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All banks and money providers have different fee structures, and they all take different margins on the daily exchange rate. Depending on the size of your transfer, you could save hundreds of dollars by comparison shopping before you send money with your bank.
But how much will it cost to transfer money internationally? Let’s break it down.
1. Money transfer fees can vary greatly depending on your provider
Whenever you send money internationally, your bank will typically charge a fixed money transfer fee. You could pay up to R500 to transfer the money, but the fee will depend upon the bank that you’re using, as well as how much money you’re transferring.
Some banks will charge a different rate depending upon the currency in which your money is sent, so you might pay a higher fee if you send the money in Aussie dollars rather than in your recipient’s local currency.
2. Watch out for the margin on the exchange rate
In addition to the international transfer fee, a margin on the daily exchange rate is also tacked on to most foreign transfers. This rate is typically around 4% at most major banks, so if you’re sending R100,000, you may have to pay up to R 4000. Yikes. We know you could buy a lot with R4000, so we keep our exchange rates and fees substantially lower than other money transfer providers, especially banks.
So how much does it cost to send money internationally?
The answer is, it depends on the company you use. Rather than using a bank and paying excessive fees to send your money internationally, make the smart move to Leafsecure.
In addition to being able to book a transfer 24/7, you’ll pay no other fees or commissions. Plus, Leafsecure delivers a much more competitive exchange rate, so you can save up to 50% on the exchange rate margin and keep more of your money.*
With options like Leafsecure, there’s no need to rely on your bank anymore to send money, so now the only question is: what are you going to do with all that extra cash?
*Save up to 50%* on the rates banks charge with Leafsecure. *Average savings based on published rates of FNB, Absa and Nedbank on a single transfer of ZAR100,000 to NZD.
So how do you make money then?
The Banks buy currency in bulk at an exchange rate known as the “mid-market rate”, they then sell the currency at an exaggerated rate, taking a percent of the profit. This is commonly known as the “spread” or “margin” on an FX transfer. (Partially explained above)
Most providers offer a spread that is unreasonably high, and when this is paired with transaction fees, it can mean that you’re more than likely losing a fair chunk of your money.
Leafsecure makes money by placing a small spread depending on your volume. This spread is up to 3 times cheaper than the banks. For more information, please contact us for a free consultation.