OFX is an international money transfer company with an excellent reputation. Known for offering competitive exchange rates and quality 24/7 customer service, OFX simplifies the process of moving money overseas, thanks to its global network of 195 countries. Read on to learn more about how this money transfer service differs from more traditional bank transfers.
Send Money with OFX
Based in Sydney, this Australian remittance service has grown exponentially since its founding in 1998. The company now has offices in 8 locations across the globe: Australia, Canada, Hong Kong, Ireland, New Zealand, the United States and the United Kingdom.
OFX estimates that over the course of the last two decades, the company has facilitated £80 billion GBP in transfers, with more than 1 million users around the world. The organisation is famous for promising fee-free transactions to its customers, as well as being able to send money to a vast array of locations. In this review we will consider the most important aspects of this service provider, providing a comprehensive guide to OFX money transfers.
Here we will divulge details about the overall cost of using OFX to send money overseas, looking at any exchange rate mark-ups, transfer fees and other costs that will contribute to the final price tag.
Exchange rates
OFX makes its money from a percentage markup charged on top of the mid-market rate. In order to know how much money will be exchanged, customers are required to first open an account with the provider. It is important to note that the OFX currency converter tool will present the mid-market exchange rate, without including any indication of how much will be deducted as a mark-up.
This mark-up – also known as foreign exchange spread – will range between 0.4% and 1.5% which is a great deal less than what banks charge for foreign currency. Although this mark-up is variable, it is far lower than banks which charge up to 5% over mid-market rates.
Transfer fees
This provider does not charge any transfer fees. Unlike with other money transfer companies, the amount you send with OFX will arrive as it is without any deductions.
Additional costs
Transfers sent to Japan and South Africa incur additional costs: please enquire with an OFX customer service agent for up to date details.
OFX helps customers send money transfers to more than 195 different countries. The company currently offer 55 currencies, divided up into Standard and Exotic varieties. For a full list of currencies please see this page on the OFX site. The most popular destinations for sending money with OFX customers are as follows:
Business owners, online sellers and individual clients with global remittance requirements all find OFX services appealing, mainly because of the competitive cost and the foreign currency risk mitigation measures that are in place. We want to know if OFX customers have been disappointed by any aspects of the service, and if so, what areas this may be.
In an ever-evolving money transfer industry, in which companies are constantly diversifying sending options, OFX has remained steadfast on their decision to keep bank transfers as the only way to send and receive money. This product structuring certainly limits some customers, but most business customers are happy with this set up.
What OFX have done differently is that within their bank transfer service, the company can offer multiple options that cater to a variety of preferences and financial needs. These are:
Due to the fact OFX transfers are sent from one bank to another, they can take a few working days to arrive. Although the company estimates transfer speeds of 1 – 2 working days, some customers note transfers arriving before or after that window.
In general, transfers to North America and Europe can arrive the same day or the following day; whereas transfers to Asia, Africa and South America are more likely to take up to 2 days to arrive. Bank holidays, weekends and currency pairings also determine the speed of an international transfer.
This delivery speed is within the normal limits of bank transfers, but compared to other specialist money transfer companies, OFX is not as competitive.
When arranging an international payment with OFX, customers must first send a bank transfer to OFX to fund the transfer. There are several ways to do this:
After you lock in your transfer, you’ll get an email with a full list of transfer payment options you can choose.
What are the best reasons to use OFX?
International money transfer providers position themselves to cater to different markets. OFX is best for businesses and personal transfers.
Business
If you run a small or medium scale enterprise, OFX can help you:
Online sellers who need to maintain transactional accounts in different currencies can benefit from the unique products offered by OFX. Every business looking to enjoy what OFX has to offer is first required to open a business account.
Personal
Apart from businesses, OFX also helps individuals to send money to their families and friends through personal transfer solutions:
The structuring of OFX products makes it easier for businesses and individuals to plan their transfers and enjoy the best rates across countries. However, if OFX doesn’t fit your needs, read our guide to find the best way to send money overseas.
OFX, the brand and trading name of OzForex Group Ltd, is registered in Australia and has been operating for over three decades (since 1988). Over time, the provider has extended its global reach by opening up offices in different parts of the world, signing agreements with 155 banks and supporting 55+ standard and exotic currencies.
Currently, OFX has over 1 million active customers on its platform and to date, it has transacted more than USD100 billion.
It holds an Australian Financial Services Licence (“AFSL”) issued by the Australian Securities and Investments Commission (“ASIC”).The licensing gives the provider the authority to deal in and offer financial product advice in regard to derivatives and foreign exchange contracts.
Apart from Australia, OFX is registered and regulated in the United States, Hong Kong, the United Kingdom, New Zealand and Canada. The regulations require that OFX holds the client’s funds in segregated accounts separate from its business accounts. This ensures the safety of customers funds even if the company goes through financial turbulence. It is also required by law to observe a minimum capital threshold.
When you register for an OFX account online, you will receive a call from the company to verify your details before you begin transacting. This is important for security reasons. Also, beginning September 30, 2019, OFX is introducing 2-Step Verification through SMS for any major changes that you do on your profile.
Most of the information about OFX and how it does business is readily available on their website. For instance, their online calculator gives you a close estimate of how much you should expect to pay in exchange rate margin fees. In case there is anything you need to confirm, their 24/7 phone and email customer support are there to help. On top of this, OFX has a detailed FAQ section where almost all questions are addressed.
In general, reviewers on Trustpilot praise OFX for its excellent 24/7 support, favourable exchange rates and minimal transfer costs. Setting up on the platform is also very simple and fast. In less than 5 minutes, you are ready to send money to your business associate, supplier, staff or family and friends.
With 3,677 reviews, 80% of which are rated as excellent, users cited the following as the main reasons for using OFX in place of other international money transfer services.
The 7% who rated OFX either as poor or bad, pointed to the phone verification process as being tedious and unnecessary. Though we know this is part of OFX’s internal control system and regulatory requirements.
Sending and receiving money with OFX is designed to be a breeze. Remember you can send money on the website, using a mobile app, or even on the phone in less than 5 minutes. For example, imagine you’re sending money from USA to Australia, below are the steps to follow:
Sending money
Step 1: Sign up for an OFX account online
Step 2: Wait for OFX customer support to call and complete the account verification and set up process
Step 3: Submit additional information if you’ve been requested to
Step 4: Login to your OFX account and check the live exchange rate
Step 5: Enter the recipient’s details and counter check for accuracy
Step 6: Send your funds and OFX will ensure the transfer is completed.
Receiving money
Since the money is deposited into your bank account, there is nothing much you are required to do. Probably as part of business ethics or personal etiquette, you may inform the sender that you’ve received the money.
Yes, OFX has an easy to set up and use mobile app available as a free download on both Android and iOS platforms. Through the app you can:
On Google Play, the app has a rating of 3.6 with 1,760 reviews. On the App Store, the OFX app has two reviews. Users are yet to get along on the mobile to bank account transfer.
