OFX is the largest money transfer company that is Australian owned. The company was formed as an online entity and its online offerings continue to be easy and intuitive. From setting up the initial account to the actual transfer of money, everything is completed online but this is backed up by exceptional customer service. The business continues to grow through strong word of mouth referrals. With that, the big Q of the day: Is it wise to be transferring money with OFX?
The Currency Shop Says
- The two areas of excellence that OFX has are online know how and customer service.
- In comparison to the banks in the UK, OFX offers better exchange rates, lower fees and a much better customer experience.
- Use our comparison table if you need to compare exchange rates and the fees charged by other providers.
What we will cover
Our main focus is the safety of using OFX and how and when you should use them. This article will look at:
- The safety and security of OFX and who owns them.
- The fees OFX charges to send and receive international money.
- How to use OFX to send or receive money.
- How good is OFX?
The safety and security of OFX and who owns them
The safety and security record for OFX is outstanding. Their compliance procedures are robust and they are fully regulated, as required. They are publicly owned as a company and are listed on the Australian Stock Exchange.
The fees OFX charges to send and receive international money
OFX charges a transfer fee and takes the exchange rate margin.
Their fees are easy to understand. They charge a flat fee up to a certain amount, any transfer amounts over that limit are free of charge.
OFX Exchange Rates
OFX makes money by buying currency in bulk at the rate you see on xe.com and then selling it to customers in smaller amounts at a slightly inferior rate. For example, if the xe.com rate to buy Australian dollars using sterling is 1.64, then OFX might offer you 1.63.
The differences between these two rates is known as the exchange rate margin.
What exchange rate will OFX give me?
This depends on the currency involved and the amount that is needed. In most cases the larger the amount, the better the exchange rate.
In order to get an initial idea of the rate you will be offered you can use their online OFX currency converter. Here you can type the currency you are using and the amount, the site will then tell you the market rate. Here’s where it can get slightly confusing. This is the ‘market rate’ which is not necessarily the rate you will receive. You have to click on the section entitled ‘Get Extra’ but even then the rate you are getting isn’t displayed. You need to work this out by dividing your currency amount by your sterling amount.
How to use OFX to send or receive money
Firstly, you will need to register a new account. It’s free to do so and there are three steps to follow:
- Enter personal details as required.
- Enter details regarding your money transfer.
- Confirm your details further to a phone or email account verification.
You’ll then get a rate quoted for the transfer you want to make and if you are happy with it you then need to input the details of the receiving account. As part of their safety considerations OFX will contact you to confirm the transaction, which you can then track online. It depends on where the money is going but you can normally expect the transfer to complete in 1-2 days.
How to receive money from overseas with OFX
If you need to bring money back to the UK and intend to use OFX to convert your currency, then you will still need to go through the process of setting up a new account.
Once you register you will receive a quote for the rates charged against your transaction. If you’re happy with it then simply confirm the rate and you’ll receive the account details into which you transfer your foreign currency.
For example, if you are bringing Australian dollars into their account then OFX will give you the details of their Australian dollar bank account.
As soon as the funds are received by OFX, they will make the transfer into your UK bank account.
How do I pay funds to OFX?
You can transfer your funds to OFX in most major currencies by using an electronic currency transfer or through your bank account.
Does OFX accept credit cards?
OFX does not accept payments by credit card so you have to transfer funds by EFT or through your bank account.
Therefore, the only other option is to withdraw funds from your credit card into a bank account and then send it across. However, be aware that this is treated in the same way as a cash advance so enquire about any hidden fees as well as any incentives your card may have in place.
One thing to note: OFX does not accept cash or cheque payments.
AED, AUD, CAD, CHF, CZK, DKK, EGP, EUR, FJD, GBP, HKD, HUF, IDR, ILS, INR, JPY, KRW, KWD, LKR, MAD, MGA, MXN, MYR, NOK, NZD, OMR, PEN, PGK, PHP, PKR, PLN, RUB, SAR, SBD, SCR, SEK, SGD, THB, TOP, TRY, TWD, TZS, USD, VEF, VND, VUV, WST, XOF, XPF, ZAR
Please be aware, you cannot transfer money to these countries using OFX:
- Democratic Republic of Congo
- Republic of Congo
- Cote d’Ivoire
- North Korea
- Sierra Leone
How good is OFX?
As previously mentioned, the two areas where OFX excel are your online experience and their customer service team.
The company began online and carries on developing products that are easy to use and intuitive. Everything is done online from account set up onwards and this is backed up by outstanding customer service. The business continues to grow through favorable word of mouth referrals.
Pros of using OFX for money transfers.
- Quick to set up an account online backed up by excellent phone based customer service.
- Better exchange rates than banks.
- Low fees which are free when transferring a certain amount.
- Service available 24 hours a day.
Cons of transferring money with OFX
- Minimum amount set for transfers.
- Credit cards, cash or cheques are not accepted.
- Do not give personal advice.
- Do not offer foreign currency accounts.
Oliver wants to transfer $10,000 Australian dollars from his bank account in Australia to his account in the UK where he now lives. This will be a regular occurrence for the next few months whilst he transfers his cash back he earned whilst living in Australia, as and when he requires it.
He uses OFX because setting up an account is incredibly simple. He completed the process and confirmed his details within minutes.
Oliver is offered a rate from OFX, which he accepts. Due to the amount involved there will be no further fees charged. Following that, he makes the transfer into OFX’s Australian dollar bank account and they then transfer the funds into his British bank account after they arrive.