Fed up with how you’re managing multiple currencies for your business?
If you’re using your standard business bank account to make cross-border payments or trying to juggle multiple foreign currency accounts, chances are, international payments feel like a huge thorn in your side. Hidden fees, scattered balances and cash flows, and zero clarity on where your money is during a transfer — it's frustrating, to say the least!
Here’s the good news: With over 10,000 SMBs trusting us as their cross-border payment provider, we know a thing or two about how to best manage multiple currencies.
In this guide, we'll break down what multi-currency accounts are and under what circumstances they’re the best choice compared to standard and foreign currency accounts. We’ll also help you figure out how to pick the right multi-currency account provider for your small-to-medium-sized business.
But first, let’s make sure we’re on the same page.
What is a multi-currency business account?
A multi-currency account lets you hold, send and receive different currencies, all from one centralised account. It’s like having a wallet containing every currency you need for your business — euros, dollars, yen. So how does this compare to using your standard bank account or foreign currency accounts to manage international payments?
Multi-currency accounts vs standard bank accounts
Your standard bank account works in one currency — say, euros. Great if your suppliers and customers are also based in Europe and trade in euros. But the moment you start working with international partners, suppliers or customers that don’t do business in euros, things get tricky. You’re stuck paying whatever exchange rate your bank offers when you need to make a payment. You face additional fees and have near-zero visibility into how long your payments will take to arrive or how many intermediary banks it goes through along the way.
Instead of managing everything in your home currency, multi-currency accounts allow you to control when you convert between currencies, when you make a payment, and usually offer more transparency into the progress of your payments.
Multi-currency accounts vs foreign currency accounts
A foreign currency account is similar to a standard bank account in that it contains a single currency — just a different one from your functional currency (e.g. a USD foreign currency account for your Europe-based business). Opening a foreign currency account can work if your cross-border business needs are simple. But if your business is growing and you start trading in several currencies, you’ll need to open and juggle new accounts for each one.
With a multi-currency account, you can open currency accounts in just a few clicks instead of going through the arduous process of opening a new foreign account each time you enter a new market or begin working with a new partner or supplier overseas.
Key benefits of multi-currency accounts for international businesses
Now that we have a clearer picture of how multi-currency accounts differ from standard and foreign currency accounts, let’s delve deeper into some of the key benefits of choosing a multi-currency account for your business.
Take control of conversions and payments
A multi-currency account gives you the freedom to open currency accounts for each currency you trade in — a process that takes minutes, not days. When exchange rates are favourable, you can convert your money between accounts and make payments in your suppliers’ and customers’ preferred currencies. This puts you in control of your currency strategy.
Potential cost savings on international transactions
You've probably noticed how fees start to add up when using your bank account to make international payments. Chances are, you wind up paying some combination of:
- Exchange rate markups when you convert currencies
- Fixed or percentage-based transfer fees
- Extra charges from the beneficiary's bank and intermediary banks along the way
- Additional hidden fees
Depending on the provider you work with, a multi-currency account has the potential to significantly reduce these costs when you’re moving money internationally. You gain clearer visibility of the costs involved in sending money overseas and greater control of when and how you use your funds.
Better cash flow visibility across multiple currencies
If you’re trying to manage multiple foreign currency accounts — potentially with different banks — getting a clear picture of your business's cash position can become a nightmare. To get a consolidated view of your cash flow across every account, you’ll likely need to pull data from multiple sources into a spreadsheet, which brings its own set of challenges.
A multi-currency account transforms this experience completely. Depending on the provider you choose, you could have one dashboard showing you:
- A consolidated balance across all accounts
- Balances for each currency
- A picture of upcoming and historical payments
- Exchange rate trends that may affect your bottom line
You can see your entire international financial position in real time from one hub. This helps you make smarter cash flow decisions and better business decisions overall. Rather than basing your strategy on estimated numbers that could be way off, you’re able to work with more accurate figures and plan accordingly.
How to choose the right multi-currency account provider
We’ve established that multi-currency accounts are often the better path to take than standard accounts and foreign currency accounts. But what should you be looking for in a multi-currency account provider?
We can group multi-currency account providers into two main buckets:
1. Traditional banks
Many traditional banks offer foreign currency accounts as well as standard bank accounts. Some even offer multi-currency accounts, although it isn’t their primary focus, just one type of account among many.
2. Cross-border payment providers
Alternatively, you can open a multi-currency account with a dedicated cross-border payment provider. For businesses looking for more control over their international payments, transparent pricing and cutting-edge technology, a cross-border payment provider is the better choice over a traditional bank. Check out our recent breakdown of cross-border payment providers vs traditional banks for a more detailed comparison.
There’s no shortage of cross-border payment providers out there to choose from. So, when you’re evaluating your options, here are the key areas to hone in on.
Cost: Fee structures and conversion rates
When researching potential providers, there are four cost areas to consider:
- Monthly account and setup fees
- Exchange rate margins
- Transfer fees (whether fixed or percentage-based)
- Any minimum balance requirements
Remember that while there may be no monthly subscription or setup fees, what can really impact your bottom line is the total cost of moving and managing money internationally.
When evaluating transfer fees and exchange rate margins, keep in mind that the lowest advertised rates aren't always the best. Look at the complete picture — including how fees change based on payment volume and currency pairs, as the ones you use most often may cost more. Consider asking providers for example figures using your typical transaction amounts and currency pairs. This will give you real costs to compare.
A truly transparent provider shows you their costs upfront, so you know exactly how much you'll pay when opening an account, converting currencies and making international payments.
Number of currencies available
Does the provider support all of the currencies your business needs? Not just today, but also where you plan to be trading in the future. It’s best to think ahead. Whether you're planning to enter new markets or discussing new partnerships overseas, your multi-currency account should support those ambitions from day one.
Flexible currency conversion
As we’ve touched on, multi-currency accounts allow you to hold funds in currencies other than your functional currency. Beyond this, look for a provider that lets you:
- Make spot conversions at competitive rates
- Schedule conversions for specific dates
- Set target exchange rates
- Receive alerts when these targets are reached
Exchange rates move constantly, and slight swings one way or the other can make a big difference to your bottom line. Having access to live exchange rates and the ability to set alerts for target rates gives you the freedom to exchange funds when you want at the rates that suit your strategy.
International payment tracking
With the right multi-currency account provider, you should not only be able to make payments directly from the platform but also track those payments across borders. How granular this tracking gets will depend on the multi-currency provider you work with.
For example, with iBanFirst you’re able to track international payments every step of the way, with timestamped updates and tracking links you can share with your partners or suppliers.
Integrations with your existing financial tools
Your financial operations don't exist in a vacuum. You need your multi-currency account to work smoothly with your other business tools. So, make sure your chosen provider can integrate with accounting software solutions and sync with your bank accounts to pull data automatically. This will potentially save you hours of manual data entry and help prevent costly errors that can stem from it.
Dedicated support (not just a chatbot)
Some multi-currency providers rely on chatbots and self-serve help docs as their primary methods for client support. And while this might work for certain tasks, the last thing you want is to get stuck in a support ticket queue for complex, time-sensitive problems that take 3-5 business days to resolve. If having real humans available to support you is appealing, make sure the provider you choose offers exactly that.
Why 10,000+ international businesses use iBanFirst
Numbers tell a story. Over 10,000 companies trust us with their international payments and FX risk management needs. Let's peek behind the curtain and see what makes iBanFirst stand out from traditional banks and other cross-border payment providers.
Seamless multi-currency management with no hidden fees
With iBanFirst, you can open accounts and hold funds in 26 currencies. You can receive payments from international customers in their local currencies and make payments to suppliers and partners in theirs.
Plus, when you open a multi-currency account with us, you see the complete cost structure upfront — no opening fees, monthly subscription costs or surprise fees appearing after transfers.
We've built our platform specifically for SMBs that trade internationally and our clients appreciate how it simplifies their day-to-day operations. Instead of juggling multiple accounts, they have one clear view of their accounts from the iBanFirst dashboard.
Detailed international payment tracking
Every payment takes the fastest, most cost-effective route, and you can track your payments in detail every step of the way. No more wondering if a payment has arrived or why it's been delayed. You can see when the money left your account, how many intermediary banks are involved, and when it arrives with your beneficiary.
You can even share tracking links with your beneficiaries so they can follow payments as well. The result? No more invoice chasing, fewer questions and back and forths, and happier business relationships.
Dedicated support from human FX experts
With iBanFirst, you don’t have to deal with a chatbot or join a seemingly never-ending support ticket queue to solve a problem. Instead, you have a dedicated account manager to help you make the most of our tools, establish an FX strategy that works for your business and set up fixed, dynamic, and flexible forward contracts.
Open your multi-currency account today
Managing your business across borders shouldn't be complicated. With an iBanFirst multi-currency account, you can:
- Send, receive and track cross-border payments
- Protect your profits from currency market swings with FX forwards
- Talk to actual human FX experts anytime you need some support
Ready to simplify your cross-border payments experience? Request an account today and join thousands of companies who've already transformed their approach to international trade.
