You can save money and time with FX Rand
How much does it cost to convert Rand to foreign currency for transfer offshore, and how complicated is the process?
Firstly, we must remember that because South Africa continue to operate an exchange control system to transfer funds out of the country, you have to use a local provider. That’s the rules!
So let’s first talk about price. There are basically two options: the traditional “margin” based model and the lesser known, but potentially money saving, “fixed fee” approach.
So what’s the margin all about? Well, it’s the difference between the exchange rate a provider quotes you and the rate that the actual conversion of funds takes place at. The wider the margin, the more you’re paying.
To illustrate this let’s say that you want to buy GBP 100,000.00:
You’ll see that you’re paying ZAR 20,000.00 more, to buy GBP 100,000.00, through the provider - this amount is their profit from your transaction.
With the fixed fee approach there’s no difference between the rate the provider gets and the rate you’re quoted - the margin is zero! All you pay is an administration fee.
If you were to ask FX Rand to complete the same purchase of GBP 100,000.00, here’s how it would look:
Our fixed fee in this case is ZAR 4,500.00, so your total cost would amount to ZAR 1,999,500.00. Basically, you pay ZAR 15,500.00 less to buy GBP 100,000.00.
That’s a BIG difference!
When it comes to process we can’t really speak for the competition, but at FX Rand we’ve gone fully digital. There’s no original paperwork required, no need to have documents certified, and no waiting in call centre queues. Our process is simple, secure and quick!
We like to think our foreign exchange model has taken what can often be a complicated situation and provided a simple solution that gives the customer exceptional value in terms of price and process.
If you need to transfer funds out of South Africa, why not get in touch…..you could save yourself a lot of money!!
FX Rand is a South African Reserve Bank approved foreign exchange intermediary, licensed by the Financial Sector Conduct Authority, so when you talk to us, you’re in very safe hands.
Please note: the exchange rates we’ve used in this article are not live. They’re purely for illustration purposes and do not represent a quote.