Money moves – but what does it cost?

FX has shifted from necessary process to a performance lever central to successful investing in 2025. So what is your FX solution really costing you?

Brokers and advisers now operate in a world where they, and their clients, don’t know what headlines they will wake up to – or how the markets will react.

Add to this the increasing exposure to international assets as the Australian market begins to look small and concentrated against investor objectives. Plus, 40% of global turnover in listed securities is now settled on T+1.

It’s clear that managing FX obligations will be crucial to investing in the current volatile and uncertain environment.

Now consider that most brokers and advisers use a bank or FX broker to make international payments for investment needs – an approach that often settles T+2, includes juggling multiple relationships and platforms, getting hit with less-than-competitive rates or no flexible pricing solutions – not to mention the time and administrative burden.

New normal: not normal

The daily back and forth of Trump’s tariffs; ongoing global conflicts; central banks balancing lingering inflating with slowing growth; the pivot away from the ‘Magnificent 7’ US stocks towards new opportunities in European markets; have all led to a volatile start to the year which is unlikely to subside in the near term. As a result, moving money to capture opportunities or de-risk portfolios is needed faster and more often than ever.

We are seeing larger international capital flows, with surging interest in international markets and more diverse options as global trading partnerships enter an era of significant realignment.

Australian investors are showing a marked shift toward international equities, driven by the need for greater diversification, access to global growth sectors, and more competitive returns. The proportion of domestic equities in investor portfolios has fallen from 58% in 2014 to 44% in 2024.

For stockbrokers and wealth advisers, the writing is on the wall: clients are seeking broader market exposure, and international equities are fast becoming a core component of diversified portfolios. The rise in allocation to international investments will continue, but with significant headline-driven volatility.

International markets have already experienced breathtaking moves this year on shifting geopolitical winds, and for every equity trade there is a cash settlement – making an at-call, multicurrency account essential for faster settlement. Poor rates and flexibility, slow settlement, and heavy admin burdens are dead weight in today’s market. And it costs more than just spread – it costs you time, opportunity, and client confidence. Without a strong FX settlement, not only can advisers lose on FX rates, but the risk of failed T+1 settlements for international trading or uncompetitive FX rates can be hard to explain to clients.

Get more, do less

Brokers and advisers need a seamless, fast, dependable FX solution. They should be getting competitive and transparent FX pricing and same-day international payments. They should be earning interest on cash balances held in major currencies, rather than leaving currency balances languishing with zero return. But what sounds like a simple FX solution is often hard to find from bank and FX brokers.

FinClear – Australia’s largest wholesale broker which services more than 250 wholesale intermediaries with 145bn of funds under administration – is able to access wholesale FX pricing that many AFSLs may not be able to obtain. It offers same-day FX payments in 13 major currencies via multicurrency, interest-bearing client accounts. With market-leading FX rates, advisers can take back the hidden tax of uncompetitive FX pricing and offer their clients superior FX pricing via FinClear’s online platform.

FinClear’s FX solution is built on the Group’s core execution and clearing capabilities combined with pre- and post-trade settlement functions and credit facilities to provide a unique and comprehensive end-to-end solution to reduce the number of providers needed to access international markets to just one.

FinClear’s FX service is built for the needs of the wealth management sector, so brokers and advisers can focus on the market knowing they have the support of the best FX solution available for their clients.

Find out more at FinClear.com.au/transact1 or contact us at FinClear.com.au/contact. This article is general information and does not consider the circumstances of any investor or constitute advice.