Is your forex provider's lack of transparency costing you money?

If you’re in the import and export industry or a service-based business that’s landed international clients, you regularly deal with significant foreign exchange (forex) payments. The same is true, albeit less frequently, for people emigrating for tax purposes or investing offshore.

Whichever of those scenarios you fall into, it's vital that you choose the right forex provider if you want to save time, enjoy excellent service and get the best deal on every international transaction.

Is your forex provider transparent about costs?

To determine how competitive banks and other forex providers are from a cost perspective, it's critical to understand how they charge for forex transactions. 

You might already know that they charge a commission or transaction fee (which is sometimes a flat rate and sometimes a percentage of the total transaction), but there’s more to it than that. 

Forex providers also charge an exchange rate margin fee, which is sometimes referred to as “the spread”.

“In essence, this margin is the difference between the official exchange rate and the rate the bank [or forex provider] is offering you,” says Harry Scherzer, CEO of Future Forex. “So, for example, if you’re importing a batch order of consumer goods from the US, the official exchange rate might be around R19.22, but the bank [or forex provider] may charge you something like R19.62.”

Unfortunately, some banks and forex providers do not implement this margin consistently or transparently, meaning that customers don’t know how much they’re going to be charged on each transaction.

“The spread may not seem like a lot — it’s a matter of cents on every dollar [or any other global currency] — but on large transactions, the cost can be significant. In fact, on a transaction of more than R1m, you can end up paying upwards of R20,000,” says Scherzer.

Ticking all the boxes

Future Forex not only offers its clients full transparency when it comes to its fees, but it's committed to providing outstanding personalised service and razor-thin pricing.

From a cost perspective, Future Forex’s proprietary software and strategic banking partnerships allow it to offer you some of the best currency conversion rates in the market. 

It also makes extensive use of automation, ensuring that fewer costly human resources are spent on things like onboarding, further enhancing its ability to offer you incredibly competitive rates.

By combining automation with streamlined processes, Future Forex is able to ensure that your transaction experience is as hands-off and effortless as possible. Its team believes that’s the way it should always be.

Future Forex also assigns each client with a dedicated account manager, who’s always just a call away should you need assistance. This, in combination with its team of accountants, actuaries, engineers, lawyers, economists and forex specialists, ensures that the transfer of your funds is as simple and quick as possible.

Its team also facilitates individuals' AIT (approval of international transfer) applications as a complimentary service, saving you the hassle of having to deal with the SA Revenue Service yourself.

Get what you deserve 

Ultimately, whether you’re making forex transactions for your business or in your personal capacity, you don’t deserve to lose out on time and money as a result of inflated fees and a lack of transparency, while being frustrated by outdated systems. 

To find out more about how Future Forex can help you with your forex transactions, visit Futureforex.co.za

This article was sponsored by Future Forex.