OFX Money Transfer Review
Exchange rates, Payment methods, How to, Transfer fees and much more
Transferring money from one currency into another can be frustrating and expensive. Many banks and other traditional exchange services charge high fees and don’t provide the best exchange rates, meaning you pay more to send your money than you need to.
More than 20 years ago, OFX (formerly known as OzForex, NZForex, UKForex, CanadianForex, ClearFX, USForex and Transfers) entered the scene with the goal of providing more convenient, less expensive international money transfers to consumers.
Headquartered in Sydney, Australia, and with offices all across the world, OFX now provides 24/7 service and support to consumers looking to send money abroad.
The company has an extensive global banking network, often giving you exchange rates that are reserved for large institutions moving huge sums of money. However, OFX is not always the least expensive alternative when sending money online, so it’s important to do your research and consider all your options before you select a company.
Setting up an account with OFX takes a few more steps than some other online money transfer services, but the process is still fairly simple.
Here’s how to sign up for OFX to start sending money:
- Visit www.ofx.com and register for an account.
- After you’ve completed registration, an OFX representative will call you to complete your account setup and answer any questions you may have.
- If you are required to do extra verification to open your account, you will be asked to provide additional documentation.
- Once your account is active, login to OFX to get a live quote for your transfer. This will include showing you the current exchange rate if you’re transferring money to a different country. You can log in using the OFX website, their mobile app, or with an OFX representative over the phone.
- Enter your recipient’s bank account details to lock in your exchange rate.
- Send your funds to OFX within 48 hours from your bank account to complete the transfer.
OFX only accepts transfer funding using your bank account, meaning you have much less choice on how to send money than with other money transfer providers. You can pay with a wire transfer from your bank account, or apply to set up an ACH direct debit.
Additionally, the recipient is limited to receive money only in their bank account.
OFX does not charge any transfer fees on any transactions. This makes them one of the most affordable options to send money internationally. It could save you a decent amount of money if you send money abroad frequently.
In some cases, a bank involved in the transfer may charge a fee. This fee is not under the control of OFX and they cannot do anything about whether or not you are charged a fee.
Among online money transfer companies, OFX has some of the best exchange rates. These rates decrease as you increase the amount you’re sending.
For these larger transfers, the margins OFX charges on its exchange rates can be as low as 0.4%. This is far lower than many other services, whose markups can top 4%. However, you cannot expect to find a markup this low if you’re only sending a small amount of money.
Bottom line: OFX’s exchange rates are better than most in the industry, but they’re better if you’re sending large amounts.
Pros and Cons of OFX
Pros
No transfer fees, making them more affordable than most options.
One of the largest worldwide networks of banks, making them accessible in a wide range of areas.
OFX provides better exchange rates than many other companies, especially when sending large amounts of money.
Offer both one-time and recurring transfers.
Reviewers report excellent customer service and support.
Cons
Can only send and receive money via bank transfer.
Only available in English.
More expensive than some other companies when sending small amounts of money.
Other Money Transfer Providers
Since OFX doesn’t charge any fees for money transfer services, all the money the company makes comes from markups on the exchange rate.
While OFX’s exchange rate markups are lower when you send larger amounts, the company counts on a large number of its customers making smaller transactions so they can charge higher markups.
Some customers may see a “banking fee” added to their transfer. This is a third-party fee and not under OFX’s control, so they make no money when a bank charges this fee.
OFX is available from a computer, tablet, or smartphone through its website. There also is an app which is available for download on Apple and Android devices.
If you prefer, you also can call and speak directly to an OFX agent to begin a money transfer.
OFX has been operating for more than 20 years and is considered as a trusted name in the international money transfer industry.
It is regulated in multiple jurisdictions, including Australia, the US, the United Kingdom, and Canada. OFX is also listed on the Australian Stock Exchange, requiring it to adhere to a strict set of rules that include disclosure of information.
All client funds are held separately from OFX’s business accounts, meaning your money is safe in the event that the company runs into financial difficulties. OFX is also required to meet strict capital requirements and maintain certain internal procedures. They include staff training, risk management, auditing, and accounting.
OFX largely has a positive customer review portfolio, with customers being satisfied with the service.
On consumer review site Trustpilot, the company has nearly 4,000 reviews, with 80 percent of respondents rating them “excellent.” Many reviewers point to OFX’s great rates, zero exchange fee, and exceptional customer service as reasons they like the company.
User T. Paterson said they have been looking for a way to easily transfer funds between Canada and the US, and hadn’t found anything until OFX. With OFX, they were able to eliminate time-consuming calls between banks and instead send money quickly.
Client Peter G. enjoyed how easy it was to register for his account and get the transfer process started. He said he also felt confident in the security of his transfer with OFX’s policy of calling to verify accounts.
Not everyone has great experiences with OFX, though. Some users reported slower-than-anticipated transfer times and frozen accounts as reasons they were unhappy with the service.
Customer Jim R. sent money from Australia to Germany, and only after three days of waiting did OFX request proof of identity from the recipient. He thought the process would be much faster, and prefers to just send a transfer using his bank directly.
User “Upset Customer” set up an account just to send a large amount of money. Once the transfer was confirmed, their account was frozen. After several days with no resolution, OFX reported the account was still under review and they couldn’t give the customer an update on when the problem may be resolved.
Banks
However, banks require a lot of money to keep running, as there are branches to maintain and thousands of employees to pay. This means they often charge higher fees and larger markups on their exchange rates to protect their profit margins. And because banks are branch-specific, they’re not always the most convenient option for many people, especially those who are travelling.
Online money transfer companies such as OFX provide greater access to sending and receiving money, allowing you to send money anywhere you are in the world. They provide better fees and lower markups on their exchange rates, making online money transfers more affordable for many.
Traditional Money Transfer Companies
Consumers could find their nearest money transfer location, give the agent some cash, and send money to a person in another country. The person receiving the money also can walk into their nearest agent store and pick up their money or, in some cases, have cash delivered to their door.
This increased convenience, though, comes with an increase in fees and large markup on exchange rates. These money transfer services also tend to greatly restrict the ways that users can send and receive money, making sending money frustrating.
Online money transfer services such as OFX, allow users to send money from anywhere they have an internet connection. This means they’re more convenient than traditional services, and they also come with lower fees and better exchange rates.
Other Online Money Transfer Companies
Thanks to the internet, online money transfer companies have opened up money transfers to a wider audience. They come with the most convenient access to sending and receiving money, as these companies can be accessed wherever you have internet access.
Because online money transfer services don’t operate physical branches, and instead have relationships with a network of banks and agent services, their cost of operation is lower. This allows online money transfers to charge low or no fees for the money transfers. In the case of OFX - making money transfers more affordable to many users.
Users of OFX do benefit greatly from operating business online, including lower fees and better access to sending money. However, their business model is set up to only offer bank-to-bank transfers, meaning they don’t offer as many options as many other companies.
OFX does not charge a fee for money transfers, but they do charge a markup on the exchange rate.
The percentage of markup you will be charged depends on how much money you’re sending. The more money you send, the lower the markup from OFX.
Overall, OFX’s exchange rate markups are competitive with much of the industry, but you definitely get a better deal for sending more money. If you’re only wanting to send a small sum, you may want to find a different service for better rates.
Yes. OFX is a well-known, highly trusted name in the international money transfer industry. They are regulated and monitored in a variety of countries, including Australia, the United States, the United Kingdom, and Canada.
They also adhere to strict financial regulations guidelines, such as keeping customer money separate from business accounts.
OFX offers a broad network of partner banks, making transferring money online quick and easy. They charge no fees for transfers, meaning they are among the most affordable options for money transfers. However, because OFX only offers bank-to-bank transfers, they are far from the most convenient for people who don’t have a home bank or who would prefer to send and receive money using a different method.
Overall, OFX offers hassle-free transfers with no fees. So, if you’re sending a larger amount of money, great rates compared to other transfer companies.