South Africans who use their banks for international payments could be paying far more than necessary, says Future Forex, the country’s largest foreign‑exchange intermediary. The company says its mix of technology and specialist advisory can deliver faster transfers and substantially lower costs than traditional bank offerings.
What Future Forex is offering
Future Forex markets an online platform that displays live exchange rates, enables real‑time payment tracking and supports straightforward document uploads. The company emphasises a combination of digital tools and personal account managers to guide clients when moving significant sums across borders.
“We saw an opportunity to fundamentally improve the international payments experience – not just by offering more competitive pricing, but by combining technology with the personal expertise clients need when moving significant amounts of money across borders,” said Harry Scherzer, CEO of Future Forex and a qualified actuary.
The firm claims it can offer savings of up to 50% for individuals and 30% for businesses compared with typical bank charges.
How banks charge for international payments
Future Forex and other industry commentators say banks’ pricing structures for cross‑border payments are often complex. Some costs are explicit, but others are embedded in the exchange rate itself, creating a hidden fee for customers.
- Visible fees include SWIFT costs, which Future Forex notes typically range from R500 to R1 000 per transaction.
- Hidden costs appear as a less favourable exchange rate: a bank may quote a rate worse than the publicly posted interbank or market rate, producing a spread that effectively increases the cost of the transfer.
The source gives a concrete example: if the public rate is R16.20 to the US dollar but a bank quotes R16.53, the 33 cent difference represents an approximate 2% hidden spread. On a R1 million transfer that spread would amount to about R20 000.
| Item | Amount |
|---|---|
| Estimated annual bank revenue from forex market | R20 billion |
| Typical visible SWIFT fee | R500–R1 000 |
| Hidden spread example | ~2% (R20 000 on R1 million) |
| Claimed potential savings | Up to 50% for individuals, 30% for businesses |
Implications for South African customers
For private individuals sending remittances, purchasing property abroad, or transferring funds for education or investment, those hidden spreads and line items can quickly add up. For companies, recurring international payroll, supplier payments or investment flows magnify the effect of even small percentage differences.
Industry observers say increased competition in the foreign‑exchange market could bring benefits to consumers: greater transparency, clearer fee disclosure and better digital experiences that reduce processing times. However, banks remain major players and derive substantial income from forex activity; the source estimates they generate more than R20 billion a year from the market, a sizeable revenue stream that could dampen incentives for rapid fee reductions.
Regulatory oversight and consumer awareness will be critical if challengers such as Future Forex are to shift market dynamics. Customers must weigh not only headline rates but also transfer speed, service, compliance requirements and counterparty risk when choosing a provider.
As South Africans increasingly transact across borders, both for personal and business reasons, the structure of fees and the clarity of pricing will influence choices and costs. New entrants offering transparent pricing and technology‑led services could cut the cost of moving money internationally, but established banks’ dominance means change may be gradual rather than immediate.
