We get this question often, what is a multi currency business bank account?
While the answer is straightforward, there is a bit more to it. It’s an account that can hold money in different currencies, which can prove extremely beneficial to certain investors. In order to decide if this type of account is suitable for you, your investments, and your trading needs we need to discuss further the pros and cons of a multi currency business bank account.
Benefits of multi currency business bank accounts
We have already established that a multi currency business bank account can hold different currencies. For example, in one account we can have dollars, euros, and pounds. This allows for much easier management of the currencies and makes it possible to exchange them at an advantageous rate with lower fees.
The main advantage is that concentrates all resources an investor may have in one account, avoiding having to deal with different banks and accounts in different countries.
Just thinking about how much it goes into opening international accounts and all the security measures in terms of pins and passwords, having all in one account definitely can have an impact on how easy money is managed.
Most banks in the UK will open accounts in pounds, of course. However, traders may be interested in investing in international markets if their brokers allow it. Making transfers will prove expensive on fees and exchange rates. A multi currency business bank account reduces the hassle and allows for much fluid money management.
Why choose a multi currency business bank account?
After discussing the main advantages that a multi currency business bank account brings to the table, it is clear that while designed for a particular kind of investor (that one interested in trading in different currencies and international markets).
Having multiple currencies in one single bank account may improve your trading experience and your international investments by making them easy to deal with and reducing the hassle of managing different accounts, as well as reducing the fees that come from exchanging currencies or transferring money.
A benefit that comes with this type of account is that each currency will come with a transfer address, meaning that if you want to receive a deposit from, let’s say France, they can deposit in Euros avoiding completely having international charges and extra fees, just as if your account was set in Euros in France.
We cannot fail to mention that most movements made in between currencies in your own account are immediate. This means that at any time you can change one currency for another at the current exchange rate offered by the bank with reduced fees.
Who needs a multi currency business bank account?
This bank account is best suited for investors with international deals and those in the world of importing or exporting goods.
Online sellers or people having an online business that expands further than the limits of the UK (quite possible in the current European environment) will also benefit from having multiple currencies in one account.
Employers with staff abroad or freelancers around the world will also see the clear benefits that having a multi currency business bank account brings.
Finally, anyone with international clients can be interested in this type of bank account. No doubt that in these cases
In the UK, any resident over 18 years old can open a multi currency business bank account. Some banks may ask for an initial deposit in different currencies in order to activate the account. However, requirements may vary slightly depending on the banking institution.