New York City is considered the global financial hub as it is home to the world’s two most valuable stock exchanges and the most elite investment banking firms. But when it comes to currency trading and exchanging, New York City and the United States rank far behind London and the United Kingdom.
The daily value of all foreign currencies that exchange hands on a daily basis is approximately £4.73 trillion. Among that figure, UK’s excellent brokerages facilitate around £1.72 trillion worth of transactions.
The United Kingdom’s Dominance
There are several reasons why London and the United Kingdom dominate the global money transfer industry. The first has to do with the geographic proximity to the rest of the world. While traders and currency broker experts in New York City are asleep, professionals in London and across Asia are busy transacting with each other.
And when American traders and business people wake up and start the day, workers across the United Kingdom are still at their offices.
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This alone isn’t reason enough to crown the UK as the leader of forex trading. The UK government is among the most stable in the world with a rich history of democracy, freedom, rule of law, and perhaps more importantly, a dedication towards economic development.
Equally important, the country’s official language of English — the global language of choice for commerce.
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The 2016 Brexit election did little to impact the country’s finance industry. Quite the opposite holds true as some of the largest banks reiterated London as part of their long-term plans to address the global market.
Goldman Sachs, as an example, invested £1 billion for its London-based European HQ in the Square Mile region in 2019.
Société Générale announced in 2014 it will consolidate its London workers into one location and many expected the Brexit vote to prompt the French bank to look elsewhere. But in 2019, the company finalized its move into a new state-of-the-art building in Canary Wharf.
Perhaps one fact that best highlights the UK’s dominance in foreign exchange transactions has to do with the US dollar. According to data from 2018, nearly twice as many US dollars are traded in the UK as in the US.
The following year, forex trading activity stemming from London hit a record high. The Bank of England said in its semi-annual report forex trading in London was up 7% from the prior period a year ago to around £2 trillion.
The most recent report dated Jan. 26, 2021, notes the following facts and figures:
The average daily UK foreign exchange turnover was £1.46 trillion in October.
The USD/EUR currency exchange pair was the most commonly traded with an average daily turnover of £558 billion.
Trading activity in the EUR/GBP reached a historical all-time high.
The USD/CNY currency exchange pair also reached a record high.
Currency Brokerages For Regular People
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The dominance of UK currency brokers extends beyond corporate clients transacting tens of millions of pounds at a time. In fact, the explosion of UK-based financial technology (fintech) companies over the years dominate the global competition.
TransferWise is among one of the most closely followed currency exchange companies. The London-based money transfer company boasts millions of users and was valued at around £4 billion.
The UK currency broker was born after two native Estonians met at a party in England. The two quickly realized they share an identical problem when it comes to exchanging money. By transacting with each other and ignoring a bank as a middleman, the two saved a lot of money. The two quickly realized their idea is a viable solution that can be scaled to become a global business.
TransferWise is one of many new unicorn companies — that is startups valued at $1 billion US or more. In fact, the UK is home to 45 unicorns, 18 of which are fintech companies.
Money transfer companies are a lot more popular in Europe than they are in America. There are a few reasons why this is the case.
The first has to do with the close proximity of countries to each other. Within a five-hour span, someone in the UK can travel to multiple European countries so there is an immediate need to exchange currencies. By contrast, a five-hour road trip in America means a family may not even leave their home state.
Europeans are much more open to travel than Americans so by default demand to exchange currencies is greater. In fact, US citizens ranked 60th out of more than 100 countries in their openness to travel the world. This isn’t an insult or jab at Americans, rather it is just one of the many cultural differences as Americans much prefer exploring their own country.
Americans that do travel abroad tend to avoid online money exchange. Surprisingly to many, one study shows that trust in banks surged during the COVID-19 pandemic.
The pandemic reinforced an already strong sense of loyalty a customer felt with their bank. It makes sense they would choose convenience and trust over saving money through cheaper money exchange options they aren’t familiar with.
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Conclusion: Brexit Won’t Slow UK Money Transfer Industry
For years, many experts predicted that London and the UK would see their status as an economic powerhouse and a hub for currency exchanges tumble. But heading into the post-COVID recovery era, the UK’s advanced lead in administering vaccines gives it a massive advantage over its European peers that can’t go overlooked.
Regardless, the country’s tremendous advantage over the US in terms of money exchanges might be a gap that is too wide for anyone to catch up to. The dominance of UK currency brokers coupled with one of the world’s most advanced unicorn incubators may have secured UK’s financial importance for decades to come.
News
Bury FC manager steps down just two days after appointment following major backlash over history
Danny Jones
In case you missed the news over the weekend, Bury FC manager Michael Jolley stepped down just two days after joining the club following major backlash to his appointment.
The uproar and almost immediate U-turn came in response to his past conviction.
After learning of his history, the club were met with a significant amount of stick from Bury fans and other football supporters, leading Jolley himself to quickly resign. Confirming the outcome by mutual decision, the club revealed his departure on Sunday afternoon.
Bury Football Club can confirm that Michael Jolley has today been relieved of his duties as First Team Manager by mutual consent.
Sharing an official statement, The Shakers wrote: “The Board recognises the strength of feeling expressed in recent days by supporters, staff, partners and players, and the very real impact the Board’s decision to appoint Michael has had on individuals connected to the Club…
“We will also be engaging directly with players, staff and stakeholders to listen, learn and ensure that appropriate support is available. Our immediate priority is the welfare of our people and the stability of the Club and our community.
“We believe this step is necessary to help restore confidence, create space for reflection, and allow Bury FC to move forward in a way that reflects our values and responsibilities.
“Bury Football Club remains committed to acting with integrity, transparency and respect. Further updates will be shared when appropriate.”
Confirming that the assistant manager, Tim Lees (who helped lead the side to a 2-1 victory over Mossley AFC at home this weekend), will be leading the team as interim head coach for the time being, they also noted that Jolley insists he didn’t want his signing to place unwanted attention on the club.
Wishing them the best in their search for the next man to take them forward, and believe they have a “special connection” with their local community.
Jolley states he made higher-ups aware of his past conviction before being interviewed for the job, as he explains in a lengthy statement of his own, which was released before Bury’s own announcement.
Following a period of reflection, I have decided to relinquish the opportunity to become the Manager of Bury FC. Full statement attached. pic.twitter.com/bAHekBfnb5
Addressing the situation on social media, the Sheffield-born former Grimsby and Barrow boss said: ‘After a period of reflection over the weekend, it has become apparent that my appointment at Bury FC has become a distraction for the club and so I have decided to relinquish the opportunity to become first team manager…
“Additionally, I welcome the fact that every investigation into the incident, whether through the legal process, or the subsequent investigations by the UK government, The FA, all established through evidence that I was deceived and at no time did I act maliciously.
“All three organisations concluded that there was no evidence which should prevent me from continuing my career, and that is what I have done, periodically, since that time. I consider safeguarding a critical aspect of coaching and have always delivered safe practice 100% of the time throughout my career.”
As he explains in the full document, “16 and a half years later, [his] CRB check has long since shown as clear, but in the interests of transparency and openness”, he still ensures any prospective employers are made aware of the case.
He goes on to say that he has become used to the abuse inside stadiums and online, given the nature of football fan culture, but now that he has a young family, he makes it clear that they are a key factor in the decision as he looks to prioritise their safety and wellbeing before his own.
The local outfit is once again looking for a new steward to steer them back in the right direction and, hopefully, away from any more intrigue and/or controversy. A return to the EFL still seems a way off, but who would you like to see installed as the gaffer at Gigg Lane, Shakers?
Brits are petitioning to give ‘SIR’ Kevin Sinfield the knighthood he deserves
Danny Jones
An impassioned Brit, along with nearly 100,000 others, are championing a petition to give a Greater Manchester sporting role model a knighthood.
The UK is long overdue for a SIR Kevin Sinfield, if you ask us.
Yes, now five years after his first remarkable charity challenge in the form of his inaugural ‘seven in seven’ ultra-marathon, our very own Kevin Sinfield officially completed his sixth edition of the fundraising feat earlier this month.
Having now raised more than £1.2 million for the Motor Neurone Disease Association (MNDA) in memory of his friend and former late, great, Leeds Rhinos teammate, Rob Burrow – and that just this year alone.
👏 An outstanding achievement!
🏃 Kevin Sinfield CBE completed his latest 7 in 7: Together Challenge this afternoon, raising over £1.1 Million for @mndassoc!
To take into account every penny he’s helped generate for the crucial neurological cause, he’s helped welcome in excess of £11 million since he started this tributary journey nearly six whole years ago.
Sinfield has become nothing short of a national hero over the last few years, and the people think it’s about time he is recognised with the highest honour.
The Oldham-born native has already been given a trio of notable awards, including an MBE, OBE and CBE, which also means he doesn’t technically qualify to be considered for a knighthood until 2027 at the very earliest.
However, the petition’s creator, Mel Handforth, believes that an exception should be made and the “arcane” rules around the New Year’s Honours should be changed to allow Sinfield (and, indeed, others) to be celebrated more promptly.
Even the Speaker for the House of Commons, Lindsay Hoyle, is one of many to have argued for the stipulation to be scrapped.
Despite countless calls for him to be included in the most recent list, which saw the likes of David Beckham finally made a knight, he was overlooked due to the three-year gap protocol.
He also somehow missed out on being shortlisted for this year’s BBC Sports Personality of the Year Awards, though you can guarantee he would have plenty of votes from the general public – especially here in the region and, indeed, over in his adopted second home of Yorkshire.
You can see who did make it onto this year’s list down below.
The same happened again at the Pride of Britain a year later, and the retired rugby league player turned union coach was also handed an honorary degree by the University of Leeds in July 2024, just a month after Burrow sadly passed away.
But Sinfield has quite literally had the backing of millions to be made ‘Sir Kevin’ for well over half a decade now; we made him our ‘Manc of the Month’ back in November ’22, and our stance on him being given a knighthood is even clearer now than it was back then.
As Handforth writes in the bio of the Change.org petition: “The words ‘legend’ and ‘hero’ are often handed out, but Kevin Sinfield truly embodies them both. He’s not doing this for recognition – he’s doing it because he cares deeply about the MND community and honouring his friend Rob’s legacy.
“Let’s show Kevin that his nation stands with him. Sign this petition to urge the Honours Committee to recognise Sir Kevin Sinfield for his remarkable service to humanity.”
If you agree, you can sign the petition to make him Sir Kevin Sinfield right HERE.
The Manc -
6th March 2021 
