The standard FX fee charged by Kantox is computed using the following rules depending on the invoice currency and the currencies involved in the trade:
Let us take 1%* commission as an example. The sample calculations are as follows:
If you are buying GBP 100,000.00 against EUR at a rate of EUR/GBP 0.8532:
- Case 1: Invoice currency is GBP. Then, invoice amount is: GBP 100,000.00 x 1% = GBP 1000.00;
- Case 2: Invoice currency is EUR. Then, invoice amount is: GBP 100,000.00 x 1% / 0.8532 = EUR 1172.06;
- Case 3: Invoice currency is CHF. Then, invoice amount is: GBP 100,000.00 x 1% / 0.7969 = CHF 1254.86.
* The standard commission is subject to variation and can be more expensive on less liquid and exotic currencies. The above calculations are done just as an example. For more details, please contact our sales.
PH pricing has several components:
Component 1: FX fee – on the aggregated amount exchanged in each batch order:
Component 2: Payments fee – per individual payouts to be sent, several options:
- SEPA (Single Euro Payment Area) or not SEPA: You can choose to have ALL eligible payments (EUR payments, with beneficiary in the SEPA area) issued as SEPA payments. If not, these payments will ALL be issued via SWIFT.
- SHA or OUR: this setting will apply to all SWIFT payments (non-SEPA).
- SHA is the payment standard with Kantox and is the more economical mode;
- OUR is more expensive than SHA and depends on destination countries and currencies. We will always charge a single fee per OUR payment.
Additional charges can be invoiced by Kantox for specific operations:
- All charges will appear on the monthly invoices received and are always charged in EUR. If the Invoice Currency is not in EUR then charges and fees will be converted using spot rate at the moment of transaction.
1. Drawing charge
- Drawing Charges will occur whenever there is a request for an Early Draw on an open forward before its maturity date. Note that at maturity, the last draw is free of charge.
- A fixed fee of €25 per Early Draw by default, to cover the cost of the transfer fee;
- Swap points will be taken into account at the time of draw and will impact the amount requested to settle the draw.
2. Administration charges
- Administration Charges will occur when a trade is cancelled because 1) your account is in default, 2) on your special request, 3) on Kantox’s decision if a cancellation event occurs. Cancellation and default events are defined later in this document.
- Cancelling an existing position causes both administration charges as well as the cost of unwinding the position:
The Administration Charge stems from Kantox’s operational cost of making a cancellation and is €50. It is charged in the next monthly invoice;
The Unwind Cost comes from the cost that we must pay a Liquidity Provider to cancel the position. This will only be charged if the position goes against you:
For small Unwind Costs: you will be invoiced the charge in your next monthly invoice;
For larger unwinds, there are two possibilities: If you have margins deposited for the forwards, Kantox
will subtract the unwind cost from the margin. In case you do not have a margin deposited with us,
middle office would send a written request to pay the unwind costs to the segregated account.
Administration Charge – cancellation events
Client Side Cancellation
- Once a trade has been agreed to be cancelled you are liable to pay Kantox the Unwind cost and Administration Charges.
- If more than one Trade is being cancelled then you will be charged one Administration Charge per cancelled Trade.
- Note : the Administration Charge will be charged in the next Monthly Invoice.
Client Side Default
- If you fail to make a payment at the agreed settlement date, Kantox will contact you notifying about the late payment. Kantox will request a proof of payment to ensure that the dispatch of funds.
- A default occurs when there is a failure to provide proof of payment or failure to answer Kantox’s requests for the required payment. In this case the Trade may be terminated by Kantox.
- You will be responsible for any loss suffered by Kantox and will be liable to pay Kantox:
- The difference between the amount due to be delivered by you on Value Date and the amount Kantox can obtain by selling spot the amount meant to be received in exchange of funds.
- Swap Points incurred by Kantox from executing rollovers due to delays in settlement
- Administration Charge
Cancellation by Kantox
- Kantox is entitled to cancel a trade at any time before the value date if at least one of the following conditions is met:
Failure to deliver the payment for the Trade;
Any potential or actual security breach of the your account;
There is a formidable reason to believe that the funds being exchanged are connected to unlawful activity;
Disagreement with our compliance policies.
- You will be notified of such a cancellation by the next Business Day following the Value Date. Kantox will refund any money deposited for the Trade unless legally compelled to do otherwise.
3. Modification charge
- Modification charges will occur when there is a request to change the value date or amount of a trade.
- Kantox will charge €50 per requested modification to a trade. We will also charge the cost of any forward points, generated from rolling over the position, by modifying the amount of the underlying trade. The modification will appear in 2 ways on the platform:
The original transaction will be updated and appear under a “rolled status” on the platform;
The new trade will be generated with a new reference, new settlement instructions and with the new value date requested by the client.
- There is a request to extend the value date by a month. In this case, Kantox will simply perform a one month rollover on the original Value Date. You will be charged €50 to cover the administration fee and Kantox will create a new modified Trade to reflect the cost of the forward points charged for the rollover.
Modification charge – change beneficiary
There will NOT be any charges for changing the beneficiary details of a trade. The method to change beneficiary details depends on the case:
- When a forward has been booked with beneficiary details:
- For undrawn open forwards – funds will be sent to the bank account originally submitted as beneficiary. If you want to change the beneficiary details, you can either contact our Support Team before the payment is issued or make a Final Draw and add a different beneficiary to the one provided in the Parent Order;
- For Early Draw requests – you must provide new beneficiary details for each Draw Order. (N.B. The platform will not allow users to request an Early Draw without beneficiary details.);
- Final Draw – like Early Draw requests, you must provide beneficiary details for the Final Draw. In this case, we will make the final payment to the beneficiary provided in the Final Draw not to the beneficiary originally submitted in the Parent Order.
- When a forward has been booked without a beneficiary:
- For undrawn open forwards – you can add beneficiary details on the platform at any time before the payment is issued;
- For Early Draw requests – you must provide beneficiary details for each Draw Order;
- Final Draw – 5 business days before maturity of the forward you will be sent a reminder email to transfer funds to Kantox. The email will also contain a link requesting beneficiary details to make a Final Draw. The details provided for the Final Draw will be used to send the payment.
How to add beneficiary details via platform when a forward has been booked without a beneficiary:
1. To update beneficiary details, you must access the Order Page by clicking the Order Reference. (N.B all forward trades that have been executed without a beneficiary will have an Order Reference highlighted in blue).
2. Once on the Order Page, you will be able to add a beneficiary. (N.B you cannot change the Market Direction, Amount Traded or Value Date as the order has already been executed).
3. Once the beneficiary details have been added, you will be taken back to the dashboard where the order will be updated with the new bank account details. (N.B The Order Reference will no longer be highlighted in blue showing that order details will no longer be able to be changed via the platform).
4. Rejected payments charge
- A Rejected Payment Charge occurs when a payment is sent back to the Kantox segregated account from a Beneficiary. This occurs when you provide incorrect Beneficiary details.
- This charge will cover both the administration charge as well as the cost of re-issuing the payment via SWIFT or SEPA;
- Note – In some cases the Rejected Payment is sent back to the Kantox segregated account through a correspondent bank. In this case the correspondent bank will charge a handling fee leading to shortfall which Kantox will invoice.
- When the Beneficiary linked to a Trade has incorrect details, the Receiving Bank cannot match the Beneficiary details with their existing accounts and will reject the payment sending the funds back to Kantox.
- Please note that any shortfall covered by Kantox will also be invoiced.
5. Rollover charge
- Rollovers will occur when there is a failure to send the funds that were due to cover the position before the cutoff time specified by Kantox. The cut off time is specified on both the trade page and in the Settlement instructions.
- If the swap points of the rollover cost less than €15 then there is a flat fee of €15;
- If the swap points exceed €15 then you need to pay the full cost of the swap points plus the €15 fee per day of rollover.
6. Shortfall charge
- A shortfall will occur if Kantox does not receive all of the total amount of funds needed to settle a trade. This may occur due to two reasons:
Error – when you accidentally type in the wrong amount when sending funds to Kantox;
Correspondent Bank Charges – If your payment to Kantox passes through a correspondent bank you will be charged a handling fee which will be deducted from funds sent to Kantox.
- Kantox will settle the trade by covering shortfalls up to a maximum of €100. However the cost of the shortfall will be charged in your next monthly invoice;
- If the shortfall exceeds €100 we will request the corresponding amount from you and rollover the trade until we have received the funds.
Explanations on roll-over costs
01. Why are there roll-overs?
02. Why do roll-overs carry a cost?
- When you book a trade with Kantox, we take a position with a counterparty on the market;
- Once booked, we have the obligation to settle this trade before the settlement date and time agreed, which depends on the value date you have chosen;
- That’s why Kantox has developed an effortless process, so your position is maintained in case your funds are late for any reason:
We settle the trade on your behalf, as agreed initially;
We swap the currency you have bought until the next day (see explanations below for the swap);
If we receive your funds on the next day, we use them to settle the swap, otherwise we repeat the process;
Making the swap carries a cost which is covered by the roll-over fee.
03. What is a swap?
04. How is it shown on your invoice?