Crypto Arbitrage

Generate High Returns with
Crypto Arbitrage

- We remove the risk of currency fluctuations.
- We give you the edge with arbitrage software.
- We remove the risk of crypto market fluctuations


Past returns do not guarantee future performance. Cryptocurrencies will be regulated by the FSCA.


What is Crypto Arbitrage?

Cryptocurrency arbitrage is similar to any arbitrage trade. You buy an asset in one market at a discount and sell the same asset in another market at a premium. In doing this you profit off the price discrepancy of the specific asset in the two markets.

You do not have to guess if the price will go up or down in order to profit as you already bought the asset at a lower price and sell it at a higher price on a different exchange. 

Over the past four years local ZAR cryptocurrency markets have traded at an average premium of between 3 and 5% when compared to offshore USD markets. This is known as the ‘arbitrage premium’.

South African crypto traders will take advantage of this fact by buying cryptocurrency on an offshore exchange like Kraken and then sell this crypto on a local exchange like VALR and profit off the price discrepancy in the USD vs ZAR market.

FINANCIAL CONSULT have arbitrage services, where the client Apply for the Arbitrage and experts open accounts in the clients name and execute the trades on behalf of the clients. This allow the benefits of better margins and zero currency risk.

Crypto arbitrage profits

Expected Profits on Arbitrage Trades

This is a guideline when using your R10m offshore allowance with R250,000 trading Capital.
( We recommend R250,000 or more for better returns, but our minimum is R200,000)
FX fees include coin trade fees.

Our Fees for Arbitrage 

We only charge for our Arbitrage FOREX services.
0.4% to 1% depending on the Arbitrage Premium as per our example above.

~ FINANCIAL CONSULT does not share in your profits.

Arbitrage FAQ

Arbitrage is when an asset has different prices in two different markets. Arbitrage opportunity can be exploit by buying the asset at the cheaper price and selling it at the higher price on the other market.

FINANCIAL CONSULT  is well positioned to identify when certain crypto assets like Bitcoin, sell at a higher price (typically 2-5%) in South Africa compared to overseas.

This price difference allows us to buy crypto assets abroad and sell them in South Africa at a profit. We facilitate the process from start to finish, so that our clients can effortlessly share in this high-yield opportunity.

If you want an effortless Crypto Asset Arbitrage provider who safely executes trades while maximising returns, then FINANCIAL CONSULT should be your choice.

With transparency and profits as the goal for our clients, we keep open communication and zero hidden costs. You get detailed statements which highlights your returns and the costs involved at the completion of each trading cycle. Your dedicated Relationship Manager will guide you through this making it as smooth and easy for you as possible, while ensuring you get the most out of your investment.

Your profits is our success. We do not have performance fees. This zero performance fee approach allow us to forward more profits to you, which in turn brings you back to us for continued service.

Arbitrage opportunities typically come about as a result of supply or demand limitations in a market. In the case of Crypto Asset Arbitrage, this is a result of capital controls which limit the supply of crypto assets to South Africa.

Capital controls are government measures taken to limit the flow of financial assets across a country’s borders. In South Africa, this takes the form of annual Foreign Exchange Allowances (see “What is a Foreign Exchange Allowance” FAQ) which limit the amount of funds you can send abroad each year. This effectively increases demand in South Africa for crypto assets, such as Bitcoin or Ethereum, that offer global exposure without making use of these allowances, while also restricting their supply to South Africa. This results in crypto assets selling locally at an average premium of 2-5% compared to overseas markets.

Fortunately, your Foreign Exchange Allowance can be used to purchase crypto assets abroad, whereas companies and other non-natural entities are not allowed to do so. This means only South African individuals/residents are able to capitalise on this exceptionally lucrative arbitrage opportunity which is why it has existed for over 5 years.

Typically, arbitrage opportunities do not last longer than a couple of minutes as limitations are quickly corrected by market mechanics. However, the South African Crypto Asset Arbitrage opportunity is a result of structural limitations, namely capital controls, which cannot be corrected by normal market mechanics. Therefore, this arbitrage opportunity is likely to exist as long as South African capital controls limit the purchasing of crypto assets abroad.

The price of Crypto Coins, like Bitcoin, will have no effect on your Arbitrage trade as we hedge the currency and buy and sell crypto coins simultaneously. 

The primarily crypto coin we trade is Bitcoin and USDC (a crypto asset pegged to the US Dollar). These crypto coins offer the highest returns with the lowest risk when compared to other crypto asset arbitrage opportunities.

We do continuously monitor other crypto assets for arbitrage opportunities and may trade these when they offer a higher return and sufficient volume.

If you do not have available funds, you can loan funds from a bank, lending institution or use donated funds from a spouse to invest in Crypto Asset Arbitrage.

Most importantly, you cannot loan funds from friends or family due to exchange control regulations. 

If your company have director loan accounts and your company can distribute your funds in this way, that can also be done.

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FINANCIAL CONSULT , has a fully hedged arbitrage facility.
This has the benefits to eliminate market risk for its arbitrage clients.


About

FC FINANCIAL CONSULT SOLUTIONS PTY LTD
Registered Credit Provider
NCRCP 16201

Email:
forex@financialconsult.co.za

Cape Town | South Africa

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