Whether it’s for a new job you’ve landed in Cape Town, a gift for friends back home or emergency cash for a travelling daughter, finding the best exchange rates doesn’t have to be a complicated and long drawn process. In fact, all you need to do, is punch in the amount you’re looking to transfer in our exchange rate calculator below, and we’ll list the best IMT providers for you right away!
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So now you know who’s offering the best AUD to ZAR exchange rates, and you know who’s charging the lowest fee to transfer your money within a set number of days. But do you still feel like you need a little more information about the providers and the process before clicking the blue ‘go to site’ button? Don’t worry, we’re here to help - here are 5 key questions that’ll help you reach a more informed decision.
You must already be familiar with the major banks listed in the calculator above - they’re all big names in the banking world and are known to provide secure financial solutions to Australians. And if you’re thinking they offer a comfortable and reliable option for transferring your money overseas, you’re right. You probably have a bank account with one of them already and it just feels convenient to deal with a known face.
Another advantage of opting for a bank is that if you’re not keen on making an online transaction, you can go to a branch personally and then make the transfer. The flipside of that however, is that sending money in person comes with a higher fee compared to online transfers. Plus also keep in mind banks are generally known to apply higher margins on exchange rates compared to independent IMT providers.
Online foreign exchange specialists.
Boutique forex specialists are known to offer the most competitive exchange rates for sending your dollars overseas. Most independent IMT providers operate online or over the phone and don’t have a branch you can visit - but that only means they spend less on overhead costs and the savings get passed on to you in terms of better value deals!
Another great thing about forex specialists is that unlike banks, many of them don’t have a cap on the amount of money you can transfer in one go. And if you need to make multiple transfers to South Africa, you’ll find that many online IMT providers offer better rates if you sign up for a regular transfer option.
You know how peer-to-peer platforms like Uber offer cheaper prices by cutting out the middleman (the cab company) and bringing people directly in contact with private car owners/ drivers? P2P platforms for international money transfers follow a similar concept where you deal with a ‘peer’ or ‘peers’ through an online marketplace to exchange money. While companies such as CurrencyFair let users set the exchange rates, others like TransferWise use the real mid market rate for different currencies.
When you take a look at the deals offered by these providers in our exchange rate calculator above, you’ll realise that they offer some of the best ZAR exchange rates.
If you pick an IMT provider listed on Mozo, you can be rest assured your money is in safe hands. That’s because we only deal with providers that are regulated by ASIC and have encrypted payments platforms to ensure the security of your funds. In general, if you’ve shortlisted a provider that you’ve never heard of, always check if they’re licensed before booking a deal.
It’s also important that you’re sure of the information you’ve provided about the recipient’s bank account. Neither banks nor IMT providers can be held responsible if you give out the wrong details, which leads to the funds being sent to the wrong account.
One of the easiest ways to look for the best ZAR exchange rates is to compare providers using an online exchange rate calculator, like the one on the top of this page. But it’s important to remember that exchange rates are not constant and can change anytime. So if you see a competitive exchange rate now, decide to sleep over it, and come back to book a deal one week later, it’s possible that you may not find the original numbers.
That’s why, if you’re looking to exchange rands immediately, and you’ve found a rate you like, it’s a good idea to go through with the transfer right now and secure the ‘spot rate’ that is only available at that point in time.
But what if you aren’t planning the transfer for some time? That doesn’t mean you shouldn’t be browsing around for a competitive exchange rate now. Here are your top options for locking in a good exchange rate:
Forward contract. If you happen to spot a high exchange rate for converting Aussie dollars into rands, but don’t need to actually make the transaction right away, you can lock in the rate for a deal you’re planning down the line. This is called a ‘forward contract’ and is an option with many IMT providers. This protects you from sudden fluctuations in the currency market and is especially useful when you know you’ll need to make a large payment, for example an installment for a property you’re purchasing, on a set date.
Limit order. A limit order lets you set a target exchange rate of your choice. This is a great option if you’re not in a hurry to transfer funds because the provider will track rates and send money on your behalf when the currency hits the rate you requested. This ensures that you don’t miss out on overnight rate changes.
While the transfer fee and the exchange rate are the major factors that will affect the final value you receive for your Aussie coin, you also need to look into the fine print to make sure you don’t get stung by any unexpected charges at the last moment.
Amendment charges. If you realise you’ve made a mistake with the recipient’s account details after booking the transfer, the provider may charge you an amendment fee of around $25 to make the changes. So always make sure you’ve got all the information right in the first place.
Receiving charges. This is a fee that the beneficiary’s bank in South Africa may charge for receiving the rands in their account.
Go to provider’s site. After you’ve picked the provider you want to go with, click the blue ‘go to site’ button on the exchange rate calculator above. You’ll reach the provider’s website, where you can kick off the transfer process.
Create an account with the provider. You’ll then have to set up an account with the IMT provider. To register this account, you’ll need to provide your personal contact information and your identity will need to be verified before any transaction is carried out.
Confirm rates and fees. Double check the final exchange rate and transfer fee for the amount of money you’re sending. Don’t forget to read between the lines for any additional costs that may be applicable to your transaction.
Transfer funds. When you’re sure of all the details, you can transfer the money to the provider, so they can send the funds to the recipient in South Africa.
See how easy it is to find and lock in a competitive exchange rate with a reliable forex provider? Now go ahead and start your comparison with our nifty calculator on the top of this page.