'Too costly, too much paperwork' - What if an FX bank account was free of these issues?

According to a recent poll conducted by News24, 83 percent of adult respondents do not have a forex bank account, but 89 percent would acquire one if it was quick, convenient, and cost-effective.

In a study conducted by News24 in February, 621 persons were questioned. Only 17% of those surveyed said they had an active FX bank account.

The other 83% found it difficult to open one for a variety of reasons, including:

● There was too much administration, according to 33% of respondents.

● It was deemed excessively costly by 38% of respondents.

● Only 29% claimed their bank did not provide it.

54 percent of the 106 people who claimed they had one said they used it largely for trading. Interestingly, the remaining 46% discovered a number of alternative ways to use it, including:

● It was utilized by 13% of people to save for vacations abroad.

● It was utilized by 17% of people to protect themselves against the rand.

● 16 percent utilized it to make purchases in other countries.

What difficulties must be overcome for the ordinary South African to consider foreign currency part of their regular financial life, given that so many respondents want to create a forex bank account yet an equal number do not have one？

Fee reductions, simplicity of use, and knowledge

South Africans invest 75% of their assets in the country, yet according to the World Investment Report 2020, South African investments account for just 0.3 percent of total worldwide investments.

Only 10% of poll respondents indicated they understood enough about foreign currency to incorporate it in their investing strategy, while 31% said they knew “a little bit.” The vast majority (32 percent) either knew nothing or wished to learn more (28 percent ).

Low costs and real-time transactions (34 percent); a simpler procedure to register an account and link it to multiple currencies (31.5 percent); and the ability to move currencies across accounts at cheaper fees were all factors that would tempt newcomers to open an account (35.5 percent ).

Those with a forex account indicated they would switch or establish a new one if it offered a nicer user experience (32%), the opportunity to trade through an app (18%), lower costs (16%), better rates (21%), and real-time FX exchange (21%). (12 percent ).

It can also help you save money when traveling overseas. Only 18.5 percent of people indicated they use a forex account while traveling abroad, with the remainder avoiding fees and expenditures by utilizing a debit card connected to a bank account (38 percent), a credit card (31%), or cash currency conversion (13 percent ).

The capacity to reduce risk by saving and transacting in foreign currency used to be a privilege reserved for the rich. Discovery Bank now makes saving and transacting in the foreign currency of your choosing reasonable and simple.