If you’re transferring funds from the UK to South Africa, you may assume your bank is the best option. But this could be a costly mistake. Banks often charge high fees for forex transactions. Their exchange rates may not be competitive and they lack transparency.

The amount of money moving worldwide has soared in recent years. The Bank of England forecasts that cross-border payments will rise from nearly $150 trillion in 2017 to over $250 trillion by 2027. This equates to a rise of over $100 trillion in a decade.

Digital tech has cut the cost of moving money domestically. However international transfers can be slow and costly, especially via a bank.

Costs add up

Banks typically charge between 2% and 5% of the total transfer amount as a fee for sending money abroad. It may not sound like much. But the costs add up quickly if you make frequent, large transfers.

If you transfer £5,000 every month from the UK to South Africa, a 5% fee would mean you’re paying £250 just in fees. Not an issue maybe if it is just a one-off. But if you regularly send large amounts to South Africa, it could cost you hundreds, even thousands, in fees.

Find an experienced broker as an alternative

Sable International charges significantly lower fees, usually around 1%. That means that on that same £5,000 transfer, you’d only pay £50, saving you £200. 

Other fees to be aware of 

When you send money through a bank, the recipient in South Africa may face extra fees. These are called receiving fees and can range from around R150 – R800. They are often hidden and not communicated upfront.

Sable International doesn't charge receiving fees. So, the full amount arrives on the other side. Again, over time this can add up.

Lack of transparency

With many banks, the exchange rate can fluctuate. It's often unclear what rate you'll get when starting a transfer. This lack of transparency means you can end up with a poor exchange rate, losing even more money.

Sable International provides full transparency, discussing the exchange rate with clients upfront. You’ll know exactly what rate you’re getting before you make the transfer, allowing you to make an informed decision.

Even small differences in exchange rates can have a big impact, especially on larger transfers. Knowing the rate in advance helps you avoid any unpleasant surprises.

Slow processing times

Banks are known for their slow transfer times. There are often multiple delays when it comes to compliance on the sending or receiving side. A transaction with a bank typically takes between 2-5 business days.

We give an assurance that our funds clear within three business days, but it is usually faster. In some cases, it can be within 24 hours.

Clearing times

A big frustration with banks is not knowing how long your transfer will take to clear. It could take a few days, a week, or even longer, especially if there are holidays or weekends over the period. The lack of clarity can cause anxiety, particularly when the transfer is urgent.

Sable International gives specific clearing times. You know when your money will arrive. This allows you to plan and avoid stress.

It's helpful to know the exact clearing time when sending money for urgent needs, like paying bills or medical expenses, or supporting family.

Personal service

When moving money, it is important to trust who is doing it and build up a relationship over time.

But with banks and some of the biggest money transfer companies, you are unlikely to get personal service. When you call, you may find yourself talking to an automated answering service. Many large banks deploy chatbots which rely on pre-programmed information and lack the personal touch. With Sable International, you will be put through to a real human being.

They will be able to answer any questions, provide updates and guide you through the process.

It means a lot to our clients. As one of them, William Melrose wrote in his five-star review: “Top class service and I speak to a real human being shortly after the call goes through.”

So, before making your next transfer, consider all your options – you could end up saving a lot of money.

Need to do an international money transfer? We can assist you. Contact our forex team on forex@sableinternational.com or call +44 (0) 20 7759 7554 or +27 (0) 657 2153.

We are a professional services company that specialises in cross-border financial and immigration advice and solutions.

Our teams in the UK, South Africa and Australia can ensure that when you decide to move overseas, invest offshore or expand your business internationally, you'll do so with the backing of experienced local experts.