its cancellation. In such a case FXWELLS will calculate the value of the position of exchange rate. If such cancellation leaves the client with a potential FX loss, FXWELLS shall pay such loss to the clilent. There is no penalty to cancellation.