We are here to help! Have a look at our Frequently Asked Questions below, or simply open a support ticket if you require personal assistance!
Frequently Asked Questions
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%.
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
SARB & Forex
Your accountant or tax practitioner should be able to assist you in applying for Tax Clearance.
The SARB website should be able to provide the best and most up to date information on their stance on cryptocurrencies.
As at the time of posting, the SARB website says the following:
"Are there any compliance requirements or exchange controls applicable to crypto assets?
The SARB does not currently oversee, supervise or regulate crypto assets, which were previously referred to as virtual currencies, but is continuing to monitor this evolving area. The SARB’s position on crypto assets remains as set out in the 2014 Position Paper on Virtual Currencies and is summarised below.
Crypto assets are not legal tender in South Africa, so any merchant or beneficiary may refuse them as a means of payment. These assets are not guaranteed or backed by SARB as they operate independently from the central bank and users are alerted to the potential risk of fluctuation in the value of crypto assets. There are currently no dedicated laws or regulations that specifically govern the use of crypto assets in South Africa and, therefore, no regulatory compliance requirements exist for local trading of these assets. Legal protection or recourse to users, traders or intermediaries of crypto assets therefore depends on general common law principles. Dealing in crypto assets is performed at the end-user’s sole and independent risk. Initial coin offerings are related to crypto assets and their use are also unregulated and unsupervised by the SARB.
Neither the Currency and Exchanges Manual for Authorised Dealers nor the Currency and Exchanges Manual for Authorised Dealers in foreign exchange with limited authority allow for cross-border or foreign exchange transfers for the explicit purpose of purchasing crypto assets. From an exchange control perspective, the Financial Surveillance Department is unable to approve any transactions of this nature.
Individuals may purchase crypto assets from abroad using their single discretionary allowance of up to R1 million and/or their individual foreign capital allowance of up to R10 million with a tax clearance certificate per calendar year, as outlined in the abovementioned manuals. A local Authorised Dealer will be able to assist individuals with these allowances.
It should be noted that, when purchasing foreign exchange through an Authorised Dealer, a customer is required to sign a declaration, either physically or electronically, which includes the wording “I have been informed of the limit applicable to the above transaction and confirm that this limit will not be exceeded as a result of the conclusion of this transaction”. It follows that an individual is responsible for ensuring that he/she does not exceed the relative allowance applicable to the transaction i.e. R1 million or R10 million.
An individual may not use another individual’s single discretionary allowance or foreign capital allowance through the granting of a 'loan' or any other similar agreement. This is regarded as a simulated transaction to circumvent the provisions of the Exchange Control Regulations and therefore an illegal activity. In this regard, refer to Exchange Control Regulation 10(1)(c), read with Exchange Control Regulation 22.
The Exchange Control Regulations prohibit transactions where capital or the right to capital is, without permission from National Treasury, directly or indirectly exported from South Africa. This includes transactions where an individual purchases crypto assets in South Africa and uses them to externalise 'any right to capital'. Contravening these regulations is a criminal offence.
The repatriation of value to South Africa through crypto assets is not permitted as part of an individual’s single discretionary allowance and/or foreign capital allowance. This is because of the nature of the assets and because the transaction is currently not reportable on the FinSurv Reporting System. Similarly, non-residents who have introduced crypto assets to South Africa for local sale will not be able to transfer the sale proceeds abroad. The applicable exchange control policy is outlined in section G.(C)(i) of the Currency and Exchanges Manual for Authorised Dealers."
It is an allowance of up to an overall limit of R1 million per calendar year, available to each South African adult resident (above 18 years old), and is use when sending or spending money abroad.
Telegram is very similar to Whatsapp in that& it serves as a chat application for mobile devices. You can install it on your phone or your computer and communicate with other users who use the same application.
Why not Whatsapp?
Telegram offers a variety of enhancements over Whatsapp. These include superior privacy features as well as features that make it possible to share signals. Other enhancements include:
- An API
This simply means that we are can communicate with Telegram channels using computer code. Without that, we cannot automate signup process/ bots etc.
- Increased Limits
Whatsapp groups are severely limited at only 200 members per group.
- Owned by Facebook
Whatsapp is owned by Facebook.
What is a Telegram group?
When you open the Telegram app on your phone, you will be able to start conversations with people, or you can start groups where multiple people chat together. These groups can be further configured to only allow admins to post and various other settings.
What is a Telegram Bot?
A bot is simply a computer program you can speak to on Telegram. They often accept commands that return results specific to the user. To start a conversation with the Koinexpert BZot, simply send a message to
Different bots offer different features. Our bot's primary role is to assist users in getting up to date ststistics on a variety of crypto assets as well as arbitrage opportunities.
I am still confused!
This stuff is very confusing, I know. If anything is unclear, please contact us and we will gladly answer any questions you might still have!
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.
Foreign Investment Allowance
South African citizens are allowed R1 million as SDA (Single Discretionary Allowance) and a further R10 million as FIA (Foreign Investment Allowance) per calendar year. An SDA is immediately available to any tax compliant citizen but one must apply for an FIA.
- Must be South African Citizen
- Not financially emigrated
- E-filing Login Details
- List of your assets and liabilities (3 years)
- Three Months Bank-Stamped Statements
- Copy of your ID
The service is charged at a flat rate of R 2 995.00. You can complete the application form on the website right now but only once payment has been received will the application be processed.
Once the application has been submitted to SARS, it can take anything from 2 to 8 weeks.
We recommend reading over these two pages from SARS.gov.za:
If you still have questions please contact us .