Future Forex, traditionally known for its crypto arbitrage service, has another arrow in its quiver, offering forex services to high-net-worth individuals with a compelling proposition: personalised service at wafer-thin costs.
“Forex has been part and parcel of our general process for years and we’ve streamlined it to make it as easy and hassle-free for clients as possible,” says Harry Scherzer, a qualified actuary and CEO of Future Forex.
“Forex is a complicated, overly expensive service in South Africa and buying it can be a stressful experience for many people just trying to get their money abroad. It doesn’t need to be this way.
“We’ve successfully transferred money out of South Africa over 21 000 times for clients amounting to over R4.8 billion. We’ve also had nearly 7 000 approved applications from the South Africa Revenue Service [Sars] for clients, which we offer as a complimentary service.
“Forex is part of our DNA and it makes sense to offer this as a service to clients who need to purchase forex or bring funds into SA for any number of reasons.”
Part of Future Forex’s crypto arbitrage service involves buying foreign exchange which is then shipped abroad and used to purchase cryptos on an overseas exchange. The crypto is then shipped to SA to sell on a local exchange at a profit. Offering a full-blown forex service is a relatively short hop for a company steeped in crypto arbitrage as it forms part of their current arbitrage process.
Who is the new service aimed at?
Anyone in need of forex, says Scherzer. “Our forex service is aimed at those looking at financial emigration, those buying forex for overseas investments, or South Africans abroad looking to remit money to SA. We are also assisting financial advisors who have multiple clients with forex requirements. Whatever the reason, we can do it.”
The minimum transaction amount is R100 000.
“Banks typically don’t really want to deal with individuals, and charge heavily for doing that – we specialise [in] dealing with individuals and can offer much better prices and levels of service.”
Future Forex will be competing with other forex providers in two key areas – pricing and service. Banks typically charge 2.5% or more for clients purchasing forex, whether for overseas investments or holiday spending.
How will Future Forex be able to compete with other providers on forex fees?
“We have plenty experience in smoothly handling forex transactions, as this is one of the key steps of any crypto arbitrage transaction. We have the economies of scale and the banking relationships to be able to get our forex transaction fees down to levels that are well below prevailing market rates,” says Scherzer.
“We are able to offer forex rates that are extremely competitive, and our office is staffed with more than 40 forex and client support specialists. We aim to impress clients with our level of service and our costs, and this is how we differentiate ourselves in what is a competitive market.”
Most forex service providers typically charge +2.5% plus a SWIFT fee of R500 to R1 000. Future Forex is able to undercut this by taking advantage of economies of scale and through its sound relationships with the banks.
Personal relationship managers
Future Forex does not operate a call centre, preferring instead to assign a relationship manager to each client.
Any queries or status updates can be referred to the relationship manager, without having to deal with an impersonal switchboard operator.
“Future Forex’s greatest strength is working directly with people. We’ve always prioritised putting clients first and are passionate about doing so. This is why we’re in personal forex – a space typically sidelined by most forex companies,” says Scherzer.
Taking the pain out of foreign investment allowances
South Africans with unused foreign investment allowances have embraced crypto arbitrage as a relatively low-risk way to make use of this allowance.
Anyone engaging in crypto arbitrage has a potential R11 million available each year for trading: R1 million under the special discretionary allowance (SDA) and R10 million under the foreign investment allowance (FIA) – for which tax clearance from Sars is required.
Future Forex takes care of the FIA applications as a complimentary service to clients via its in-house compliance team, and will do the same for forex clients.
About Future Forex
Future Forex offers a crypto arbitrage service which has delivered annualised returns of over 60%. It continues to offer this service and has been instrumental in popularising crypto arbitrage among South African investors. The high forex volumes processed through its crypto arbitrage service have allowed it to build strong relationships with the banks, at excellent rates, which it is able to pass on to clients. The expertise gained in this space allowed it to build a strong customer support system, which has become a defining feature of its service.
Brought to you by Future Forex.
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