1 week Ago By Ciaran Ryan
A consistent gripe among South Africans is the high cost of moving money abroad, with a recent Moneyweb analysis showing that the major banks charge 2-3% of the transaction value. In an age where technology should streamline cross-border payments, it’s increasingly hard to rationalise such steep fees. The rand’s recent depreciation has only added fuel to the fire.
With individuals and businesses now paying even more to send money abroad, the banks exorbitant charges are becoming increasingly hard to ignore – making the need for a transparent, cost-effective alternative more evident than ever. How do the banks justify their charges? Well, they don’t. It’s essentially a type of toll collection on every rand, dollar or euro that crosses the border – and that’s the way it’s always been.
However, local fintech Future Forex is changing the narrative – offering a cheaper, easier and more convenient way to move money internationally. The most recent data we have suggests forex is at least a R15-billion-a-year business for the banks, with very little risk. If Future Forex is able to cut fees by 30-50%, it begs the question why there isn’t more competition in this highly dominated market.
“We are able to undercut the banks by blending cutting edge tech and economies of scale. Our research showed there was huge dissatisfaction with bank charges and poor customer service, which are the two areas we’ve zeroed in on,” says Harry Scherzer, qualified actuary and CEO of Future Forex. “This is the disruption the market has been waiting for, and the response has been overwhelmingly positive.
” “High fees have become so entrenched in the system that they’re rarely challenged,” says Scherzer. Banks have built their service around a lack of scrutiny – having little incentive to be transparent. A big part of what we do is help our clients understand the way these fees are structured and how they are often overlooked.
” Some fees are visible to the customer, like SWIFT charges (R500-R1 000), or other “admin” and “commission” fees. But the real damage , the difference between the buy and sell rates banks use. “This is where the banks hit you hardest,” says Scherzer.
The spread appears inconsistent and is often masked by a mid-market rate that looks fair but isn’t. The wider the spread, the more you pay for forex. Future Forex is challenging this model head-on.
For individuals sending over R100 000 offshore – whether for investments or property purchases – a 50% reduction in forex fees makes a tangible difference, with those savings compounding into significant returns over time. Businesses feel the benefit too: a 30% saving on a R500 000 import shipment puts thousands back into the bottom line. With regular international transactions, those savings quickly pile up and can radically boost the company’s profit profile.
High bank fees ripple through everything, from offshore investments to international property deals, tax emigration, estate planning and import/export payments. That’s a very real cost to the broader economy. The costs aren’t the only frustration when sending money abroad.
Many bank customers are all too familiar with having to navigate impersonal call centres and chatbots, only adding to an unnecessarily complex process. One of the key benefits of transacting through Future Forex is that every step of the process is handled through a combination of its award-winning technology and the personalised service offered by a dedicated account manager, who is allocated to each client as soon as they sign up. “It’s important to have a human who understands your personal or business forex needs and who is readily available to guide you through the entire process, from handling compliance to tracking payments on your behalf,” says Scherzer.
Along with this, the Future Forex web and mobile app (available on the Apple and Google Play stores) offers a user-friendly and convenient solution for clients who prefer to manage their international payments autonomously. South Africa’s exchange controls add another layer of hassle to the forex process, but Future Forex simplifies compliance hurdles for its clients, managing South African Revenue Service (Sars) and South African Reserve Bank (Sarb) requirements as a complimentary service. The team handles Sarb approvals, Advanced Payment Notification (APN) numbers and Approval of International Transfer (AIT) applications for individuals sending more than R1 million offshore per year.
“Moving money abroad shouldn’t feel like a costly nightmare,” says Scherzer. “Local banks have long counted on you overlooking their hidden fees – why keep settling if you no longer have to?” Not sure how to reword this but it’s sounding like we think you need an AIT for more than R100,000 rather than R1m. I understand it’s trying to say that our minimum is R100,000 but that’s how it’s reading.
Future Forex can be contacted via or by phone at 021 518 0558. For more information go to or ..
