OFX Review

Who is OFX suitable for?

OFX is a very cost-effective option for anyone looking to transfer more than $10,000 to a bank account overseas. It’s important to note that you are unable to use this service to transfer money to someone who does not have a bank account, as this is a bank-to-bank transfer service.

Who is OFX?

OFX is a leading money transfer company with a global reach of over 50+ currencies and 170+ countries with offices in Australia, the UK, the USA, and Canada.

Who owns OFX?

Gilmour sold a part of his share to Gary Lord, and they became joint shareholders until 2007 when Macquarie Bank purchased 51% of OFX. Macquarie and the founders have retained significant ownership to this day.

OFX product range overview

Spot transfer

This is the basic transfer service, which locks in the current exchange rate. Remember to check the rate before you reach for this service, as this can change frequently and won’t always favour the transfer you intend to make. However, what you can guarantee is that the rate you get at OFX will always be better than the rate you would have gotten at your traditional bank.

What you will get with Spot Transfers is a fast, easy, and secure service. This can be used to send money to friends and family overseas, pay invoices, purchase big-ticket goods and property, and manage your savings abroad.

Limit Order

Have a certain rate in mind for your transfer? You can set the rate that suits you, and once that rate is reached, OFX will automatically send your funds to your specified destination. You can set a Limit Order for up to 6 months, so if there are no time pressures on your transfer, this is actually a really effective way to save money.

Of course, choosing a realistic rate can be challenging, but OFX has provided help with this in the form of OFXperts who check recent trading ranges.

While this is a good service that can potentially help save you money, it’s important to understand that the transfer is binding and cannot be changed or cancelled once it has been triggered.

Forward Contracts

Forward Contracts allow you to fix a rate for a specified amount of time. It can help protect you or your business from fluctuations in exchange rates; however, you will miss out if the rate does move in your favour.

At OFX, you can lock in a rate for anywhere up to 12 months and between 19 different currencies. This is worth consideration for regular payments such as mortgages, and there is the option to use a forward contract for part of the payment.

Recurring transfers

OFX provides scope for recurring transfers with the ability to automate your transfers for up to 12 months in advance. This can be a useful feature for regular payments such as mortgage payments, receipt of pension abroad, foreign salary payments, or even education payments abroad.

Recurring transfers can be done by setting up a direct debit from your bank account. This can be used in conjunction with Forward contracts, as described above.

OFX Business Accounts

OFX also offers business bank accounts.

The multi-currency business account allows you to pay and get paid like a local and can easily be integrated with business tools like Xero. There are useful features available, including invoicing features and the ability to make bulk payments while managing different currencies at competitive rates.

OFX fees

There are a number of ways that you will pay to transfer money internationally, including fixed fees and the exchange rate.

Fixed fees

Most traditional banks will charge a fixed fee for each transfer you make. This will vary depending on the bank you use, the currency you are sending, the method you use to send the money, and the amount you are transferring.

OFX recently decided to scrap their fixed fee of $15 for transfer amounts under $10,000, and all transfers are now completely free of any fixed fees, regardless of the size of the transfer. 

Exchange rates

There is also the exchange rate to consider, which, at a traditional bank, typically has a margin of around 5% on the interbank rate.

This can be the highest cost when conducting money transfers overseas. A quick search can reveal the interbank rate at the time of your transfer. Generally speaking, OFX offers very competitive exchange rates, especially for large amounts.

There is little doubt that this is an affordable option that can save you a considerable amount of money, especially for large transfers of over $10,000. OFX manages to achieve this with their extensive network of local bank accounts, which helps eliminate the costs banks charge each other for international transfers.

How OFX compare to other money transfer companies

OFX vs Wise

In terms of fees, OFX does not charge any transfer fees, whereas Wise will deduct a small fee depending on where you are sending money. In the instance of sending 1000 GBP to Europe, this will come at a cost of £4.28 at the time of writing. However, OFX charges a small markup on the exchange rate that you pay. Wise offers retail customers the mid-market rate, which is basically the exchange rate you would find on Google and is unbeatable in this context. OFX charges a retail rate, which is the mid-market rate, with a margin.

Which of these is cheaper will therefore depend on the markup at the time the transaction takes place. However, in terms of cost, you may find they are comparable much of the time.

Where the difference lies is that while OFX has no minimum transfer amount, they do stress that they are not a remittance company, and therefore target high-value customers, whereas there are no minimums with Wise. In addition, Wise offers a multi-currency account and a debit card that can be used each time you travel.

Therefore, Wise could be a better option for those that conduct many small transfers and for those that travel frequently, with OFX being the better option for large transfers.

OFX vs Remitly

Another key player in the money transfer sector is Remitly. Again, Remitly offers a low-cost and efficient way to transfer money abroad. Where Remitly may offer an advantage over OFX is that they allow transfers to a home or business instead of only bank to bank.

OFX FAQs