It’s clear that customers are becoming fed up with the high fees charged by banks for forex. It’s a market that is hugely profitable for the banks, generating more than R15 billion annually in fees.
Most individuals and businesses remain unaware of the true cost of forex, with banks charging an average of 2-3% per transaction.
“People assume there’s strong competition among banks for forex charges, but that’s not the case and we have proven it,” says Harry Scherzer, a qualified actuary and CEO of Future Forex. “Large corporates might negotiate better rates, but SMEs and individuals have been overpaying for too long.”
Banks often hide significant charges within complex fee structures.
Beyond visible costs like SWIFT fees (R500-R1 000) and admin or commission charges, the real profit lies in the hidden spread – the gap between a currency’s buy and sell price, disguised by showing customers a mid-market rate.
To understand the true cost of the forex you are buying, you need to know the spread between the buy and the sell rate.
A Moneyweb analysis shows one bank with a buy-sell spread this week of nearly R1 for every $1 purchased. To that one must add the SWIFT fees and other costs.
“Banks have been cleverly concealing these costs for decades,” Scherzer explains. “We focus on transparency, educating clients about how fees are structured. They’re shocked when they see the true cost of bank charges.”
A cost-effective alternative
Future Forex disrupts this model with transparent pricing, slashing costs by up to 50% for individuals and 30% for businesses. For those buying property abroad or investing offshore, halving forex fees can significantly impact their long-term financial goals.
For a R1 million transaction, a 2% spread could add R20 000 to the cost, on top of other fees.
For SMEs, a 30% saving on a R1 million import can save thousands, boosting the bottom line with regular transactions.
High bank fees inflate the costs of cross-border transactions, including offshore investments, property purchases, tax emigration, estate settlements, and imports/exports.
“We outperform banks through economies of scale, cutting-edge technology, and white-glove service,” says Scherzer. “Paying 2-3% to move money offshore is outrageous when technology can make transfers seamless and affordable.”
Personalised service
Beyond high fees, banks often subject customers to frustrating call centres, unhelpful chatbots, and excessive paperwork. The lack of personalised service from the banks adds to the growing outrage over high fees.
This is another area where Future Forex decided to differentiate itself from the banks.
It combines intuitive technology with personalised service. Clients can access an online account via a mobile app (available on Apple and Google Play) or desktop to book and track transactions autonomously. Additionally, each client is assigned a dedicated account manager to handle compliance, track payments, and resolve issues, ensuring a seamless experience.
This approach earned Future Forex the ‘Company of the Year’ award at the 2025 Africa Career Summit.
“I’m proud that we’ve simplified international money transfers while significantly reducing costs for clients,” Scherzer says.
Down with red tape
South Africa’s strict exchange controls add complexity to forex transactions. Future Forex simplifies this at no extra cost, managing compliance with the South African Revenue Service (Sars) and South African Reserve Bank (Sarb). From securing Advanced Payment Notification (APN) numbers to processing Approval of International Transfer (AIT) applications, the company saves clients time, money, and stress.
Future Forex is transforming South Africa’s forex market with a premium, fully transparent offering, establishing itself as a formidable player in the industry.
Contact
Future Forex can be contacted via email at info@futureforex.co.za or by phone at 021 518 0558. For more information go to https://futureforex.co.za/forex/personal (Personal Forex) or https://futureforex.co.za/forex/business (Business Forex).
Brought to you by Future Forex.
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