As with all that we do, EasyEquities has built an easy and inexpensive foreign exchange solution so that our Investors can fund their EasyEquities USD accounts without having to go through other complicated or expensive payment options.
The fees you are charged for this transfer are calculated as follows:
A Currency Transfer Fee of the greater of 0.20% (20bps) of the value of your transfer or a flat $4
VAT at 15% on the value of the Currency Transfer fee explained above
As we like to be as transparent and helpful to our Investors as possible, we have built a comparison between the 0.20% (20bps) and $4 minimum in the table below.
Please note: For purposes of explanation, we will assume a foreign exchange rate of $1 = R12.75
The table works as follows:
1. Column 1 shows the Rand value an Investor wishes to convert.
2. Column 2, highlighted in grey, is the fee calculated at 0.2% (20bps) of the Rand value of the transfer (column 1)
3. Column 3, highlighted in orange, is the flat $4
4. Column 4, is the value of the higher fee (20bps vs $4), shown in Rands
5. Column 5, displays the Rand fee (column 4) as a percentage of the Transfer value in (column 1)
IMPORTANT TO NOTE THEREFORE IS:
The greater the value of the transfer, the lower the Currency Transfer fee is, as a percentage of the transfer value (up until a point).
At a transfer value of R25,500 (the row highlighted in yellow in the table below), the $4.60 minimum fee is identical to the 0.20% fee.
If you are looking to make a transfer of less than R1,000, it may be worth you waiting until you have a higher Rand value to transfer, so that the fees as a percentage of your transfer are lower.
You should notice that at a transfer value of R25,500, the fee as a percentage of the transfer value, levels out at 0.23%, which is the 0.20% including VAT.
20bps vs flat $4 fee
|Rand Value of Transfer|| 20bps Fee $ inc VAT||Flat $4 fee incl VAT||Transfer fee in Rands||Fee as % of Investment|