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.
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.
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
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.
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
Kala announces closure after more than half a decade in Manchester city centre
Danny Jones
Another hit for the Manchester hospitality sector as city centre cult favourite Kala has announced it has closed with immediate effect.
The Manc bistro, beloved for putting a contemporary slant on British and French classics, was opened by restaurateur Gary Usher back in 2021, receiving plenty of positive press over the years.
Announcing the shutdown on Tuesday evening (24 June), Usher shared an extended statement on social media, explaining the details behind the decision – but there was one, clear, overriding reason.
Confirming the news on Instagram, the chef-owner wrote: “Gary Usher here.. It’s with a heavy heart that I announce the immediate closure of Kala. I’m not really sure how to explain why we’ve closed other than we weren’t busy enough to cover our costs.
“I really really want to blame the economy and the pandemic. I really want to say the rising costs have made it impossible. All those factors haven’t helped, but we are 50% down in trade at Kala, and that is the killer.”
Nevertheless, Kala’s reputation has remained strong throughout, boasting one of the best elevated albeit accessible evening and lunch deals in the city centre, not to mention at very reasonable prices.
Moreover, they were famed for their stunning Sunday dinners, with Sacha Lord dubbing them the best roasts in Manchester he’s had “in ages.”
Usher goes on to add: “It goes without saying our business rates [are] increasing substantially, and the hike in NIC [national insurance] contributions only works against us. This was not planned, but neither was us being this quiet in June. All the Kala team will be paid up to date, our rent & suppliers too.
“If you have a voucher with us, as always, it can be used in the wider group. It was always a dream to have a restaurant on King Street in Manchester. I just wish it had lasted longer than 6 years.
“Thank you to all the team past & present & I’m so sorry to all of you and all the guests that I couldn’t create something with longevity.
“Please come and visit us in Didsbury at Hispi where it will be our pleasure to welcome you. Farewell, King Street. Farewell Kala. Gary.”
We’re back after a busy Sunday lunch service with our Monday lunch options. Don’t forget our great value bistro menu is available all evening too. pic.twitter.com/TtV4grWurK
Kala closing marks yet another local business we’re gutted to see go, as it was only earlier this month that we had to bid goodbye to both Medlock Canteen and Indian street food spot, Rola Wala, which closed on Monday.
Safe to say it’s been a gutting few days for local food and drink.
With that being said, please do support the Elite Group’s remaining restaurants where you can, which include the aforementioned Hispi, The Sticky Walnut in Chester, The White Horse in the Cheshire village of Churton, as well as Wreck in Liverpool.
All we can say is thanks for the memories and the brilliant food.
Heartbreaking tributes are being paid after 23-year-old hit by car in Stockport dies from injuries
Danny Jones
Tributes are pouring in on social media following the death of a local young man from Bredbury, Stockport, who was tragically hit by a car last weekend.
Joel Corey Sheldon, who was just 23, sadly died on Saturday, 21 June, after being struck by a vehicle on the previous Friday night at around 10:20pm.
The Stopfordian was rushed to the hospital immediately, but was later pronounced dead from his injuries despite the best efforts of the paramedics and emergency services. He is survived by his parents, Gaz and Cheryl, as well as two brothers, Leo and Harvey.
Following the news of his passing, family members, friends and countless others throughout the Bredbury community and beyond have been paying their respects to what was, by all accounts, a “fun-loving popular young man.”
In a heartfelt tribute issued on Tuesday afternoon (24 Jun), Joel’s family wrote: “Our beautiful son Joel was caring, kind, and loved by everyone who knew him.
“He smiled constantly and loved life. His energy was infectious, and the outpouring of love for him has made us so immensely proud. We will love him and miss him for the rest of our lives.”
Writing on Facebook, the youngster’s godfather, Martin Smith, added: “RIP Joel Sheldon, I was so proud to be your godfather and part of your life. I’ll miss our chats.
“Even when you were gaming back in the day, you always were so polite to me. I love you, and the amount of broken hearts shows what a beautiful young man you were…”
Greater Manchester Police (GMP) say they received reports of a collision involving a Vauxhall Corsa and a pedestrian on Lower Bents Lane, close to The Greyhound Pub, with the car being seen heading in the direction of Redhouse Lane when the collision occurred. No suspects have been identified thus far.
A fundraising page has now been set up in Joel’s memory, with people donating to help cover the cost of his funeral and ‘any additional costs incurred by the family.’
Set up by fellow Bredbury native and family friend, Eleanor Moore, the description of the page reads: “The Sheldons are very much at the heart of the Bredbury community, and we would like to take away the financial strain at this difficult time.” Over £23,000 has been raised already.
Nearby pub, The Queens – located further up the same road on which he was unfortunately hit – also posted the GoFundMe link and has been sharing official updates from GMP, as have a number of other local businesses and organisations.
As for the latest from the authorities, police are appealing for more information, urging anyone with any more details regarding the incident, no matter how small, to come forward as soon as possible.
This includes Bredbury locals, eyewitnesses in the area at the time; dashcam and/or doorbell camera footage that may have captured images of the car or its driver, and any other information which might be useful in the investigation of Joel Sheldon’s death.
If you have information, you can contact Greater Manchester Police’s Serious Collision Investigation Unit on 101 quoting log 4082 of 20/06/25, or do so online right HERE.
Our thoughts go out to Joel’s friends and family, along with all those whose lives he touched, during this extremely difficult time. Rest in peace.