Don’t use Khawaran for Money Transfer, read why here


3.4 out of 5 stars (3.4 / 5)

Khawaran is just one of many ways to send money overseas, including banks, money transfer firms and foreign exchange (FX) brokers. Read on to learn why you shouldn’t use Khawaran and what’s best for you.

Choosing how to exchange your money

The best way to send money overseas depends on a number of factors including:

  • how much you are sending
  • how much it is going to cost
  • how often you are sending it
  • how the person wants to receive it
  • how quickly the money needs to get there.

Follow these steps to help you get a good deal that’s right for you:

Step 1 – Look at your options

There are three main options for sending money:

  • bank or building society
  • foreign exchange (FX) brokers (like Khawaran)
  • high street transfer firms (such as Western Union).

As a rule – banks are safe and convenient for a regular payments.

FX brokers like are normally the best option if you’re sending larger amounts, usually over £3,000.

Money transfer firms are very fast, but can be more expensive if you’re sending smaller amounts.

Step 2 – How much will it cost?

With Khawaran a wide range of possible fees and exchange rates can make it feel tricky to work out.

So, find out the total amount of foreign currency your pounds will buy, after all costs. This gives you a figure you can now compare against other offers.

The costs are in three parts:

  • Foreign exchange rates – these will change throughout the day so if you’re comparing different offers, try and do it within a short space of time.
  • Sending fees – what the firm will charge you for transferring the money.
  • Receiving fees – charges the receiver might have to cover to receive the money but you can ask to cover these at your end.

Fees can vary depending on how much you decide to send, for example some exchanges offer better rates if you send more than £5,000.

An easy way to start is to get a quote from your bank to compare it to others, including quotes from FX brokers sites like FX Compared.

Step 3 – Confirm all the details

Once you have found the best value option, you will need to confirm the company can handle the amount you want to transfer and in the time frame you want.

If possible, make sure you get this in writing by email or post.

Make sure you keep all the paperwork and receipts in case something goes wrong.

Is my money safe when I transfer it overseas with Khawaran?

Money in a UK savings account is protected by the Financial Services Compensation Scheme (FSCS) if a firm goes bust. With foreign exchange money transfer firms, it is not. There is no compensation scheme if a transfer firm goes bust.

Money transfer firms or FX brokers like Khawaran who are Financial Conduct Authority (FCA) authorised do have to follow certain rules that does increase the chance of getting your money back should the firm get into trouble.

Read our page on checking the authorisation of a firm and what to do if something goes wrong.

If you’re sending a lot of money, you’re better off trying to increase the chance of being protected and using an FCA authorised firm.

Using your bank or building society

Your bank or building society is always able to transfer money and is a safe and convenient way to send money overseas.


  • Easy to arrange – your bank will guide you through the process and you might even be able to make transfers from your mobile phone.
  • Convenient – banks and building societies are on the high street and you can set up a transfer as a regular payment.
  • Safe and secure – you will be protected when you send money overseas using a UK bank or building society.


  • Sometimes lower exchange rates – for amounts over £5,000, you’re more likely to get a better exchange rate from a foreign exchange broker.
  • Not the fastest option – standard transfer takes 4-6 business days, but you can pay extra for an express service which takes 1-2 days.Some foreign banks charge for receiving the transfer. You can ask your bank to cover all the charges so the recipient gets the full amount.

If you make regular payments

Many UK high street banks have their own branches overseas or special arrangements with overseas banks.

This can result in lower charges (or no charges) on overseas payments as well as more competitive exchange rates.

This is particularly useful if you need to make frequent payments abroad – as when, for example, you’re paying the bills on a second home abroad.

To benefit from the reduced fees, you often need to hold an account in the same name in both countries.

What you’ll need

  • The International Bank Account Number (IBAN) and Bank Identifier Code (BIC) for the account you’re paying to – the owner of the account can get these details from their bank or from a bank statement.
  • You will also need the IBAN and BIC from your own bank account, though for a transfer to another branch of your bank abroad they might not be needed.

Using an online or high street money transfer firm

Finding a money transfer firm to help you send money abroad is easy.

Some, like Western Union, have high street branches, and you can find MoneyGram in Post Office branches. Many also offer online services.


  • Range of services – some offer instant cash for your recipient, others can transfer money directly into a bank account.
  • Easy set-up – you don’t usually need an account. For smaller amounts, you might not even need identification.
  • Fast – a cash transfer can be completed in a few minutes. Sending from a bank account can take a couple of days.


  • Fees vary widely – depending on the service you choose fees will be different and can be especially high for smaller amounts. You could end up paying £10 to transfer just £50, so be aware.
  • Exchange rates can vary daily and according to currency – so make sure you compare costs on the day you plan to send the money. You can often do this online.
  • Not as safe – the Financial Services Compensation Scheme (FSCS) does not cover these firms if they go bust.

Using a high street money transfer service

How it works:

  • You can find a money transfer service through a high street agent, in newsagents or at the Post Office.
  • You generally don’t need to open an account. Simply hand over the funds you want to send and pay any fees.
  • After paying you’ll get a reference number – give this to the recipient (and only the recipient). Whoever has the number can pick up the money you sent to the overseas branch or agency.

Before handing over your cash:

  • Check the fees – these services can be fast, but expensive.
  • If sending ‘instant cash’ abroad, find out where the money can be collected. Then check with your recipient to make sure they’ll be able to get to that branch or agency. Increasingly, you might be able to send cash to a recipient’s mobile-phone ‘wallet’ if they have one (using systems such as M-PESA).

Using an online money transfer service

How it works:

  • Online transfers can take a few days, so they’re better suited to non-urgent transfers.
  • Online money transfer firms allow you to make international money transfers through online services, often for a very small fee.
  • To sign up, you’ll need to register your bank account or credit card details through the firm’s website – so you’ll need internet access and an email address.

Before sending money overseas:

  • Find out what your recipient will need in order to receive the cash. If they need a bank account, internet access or an email address, confirm they have them before you sign up.
  • To protect your money, take care to choose a password that’s hard to guess and don’t share it with others.

Using a foreign exchange broker

If you’re looking to send a large sum of money overseas, you’ll probably get the best deal from a foreign exchange (FX) currency broker.


  • Low fees – if transferring over £3,000, FX brokers won’t usually charge you fees.
  • Great exchange rate – FX brokers specialise in currency transaction and will likely offer a better exchange rate than a bank or money transfer firm.
  • Fast – money will usually be in the recipient’s bank account the same, or following day.
  • Regular payments – some FX brokers will deal with regular transfers.


  • Opening an account takes time – to make a transfer with an FX broker, you will need to open and pay into an account. This can take a day or two.
  • Smaller amounts don’t give the best deals – FX brokers are not generally best for sending smaller amounts of money.
  • Not as safe – The Financial Services Compensation Scheme (FSCS) does not cover these firms if they go bust.

Using comparison sites to find the best deal

When you’re searching for the best deal to transfer there are some things you need to remember:

Always use more than one comparison site – some have special deals or don’t show all the providers, so you’ll miss out on some offers if you use only one site.

Make sure the deal fits your needs – with so much choice and differing prices, it can be distracting to go for the best price. But always make sure the deal has what you need, such as being FCA authorised, has a branch in the right location and so on.

Check the filters – sometimes filters will hide deals, and if that’s happening you might be missing out on your perfect offer.

Beware of transfer scams

Unfortunately, there are scams out there targeting people who are looking to transfer money. This means you need to be careful when choosing your dealer or receiving offers.

We don’t think Khawaran is a scam, but it’s good to be diligent.

There are ways to help you avoid being scammed:

  • If a deal looks too good to be true, it probably is
  • If you get calls or emails out of the blue, check they’re authentic before clicking on any links
  • Never give out your bank details until you’re certain you’re dealing with a legitimate company

Remember you’ll need to transfer a large sum at some point in the future

You can choose to send money abroad using the current exchange rate.

However, if you’re worried about exchange rate changes for a future amount you’re planning to send, consider a ‘forward contract’ to lock in the exchange rate for a future trade.

Forwards are useful if you know you’ll need a large sum of cash at some point in the future.

For example, if you know you’ll need to cover the down payment on a holiday home in Spain but are worried about the pound weakening or the euro strengthening before it’s time to send the money, this method will let you lock in a rate.

If things go wrong with Khawaran

Regardless of which option you choose, make sure you keep all receipts and paperwork in case something goes wrong.

Money transfer forms and FX brokers are not covered by the compensation scheme, so are not as safe as using a bank.

If Khawaran is ‘registered’ with the FCA, they do not need to safeguard your money if they go bust.

However, if they are ‘authorised’ by the FCA, your money must be kept separate from company funds.

You can check Khawaran FCA authorisation on the Financial Conduct Authority website opens in new window.

When searching for other small firms, including money transfers agencies such as Western Union, it’s a good idea to find the postcode so you can narrow your search.

Alternatives to sending money overseas with Khawaran

For many purchases and payments – like online shopping from overseas stores – a credit or debit card is a convenient alternative to money transfers.

Avoid sending a foreign bank draft (similar to a UK cheque) overseas.

It’s going to be slow and expensive, because you’ll have to pay foreign bank charges (and possibly UK bank handling charges).

Read More…

4 Ways to Write Off Your Debt

There are 4 ways to write off your debts that lenders don't want you to know about. Most lenders insist ...
Read More
IVA debt write off

Write Off up to 90% of your Debt with an IVA

Find out in this article how an IVA can allow you to write off up to 90% of your debt ...
Read More
snowball debt method

The ‘snowball’ method will get you out of debt

The snowball method is by far my favourite method of getting out of debt. It's super simple to follow and ...
Read More
credit card debt trick

Use this credit card trick to clear your debt!

This little known credit card trick can clear your expensive debt. We tend to think that a credit card from ...
Read More

Helpful? Take 5 seconds to share:
  Secure Website

Standard Terms

These terms and conditions apply to all and anybody who uses the MoneyNerd Website or DebtNerd tool. By using the website and toll you agree to be bound by these terms. If you do not accept these terms, please do not use the website.

The term ‘you’ refers to the user or viewer of our website.




Privacy Policy

The Data Protection Act 1998 requires every data controller who is processing personal data to notify the Information Commissioner of any breaches no more than 72 hours after becoming aware of it unless they are exempt from doing so. Failure to notify is a criminal offence.  In addition, any FCA regulated firm must notify the FCA – ideally within 24hrs of discovery of a breach.

This document should be read in conjunction with our Acceptable Use policy and Information Security policy which form part of the Employee’s Handbook.  We are committed to protecting and respecting privacy.

This policy sets out the basis on which any personal data we collect from a consumer will be processed by us.

For the purpose of the Data Protection Act 1998 (“the Act”), the data controller is Nerd FS.

By visiting and using our website the consumer is consenting to the practices set out below.

If our firm needs to collect data for any purpose not stated above we should notify the Information Commissioner before collecting that data.

Whenever collecting information about people, our firm agrees to apply the Eight Data Protection Principles:

  1. Personal data should be processed fairly and lawfully
  2. Personal data should be obtained only for the purpose specified
  3. Data should be adequate, relevant and not excessive for the purposes required
  4. Data should be accurate and kept up-to-date
  5. Data should not be kept for longer than is necessary for purpose
  6. Data processed in accordance with the rights of data subjects under this act
  7. Security: appropriate technical and organisational measures should be taken unauthorised or unlawful processing of personal data and against accidental loss or destruction or damage to personal data
  8. Personal data shall not be transferred outside the EEA unless that country or territory ensures an adequate level of data protection


The same principles apply to when data is taken out of the office

Working at home

The use of data for marketing purposes

For marketing purposes, there are two types of data:

Data obtained in-house

Data obtained from third parties

Security Statement

We have taken measures to guard against unauthorised or unlawful processing of personal data and against accidental loss, destruction or damage.

This includes:

Customers Right to Withdraw Consent

The customer has the right to withdraw their consent at any time. The withdrawal of consent shall not affect the lawfulness of processing based on consent before it’s withdrawal. However, it does mean you can no longer rely on consent as your lawful basis for processing. They withdraw consent by either of the following; putting this in writing to address details, by calling telephone number or emailing email address.

As the right to withdraw is ‘at any time’, it’s not enough to provide an opt-out only by reply. The individual must be able to opt out at any time they choose, on their own initiative.

In some cases you may need to keep a record of the withdrawal of consent for your own purposes – for example, to maintain suppression records so that you can comply with direct marketing rules. You don’t need consent for this, as long as you tell individuals that you will keep these records, why you need them, and your lawful basis for this processing (eg legal obligation or legitimate interests).

Subject Access Request (SAR)

One of the main rights which the Data Protection Act gives to individuals is the right of access to their personal information.  An individual is permitted to send us a subject access request (“SAR”) requiring that we tell them about the personal information we hold about them, and to provide them with a copy of that information.  In most cases we must respond to a valid subject access request within 40 calendar days of receipt.  Any business is able to charge a customer a reasonable charge of £10 for providing this data however it is not our companies policy to do so unless the request is excessive or unwarranted.  Any Subject Access Requests must be sent to a Senior Manager for processing purposes.

Third party requests are also permitted e.g. a friend or relative, a solicitor, a claims management company or other third party. Under the Data Protection Act 1998 and the Data Protection Principles, are not permitted to reveal such information to a third party without the authority of a customer. On this basis, for any third party SAR, we will ensure that we have a written record of authority held on file before we release any personal data.

Where there are two or more customers linked to one credit agreement and the request comes from one of these parties, we will provide the response to both parties

We are required to 'give' a copy of the executed agreement and any other document referred to in it and the required statement. In the FCA’s view, sending a copy of them by ordinary second class post will suffice. Guidance on what constitutes a ‘copy’ can be found in the case of Carey v HSBC Bank plc [2009] EWHC 3417 (QB).

The duty under the relevant section does not apply if no sum is, or will or may become, payable by customer under the agreement. This is irrespective of whether the agreement may have already been terminated.

We will promptly facilitate a SAR request, although we have up to 40 days to do so.  All staff are made aware of this during induction.  Refresher training will be provided on a regular basis.  Although the rules permit the Firm to charge a maximum of £10 for responding to the request for personal data, it is not the Firm’s own policy to do so.

Client consent to the application of the Act and their right to access to their records are included within the firm’s terms of business/client agreement.

Any data collected must not be excessive and must be relevant to the purpose and it must not be kept longer than is necessary.

Information Commissioner’s Office (ICO)

The ICO has the power to issue monetary penalty notices of up to £500,000 for serious breaches of the Data Protection Act occurring on or after 6 April 2010, and serious breaches of the Privacy and Electronic Communications Regulations.


Our Privacy policy is in full view on our website.  This section must be read in conjunction with the Privacy Policy.

It is the responsibility of the senior management of our firm to ensure this policy is effective through monitoring and complaints procedures.

All employees, affiliates and ARs dealing with customers have a responsibility to read, understand and implement this policy and to hold their own valid and appropriate Privacy policy where appropriate.

The Firm holds a valid Data Protection license and it is bound by the rules of the Data Protection Act 1998.  The full extent of the rules can be found at

The 8 principles that the 1984 Act introduced are as follows.  Data must be:

Criminal offences

A criminal offence is committed by the Firm or an individual member of staff if they knowingly or recklessly:

Uses of customer information

When submitting application forms to banks, insurance companies and other financial institutions, this means that personal data will, by default, also be submitted.  In these cases, clients will be informed that their personal data may be used.

The Firm will request client consent before any transfer of data takes place.  Clients will be asked to confirm that they are comfortable to have their personal data used in one or more of the following forms:

Post, telephone, email etc. subject to the conditions of the Data Protection Act.

Information Classification


The following definitions provide a summary of the information classification levels that have been adopted by our firm and which underpin the 8 principles of information security. These classification levels explicitly incorporate the Data Protection Act’s (“DPA”) definitions of Personal Data and Sensitive Personal Data, as laid out in our firm’s Data Protection Policy.

‘Confidential’ information has significant value for our firm, and unauthorised disclosure or dissemination could result in severe financial or reputational damage to us as an FCA authorised firm, including fines of up to £500,000 from the Information Commissioner’s Office.

Data that is defined by the Data Protection Act as Sensitive Personal Data falls into this category. Only those who explicitly need access must be granted it, and only to the least degree in order to do their work (the ‘need to know’ and ‘least privilege’ principles).  When held outside our firm, on mobile devices such as laptops, tablets or phones, or in transit, ‘Confidential’ information must be protected behind an explicit logon and encryption at the device, drive or file level.

‘Restricted’ information is subject to controls on access, such as only allowing valid logons from a small group of staff. ‘Restricted’ information must be held in such a manner that prevents unauthorised access i.e. on a system that requires a valid and appropriate user to log in before access is granted. Information defined as Personal Data by the Data Protection Act falls into this category. Disclosure or dissemination of this information is not intended, and may incur some negative publicity, but is unlikely to cause severe financial or reputational damage to our firm.  Note that under the Data Protection Act large datasets (>1000 records) of ‘Restricted’ information may become classified as Confidential, thereby requiring a higher level of access control.

‘Internal use’ information can be disclosed or disseminated by its owner to appropriate members of our firm, partners and other individuals, as appropriate by information owners without any restrictions on content or time of publication.

‘Public’ information can be disclosed or disseminated without any restrictions on content, audience or time of publication. Disclosure or dissemination of the information must not violate any applicable laws or regulations, such as privacy rules.  Modification must be restricted to individuals who have been explicitly approved by information owners to modify that information, and who have successfully authenticated themselves to the appropriate computer system.

Designating information as ‘Confidential’ involves significant costs in terms of implementation, hardware and ongoing resources, and makes data less mobile. For this reason, information owners making classification decisions must balance the risk of damage that could result from unauthorised access to, or disclosure of, the information against the cost of additional hardware, software or services required to protect it.


Security Level



FOIA2000 / DPA1998 status

1. Confidential

Normally accessible only to specified and/or relevant members of our staff

DPA-defined Sensitive personal data:

·                     racial/ethnic origin

·                     political opinion

·                     religious beliefs

·                     trade union membership

·                     physical/mental health condition

·                     sexual life

·                     criminal record

·                     salary information

·                     individuals’ bank details

·                     passwords

·                     large aggregates of DPA-defined Personal Data (>1000 records) including elements such as name, address, telephone number.

·                     HR system data

Subject to significant scrutiny in relation to appropriate exemptions/ public interest and legal considerations.

2. Restricted

Normally accessible only to specified and/or relevant members of our staff

DPA-defined Personal Data (information that identifies living individuals including:

·                     home / work address

·                     age

·                     telephone number

·                     schools attended

·                     photographs

Subject to significant scrutiny in relation to appropriate exemptions/ public interest and legal considerations.

3. Internal Use

Normally accessible only to our staff

·                     Internal correspondence,

·                     internal group papers and minutes,

·                     information held under license company policy and procedures

Subject to scrutiny in relation to appropriate exemptions/ public interest and legal considerations

4.  Public

Accessible to all members of the public

·                     Company filed documents

·                     Company websites

Freely available on the website.

Explicit Information Ownership and Other Rights of Access to Information

We recommend that departments and functions within our business explicitly designate information owners.

Other users may have rights of access to data according to the terms of engagement under which the data was gained or created.

Granularity of Classification

The sets of information being classified should, in general, be large rather than small. Smaller units require more administrative effort, involve more decisions and add to complexity, thus decreasing the overall security.

 Information Retention

There may be minimum or maximum timescales for which information has to be kept. These may be mandated in a commercial contract. Other forms of information retention may be covered by environmental or financial regulations.


All ‘Users’ must obtain authorisation from their line manager before their classification request is submitted to Senior Managers. Nerd FS is responsible for assessing information and classifying its sensitivity.


A violation of our Information Security Policy and supporting policy documents will be investigated and consequentially may result in disciplinary action which could include the termination of employment contract for employees, the termination of contractual relations in the case of third parties, contractors or consultants.

A violation of this policy and misuse of the systems and applications within our firm may also be a breach of the Computer Misuse Act 1990; consequentially the company may at its discretion take legal action against an individual or organisation that is found to be in breach of its policies.

How we may use customer data

 We may as a result of a consumer or a third parties’ interaction with our website/s obtain their personal data and process their information on our computers and in any other way.

By “third parties” we mean any lender, broker or affiliate who interacts with us in enabling a consumer to make a loan application.

We will use the information to manage their account(s), give them statements and provide our services, for research, assessment and analysis (including credit and/or behaviour scoring, market and product analysis) and to develop and improve our services to the consumer and other consumers and protect our interests.

We, and other carefully selected third parties, will use their information to inform them by post, fax, telephone or other electronic means, about other products and services (including those of others) which we believe may be of interest to them.

If they contact us, we may keep a record of that correspondence.

We will keep details of transactions they carry out through our site and of the fulfilment of their applications and their loan history.

We will keep details of their visits to our site including, but not limited to, traffic data, location data, weblogs and other communication data and the resources that you access.

In order for us to be able to collect and use personal data and / or to pass If they do not want us to use their data in this way, or to pass their details on to third parties for marketing purposes, customers must manually opt in to this agreement (See CONC section of this Compliance Manual).

IP Addresses

 We may collect information about their computer, including where available their IP address, operating system and browser type, for system administration and to report aggregate information to our advertisers. This is statistical data about our users' browsing actions and patterns, and does not identify any individual.


 For the same reason, we may obtain information about a consumer’s general internet usage by using a cookie file which is stored on their browser or the hard drive of their computer. Cookies contain information that is transferred to their computer's hard drive. They help us to improve our site and to deliver a better and more personalised service. Some of the cookies we use are essential for the site to operate.

If they register with us or if they continue to use our site, they agree to our use of cookies.

Please note that our advertisers may also use cookies, over which we have no control.

Cookies can be blocked and a consumer may not be able to access all or parts of our site. Unless a consumer has adjusted their browser setting so that it will refuse cookies, our system will issue cookies as soon they visit our site.

Where we store data

The data that we collect from a consumer is stored within the European Economic Area ("EEA"). Such staff may be engaged in, among other things, the assessment and fulfilment of a consumer’s application, the processing of a consumer’s bank details and the provision of support services. By submitting their personal data, they agree to this transfer, storing or processing.  We will take all steps reasonably necessary to ensure that a consumer’s data is treated securely and in accordance with this privacy policy.

All information a consumer provides to us is stored on our secure servers. Any transactions will be encrypted. Where we have given (or where they have chosen) a password which enables you to access certain parts of our site, they are responsible for keeping this password confidential. We ask a consumer not to share a password with anyone.

The transmission of information via the internet is never completely secure. Although our systems exceed industry standards for security, and we will always do our best to protect a consumer’s personal data, we cannot guarantee the security of a consumer’s data transmitted to our site; any transmission is at their own risk. Once we have received their information, we will use strict procedures and security features to try to prevent unauthorised access.

Disclosure of information

We may disclose a consumer’s personal information to any member of our group, which means our subsidiaries, our ultimate holding company and its subsidiaries, as defined in section 1159 of the UK Companies Act 2006.

We may disclose a consumer’s personal information to third parties:

Credit Reference Agencies (CRAs)

When a customer makes an application for a credit, we will check whether they are likely to be able to meet the monthly payments and repay the loan.  However, we are limited in what we can actually do as we do not work directly with CRA’s as we are not eligible to do so.  We will work with what the applicant divulges on their fact find/application but we can only judge as accurately as the information given allows.

When we submit an application to a lender, it is normal practice for a lender to carry out a credit search with a CRA.  In the past, this would have left a search ‘footprint’ on the applicants’ credit file that may be seen by other lenders. Large numbers of applications made within a short period of time would adversely affect a customer’s ability to obtain credit, and they should always consider this before making an application for a loan.

However, the lenders that we have chosen to deal with offer a facility known as a ‘quotation’ search, which does not leave a footprint. This is in line with CONC 2.5.7 which suggests that during the ‘shopping around’ process of the customer, the lenders that we promote should only use a ‘quotation search’, which does not leave a footprint.

Access to information

The Act gives a consumer the right to access information held about them. Your right of access can be exercised in accordance with the Act. Any subject access request may be subject to a fee of £10 to meet our costs in providing them with details of the information we hold about them.

Changes to our Privacy Policy

 Any changes we may make to our privacy policy in the future will be posted on our web page, and, if appropriate, notified to consumers by e-mail.

Questions, comments and requests regarding this privacy policy are welcomed and should be addressed to moneynerduk (at)

My 5 Question Debt Write Off Assesment SEE IF YOU QUALIFY