South Africans Showing Increasing Discontent with Forex Services Provided by Banks

For years, customers in South Africa have voiced their frustrations over the high costs associated with sending and receiving foreign exchange: typically 2-3% of the transaction value, unless you’re a premium client.

People have endured this for far too long due to a lack of alternatives. Paying 2-3% on every forex transfer effectively turns banks into toll collectors for every cent that crosses our borders. A few years back, it was estimated that the major banks were raking in over R15 billion annually with little to no risk involved.

Future Forex has shaken up this monopoly, offering services that cost 30-50% less than those of traditional banks while providing a level of personalized service that banks have long promised but seldom deliver.

Losing such a significant portion of your money merely to transfer it to an offshore bank account feels outrageously unnecessary given the technological advancements that should simplify this process.

So, what drives these high bank charges?

“Firstly, it’s often hard for customers to determine precisely how much they’re being charged by the banks, as many of the costs are hidden within the buy and sell prices. The wider the spread between these figures, the more you end up paying,” explains Harry Scherzer, CEO of Future Forex and a qualified actuary.

Some fees, such as SWIFT charges, are clearer and typically range from R500 to R1,000. Certain banks may also add a “commission” fee, but the significant issue lies within the hidden spread. The banks lack transparency and consistency regarding these charges, yet few customers ever challenge them.

“We invest considerable time educating customers about how banks actually levy forex charges, which can be exceptionally misleading,” Scherzer continues.

Future Forex offers rates that are approximately 50% lower than those of the banks for individuals and up to 30% lower for businesses, depending on transaction size and other elements.

This represents a substantial saving for South Africans looking to buy property abroad, invest internationally, or for companies engaged in imports and exports.

For those investing internationally, these savings can significantly enhance your portfolio performance over a decade or so.

The same applies to companies involved in global trade. A 30% reduction in forex costs directly translates into improved margins and more profitable operations, with savings increasing alongside transaction sizes. For SMEs, this enhancement to the bottom line can be transformative.

“Forex fees in South Africa have been excessively high for too long, and we are here to challenge the existing situation,” says Scherzer.

The banks’ hold on forex raises the costs of everything that crosses South African borders—whether it’s offshore investing, purchasing a villa overseas, tax emigration, estate settlements, or importing goods.

“This market is crying out for a change, and we are here to deliver that,” Scherzer affirms.

Where technology meets personal service

Future Forex is not just more affordable; it’s also smarter and entirely focused on the customer. Many bank clients have experienced dealing with call centers or chatbots while trying to track a forex payment or resolve an issue, which can be incredibly frustrating.

Future Forex seamlessly combines state-of-the-art technology with dedicated assistance from a personal expert. “Our platform is user-friendly, efficient, and cost-effective, but it’s the human touch that really distinguishes us,” Scherzer states. “Every client is assigned a dedicated account manager to help navigate compliance issues, monitor transfers, and alleviate the typical headaches associated with forex transactions.”

Clients of Future Forex can manage their entire international money transfer process through a mobile or web app (available on both Apple and Google Play), while also having direct access to their account manager if they choose.

Navigating the regulatory labyrinth

The forex landscape is not only expensive in South Africa but also fraught with regulatory complexities due to stringent exchange controls. However, Future Forex simplifies this process by managing compliance with the SA Revenue Service (SARS) and the SA Reserve Bank (SARB) at no additional cost, including handling SARB approvals, Advanced Payment Notification (APN) numbers, and Approval of International Transfers (AIT) applications.

“We handle the bureaucracy so our clients can focus on what matters,” Scherzer adds.

“Customers are tired of banks profiting while providing slow and impersonal service. We are delivering South Africans a much-needed alternative that is both cost-effective and supported by exceptional service.”

Contact

To get in touch with Future Forex, reach out via email or call 021 518 0558. For additional information, visit the Personal Forex or Business Forex pages.

Brought to you by Future Forex.

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