South African bank customers have complained for years about paying way too much when sending money abroad. Banks typically take 2-3 percent of every transaction unless you count yourself among their most elite clients.
People kept paying these fees because they had nowhere else to go. This pricing setup lets banks collect money from every dollar crossing borders. Reports showed major banks made around R15 billion yearly from these almost risk-free charges.
Future Forex changed everything by charging half of what banks do for foreign currency transfers. They also provide personal service that banks always promised but never delivered. Losing such big chunks of money just to move funds between countries makes little sense, given how technology should make transfers simple.
Why do banks charge these high rates? Harry Scherzer, CEO of Future Forex and trained actuary, explains most costs hide inside the buy and sell prices. The bigger the gap between these prices, the more cash you hand over. Visible costs include SWIFT fees ranging from R500 to R1000.
Some banks add extra commission fees, but the real damage happens with hidden spreads. Banks lack transparency and consistency in their charging methods, yet few customers question these practices. Scherzer says his company spends a lot of time teaching customers how banks actually charge for foreign exchange services.
Future Forex costs about 50 percent less than banks for individual customers and roughly 30 percent less for businesses. Exact savings depend on transaction size and other factors. Their approach has disrupted the old system where banks enjoyed huge profits from foreign currency transfers without much competition.
People kept paying these fees because they had nowhere else to go. This pricing setup lets banks collect money from every dollar crossing borders. Reports showed major banks made around R15 billion yearly from these almost risk-free charges.
Future Forex changed everything by charging half of what banks do for foreign currency transfers. They also provide personal service that banks always promised but never delivered. Losing such big chunks of money just to move funds between countries makes little sense, given how technology should make transfers simple.
Why do banks charge these high rates? Harry Scherzer, CEO of Future Forex and trained actuary, explains most costs hide inside the buy and sell prices. The bigger the gap between these prices, the more cash you hand over. Visible costs include SWIFT fees ranging from R500 to R1000.
Some banks add extra commission fees, but the real damage happens with hidden spreads. Banks lack transparency and consistency in their charging methods, yet few customers question these practices. Scherzer says his company spends a lot of time teaching customers how banks actually charge for foreign exchange services.
Future Forex costs about 50 percent less than banks for individual customers and roughly 30 percent less for businesses. Exact savings depend on transaction size and other factors. Their approach has disrupted the old system where banks enjoyed huge profits from foreign currency transfers without much competition.
