Whether you’re sending money abroad for investments, emigration, university fees, travel, property, or medical expenses, getting a good exchange rate can save you a lot. Here’s how to do it smartly:
1. Use a Foreign Exchange (FX) Expert – Not Your Bank
Banks often charge higher fees and offer worse exchange rates. Instead, work with a specialist FX provider who can offer:
- Better exchange rates
- Lower (or no) fees
- Faster transfers
- Expert advice
Tip: Companies like TreasuryONE offer personal FX services to help you get the most value when sending money overseas.
2. Keep an Eye on the Exchange Rate
Exchange rates change daily due to global events and market news. Timing your transfer well can make a big difference.
- Watch your exchange rate (e.g., ZAR to USD, EUR, or AUD)
- Use tools that alert you when rates improve
- Stay updated on global news like interest rates or inflation
Tip: TreasuryONE can monitor the markets for you and help you decide when to transfer.
3. Lock in Today’s Rate for a Future Transfer
If you’re sending money later (like for tuition or investing), you can lock in today’s exchange rate with a Forward Exchange Contract (FEC).
- You set the rate now, even if you transfer months later
- Protects you from a weaker rand in the future
- Helps you plan your budget
4. Don’t Transfer Everything at Once
If you’re not in a rush, you can split your transfer into smaller amounts over time.
- This helps avoid transferring all your money at a bad rate
- You can benefit from better average rates over time
Tip: Some FX companies offer tools to do this automatically, but keep in mind that breaking up the transfer might come with extra costs.
5. Don’t Forget About Fees
Always look at the total cost of your transfer. This includes:
- The exchange rate offered
- Any transfer fees or commission
- Fees charged by the receiving bank
Tip: Ask for a full quote showing all charges, and compare it with other providers to make sure you’re getting the best deal.
6. Get Your Paperwork Ready
Depending on how much you’re sending and why, you may need some documents:
- Tax Clearance Certificate from SARS if you’re sending more than R1 million per year
- Proof of what the money is for (like tuition invoices or investment letters)
Tip: TreasuryONE can help you with this paperwork and make sure everything is in order.
What To Do Next
- Contact a trusted FX provider like TreasuryONE to open an account and get personalised help.
- Tell them your reason for transferring (e.g., travel, tuition, emigration, investment) so they can recommend the best way to do it.
- Prepare your documents in advance so you’re ready when the time comes to transfer.
- Start tracking your exchange rate — your FX provider can send you daily updates and help you pick the right time to move your money.