Kantox Money Transfer Review

This review for the Kantox money transfer company is intended to explain the pros and cons of using it for your business’ foreign exchange requirements. Reputation, fees, online platform and hedging capabilities are measured on this Kantox review.

📝Kantox, in spite of a strong fee structure, did not make it to our top foreign exchange services for business  May 2022, based on our editorial rankings and we encourage you to have a look at this Kantox recommended alternatives.
LogoKantox logo
🏛️ Established2011
🌎 International ClientsBusinesses Only, based on license we assume they onboard only UK and EU-based businsses
💱 Currencies Offered124 to 74 countries
💷 Minimum TransferThe following information was once available on Kantox’ website “€9,000 In annual trading (below that – pay €25 in fees per transfer)” – we cannot say whether these are still the minimum conditions to trade.
📲 Trading viaOnline Platform
🏢 Offices InUK and Spain (Barcelona)
⚖️ Regulation
  • United Kingdom – Financial Conduct Authority
  • Bank of Spain
  • European Market Infrastructure Regulation (EMIR) for over-the-counter (OTC) derivatives, central counterparties and trade repositories.
🤯 FeesUsed to be €25 per transfer plus FX fees, if annual trading volume < €9,000, but no longer specified on Kantox.com
Promotional CodeNone
👨‍👩‍👧‍👦 Client Reviews14 testimonials on featuredcustomers.com, an unfamiliar website
⭐ Client RatingPositive but too few to sample
Websitewww.kantox.com
Awards
  • 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
  • tmi Awards 2018: Best Risk Management Solution
  • e-FX Awards 2019: Best e-FX Platform for Corporates
  • tmi Awards 2019: Best Solution Innovation – FX Risk
  • tmi Awards 2020: Best Risk Management Solution
👍 Advantages

A lot of industry recognition and media recognition

Very advanced payment and hedging online platform, payment automation specialists

Backed by partners like BNP

Deals with many currencies

👎 Disadvantages

Smaller operation boasting 6,500 clients and only $15bn in trading since inception

Doesn’t seem to offer dedicated currency dealers for customers

Appeals mostly only to businesses that require dynamic pricing and hedging of their products which are sold in foreign currency

 


View Recommended Alternatives:

You can find top 3 Kantox competitors below:

moneycorp
  • Supported Currencies: 120.
  • Clients From: Globally with offices in UK, USA, France, Spain, Ireland, Australia, HK, UAE, Brazil, Gibraltar and Romania.
  • Authorised? Yes, by the FCA.
  • Guidance / Dedicated Dealer: Yes.
  • Online System: Yes, including an app.
  • Strong Point: Credibility, Reputation, Liquidity, Level of Service, Best Credit Rating among Peers.
  • Operating Since 1979 and Maintaining Excellent Reputation Since. An Industry Leader.
  • Rating:
    4.6 /5 on Feefo
    Editorial (Corporate): 99.4%
Currencies Direct Logo
  • Supported Currencies: 59.
  • Clients From: Globally , with the exception of certain U.S states. Offices in UK, EU, USA, Canada, China, South Africa and India.
  • Authorised? Yes, by the FCA.
  • Guidance / Dedicated Dealer: Yes.
  • Online System: Yes, including an app.
  • Strong Point: Superb Service, Experienced Dealers, Batch payments, Forward contracts, Multi-Currency Wallets and Rate Alerts.
  • One of the leading currency brokerages turning over £7.5bn annually.
  • Rating:
    4.8 / 5 on TrustPilot
    Editorial: 97.8%
  • Supported Currencies: 121.
  • Clients From: Only accepts corporate clients & does not accept U.S businesses.
  • Authorised? Yes, by the FCA.
  • Guidance / Dedicated Dealer: Yes.
  • Online System: Yes, including an app.
  • Strong Point: Exchange Rate Margins of 0.25%-0.15% for Large Turnovers.
  • Trading more than $7bn each year.
  • Rating:
    9.8 /10 on Feefo
    Editorial: 91.4%
Unsure about the currency provider you chose? Find more Kantox alternatives. Try Hifx, Currency Solutions or Global Reach Partners.


Our Rating: 80.4%

 View Rating Breakdown


Read More:

Company Information and Credibility


Company size:  

Kantox is a relative newcomer to the currency transfer market, established only in 2011 (whereas dedicated currency brokers like Moneycorp have been around since 1979 and other brokerages like Currencies Direct have or XE have been around since the 1990s), but its offering is quire diverse, unique and technologically-lead which gives it an interesting spot in the industry, in our view. Similarly to business-facing competitors AirWallex, Kantox is a product oriented company with a lot more going behind the curtains than with moderately-sized competitors.

Kantox which first  announced $1bn in trading at the end of 2014, then passed the $2bn mark in 2015 and has traded $15bn since inception boasts 6,500+ clients, and those things indicate to us this is by no means a tiny company, but then again recently-IPO’ed TransferWise does more volume than that (accumulated figure of 10 years for Kantox) in just 3 months. Even if you compare its number of users and trading volumes to companies that specifically focus on online sellers and businesses like WorldFirst, Kantox falls way behind.

Kantox positions itself from competitors using three elements:

a. complete and utter technological focus offering a diverse payment and collection system for businesses.

b. dynamic online hedging option which is not something other currency hedging providers offer.

c. it offers a “dynamic pricing” component which will enable business owners to manage their foreign currency pricing better and in real time.

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 publications that covered the company include Business Insider UK, and forex transfer industry authority site Finance Magnets. It has also won several prestigious awards for its innovation.

 


Regulated By: 

  • United Kingdom – Financial Conduct Authority
  • Bank of Spain
  • European Market Infrastructure Regulation (EMIR) for over-the-counter (OTC) derivatives, central counterparties and trade repositories.

Awards: 

  • 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
  • tmi Awards 2018: Best Risk Management Solution
  • e-FX Awards 2019: Best e-FX Platform for Corporates
  • tmi Awards 2019: Best Solution Innovation – FX Risk
  • tmi Awards 2020: Best Risk Management Solution

 


Conclusion: 

Kantox seems to be an actual payment startup which focuses on FX, as opposed to a currency broker which is a more straightforward position. It has gained a lot of recognition for its technological efforts but has yet to get a substantial market share, and hence – has much fewer customer reviews online and generally speaking less information about the company.

 

 

Client Feedback


Research:

We have located 14 customer reviews and one “case study” on a website named featuredcustomers.com, which we were not familiar with prior to our recent update of this Kantox review. We don’t suppose we know every single customer review website there is but… we can’t put our faith on sites which aren’t reognisable in this industry, especially all of Kantox competitors have opted to use TrustPilot or Feefo which are very well known.

And other than that, there are only 14 reviews there, which is not nearly enough to form an opinion about any brand. WorldFirst is now focused on business customers and still has several thousand of reviews online (and that number continues growing steadily even over the past year since they stopped accepting private customers).



Conclusion:

There are no Kantox client reviews out there which makes it extremely difficult for us to verify their seemingly superb online payment system works the way it is designed to work, no feedback on the quality of service, nor the rates.

 

 

Exchange Rate & Fees


Research:

In 2018, Kantox’ website stated that:

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 the 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.

Currently, Kantox’s website does not state any of the above.


Conclusion:

Kantox are no longer transparent about that aspect of their business. If they still maintain the same fee structure then small businesses who transact a lot should avoid them and larger businesses can enjoy not only the technological aspect of the company but also its extremely low margin (which is still potentially more expensive than WorldFirst’s “best business exchange rate“, but as a whole is very cheap). If they do not maintain the fee structure, then they should advertise it. If they were a plain vanilla currency broker we would have been OK with dynamic margin taking on a per-deal basis but here we are talking about an all-encompassing payment solution and that should be advertised.

 

 

Global Reach & Service


Research:

  • Dedicated Dealer: Yes.
  • Offices: UK, Spain
  • Ways to Trade: Online
  • Translations: Spanish, German, Italian and French
  • Accepts clients: Unknown but we assume UK and EU based on licensing.
  • Currencies Handled: 124.
  • Client reviews: 14 reviews on an unknown platform.

Conclusion:

Kantox is not the international company of them all with only 2 global offices. That does not mean the company does not have local bank accounts in multiple countries, we actually assume they do offer that considering that they company now offers collection accounts, but we don’t know where.

Other than that the company is fully localised into the European market with multiple translations of the website.

 

 

Additional Functionalities


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
  • Automated pricing solution and so forth
  • Regular Transfers

The simple functionalities of forex hedging are all available through Kantox platform under “static hedging”.

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, or other multi-currency accounts available. 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.


Conclusion:

Kantox’ online platform is one of the most sophisticated online platforms in the industry, and one of the only ones that allow 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
80%
80 of 100 1 review
  • Credibility Score - 80%
    80%
  • Client Feedback - 70%
    70%
  • Fees, Exchange Rates - 95%
    95%
  • Global Reach, Availability, Service - 75%
    75%
  • Added Values - 82%
    82%

Bottom Line

Kantox is one of the most interesting b2b FX businesses we’ve come across. Forget about traditional brokers who are focused on phone trading and currency dealers who help SMEs build and execute their payment and hedging strategy – it’s now all done online through a high sophisticated and dynamic platform that tries to be a one stop shop for payments, hedging, collection accounts and dynamic pricing in foreign exchange.  Unfortunately, the concept has yet to prove itself in a sense that Kantox is a lot smaller than competitors by trading volumes, number of customers and online customer reviews. It is impossible to verify whether people are satisfied or not. Additionally and importantly it is no longer clear what are Kantox FX fees and margins – fees used to be quite high, margins used to be very low and straightforward, but their website no longer boasts those old fees and margins as originally advertised.

 

 

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