Imagine being a bidder for Claude Monet last year. Larva. Last year, it was sold at Sotheby’s in New York, and was sold after a competitive bidding war that lasted only 17 minutes. And the price? $65.5 million. It’s just for the starter. It may be permissible to assume that the auction house committee for sale is paid by the seller.
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Of course it would be wrong. There is a buyer’s premium to calculate. In this case, if Sotheby’s standard fees apply, it means a 27% buyer premium for up to $1 million. A portion of the transaction is 15% of balances over $8 million, between $1 million and $8 million. Monet is currently trying to set the buyers back nearly $706 million. And there’s more to come.
The buyer also states that it is based in the UK and is one of the traditional Big Four Banks. Banks usually add Monet costs, which are probably in the 3% to 4% range by charging at least 2% forex fees. Even the midpoint of the FX fee scale adds another approximately $2.3 million to the final cost to buyers.
To be brevity, avoid VAT for imported works of art, and focus on FX pricing, avoiding VAT for buyers’ premium or VAT VAT tricky questions. The total cost of Monet in question, including VAT, is well over $80 million for UK buyers. FX fee savings are viable and it is almost like negligence if the theoretically winning UK bidder uses traditional banks and pays a 3%-4% FX fee for meekly.
It also provides disruptors in markets such as Ibanfirst. This is a great market opportunity to highlight the benefits of a smarter and more equitable FX pricing structure.
Vivek Savani, UK country manager at IbanFirst, is on his mission to address imbalances in the Forex market.
“Whether we’re talking about high individuals or not, the forex imbalance is an unnecessary premium that doesn’t really represent smart financial management. It also affects businesses. And looking at it, I think there are exorbitant fees and insurance premiums built into the Forex prices and services that many banks offer.
“Over 70% of businesses still use banks. If you extrapolate it to the private market for individuals, perhaps over 70% use banks over 80% and 90% of individuals who have currency transfers and requirements. Transactions essentially offer only execution.
As some have argued, they may be stretching it a bit to suggest that the global art market is struggling. If you want a quick and comprehensive summary of the sector, the annual Art Basel and UBS Global Art Market Report 2025 by Art Economics is a good starting point. This reveals that the global art market recorded an estimated $57.5 billion in sales in 2024.
The number of transactions increased by 3% year-on-year, indicating continued interest from collectors around the world. Meanwhile, the total of $57.5 billion is down 12% year-on-year.
The US and the UK continue to lead with 43% and 18% of global sales by value, respectively. However, sales of $24.8 billion and $1.04 billion in 2024 fell by 9% and 5%, respectively.
Given the decline in the total value of art sales, Savani argues that it is when Artworld has begun to pay close attention to FX, saying this can support the entire ecosystem. Promotes higher bids for auction houses/dealers, supports better seller experiences, and enhances buyer strength.
He then emphasizes the support Ibanfirst offers in the global art market, saying its business model, built around close relationships, reflects the world of art. Specifically, Ibanfirst
It can help buyers and sellers to better track payments. This means that you are well equipped when it comes to buying and selling based on the real-time currency costs.
“Buying art is a significant investment for many people, and these fees increase the overall cost of that transaction. They are very opaque. Ultimately, I argue that this really discourages many people from actually taking part in auctions abroad, time, and the auction houses that are central to intermediaries, brokers, brokers, that particular ecosystem.”
Savani said there is a growing level of interest in working with FX specialists on behalf of banks for such international relocations, and there is a growing interest in the specialized services that bespoke disruptors can offer.
But he adds: “It’s not moving as fast as you would expect. From a consumer perspective, we want to work with more individuals, more dealers, more brokers to fill that gap. It’s still doing a lot of work.
Savani summarises the Ibanfirst proposition as providing a combination of technology and human touch.
“We have really great technology. Many clients feel that the platform is very convenient, very easy to use and very different from what the banking system offers. They also provide that human touch, so some people talk to their clients from the beginning of the transaction until the very end.
“I mean, a professional individual who can provide guidance in terms of trading setup, more insights, and a real healthy overview of what’s going on in the market at a more specific time. Ultimately, he holds the client’s hand from start to finish. And that’s a very important feature. They’re in any situation, whether it’s a fund, whether it’s a payment, whether it’s a transaction, or the Forex part.”
Founded in 2013 and headquartered in Belgium, Ibanfirst is regulated as a payment institution, passported throughout the EU and is a serious competitor of SMB’s traditional banking products.
Its core banking platform offers fast and secure multi-lense sheet transactions, winning costs and banks and banks thanks to setup fees, tiered monthly subscription costs and transfer fees. Savani says what a client sees is exactly what the client pays for.
IBANFIRST’s pricing structure is designed with international business in mind. IBANFIRST provides a standard exchange rate spread that applies to all client transactions. This means you can predict costs even if your payments rise, rather than watching profits. Its Best Suit has grown entry-level payment providers and has established small and medium-sized businesses that need sophisticated tools for Forex risk management and more. It is suitable for importers and exporters with international supply chains seeking tools and expertise to manage complex payments. It is also suitable for wholesalers who rely on FX risk management tools that practice detailed payment tracking and corresponding support.
Additionally, IBANFIRST clients can track international payments at any stage using detailed timestamp updates and tracking links that clients can share with partners and suppliers.
However, this is a highly competitive market, with IbanFirst competing with some serious players. For example, wise businesses can argue that they keep things simple, both in terms of pricing and functionality. It is aimed at both individual consumers and businesses, especially those looking for a cost-effective solution.
Meanwhile, if you move regularly to 100,000 euros a year, crossing the border, Ibanfirst will argue that Wise’s trading fees will start to increase quickly. And when your business is growing, foreign currency risks become more of a concern. Wise does not provide the FX risk management tools or dedicated support that IBANFIRST provides to protect margins from exchange rate fluctuations.
Another competitor is Airwallex, a cross-border payment provider that offers multi-currency accounts. Airwallex is a payment gateway that enables e-commerce companies to collect online payments, offering virtual and physical cards for expense management. On the other hand, it is a more complex platform, its functionality is plan dependent, and some users may need a steep learning curve. And Ibanfirst might argue that Airwallex’s pricing structure is not the most SMB-friendly.
Another competitor is Payoneer. It specializes in promoting payments to freelancers, contractors and online sellers. However, due to its focus divided into multiple audiences, freelancers, businesses, markets and Payoneers, it is less concentrated on developing solutions that meet SMB’s specific needs.
And then there’s Every. Ebury offers forward contracts and other Forex hedging tools and offers mass payment capabilities to handle multiple international transactions. However, its complex, calibrated pricing structure makes it difficult for businesses to predict costs and compare Ebury to other providers.
Furthermore, IbanFirst might argue that the Ebury platform is less user-friendly and is becoming more difficult to integrate into the modern technology stack.
The other two competitors are Convera and Revolut. Convera is suitable for large companies with more complex Forex needs in multiple countries, but some SMBs may find the Convera platform overwhelming and potentially more expensive than alternatives like Wise or Ibanfirst.
And finally, there is the revolution. It features a tiered monthly subscription model, with each plan with monthly allowances from the currency exchange at interbank rates. Revolut Business works well for businesses that want a single platform to handle most financial needs.
So, while there is a lot to offer in terms of functionality, Ibanfirst can be argued that it is not a specialized tool for a particular business type, as it seeks to cater to a vastly different audience. Therefore, you may find that some clients are paying for features that are not related to their business needs.
And Savani can argue that Ibanfirst can beat any of the highly competitive peer groups if human support is essential.
“How Global Art Auctions Publish FX Price Immunity” was originally created and published Retail Banker Internationala brand owned by GlobalData.
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