OFX (formally known as Ozforex) is an Australian money transfer provider. The company originated online and continues to develop innovative solutions with intuitive products. All aspects of using OFX’s service is done online — from the account set up to the actual transfer of funds. They are known to have exceptional customer service and this is one reason, among many, why people like to make a money transfer with OFX.
The Currency Shop says:
- OFX excels at online user experience and customer service
- Compared to big banks they offer quite competitive exchange rates
- If you’re interested in checking out foreign exchange rates, fees and services of other providers, check out our comparison tool.
What we’ll cover
The most important thing to understand here is what the actual costs are to make a money transfer with OFX. In this article, we’ll dig into the following:
- Is OFX safe and secure?
- With OFX, what fees are there for sending and receiving money?
- How do you send money overseas with OFX?
- Is OFX recommended?
Is OFX safe and secure?
OFX has a sterling reputation for safety and security. They have robust practices for protecting their customer’s privacy and money. OFX is registered as a Money Service Business at the federal level with the Financial Crimes Enforcement Network (“FinCEN”), which is a bureau of the United States Department of Treasury.
OFX is a publicly-owned company listed on the Australian Stock Exchange. For more information, click here.
With OFX, what are the fees involved for sending and receiving money?
When using OFX, expect one primary fee — an exchange rate margin. The good news is that they’ve done away with all their transfer fees (unlike many banks).
According to their website:
Our flat rate transfer fee is now a thing of the past. Our customers can enjoy international money transfers with zero OFX transfer fees. No gimmicks, no catch.
OFX makes their money through buying currency at a lower bulk market rates (the rate you’ll see on xe.com) and then reselling it to customers at a slightly higher rate.
For example, if the market rate to buy Euros using US dollars is 0.9400, OFX may offer you 0.9300 per dollar.
This small difference is known as the exchange rate margin, and it’s all you’ll be charged using OFX.
What sort of exchange rate will you get with OFX?
This is dependant on what currency you are converting and the amount you need. But a good rule of thumb is to know that the larger the quantity the better rate you’ll likely receive.
To get an idea of what rate might get you can use OFX’s currency conversion tool. Type in a few example amounts and you will be shown market rates. The tricky part is that this is not the rate you’ll receive. The only way to know for sure is to contact OFX or divide your currency amount by USD to get the real rate.
Another option is using our comparison tool by clicking here. This way you can see OFX exchange rates compared to the big 4 banks and other money transfer companies.
How do you send money overseas with OFX?
In order to send money via OFX, you’ll need to create an account (free). This can be accomplished in three simple steps.
- Enter your personal details
- Input your money transfer details
- Confirm your account via email
The next step is to get a rate quote. If you like it go ahead and input the receiving bank’s details and lock in your transfer. You should receive a confirmation email and for security, you can track the transfer online. Most OFX transfers are completed in 1-2 days.
You can also use OFX to bring funds back to the US from abroad. From your registered OFX account you can pay the foreign currency into an OFX transfer, which is then converted into USD and credited to your US bank account.
To fund an OFX transfer you need to set up a direct debit from your bank account. This is because they currently do not accept credit cards or checks.
Need an alternative method of paying?
The only way around this is to arrange a domestic transfer from your bank to OFX by withdrawing available funds from your credit card into another account – and then sending it across.
However, be aware that by doing this you are effectively taking a cash advance on your credit card and could, therefore, be exposed to associated fees and interest rates of your credit card issuer.
The countries and currencies you can use OFX for are:
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
OFX does not allow transfers to the following countries:
- Democratic Republic of Congo
- Republic of Congo
- Cote d’Ivoire
- North Korea
- Sierra Leone
Is OFX recommended?
OFX really does exceptional work in two areas: customer service and convenient online experience.
OFX is a money transfer company for the digital generation. As such, they’ve streamlined a lot of their services and are backed by responsive customer service.
Pros of making money transfer with OFX:
- Easy and fast online set-up backed up by competent customer service.
- Highly competitive exchange rates (especially compared to banks).
- No fees, except for the exchange rate margin.
- 24/7 service.
Cons of making money transfer with OFX:
- Minimum transfer of $250
- OFX does not accept cash, checks or credit cards
- They do not provide personal advice
- They don’t offer foreign currency accounts
Related Link: Click here to visit the OFX website