The range of available investment options continues to grow, making it increasingly challenging to select the right one for your desired returns. Future Forex, a finance firm founded by Cape Town entrepreneurs Harry Scherzer and Josh Kotlowitz, offers a compelling investment product called Crypto Arbitrage, which provides investors with excellent diversification for their traditional portfolios.
At a recent client presentation, Kanan Wealth highlighted the value of including Future Forex’s Crypto Arbitrage product in an investment portfolio. According to Stuart Kantor, a director at Kanan Wealth, “This product is well worth considering as part of your investment strategy, especially if one is looking for some extra annual income. It generates impressive returns and is liquid, allowing investors access to both capital and growth at any time.”
The investment is treated as an offshore investment. Under South Africa’s exchange control regulations, every South African citizen has an annual offshore investment allowance of R11 million. R1 million of this forms part of the Single Discretionary Allowance (SDA), which requires no approvals. The additional R10 million requires an Approval of International Transfer (AIT), processed through the SA Revenue Service (SARS). Future Forex manages this application on the investor’s behalf at no additional cost.
“Having the R11 million offshore investment allowance means we can perform numerous trades using the same capital sum the investor provided,” explains Ray Ford. “Once the allowance is in place, an investor’s capital amount can generate at least R100 000 in arbitrage earnings annually, regardless of the initial investment size.” Future Forex requires a minimum investment of R100 000.
Stuart Kantor and Jonathan Henning are enthusiastic about offering the Future Forex Arbitrage product to their clients. It’s a simple way for clients to generate some extra income, with the advantage of easily accessible funds, making it a highly appealing option.
Ray Ford, Business Development Manager at Future Forex, and Jonathan Henning, a Wealth Manager and Director at Kanan Wealth, addressed common concerns and questions:
| Concern or Query | Response |
| Crypt ocurrencies, like Bitcoin, are very volatile, making this investment too risky. | This is not an investment in cryptocurrencies themselves. We focus on arbitrage – the difference between the crypto purchase price on international markets and the selling price in South Africa. In this way, price volatility is removed from the equation. |
| I don’t understand crypto and am hesitant to invest. | While understanding crypto can be beneficial, it’s not essential for this strategy. The key concept here is arbitrage: buying an asset at a lower price and selling it higher. Whether it’s crypto, produce, or vehicles, this principle drives the strategy. |
| I’m concerned I could lose my capital. | There’s minimal risk to your capital. Funds are only used when there’s a significant price difference that justifies a trade, ensuring you’ll receive both your initial investment and any earnings from the trade. |
| If Bitcoin’s price drops, I could lose capital. | Your capital remains secure because arbitrage trades are executed almost simultaneously. This process minimises risk by focusing on price differences between markets, like the international price and the South African market, rather than the asset’s overall value. |
| The crypto environment is unlicensed, making it risky. | Crypto assets are now regulated in South Africa. We encourage investors to work only with companies licensed by financial regulators to provide advice, services, and products. Importantly, both Kanan Wealth and Future Forex hold the necessary licenses (CASP) from the Financial Services Conduct Authority. |
| What are the expected returns? | At the date of publishing this article, the expected returns are anywhere between R100,000 to R150,000 per annum. This can vary due to how much one invests and SARS turnaround times. |
Article originally by Cape Jewish Chronicle