FT article on Banks ripping-off SMEs who are hedging FX risk

Vedanta Hedging has been arguing for nearly a decade that SMEs need transparent advice and pricing when it comes to hedging their risks.

Sadly, Banks are continuing to overcharge SMEs when they use derivative products to hedge their currency risk. It is precisely because these products are priced in an opaque manner, that Vedanta hedging was set up in 2011.

A report from the Geneva School of Economics and Management studied 500,000 FX contracts for SMEs and found that in some cases, they were charged an astonishing 25 times greater fees than sophisticated firms.

This is more so the case with opaque derivatives such as currency options, Flexible Forward Contracts and even simple Forward Contracts.

It is important to obtain impartial hedging advice from an FCA Regulated Firm on FX hedging. Vedanta Hedging has no vested interest in trying to sell any FX products to SMEs, we purely provide advice only, so we can focus solely on advising and checking the cost of these products for you.

Please contact us to discuss any aspect of your FX requirements, whether you are an importer or exporter.

The full article can be seen below

Abhishek