OFX Review

OFX vs banks for money transfers

OFX exchange rates start from 0.4%, but reaches up to around 3.5%. The higher end is for what would be considered 'harder to reach' locations.

Let's compare OFX costs to different banks across the world.

In almost all scenarios, OFX will be a better option than using a bank.

With no fees, even at the higher end of the exchange rate, you will get a better price for sending money through OFX than you would using a bank.

For more information on the cost of sending money with a bank, our bank fees for international transfers page is the place to go.

As mentioned, you should always compare your options when making any money transfer. Even for regular, or repeat, transfers comparing will ensure you are always getting the best deal.

Why are people choosing OFX?

OFX offers large transfers, strong customer support and a competitive starting price point.

So why exactly are people using the company?

• Buying property: Property purchases can be complex, with potentially millions of dollars moving between countries. By offering competitive rates and customer service, OFX is a great option for this. TorFX and Regency FX both offer this service as well. Depending on the currencies that need to be moved, it is worth comparing all three for the best options.

• International investments: International investments can need specific attention based on the nuances of tax liabilities and any KYC. Again, OFX can aid individuals who are looking to move, or expand, a portfolio, into different currencies. This can be both physical investments in entities, or investments into funds (or similar).

• Paying friends and family: While OFX may not be the most suitable for regular payments, it is a great option for a one-off payment. For semi-regular payments, it is also a great option. This could range from smaller to larger payments. The difference between using it for smaller or large payments just comes down to convenience more than cost however. Wise, has a better apps and supports multi-currency accounts for personal use.

• Business transactions: OFX has a strong business offering. This includes multi-currency accounts, currency risk, mass payments and a lot more. The account can be used for managing staff and supplier payments. Integration with Xero means international currencies can be synced to a finance team workflow.

Why wouldn't you choose OFX?

Like any provider, they're not suitable for everyone. Including for:

• Sending to airtime or mobile wallets: If you need to send money as airtime or into mobile wallets, this is not supported by OFX. WorldRemit is likely going to be the best option. Again, we recommend searching and filtering the recipient method to ensure you find the right option.

• Sending into cash: Like airtime, cash pickup is not support through OFX. Again, we recommend searching for the best option for your specific transfer. Popular options for cash pickup, depending on where the recipient is located, are likely to be Remitly, Ria or WesternUnion.

Features

Large transfers with customer service

OFX has offices in 9 countries. As a result customer service is available 24/7 via email or over the phone. This support can be wide ranging. A key point, is that it includes advice and the setup of tools like forward contracts.

Online only companies such as Wise, lack in customer service. In customer reviews, this often seen as one of the key negatives of the service.

So short of having 24/7 access is a huge plus for OFX.

Introductory rates

When sending combinations of USD, EUR, AUD, CAD, NZD, GBP or SGD through OFX you can access introductory rates. These are exclusive to transfers between currencies on the list. For example, USD to GBP would receive an introductory rate, but USD to DKK would not.

For sending a one off payment, this could make OFX one of the cheapest options on the market. It brings overall cost in line with the likes of Wise (0.33%) but with customer service available to help on top. On this offer, and across OFX generally, there is no minimum transfer amount.

FX tools

Rate alerts and historic rate mean you can track specific markets you are interested in. For example, tracking between USD and EUR ahead of a property purchase can offer insight on when you are likely to get a competitive exchange rate. This can help save on the cost of sending money.

Looking back, you will also be able to see how the markets have changed. Again, allowing for informed decision making.

Rate alerts also let you set desired rates, as opposed to just changes. So if you know you want to send at a particular price, this can also be setup.

Multi-currency business accounts

Businesses of any size can take advantage of OFX business accounts. This account offers 7 foreign currency accounts.

With these you get:

This access to 7 accounts is a decent amount and covers core markets. For comparison, Wise Business has 10 accounts. The 3 additional accounts are RON (Romanian lieu), TRY (Turkish lira), and HUF (Hungarian forint).

Currency risk tools

The core reason for using a currency risk tool is to ensure you are protected from currency fluctuations. The most common would be a forward contract.

OFX allows you to agree a rate up to 12 months in advance of a payment. This guaranteed rate then means you know the exact cost of sending your money. For things like property purchases, this can be hugely helpful. An unexpected rate change could result in an additional cost which reaches thousands of dollars.

Wise, as with other online focused platforms, do not offer forward contracts. Regency FX, and other currency brokers, will offer them.

Transfer limits

OFX states there are no minimum or maximum limits for international transfers through the platform.

Sending larger amounts of money will mean things like proof of funds and know your customer (KYC) checks.

Regulation

OFX is regulated across 50 markets. This includes the USA, Canada, Australia, Europe, Hong Kong, Singapore and the UK.

This regulation will help safeguard any funds with OFX and aids in security of using the service.

Not keen? There’s other options