Automated Arbitrage Trading
Koinexpert employs technology which takes advantage of the differences between cryptocurrency prices in US Dollars (USD) and South African Rands (ZAR). Over the last few years, the price difference has been approximately 5%, although it has sometimes been higher or lower.
South African residents may utilise their annual Single Discretionary Allowance (SDA) of R1 million as well as their Foreign Investment Allowance (FIA) of R10 million to earn arbitrage trading profits.Sign Up Now!
VerificationAnswer a few personal questions and provide a few documents to complete our KYC and AML verifications.
Forex SetupYou will be assisted in opening a new bank account and introduced to our forex intermediary partner.
Trade InitiationTransfer funds into your trading bank account and send a proof of payment to the forex intermediary. The intermediary will then contact you to book a deal before your funds are sent abroad.
Trade ExecutionOnce the funds arrive as USDC, Koinexpert Technology examines the pricing across multiple markets and executes trades when market conditions are most profitable.
Funds ReturnedOnce trading has completed and if trading was profitable, your initial capital along with profits are returned to your personal bank account.
Minimized RiskTrading in Crypto Assets can present risk. With the introduction of automation, executing trades can be significantly less risky. Koinexpert technology is designed to mitigate as much risk as possible by executing trades when arbitrage opportunities are favourable, and buying or selling Crypto Assets with the aim to mitigate the risk associated with price fluctuations.
Maximum ProfitOur process is optimised in such a way that users are exposed to the most competitive transactions fees, while Koinexpert technology is optimised to capitalise when the arbitrage opportunities are at a maximum.
Multiple ExchangesKoinexpert Technology monitors several exchanges and several trading pairs 24 hours a day and 7 days a week. We then capitalize on the exchanges and pairs that offer the highest arbitrage opportunities when trades are executed.
Best RatesOur relationship with banking partners, the exchanges and forex intermediaries allows us to offer clients the absolute best fees on forex transactions as well as the highest fee discount tier level at all relevant exchanges.
The execution of the trade by Koinexpert relies on various stakeholders, and compliance with all exchange control mechanisms put in place by the SARB, commercial banks and authorised foreign exchange providers. It is generally understood that a client can expect the full lifecycle of the transaction to take up to 12 hours; however, this timeframe may vary from time to time.
Every South African is subject to the laws and regulations put in place by the South African Reserve Bank (SARB) which relates to exchange control. South Africa’s current exchange control regime limits any individual to a cap of R 1 million per annum. This means that if you have already sent funds abroad to the value of R 1 million, that your respective Single Discretionary Allowance (SDA) would have been exhausted and you will not be entitled to make use of our services. However, you may seek independent advice from a duly qualified accountant/tax practitioner regarding the use of a Foreign Investment Allowance (FIA) which is capped at R 10 000 000,00 per annum.
The anticipated profits or losses in arbitrage trading are dependent on volatile market conditions beyond our control. However, past transactions generated returns of approximately 2 - 5%. Please note that past performance does not guarantee future results and you are encouraged to visit our official arbitrage page for the most recent statistics.
We send a detailed Trading Statement to clients once a trade has completed. This Trading Statement contains all information related to the trade. Herewith a fictitious example of a statement and what each value on the statement means as well as how the values are calculated:
|Initial Cost:||300 500.00 ZAR|
|Forex Transaction Fee:||- 500.00 ZAR|
|Forex Conversion Fee:||-1 500.00 ZAR|
The first three values on the statement (shown above) are provided to the client as a courtesy and occur external to the actual arbitrage trade.
- The Initial Cost is the amount of ZAR the client spends to complete the entire transaction.
- The Forex Transaction Fee is the amount deducted by the Bank in order to facilitate the sending of the funds abroad for Koinexpert to execute trades. Some banks charge different fees. For example, currently Mercantile charges a fixed fee of R500 and Investec charges a fixed fee of R450.
- The Forex Conversion Fee is a percentage of the remaining amount after the Forex Transaction Fee is deducted. This is a fee charged by the Forex Intermediary to facilitate the sending of your funds abroad. Most intermediaries currently charge 0.5%.
In the above example, the 0.5% Forex Conversion Fee would be calculated as follows:
300 500.00 ZAR - 500.00 ZAR
= 300 000.00 ZAR
0.5% of 300 000.00 ZAR
= 1 500 ZAR
The remaining amount is called the Trading Capital and is calculated as follows:
300 500.00 ZAR - 500.00 ZAR - 1 500.00 ZAR
= 298 500.00 ZAR
The Trading Capital amount (in this example, the 298 500.00 ZAR) is the ZAR equivalent of the US Dollars that is sent to Koinexpert. We receive this amount after all external fees are deducted and it is the amount we use to execute Arbitrage Trades.
Depending on the market conditions, a profit will be generated which usually ranges between 1% and 7% of the Trading Capital Amount. For the calculation below, we will assume a net profit of 5%, which would result in:
5% of 298 500.00 ZAR
= 14 925.00 ZAR
Koinexpert charges 20% of the profit generated as a service fee:
20% of 14 925.00 ZAR
= 2 985.00 ZAR
The final fee that is then deducted is the "withdrawal fee", which is the cost of sending the final amount to your bank account. For Standard Bank accounts, this fee is fixed at R 30.00 ZAR whereas for all other bank accounts this fee is fixed at R60.00 ZAR.
The calculations would then end as follows:
|Trading Capital:||298 500.00 ZAR|
|Trading Profit/Loss:||14 925.00 ZAR|
|Service Fee:||-2 985.00 ZAR|
|Withdrawal Fee:||-60.00 ZAR|
Adding these values would result in the final "Proceeds" amount, which is the amount sent to your bank account:
298 500 + 14 925 - 2985 - 60
= 310 380.00 ZAR
In order to make use of our services, a service fee of 20% is charged on all profitable transactions. Please note that we cannot and do not guarantee the success of every trade, however, we will not charge a fee in the event of any incurred loss. A full statement of account will be provided after each transaction and we remain committed to ensuring that our clients remain up to date regarding the status and progress of their arbitrage transactions.
Koinexpert allows a minimum trade size of R100 000 ZAR.
Keep in mind that smaller trade sizes will return less profits due to fixed fees charged by the bank. These fees include a SWIFT fee of +-R500.00 ZAR and a Conversion Fee of about 0.5%.
At present, Koinexpert is not licensed to provide financial advice as defined in the Financial Advisory and Intermediary Services Act, 2002. However, Koinexpert is committed to following all regulatory prescripts pertaining to Crypto Assets. Koinexpert provides a service which anyone can utilise if they appreciates at the risks associated with Crypto Assets. Crypto Assets are volatile in nature and that means there is always risk involved in buying, selling and/or trading them.