HendrikT

Cheapest way to transfer funds internationally

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HendrikT

Dear SACanada Members,

We are planning to land in Calgary in September and I have been looking into a few options on how to transfer money to our RBC savings account before we arrive. I see a lot of people globally using online foreign exchange services. It seems be using these services you might be able to save +-R5000 per R200 000 transferred with very low costs. Often fixed fees and not percentages and you get better rates than typically offered by banks.

I was wondering if anyone have used any of these services before and can share their experience or advise regarding the following services:

  • www.exchange4free.co.za
  • www.currenciesdirect.com
  • www.finglobal.com
  • www.currencysolutions.co.uk
  • www.currencyfair.com
  • www.ofx.com/en-ca/

From what I have researched so far Currencyfair and Currencies Direct seems to have great reviews internationally.

I see quite a few people from SA use exchange4free or finglobal. Exchange4free seems good but finglobal seems to charge almost the same as FNB....

If you are going to use exchange4free one might as well look at currenciesdirect/currencyfair/ofx?

What is in your experience the upside/downsides to using any of these services as i don't see any particular downside....(except maybe for security/trust in banks is better)

I did see a lot of the discussions regarding FNB global accounts and so forth, but i would like to avoid using the banks as you lose so much on the exchange rates, conversions and fees.... (By my approximation i could get an extra $2200 CAD by not using FNB) 

One of my main concerns in using this services is that you still have to make a payment to their "Rand" accounts and i'm unsure if this will result in cost on my side....

Any advise or suggestions would be greatly appreciated.

 

 

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graciax452

Also wondering about any of these... has anyone used them? 

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MaryJane

I've used exchange4free for years (2012-2017 to be exact).

I've heard of FinGlobal, who used to be known as Cashkows, and know many people have used them as well.

I've not heard of the others but assume they operate the same way. There are many providers who offer competitive rates nowadays.

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graciax452

ok will start looking into exchange4free first, thanks!

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Johno

I would please like to hear from fellow members here which company/app they use to transfer their funds from SA abroad. I have used ABSA a few times, but it seems to be expensive, with a minimum of R380 per transfer and thereafter a % of the amount sent.

 

Gooi.

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Hendie

I have been very happy with xe.com so far. No fees, and reasonable exchange rate. This has been for money transfer from Canada to South Africa though. I am not sure how it will work the other way around, but it's worth checking out!

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GrantM

Xoom is new on the scene and it’s a PayPal service so I would think that it is reliable.

https://www.xoom.com/

My colleague used World Remit and was happy with the service. No issues.

https://www.worldremit.com/

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novascot
Posted (edited)

For sending money out of SA I've used exchange4free, but found incompass to give better rates so have been using them for most of my transfers

Edited by novascot

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graciax452
Posted (edited)

Hi, I've been using Transferwise and am pretty happy with it, for anyone looking for ways to transfer funds to and from Canada, or other countries, they were quite low in their fees and just used a normal Maestro card for the money. Was received within 10 hours which is a win.

Edited by graciax452
missing info

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PyroSA

TransferWise and XE doesn't seem to have a ZAR -> CAD option.

Exchange4Free OTP isn't my mobile phone at the moment :(

Did my cash through FNB, their rate wasn't too bad to be honest.
Asked if I can get a special rate for >R100k, but still haven't had a response from fxtravel@fnb.co.za

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M-N
On 5/16/2019 at 7:20 AM, PyroSA said:

TransferWise and XE doesn't seem to have a ZAR -> CAD option.

Exchange4Free OTP isn't my mobile phone at the moment :(

Did my cash through FNB, their rate wasn't too bad to be honest.
Asked if I can get a special rate for >R100k, but still haven't had a response from fxtravel@fnb.co.za

Have you looked into xoom? They're a new transfer service from PayPal.  

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Jules
On 5/16/2019 at 9:20 AM, PyroSA said:

TransferWise and XE doesn't seem to have a ZAR -> CAD option.

Exchange4Free OTP isn't my mobile phone at the moment :(

Did my cash through FNB, their rate wasn't too bad to be honest.
Asked if I can get a special rate for >R100k, but still haven't had a response from fxtravel@fnb.co.za

I recall using Transferwise when my mom was still alive and I used to send her money from Canada to SA so there must be a CAD$ to ZAR option. I haven’t used it in a couple of years but their app was really good and fees were low. 

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PyroSA

 

20 hours ago, M-N said:

Have you looked into xoom? They're a new transfer service from PayPal.  

Xoom seems to support payments from USD, EUR and GBP only?
 

11 hours ago, Jules said:

I recall using Transferwise when my mom was still alive and I used to send her money from Canada to SA so there must be a CAD$ to ZAR option. I haven’t used it in a couple of years but their app was really good and fees were low. 

There definitely is a CAD -> ZAR option, but that's not much use if I want to send over a lump sum for getting set up in Canada.

 

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M_Richard

For transferring money from Canada to South Africa, bitcoin is very good if you learn to navigate the markets.

You can buy bitcoin on Kraken exchange (deposit CAD) for low fees (+-0.25%) and then transfer it to Luno exchange and sell for ZAR. If you know how to navigate Luno, you can sell for zero fees, or instant sell is 1% fee but can be easily avoided.

The main advantage of using bitcoin (BTC) is the fact that BTC typically trades at a 5% premium in SA. So your funds will actually become more. It is a bit of arbitrage trading mixed with remittance. 

A quick example using current prices and fees:
1. You deposit 10,902 CAD to Kraken, buy bitcoin at 0.25% fee (current price 10,875 CAD = 1 BTC), with the fee included, you now have 1 BTC

2. Transfer the 1 BTC to the SA Luno exchange wallet (low fixed transfer fee, like 20 ZAR). Then you sell for ZAR (at a 5% higher current price in SA of 123,000 ZAR, zero fees) and withdraw to a SA bank account (8.5 ZAR fixed fee).

3. So now you have R123,000 (minus like R30 fees) in you SA bank account.

Compare this to transferring via a bank, who will give an exchange rate of around R10.33/CAD at the moment, excluding any other transfer fees or percentage based conversion fees.

Working with R10.33/CAD, the original 10902 CAD will convert to 112,600 ZAR. 

So with bitcoin, you actually get 10,000 ZAR more on the other side. Something to think about/worth investigating. Depends on the premium between the two exchanges, but SA is typically 2% to 6% more, the premium has even been as high as 10%.

Obviously, for transferring for SA to Canada, the opposite is true.

 

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