This review for the Kantox money transfer company is intended to explain the pros and cons of using it for your money transfer needs. We focus on the important aspects like fees and exchange rates, the quality of the online trading platform, and the level of service provided.
Company Information and Credibility
Although Kantox is a newcomer to the currency transfer market, established only in 2011 (whereas companies like Moneycorp have been around since the 70’s), it has already had a significant impact on the industry. In fact, Kantox which first announced $1bn in trading at the end of 2014, then passed the $2bn mark in 2015 and has traded $9.6bn since inception
Kantox positions itself from competitors using two key elements: its technology which enables companies to transact within one mouse click, and its pricing module which is completely transparent (more on that in the relevant section of this review). Kantox aren’t just positioning themselves as a standard FX brokerage, much like TorFX, they see themselves as a company that builds software solutions to assist clients in overcoming the FX challenges they face.
Mainstream media, investors and Fintech magazines and events go crazy about the product. It has recently managed to secure $11m in its series B round from investors as covered by the Guardian. Other publication that covered the company include Business Insider UK, and forex industry authority site Finance Magnets. It has also won several prestigious awards for its innovation.
Financial Conduct Authority (UK)
Deloitte 2014 Award for Innovation
Deloitte Technology UK Fast 50 2016
Deloitte Technology UK Fast 50 2017
Deloitte Technology UK Fast 50 2018
European FinTech of the Year at the European ICT Spring Awards 2015
Kantox seem to be a great company that can help SME’s save money and manage their finances in a transparent way. It’s undoubtedly an up and coming company with a great chances of becoming a dominant force in the international money transfer market.
It’s still hard to put alongside the industry leaders like World First, Currencies Direct, Moneycorp and even relatively new Transferwise.The trading history is much shorter, the volumes are still lower, and their reach is more limited. Most importantly there are still no verified client testimonial to attest for their services.
Besides the testimonials appearing on their website, which are unmistakably positive (as expected) we have not been able to locate client reviews from those who used Kantox. It makes a lot of sense, as they have 3600 business clients who are unlikely to use the review platforms in the same way a private client would. But in comparison, World First has had tens of thousands of active clients every year since 2004, and many of these are retail clients which are more likely to share experiences than SME’s, and the overall number of reviews they have online is ~7000+.
Kantox have a smaller clientele base than some of the larger providers which reflects the fact they’re relatively new to the industry. There are no client reviews to be found online. On one hand it lowers our level of trust, and thus their rating in this category, and on the other hand, there are no complaints as well.
Exchange Rate & Fees
Fees: If a company is transferring over €9,000 annually, there’ll be no fixed fees per transfer. Below that, each transaction will incur €25 in fees (translated into local currency).
Exchange Rates: Kantox deserves all the props for having the most transparent and easiest to understand fee structure. To make a long story short – most businesses will pay 0.29% of each transfer, which is a tight margin (representing saving of 35% against already cheap rivals such as Transferwise, Azimo and Currencyfair).
Limits: The minimum transfer amount is £500 (or half of that for regular payments). The online system is able to handle transactions up to £250,000, and phone transfers are unlimited. For travel money or currency cards there’s no minimum, though travel money delivery is only free above the £750 mark.
Businesses trading below €9,000 a year should never use Kantox. These businesses will tend to send small transfers – when each cost an additional €25 (on top of the spread), it makes transferring almost as expensive as a bank.
Most businesses would love Kantox for their pricing which are the lowest rates in the market, period. These businesses will probably be able to haggle the large firms into similar rates if they have sufficient trading volumes, but with Kantox you know what you’ll get from the get-go and that’s a big advantage.
Global Reach & Service
- Dedicated Dealer: Yes.
- Offices: UK
- Ways to approach: Email, Telephone, Online Platform.
- Translations: English, Spanish, German, Italian and French
- Accepts clients: Worldwide
- Currencies Handled: 92
- Client reviews: None located
Kantox is not the most international company in the industry, with local offices in the UK and Spain, but given their licensing capabilities mean they can offer their service throughout Europe they do have numerous translations into the main European languages.
They do propose dedicated dealer services, but on the other hand, since there are no client reviews to be found, there’s no evidence it’s good or helpful.
We would say Kantox is just about average in that aspect.
Services offered by Kantox:
- Forward Contracts
- Rate Watch
- International Currency Accounts
- Dynamic Pricing Tool for Businesses
- Real time FX data feed including API
- Dynamic Hedging for multiple small value transactions
- Automated mass payment solution
- Regular Transfers
The simple functionalities of forex hedging are available through Kantox platform. In addition there are numerous other innovative products Kantox have launched that can be included as part of the online offering. It’s clear Kantox are trying to go a step beyond in the solutions it provides its clients. Rather than simply facilitating payments it’s being more strategic with its understanding of all the challenges a business might face when trading internationally. Particularly suitable for business clients who have a high volume of lower value payments to manage. The overseas account solution is targeting a bold number of available currencies (29) but it appears for now that the accounts can only be used for collection purposes, and not all of these currencies are available for now. The end goal is also to facilitate businesses to make payments from the accounts too, something WorldFirst offers through their World Account product. Both aim to reduce the need of working with multiple banking partners internationally and avoids the tricky onboarding process which is often required to register with these banks, such as a local address in the country the bank operates.
Kantox’ online platform is one of the most sophisticated online platforms in the industry, and one of the only ones that allows full hedging functionality. The fact you can also bolt on additional products which are constantly in development shows the ambition of Kantox to become the go-to provider for SMEs trading internationally.
Kantox Money Transfer Review Summary
- Credibility Score – 80%
- Client Feedback – 70%
- Fees, Exchange Rates – 95%
- Global Reach, Availability, Service – 75%
- Added Values – 82%
There’s a big hype about Kantox and it seems like the industry is highly appreciative of its innovative idea. It’s biggest selling point – comfortable, fixed, pricing which is far cheaper than what other online competitors offer. It’s second biggest selling point – easy to use technology including hedging directly through the online platform (unavailable everywhere else).