Ex-Herzlia boys Josh Kotlowitz and Harry Scherzer are making waves in the crypto arbitrage space due to their exceptional product and service. Kotlowitz and Scherzer are the co-founders of Future Forex, a Cape Town-based company that offers automated crypto arbitrage trading.
Kotlowitz and Scherzer had separately been investigating the crypto arbitrage space for a number of years prior to partnering. Each was investing their own funds and enjoying remarkable returns. A chance encounter at an Ohr Somayach event led them to realise that they both wanted to create something new, and that each had the grit and skills needed to build a business. These two childhood friends, Scherzer an actuary and Kotlowitz an engineer, have used their complementary skills in entrepreneurship, technical engineering, and finance to create a unique business model that allows clients to maximise their returns with minimal risk.
In spite of its rather cryptic name, crypto asset arbitrage is a relatively straightforward process. It involves buying a crypto asset such as Bitcoin or Ethereum on an offshore exchange and instantly selling it on a South African exchange at a profit. This is possible because crypto assets are typically cheaper to buy overseas, but hold higher value in South Africa due to greater demand and less availability. Crypto assets typically trade at a 2% to 5% premium in South Africa. Arbitrage allows you to capitalise on this market inefficiency by buying the asset at a cheaper price on the overseas market and selling it at a higher price locally. This process is repeated multiple times throughout the year, generating exceptional returns for clients. Unlike buying actual crypto currency, which is volatile, investing in crypto arbitrage is a low-risk process.
To minimise risk, Future Forex has developed a fully hedged trading system that ensures that clients aren’t exposed to any foreign exchange or cryptocurrency fluctuations which they would otherwise be vulnerable to when performing crypto arbitrage. Its fully hedged system is achieved by locking in the sell rate of the crypto asset at the same instant that it’s bought. This allows Future Forex to predict reliably a client’s return on their trade at the instant it’s being executed. Clients can choose to set a minimum targeted return, such as 1.5%, and Future Forex will initiate a trade only if this target will be met or exceeded.
The beauty of this system is that profit is low-risk and quite predictable. Future Forex estimates that, in current market conditions, its clients can make up to R150 000 annually. Profit is dependent on a couple of factors, namely the amount invested per year and the amount of annual foreign exchange allowance you utilise. Clients can trade multiple times per year until they reach their foreign exchange allowance cap.
South Africans are permitted by law to send up to R11 million abroad per calendar year. This comprises a R1 million single discretionary allowance and a R10 million foreign investment allowance. A portion of your foreign-exchange allowance is used each time your funds are sent abroad to purchase crypto assets. This caps the total value that each individual can invest within one year, effectively limiting the profit that can be made annually. It’s both a blessing and a curse in that the foreign-exchange allowance limits an individual’s total profit, but is the very reason this arbitrage opportunity exists in the first place. Regardless, returns of R150 000 per year are nothing to sneeze at.
The investment process has been streamlined to be as simple as possible. Future Forex has developed an automated system, and facilitates the process from start to finish. It assists clients in registering a Future Forex account and in opening a foreign exchange account with Mercantile Bank (a division of Capitec Bank). Funds are sent to clients’ offshore accounts and trades are then executed by Future Forex’s in-house traders using automated and proprietary software. Profits are returned to the client’s local bank account, and the process is repeated.
To make the experience as administratively hassle-free as possible, clients have access to a relationship manager, who guides them through the process step-by-step. Future Forex has assembled an expert team of dedicated professionals whose goal is to maximise profit for their clients.
This goal has certainly been achieved, with an average annualised return of 70%. Future Forex has processed more than R1.5 billion in trades at the time of writing, and has a track record of 100% profitability. Owing to the predictability of returns and hedging of market risks, every client has made a profit. To partner with Future Forex in the crypto arbitrage space, a minimum investment of R100 000 is required.
Future Forex doesn’t take any management fees for its service. Rather, to ensure that its clients’ interests are aligned with its own, it takes a percentage of profits earned. One of the chief reasons Future Forex uses this model is its desire for an alignment of interests between the company and its clients. Transparency is another key ethos. Clients receive detailed statements highlighting their return and the costs involved at the completion of each trading cycle. There are zero hidden costs, and open communication is prized.
Find out more by visiting https://futureforex.co.za/register. Alternatively, contact the Future Forex team on info@futureforex.co.za or 021 518 0558.
Harry Scherzer matriculated from Herzlia in 2011. He studied actuarial science at UCT, and is a registered actuary with a strong financial and risk-management background. Scherzer’s technical ability and strong interpersonal skills have allowed him to create successful relationships, aiding the growth of Future Forex.
As chief executive of Future Forex, Scherzer heads up the company’s business development, trading desk, and strategic oversight while also taking a hands-on approach to building close relationships with his clients.
Josh Kotlowitz matriculated from Herzlia in 2010. He graduated top of his class at UCT and University College London, where he received his MSc in Space Science and Engineering with distinction. Kotlowitz brings his rocket-scientist skills as chief technical officer at Future Forex to lead the product development and automation teams. His comprehensive technical engineering and software background allows him to focus on trading efficiency, streamlining the client experience, and exploring new investment opportunities.
