Frequently Asked Questions

General

Kwanji exists to make life that much easier for any small to medium business which trades internationally. Our first product Kwanji FX was specifically designed to do away with the hassle and excessive costs of making and receiving international payments.

Does that mean you can’t use Kwanji for personal transfers – of course not. We’d love to support you and we can. Its just we see businesses as those best in need of our specialist services so we started out there first.

The Kwanji service is unique and born out of experience of the frustrations of international trading. Not just in one market for a small group but across all markets as our experiences are all very similar whether you are based in Europe, the America’s, Africa or Asia. As a result we knew we needed to think differently.

We are not a bank or payments company, we are not a forex provider. We are comparison and facilitation service which is linked to specially selected partners who we believe can give your business the best – best rates, best service, best fees and the best experience.

We are starting with forex – international payments but are already scaling into new services to make life that little bit easier. So be sure to sign up to our newsletter to get news on all our forthcoming updates.

Registration

Why Kwanji FX works is that it gives you access to multiple foreign exchange providers in one place. All these providers are fully regulated and need to comply with directives such as Know Your Customer (KYC) and Anti Money Laundering (AML) – just in the same way that all financial institutions do – including your bank. And the reality is that it’s non-negotiable.

We try to take some of the burden by asking for comprehensive information as part of the registration process to set up your Kwanji account and we have made it a one time process so you need only register once for multiple brokers but the law is the law. And we are all grateful for that. In some cases your chosen forex provider may contact you, via Kwanji for further information to enable them to complete this verification process.

Whether you choose to send the money through a bank, forex provider, or money transfer business depends to a large extent on acceptable costs and timescales. You should however also consider the security of your funds whilst they are in transit to the recipient. Your bank will be regulated by the Financial Conduct Authority (FCA) or your local equivalent. All our broker partners are fully regulated entities under the FCA in the UK and all other jurisdictions they operate in. It is a matter of law and security and Kwanji and its partners take it very – very seriously. In the UK it should also be a member of the Financial Services Compensation Scheme (FSCS), so there are some guarantees in the unlikely event that something goes wrong.

The Financial Conduct Authority (FCA) (formerly the FSA), is an independent single regulator of all financial services providers in the UK. It regulates most financial markets, exchanges and firms setting the standards that must be met and taking action when they fail to meet.

The forex provider will get pricing from whichever interbank participants they have good relationships with. Because they buy and sell vast quantities of foreign currency and have such low overheads, they are able to work off low mark-ups and offer very competitive rates. Typically they are 3%+ cheaper than your average high street bank in more developed markets and a lot more in growth economies! This means they could save you hundreds or thousands of pounds every single time you make a payment

Foreign Exchange rates?

Foreign exchange, also commonly known as “forex” or “FX” is simply the exchange of one currency for another at an agreed exchange price. The value of any given currency is determined by prevailing market forces such as trade (imports and exports), interest rates, investment, tourism and geo-political risk. Most countries ‘float’ their currencies freely against those of others, which keeps them in constant fluctuation in response to market forces.
The foreign exchange market is the largest trade market in the world with an average traded value in 2013 of $5.3 trillion per day. It is not a physical market and there is no central location. Instead, currencies are traded 24 hours a day around the world through various financial parties such as central banks, high street banks, exporters, banks, forex brokers and day traders.
An exchange rate is simply the amount of one currency that is needed to buy one unit of another currency. For example, the EUR–USD exchange rate may be 1.4 which means that it takes 1.4 USD to buy 1 EUR.

As an example, if you want to buy goods or services from a supplier who is not located in the same country as you, you will usually have to exchange your own currency for that of the supplier in order to conclude a payment. The exchange rate comes directly into play to decide the quantity of the home currency that is necessary to meet the price of the supplier’s currency.

The interbank market is the top-level foreign exchange market where banks exchange different currencies exclusively between themselves and is an important segment of the foreign exchange market. It is a wholesale market through which most currency transactions are channeled, used for trading among bankers and other intermediaries. Interbank pricing is not available directly to retail personal or business customers of the type Kwanji services

In principle the rates and fees a bank charges you for an international payment should be as competitive as any forex provider. They are accessing the very same markets that the forex provider does but as banks (never one to lose a trick to make money easily) banks are clearly choosing to retain a very fat margin on the forex rates.

They may be relying on the fact that the foreign exchange market feels inaccessible to most people, that most of us generally don’t notice or that they are trusted entities! But lets face it – banks aren’t working on our behalf the work on behalf of their shareholders (and bonuses). But, whatever the reason, it clearly makes sense to start to shop around when you need to make a forex payment to get the best deals and levels of service that you are entitled to.

Kwanji’s global assertions

Kwanji’s fx partners can deliver payments to over 200 countries in 160+ currencies. Our partners are however bound by international regulations relating to economic sanctions and the easiest way to think about it is that if you can trade somewhere then Kwanji FX can too! Our partners have a network of in-country bank accounts, which means we can pick up your funds in over 80 countries worldwide. There may be some restrictions – local monetary laws that we must comply with but the effect is the same. International trade and payments made easier – reach more counter-parties and engage in more trade. Our motto is ‘From Anywhere to Anywhere’ and We mean it!
The Kwanji service is unique and born out of experience of the frustrations of international trading. Not just in one market for a small group but across all markets as our experiences are all very similar whether you are based in Europe, the America’s, Africa or Asia. As a result we knew we needed to think differently.

We are not a bank or payments company, we are not a forex provider. We are comparison and facilitation service which is linked to specially selected partners who we believe can give your business the best – best rates, best service, best fees and the best experience.

We are starting with forex – international payments but are already scaling into new services to make life that little bit easier. So be sure to sign up to our newsletter to get news on all our forthcoming updates.

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