Top tips for international money transfers: How to choose the best FOREX provider

Need to make an international money transfer from South Africa abroad? The hunt to find a forex broker to trust with your money can be overwhelming, simply because there’s so much choice these days and the retail forex market is so competitive. So how do you know what you need to look out for in order to choose the best international money transfer company for your forex requirements?

 

International money transfer from South Africa

1. Security and regulatory compliance should be top of mind when transferring money from South Africa

• It’s your money, so you’ll want to make sure it’s in safe hands and everything is above board before you hand over thousands of your hard-earned Rands.
• Fortunately, a credibility check isn’t a hard thing to do and there are regulatory agencies working around the world to separate the trustworthy from the scammers. In SA all foreign exchange service providers must be authorised by:
  • The South African Financial Sector Conduct Authority (FSCA)
  • The South African Financial Intelligence Centre (FIC)
  • The South African Reserve Bank
• You’ll also want to look for a forex dealer with an SSL Security Certified website to ensure your connection is secure.

 

2. Once you’ve done a credential check, then do a price comparison

• Comparing fees on forex services is a critical step – don’t be fooled by “0% commission” claims, instead do your homework into how forex transactions are charged.
  • This might be a transaction fee, or it could be worked into the exchange rate or called a delivery fee. Some providers add administrative fees, so make sure you’ve read everything on a provider’s approach to fees/commissions before you commit.
  • Be careful. “Dumping” is an unfortunately common practice with shady brokers, who offer unbeatable initial rates to reel you in before “dumping” a whole lot of charges onto your subsequent transactions.
  • If you’re in doubt about anything, ask. Ask again until you’re clea r exactly what you’re going to be charged, before you make any further moves.

Top tip: look for a forex service provider that only expects you to pay for their services once the service has actually been provided. It’s a smart way to ensure you get what you pay for!

 

3. Be clear about your foreign exchange requirements, so you can find a provider that meets them exactly

If you only need a simple service, you won’t need complex financial products. Every money transfer method has pros and cons, so  you’ll need to evaluate these based on your needs with each transfer – whether its speed, low fees, transfer amount or destination, find the provider that does what you need, well.

• Finding a forex service provider that meets your needs involves examining their customer service and support.
• How promptly does your forex representative attend to your queries?
• How easy is it to get assistance when you need it?

 

How does forex work when you send money using a foreign exchange broker?

Today, digital-first foreign exchange companies offer an advanced range of transfer and exchange services as an alternative to traditional money transfers offered by banks. If you’re sending large sums of money abroad, using a forex service provider can be a convenient, cost-effective option. Some of the benefits of going this route usually include free transfers, online money transfers, better exchange rates, 24-hour support, as well as handy tools like exchange rate alerts.

 

How international money transfers usually work:

1. You deposit the funds you intend to transfer into your service providers account – this usually takes place online, or via  direct payment from your bank.
2. Your forex provider then exchanges your money from one currency into another and sends it abroad.

It’s important to bear in mind that there are limitations as to how much money you can send abroad in one calendar year, as a South African tax resident.

• Foreign Investment Allowance: capped at R10 million, you can transfer money abroad with prior tax clearance.
• Single Discretionary Allowance: capped at R1 million, you can transfer this money abroad for any purpose without prior tax clearance.

 

FinGlobal: Forex experts for South Africans

If scouring the internet for the best foreign exchange deal every time you want to make an international money transfer from South Africa sounds like hard work, then it’s hard work you should consider outsourcing to the experts.

FinGlobal is ready to provide you with tailored, personalised service on every transaction, offering highly competitive exchange rates (much better than commercial bank rates!) and fast turnaround with fully transparent fees. Get in touch to discuss your foreign exchange needs today!