The advent of the internet has seen access to rates of exchange become accessible to everyone with an internet connection or internet capable cell phone. But beware of the rate of exchange for South African Rand that is quoted online as it may be misleading and cause you to make a decision to effect a money transfer without having the full picture.
What you need to know about about the quoted rate of exchange for South African rand on websites
There are some very important factors (GOLDEN RULES) that need to be taken into account when making any money transfer decision based on a website quoted rate of exchange for South African Rand:
- Currencies are traded around the clock – 24 hours per day. Even though morning in Tokyo occurs during U.S. night time, trade and banking continue around the world. Therefore, as banks around the world buy and sell currencies, the value of currencies remain in fluctuation. Interest rate adjustments in different countries have the biggest effect on the value of currencies because investors typically look for safe investments with the highest yields. If an investor can earn 8.5% interest on deposits in England, but can pay 1% interest for the use of money in Japan, then the investor would pay to borrow the Japanese yen in order to buy the British pound. Such trades take place all the time and in very large numbers. In laymans terms the rates change by the second but the rate on the website you are viewing may not – it may be an indicative rate not an actual one. It is the rate you trade at not the rate you see that will dictate what ends up in your bank account.
- What rate are you seeing – money transfer specialists (forex traders, banks etc) make all or some of their income (profit) from the difference between what they buy at and what they sell at. In other words there is a commercial rate and retail rate – if you are viewing the commercial rate do not expect this to be the rate you trade at.
- It is the full picture – an exchange rate in itself does not give you the full picture – are there any commission, charges or fees, will the receiving bank charge you and are there any hidden costs. As an example imagine buying a new laptop advertised at R 5, 000 and on paying are presented with a bill for R 6, 000. The difference you are told on querying the amount, is the transaction charge. So what looked good on the shelf is not so good at the till. The rate of exchange seen on a website may also have such charges and not look so good when your money ends up in your bank account.
- Service – of course it still matters and you should always balance the service with the price (exchange rate + any fees). It is not satisfactory for money to take an age to appear in your account, paperwork not to be provided and queries not promptly answered. Don’t be shy to ask questions about the regulator and for references.
- Knowledge – of particular importance when transferring money in or out of South Africa. We have exchange control regulations in South Africa (very few countries do). ENSURE whoever you are dealing with for your money transfer needs is able to advise you, and help you, with foreign exchange issues such as tax clearances, repatriation of funds and complaints.
Of course the exchange rate is important, but its not everything! As with every major decision we make you have to take all factors into account and the exchange rate is just one. The question is does your money transfer provider save you money.
Hi Fiona / Stacey,
I received the proceeds into my UAE bank account earlier today, and I am very pleased with the rate which you secured for me. May I just say how professional, friendly and efficient your service has been. And if you are ever in Dubai let me know and I’ll shout you a drink!!! Thank you both very much.
Clients benefit from:
- NO administration fees on your currency transfers
- The VERY BEST foreign exchange rates
- ALL tax clearance and Reserve Bank clearances that are required for transferring money
- EXPERT advice and guidance for all foreign exchange and currency transfers
- DISCERNING currency exchange service
- SAFE AND SECURE currency trading
- FULLY SARS and Reserve Bank compliant money transfer process and procedures
- CORRECT declaration of funds transferred into South Africa
Incompass has been providing financial solutions since 2003 with a focus on the international individual or company. Our commitment to providing both innovative and comprehensive currency transfer solutions, has resulted in us becoming one of South Africa’s foremost experts in the field of foreign exchange.
All of our transactions are processed through local banks, that are approved authorised dealers by the South African Reserve Bank. In addition we are an FSB (Financial Services Board) registered company holding all appropriate licences. Our currency transfers, in and out of South Africa, are done in strict accordance with money laundering regulations and exchange control regulations; and all our transactions are audited in terms of our licence and banking requirements.
To experience better rates, save money and experience a first class service contact Incompass Forex today for all your money transfers, currency exchange and foreign exchange services and advice.
Contact Incompass Forex now on + 27 (0) 21 424 2936 during office hours or request call back here.