Arbitrage is the profiting from price differences of the same asset in different markets. Investors in countries with exchange controls – like South Africa can expect to pay more for internationally traded assets due to the restricted supply of hard currencies like the US Dollar. This is how arbitrage opportunities arise.
We have partnerships with many internationally recognised trading platforms, such as Kraken, Circle, Ovex, Valr and Luno.
Funds are settled in USD rather than other currencies for arbitrage purposes because it allows for a completely risk-free trade.
Tax compliant South Africans get R11 million a year offshore allowances.
R1 million discretionary allowance and R10 million a year foreign investment allowance.
Prime Circle does not apply for or trade on the FIA of clients. We only currently utilise the Single Discretionary Allowance of R1mil.
The minimum amount is R150,000. Prime Circle loans you this capital. The bank charges a fixed R500 fee on each foreign exchange deal, thereby encouraging larger transactions.
No, the entire process is automated.
It is considered to be very low risk. Our system is fully hedged so if there is going to be a loss or no profit, we do not trade.
Yes, there are price fluctuations, as with all currencies. However, our system is fully hedged and there is no forex or price risk. It is truly risk-free arbitrage.
SWIFT fee – R500 per payment debited from your FX bank account.
FX conversion fee – USD/ZAR rate provided by FX partner (approx. 6/7 cents on live USD bank rate).
Trading fees 1% of notional trade value.
Loan interest for capital loaned.
Your funds (initial capital + net profit) are returned to your bank account after each trade (24/48 hours) to get ready for another cycle. If you decide to stop trading, you can permanently withdraw these funds back into your bank account.
This process requires you to contact Prime Circle Support. It will then take 24-28 hours for your capital to reflect in your account.
Your profits depend on how much you loan from Prime Circle. If you take a full loan from us (i.e if you put in no capital of your own), you can expect to receive 10% profit.
The average daily spread is around 1%. Trading capital of R200k, therefore results in a R2k return daily and 5 trades yield a profit of R10k before fees.
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