Prevent Banks from Profiting at Your Expense in Forex Trading

For many years, South Africans have voiced their frustrations regarding the high costs associated with forex transactions, which typically range from 2-3% for each transfer—unless you happen to be a VIP client with the ability to negotiate.

This 2-3% fee on every rand moving across borders has positioned banks as gatekeepers of wealth, raking in more than R15 billion each year with minimal risk involved.

This has been the norm for far too long—until Future Forex stepped onto the scene. “South Africans are weary of losing thousands of rands each year to slow, overpriced forex,” explains Harry Scherzer, a qualified actuary and the CEO of Future Forex. “We identified this market as one ripe for disruption.”

The disruption manifests in forex fees that are 30-50% lower than those of banks, combining low costs with a personal touch that larger institutions often promise but seldom deliver.

Having to pay 2-3% just to transfer money internationally seems outrageous in a time when technology should facilitate a seamless process.

So, what causes bank fees to be so exorbitant?

“Most individuals don’t challenge the elevated costs of forex because it has always been this way. These charges are intentionally unclear. Part of our mission is to educate our clients on how these fees sneak in unnoticed.”

“Banks often conceal the majority of the costs within the spread, which reflects the discrepancy between the buy and sell price of a currency. The wider this spread, the more you end up paying, and most people don’t even realize it.”

Not only are these margins hidden, but they are also inconsistently charged, making it difficult for consumers to understand their actual expenses. Banks will often quote a mid-market rate that disguises the real cost, so it’s essential to pay attention to the spread, Scherzer advises. This doesn’t even factor in other visible add-ons like SWIFT fees (ranging from R500 to R1,000) or additional “commission” and “communication fees” that some banks like to add.

“We shine a light on how banks sneak these costs in—it’s a crafty tactic, but it’s unjust to the consumers who have to shoulder these expenses,” Scherzer states.

Future Forex enables savings of up to 50% for individuals and up to 30% for businesses, depending on the transaction’s size. For investors, these savings can accumulate into significant returns over time, while SMEs engaged in international trade experience a direct enhancement to their profits.

A 30% reduction on a R500,000 import consignment injects thousands of rands back into the business, potentially transforming the financial outlook of the company.

“Forex services in South Africa have been a rip-off for too long. We are here to change that narrative,” says Scherzer.

The hold banks have over forex drives up expenses for many services—including offshore investments, property acquisitions, tax emigration, estate settlements, and import/export transactions.

Technological with a personal touch

Bank customers are familiar with the tiresome routine: following up on a transfer via a call center or deciphering an impersonal chatbot. This is precisely why Future Forex combines user-friendly technology with genuine human support.

“Our platform is intuitive, efficient, and incredibly user-friendly, but it’s the personal attention from our account managers that truly makes a difference,” Scherzer notes. Every client is assigned a dedicated expert to handle compliance, track payments, and navigate the common forex challenges.

“The Future Forex web and mobile app (available on Apple and Google Play) allows you to effortlessly manage your international money transfers from start to finish—however, if preferred, your account manager is always on hand to manage the process for you.”

Managing the bureaucracy

Forex transactions are not just costly; they are also ensnared in a bureaucratic labyrinth due to South Africa’s intricate exchange controls. However, Future Forex manages compliance with the South African Revenue Service (SARS) and the South African Reserve Bank (SARB) at no additional cost. This includes securing SARB approvals, Advanced Payment Notification (APN) numbers, and Approval for International Transfers (AIT) applications for individuals sending over R1 million abroad.

“We’ve crafted our service to eliminate the burden of red tape, allowing our clients to transfer their money swiftly and with complete peace of mind,” Scherzer adds.

Get in touch

Future Forex can be reached via email or by calling 021 518 0558. For more information, visit the Personal Forex or Business Forex sections of our website.

Brought to you by Future Forex.

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