Transferring a small amount of money from SA to Aus

[Geite]

Hi forum members,

 

We need to transfer a small amount of money (R20,000) from SA to Aus. Who would be best to use?

 

Thanks

 

G

Edited January 15, 2018 by Geite

[Tntaglia]

I suggest that you first check with your bank what they would charge to do the transfer, and then compare the third-party providers. We just used Exchange4Free, they are free if you transfer a large enough amount but not sure about the smaller transfers. I also asked for a fee estimate from Bidvest and they never responded.

[LM17]

Hi, its never really free.

Exchange4Free charges a spread (or margin) on top of the rate so instead of 9.7 you will pay 9.8, normally the banks can beat this if your transfer is large enough. But on smaller amounts  Exchange4Free and other 3rd party get marginally better rates as the pool amounts and get better rates from the banks.  :-)

 

[ChrisH]

 

+1 on what @LM17 said.  To figure out what you are really being charged, go to a site that publishes the current market price: http://www.xe.com/currency/zar-south-african-rand 

 

The guys that charge you a transfer fee might actually be cheaper: 

 

 

ZAR	Fee	Market Rate	Client Rate	AUD	Actual client rate
R 100,000.00	R 350.00	R               9.64	R            9.72	$  10,251.30	R                          9.75
R 100,000.00	R           -	R               9.64	R            9.79	$  10,213.75	R                          9.79

 

I suggest drawing up a spreadsheet like this whenever you get forex quotes because it’s not always obvious which deal is the better one. 

 

Edited January 22, 2018 by ChrisH

[EngineerZA]

As far as I am aware, Exchange4Free may not do transfers smaller than R30k. They told me it had something to do with their licence. It would be best to check with them first.

Regarding the rates, I agree, drawing up a spreadsheet like that really helps put things in perspective.

Also, don't just take the first rate the bank gives you when you are at the counter, ask them to phone the Forex Division and request the best possible rate.