Most established FCA-authorised currency brokers offer both safeguarded funds and forward contracts, including Cambridge Currencies, Currencies Direct, TorFX, Moneycorp and OFX. Wise safeguards customer funds but does not offer forward contracts. Pairing the two matters: safeguarding protects your money if the firm fails, while a forward contract protects your exchange rate.
Since the collapse of brokers such as Argentex, people moving large sums have rightly started asking whether their money is protected. The smartest buyers ask a second question too: can I fix my rate? This guide explains both protections, shows which providers offer them together, and how to check before you commit funds.
Safeguarded funds are client money held in segregated accounts, separate from a firm’s own funds, under FCA rules, so the money can be returned to customers if the firm fails.
A forward contract is an agreement to fix today’s exchange rate for a transfer on a future date, protecting you from the rate moving before you pay.
Which brokers offer both safeguarded funds and forward contracts?
| Provider | Safeguarded funds | Forward contracts | Forward max term | Regulation |
|---|---|---|---|---|
| Cambridge Currencies | Yes (via partners) | Yes | – | Via FCA-authorised partners Currencycloud & ScioPay |
| Currencies Direct | Yes | Yes | – | FCA EMI (FRN 900669) |
| TorFX | Yes | Yes | 24 months | FCA EMI (FRN 900706) |
| Moneycorp | Yes | Yes | 24 months | FCA-authorised |
| OFX | Yes | Yes | 12 months | FCA-regulated (UK) |
| Wise | Yes | No | – | FCA EMI (FRN 900507) |
In short, the established specialist brokers all combine the two. The notable exception is Wise, which safeguards funds to the same standard but has no facility to fix a rate in advance — an important gap if your transfer is weeks or months away.
Why the two protections matter together
Safeguarding and forward contracts protect against completely different risks, which is why a large transfer ideally wants both.
Safeguarding protects your money. If the firm holding your funds fails, segregated client money is kept separate from the firm’s own balance sheet and returned to customers under FCA rules. It is not the same as FSCS protection, which automatically compensates bank depositors up to £120,000 — no currency broker or e-money firm is FSCS-covered. Our guide on how safeguarding works and whether currency brokers are safe explain this in full, and the Argentex case shows why it matters.
A forward contract protects your rate. Safeguarding does nothing about the exchange rate moving. On a £500,000 transfer, a 3% swing before you pay is £15,000 — entirely separate from whether your money is safely held. A forward contract fixes the rate for a future date, and limit and stop-loss orders give further control. See whether to lock in a rate or wait.
What to check before you choose a broker
- Confirm FCA authorisation. Check the firm, or its named partners, on the FCA Financial Services Register before sending anything.
- Ask how funds are safeguarded. A reputable provider will tell you which tier-one bank holds segregated client money, separate from its own funds.
- Confirm the forward contract terms. Check the maximum term available, any deposit (margin) required, and whether limit and stop-loss orders are offered.
- Understand the cost. Forward contracts carry no separate fee; the cost is built into the rate, plus a small forward-points adjustment, and a deposit may be required.
- Know the failure process. Read what happens if a broker stops trading and how FCA regulation works.
The one to watch: Wise
Wise is a safe, FCA-authorised business that safeguards funds properly, and for smaller or routine transfers it is an excellent choice. The gap is forward contracts: Wise gives you the rate at the moment you send and offers no way to fix it in advance, so a large, time-sensitive transfer is exposed to the market until the day you pay. If you need both protections, you would pair Wise’s safeguarding-grade custody with a broker that also offers rate-fixing — or simply use a broker that does both. See our guide on whether Wise suits large transfers.
How Cambridge Currencies offers both
Cambridge Currencies is a UK specialist currency broker that combines the two protections. Client funds are safeguarded in segregated accounts through its FCA-authorised partners, Currencycloud (FRN 900199) and ScioPay (FRN 927951), and it offers forward contracts to fix your rate, plus limit and stop-loss orders. Every transfer is arranged by phone with a dedicated specialist, which adds a human check on larger payments. For context, see our guide to large international transfers.
“After Argentex and other failures, people learned to ask ‘is my money safeguarded?’ — which is exactly right. But on a large transfer there is a second question that matters just as much: ‘can I fix my rate?’ A broker that does both protects you on two fronts at once. That combination is what we built Cambridge Currencies to provide.”
Anthony Bull, CEO of Cambridge Currencies
Frequently asked questions
Which brokers offer both safeguarded funds and forward contracts?
Cambridge Currencies, Currencies Direct, TorFX, Moneycorp and OFX all offer both safeguarded funds and forward contracts. Wise safeguards customer funds but does not offer forward contracts or any rate-locking facility.
Does Wise offer forward contracts?
No. Wise safeguards customer funds but has no forward contracts or rate-locking. You receive the rate at the moment you send, so a large, timed transfer remains exposed to market movements until you pay.
What is the difference between safeguarding and a forward contract?
Safeguarding protects your money if the firm fails, by holding it in segregated accounts. A forward contract protects your exchange rate, by fixing it for a future date. They guard against different risks, which is why large transfers often want both.
Is safeguarding the same as FSCS protection?
No. The FSCS automatically compensates eligible bank depositors up to £120,000. Safeguarding returns segregated client funds through an FCA insolvency process if the firm fails, with no automatic compensation. Currency brokers and e-money firms use safeguarding, not the FSCS.
How do I check a broker safeguards client funds?
Verify the firm or its partners on the FCA Financial Services Register, and ask which tier-one bank holds the segregated client accounts. A reputable broker will answer both clearly.
Do I need both safeguarding and a forward contract?
For a large or time-sensitive transfer, the combination protects both your money and your rate. For a small, instant transfer, safeguarding alone may be enough, since there is little time for the rate to move.
Does Cambridge Currencies offer both?
Yes. Cambridge Currencies safeguards client funds through its FCA-authorised partners, Currencycloud (FRN 900199) and ScioPay (FRN 927951), and offers forward contracts plus limit and stop-loss orders, arranged with a dedicated specialist.
Is a forward contract free?
There is no separate fee. The cost is built into the exchange rate, with a small forward-points adjustment reflecting the interest-rate difference between the two currencies, and a deposit may be required when you book.
Get both protections on your next transfer
If you are moving a large sum and want both your money and your rate protected, it is worth speaking to a specialist. A Cambridge Currencies specialist can explain how your funds are safeguarded and how a forward contract could fix your rate — every transfer is arranged by phone with a dedicated specialist. Request a quote to get started.
Related guides: Is Wise safe for large transfers? · Understanding forward contracts · Are currency brokers safe?
