How to send money to South Africa using a money transfer service orÂ foreign exchange brokerÂ to a South African bank account.
Transferring Money to South Africa
When transferring money to South Africa either routinely or occasionally, there are numerous ways you can to ensure you get an amazing south African rand exchange rate, are offered outstanding FX solutions and ensure you are transferring money to South Africa safely.Â
Ways to Send Money to South Africa
- Debit Card â€“ If paying for items online or through an e-tailer, you might have the ability to make use of a debit card, yet are unlikely be able to purchase with a competitive ZAR currency exchange rate when sending money to South Africa with a debit card. You may also be billed an admin charge or transfer cost. Those looking to transfer money to South Africa to acquire a property or pay a legal bill relating to a South African residential property might need to send money to South Africa through a bank transfer, therefore they will need to move funds either using a bank or ideally foreign exchange broker. In a lot of situations, a foreign exchange broker will approve a debit card as payment settlement, allowing you to trade currency with ease in addition to receiving a better ZAR currency exchange rate.
- Credit Card â€“ Perfect for leasing a home in South Africa to guarantee financial protection and the assurance of the bank, in case all isn’t as it seems. Not great concerning the currency exchange rate yet sometimes air miles or reward factors can compensate for a poor exchange rate.
- Bank Transfer â€“ Many will opt to transfer their money directly from financial institutions current account. Usually, the currency exchange rate to transfer money to South Africa will be a lot less competitive than the currency exchange rate available by a foreign exchange broker, in addition to this, you might have to visit your regional branch to move a significant quantity of rand. When sending money to South Africa via a financial institution transfer you will generally be billed a transfer charge of around â‚¤ 10-30 or local money equivalent.
- Swift â€“ Swift payments relate to money transfers outside the EU, within the EU and therefore not applicable when sending money to South Africa is the SEPA repayments system. As a result of South African rand transfers not belonging to the quick SEPA system money transfers to South Africa can take a couple of days longer than transfers within the EU.
Required Bank Details to Transfer Money to South Africa
Identification â€“ To send money by bank transfer you will require 1-2 examples of photo ID as well as need to have a debit card in your possession when visiting the bank branch. If you can send out money to South Africa utilising your online checking account will need a card reader and relevant logins.
If making use of the solutions of a foreign exchange broker all of your documents etc will be conserved when you opened the money transfer account, and your account manager will simply ask you a couple of straightforward questions to validate the account over the phone. Their online systems are similar to those of financial institutions just with far better on-line currency exchange rate pricing.
Swift Code â€“ A South African Swift code will begin with a four-letter bank code, adhered to by two-letter country code, then a 2 letter area code, finished by a 3 number branch code. South Africa does not use the IBAN system.
Time taken to send money to South Africa
- Typical time â€“ For a foreign exchange broker to receive, convert your local money to the South African rand and transfer your money to a South African checking account you have to allow between 1-3 working days. Occasionally the beneficiary bank branch may take a while to process and designate funds. If using a retail banking establishment you should allow 1-2 days extra as their handling is typically slower.
- Same-day transfer â€“ If funds lie in your foreign exchange transfer account you have a possibility of transferring your South African rand to South Africa and the rand clearing the next a day. A same-day transfer to South Africa is exceptionally unlikely when making use of the swift payments system. It can take the recipient checking account 1 day or even more to assign funds. Financial institutions will take a while longer, generally 2-4 working days.
Cost to Transfer Money to South Africa
- Commission â€“ Commissions earned on international money transfers by banks differ from bank to bank yet are inevitably uncompetitive. A foreign exchange broker will usually have the ability to economise in between 1-4% when sending money to South Africa in addition to various other locations.
- Transfer Fees â€“ A financial institution will usually charge anywhere in between â‚¤ 10 -40 to send your money to South Africa. Generally, foreign exchange brokers will not bill a transfer fee. All included on Foreign exchange live operate a fee-free service.
- Exchange Rate â€“ Financial institutions will normally use a ‘day currency exchange rate’ which will be calculated when the branch opens. To cover any directional market movements with the South African rand a healthy margin will be included in cover daytime volatility, also, to safeguard earnings on the potential trades. Fx brokers, on the other hand, job from real-time South African rand rates allowing you to gain from good trends and seek advice if the rate works against you.
Fees for Receive Money in South Africa
South Africa adopts the swift payment service which when compared to SEPA can be pricey and slow-moving if you are sending money to South Africa, you are most likely to be billed an intermediary fee or charge. An fx broker will commonly absorb the charge yet banks will certainly bill or deduct from the rand.
Limits on Money Transfers to South Africa
Customers ought to not be limited to how much money they can relocate to South Africa on the proviso you or your business can justify the South African rand money transfer. If your foreign exchange broker authorises the money transfer, there is no restriction on just how much you can trade.
Generally, if a transfer goes beyond â‚¤ 500,000+ or local money equivalent your international currency broker can request a copy of bank statement to verify your capacity to buy the ZAR currency contract, they may supplementary to this request documents to show the reason for the transfer (e.g South African property purchase).
Safely Send Money to South Africa
Fortunately, foreign exchange brokers understand globally settlements frauds exist and will be diligent in your place as well as run recipients via their systems and additionally flag any type of questionable payments or beneficiaries
- FCA â€“Always be sure your UK foreign exchange broker is financial conduct authority authorised. They shouldn’t ever refrain from sharing their number on the FCA’s register which should also be visible on their company website.
- Guarantees â€“ Whilst a broker will not have the ability to provide assurances their accounts should only be held with tier 1 banking establishments. All customer funds must be allocated to segregated accounts, with funds kept individually from their funding and capital, as a result, if something was to occur to the foreign exchange provider your funds can be retrieved directly from the tier 1 banks.
- Protection â€“ Trusted foreign exchange brokers abide by substantial anti-money laundering protocol to guarantee they are exclusively looking after the transfers of reputable clients and companies. This is continued when they transfer money and likewise transfer funds to South Africa. To make sure standards remain high, money exchange brokers may make inquiries on transfers whose recipients look dubious. Money broker’s FX trading systems are electronically secured, they additionally make use of high degrees of internet protection to avoid the opportunity of their customer’s information being taken.
- Fraud â€“ Despite these preventative steps, dubious cash transfers can occur within the international money transfers field. You can, however, take measures to restrict your chances of ending up being a transfer fraud target. Never send your password or secure logins over e-mail or be pressurised to make a money transfer by an fx broker. Make certain interaction with your broker is from their company e-mail address. If you are phoned unexpectedly by an unidentified member of the broker’s group or new money account supervisor, arrange to call them back to guarantee they are a staff member of the forex broker you work with.
Reasons to send money to South Africa
- Bills â€“ Your South African property or company will certainly have normal running expenditures and also payments. These can include South African property tax, restoration costs, or utility bills. A Foreign exchange broker will more than happy to assist with ongoing transfers to cover your South African bank account as well as take care of any type of money transfers to South Africa
- Loans â€“ If you have been lent money by a good friend or member of the family in America you may desire clear the economic debt if ZAR rates move in your favour. On the other hand, if you have a second home mortgage on your South African residential or commercial property and the South African rand rate remains in your favour you might take into consideration sending money to South Africa to clear part of your rand domestic or office mortgage
- Family â€“ Birthday parties and events along with household celebrations, are never far away. Your foreign exchange broker account can be an excellent means to send financial gifts to a loved one in South Africa.
- Property â€“ When the South African rand currency exchange rate jumps in your favour, you may think of capitalising and renovate or improve your home in South Africa.
- Inheritance â€“ Regretfully many people experience family and friends passing away overseas. You might need to repatriate inheritance funds to South Africa. A broker can sensitively deal with the transfer.
- Car â€“ If transferring to South Africa you may wish to lease or purchase a car to commute or discover different other areas in South Africa
- Holiday â€“ If renting a home or apartment for a trip to South Africa your foreign exchange broker will provide a much better ZAR currency rate than your financial institution or debit card.
- International wholesalers â€“ When buying oversea products or items you can make use of solutions offered by a foreign exchange broker to lessen FX risk connected to purchasing items from wholesalers that market in South African rand.
Foreign Exchange Brokers
Considering the services of a credible foreign exchange broker is the best way of guaranteeing to save money when sending money abroad. Savings between 1-4% are feasible which will be significant on regular transfers and a Greek property purchase money transfers. They can also provide you with several solutions to maximise the amount of currency you receive in South Africa.
Finding a reputable Foreign Exchange Broker
Clients can compare the offerings of transfer services and foreign exchange brokers in many ways when they need to transfer money to South Africa.
- Regulation â€“ always ensure the foreign exchange broker you use is regulated, in the UK, for example, brokers must be authorised by the FCA (financial conduct authority)
- Length of time in business â€“ typically indicating knowledge of the market, number of clients they’ve helped, stability in the market. They are most likely to have helped many other clients transfer money to South Africa and dealt with many different scenarios.
- Transfer fee or no transfer fee â€“ especially worth considering when the payments being transferred to South Africa are small. A transfer fee can typically outweigh the advantages of sending the money to South Africa via a bank or broker even if the rate offered is competitive. All brokers promoted on Foreign Exchange Live work on a fee-free basis.
- Online transfer, telephone transfers or both â€“ online Apps are great for small transfers to South Africa. Recourse can be slow if the money goes astray. Customer service when dealing solely online can vary. Much of this service is via a chat/text box or email. An established foreign exchange broker will operate both an online and telephone dealing service. Meaning you speak directly to an account manager who will be assisted by a back-office team or customer service division.
Find The Right Broker To Transfer Money To Canada
Specialists such as Moneycorp and Rational FX have vast experience in advising and assisting clients all over the globe and saving them thousands of pounds in the process.
- Customer Service â€“ Banks are cumbersome and hard to contact from overseas. Transfer apps can be convenient for smaller payments, but don’t offer prompt customer support if an issue arises. Foreign exchange brokers offer a consistent service. All clients receive a personal account manager with a direct email address and phone number to enable easy contact and customer service if required.
- Safety And Security â€“ All top foreign exchange brokers will hold client funds in segregated accounts. All transactions are conducted following the FCA regulations and guidelines, we strongly advise to check with your broker on the exact details.
- No Expensive Fees Or Charges â€“ Depending on the bank, for each transaction, it could cost anywhere from Â£10 to Â£4o or local currency equivalent. A foreign exchange broker will process your transfer to South Africa with no transfer fees and narrow margin (or spread).
- Better Exchange Rates â€“ A bank will, as a rule, be making a spread of between 2-6% whereas the rates on offer from leading providers will be around 1%. Once your trade is executed, you will be provided with a deal notification showing clearly the base currency amount and the number of Rand purchased.
Foreign Exchange Contracts
A foreign exchange broker offers several supplementary services not available in banks or on many money transfer apps. These include:
- Spot contracts â€“ Arranging a transfer and agreeing on a rate and sending the money to South Africa shortly after
- Forward contracts â€“ fix today’s exchange rate for payment up to 2 years in the future. guaranteeing the cost of your purchase and avoiding foreign exchange volatility.
- Stop-loss â€“ If your currency pair is trending lower a stop-loss protects your currency from depreciating too much, the currency is traded automatically when it hits the agreed level
- Firm order â€“ target a rate superior to the current foreign exchange market rate. Once the desired exchange rate is reached, the currency is purchased automatically day or night.
- Option contract â€“ as with the forward contract but also having the ability to opt for a superior rate is the market rate improves. Typically for businesses rather than private clients.
- Regular international transfers â€“ A payment plan to send money overseas regularly
Documents needed for a foreign exchange broker account
The application to open your foreign exchange account can be completed within minutes. The first step is to apply online giving personal details and a brief overview of transfer needs. Once complete you will typically need to supply the following to get your account approved
- A valid form of photo ID
- Recent utility bill or address proof (less than 3 months old)
List of Foreign Exchange Brokers
- Boutique brokerages such and Newbridge FX offer tailored services to cater to their clients’ needs and work tirelessly to limit their clients’ FX risk.
- Midsize brokerages such as Rational FX operate both corporate and private client operations with a focus being on key markets such as France and Spain.
- Large multi Geographic operations such as Moneycorp operate in multiple jurisdictions and have many local offices to best serve their global clientele.
Banks in South Africa
South African financial institutions are among the most significant corporations in the entire continent. The presence of these banking establishments in South Africa has actually brought in financial investment both worldwide and locally.
So whichever bank you elect to use, you can be assured to find a big network of branches and ATMs that you can utilize throughout the country, and on-line solutions allowing you to operate on a 24/7 basis.
As in the UK, charges and tariffs can differ considerably from bank to bank. South Africa’s leading banks include:
- First National Bank
- Standard Bank
- Investec Bank
- Post Bank
It is possible to open a bank account without current employment and without depositing any money, however quarterly maintenance fees may apply, depending on the individual bank. In terms of security of funds, all South African banks above are regulated by the South African Reserve Bank.
Opening a bank account in South Africa
To open up a resident current or savings account as a foreigner, it is essential to:
- Confirm all the funds or foreign assets brought into South Africa
- Declare a Foreign National Statement and Verification of Employment by a South African Company form
- Supply a declaration that international properties will not be offered to a third party resident in South Africa
Provide the new south African bank with copies of:
- Valid passport
- Work or study permit
- Proof of address in South Africa such as a utility bill
- Copies of recent bank statements from a bank in your native country or collective banking history
Bank accounts can’t be opened from abroad; however, the application form and any accompanying declarations must be accompanied by a certified signature (from either a lawyer or solicitor).
Non-resident South African bank
If you are a non-resident applying for a savings or current account in South Africa. You will at a minimum require the following
- Proof of foreign income – recent payslips
- A recent document from a bank in your home country – recent bank statement should suffice
- Ability to credit the bank account with a minimum balance
Generally, non-resident accounts may be opened in international currency only, which can sometimes be appealing due to the volatile nature of the South African Rand. There are nonetheless some exceptions to this policy. For more information, check with your local South African bank to which extent you can keep a Rand-denominated interest-bearing account.
South African bank details
Swift code (8 characters) – 8/11 characters which identify your south African banks country, city, bank, and branch.
- Branch name -Investec Johannesburg
- Branch address – 55 17TH ROAD, Johannesburg
- Branch code – 4 characters representing the bank. Typically looks like a shortened version of the
- South African bank’s name.
- Bank name – Investec Johannesburg
- City – Johannesburg
- Country – South Africa