There was a write up about these guys in the Examiner today. Seems like a good idea. Had a quick look and €1 will buy you £0.8525 compared to the spot rate of £0.854839 (from xe.com). This might improve if they get more registered users. I hope they can make it work, banks can be extortionate when it comes to foreign exchange rates and fees. The site was down for a while earlier which doesn't augur well though.
I've no affiliation with currencyfair.
I've no affiliation with currencyfair.