In a Nutshell
- Cheaper than most competitors for small transfers
- Enables automated periodic payments
- Additional services to businesses, such as forex risk management
- Doesn’t offer best exchange rates for all currency pairs
- Less cost effective for large transfers
What You Need to Know
OFX Fees and Rates
OFX recently stopped charging a flat-rate transfer fee, meaning the only charge is an exchange rate margin. The margin varies by exchange pair, typically ranging from about 1% of the total value of the transfers involving major currency pairs (i.e. US dollar, British pound, Australian dollar) to around 2% of the total value of transfers transfer involving a minor currency pair at the receiving end (i.e. Mexican peso, Indian rupee, Thai baht). The meaning of this is that OFX tends to be cheaper than its competitors for smaller transfers, but it becomes more expensive as the transfer amount becomes larger.
To find out if OFX offers the best price for your preferred currency pair (i.e. USD to EUR, GBP to INR), simply register for an account and you’ll be able to see the exact amount that the recipient bank account would see if you were to transfer money today.
After you register, a member of the OFX team will call you to discuss your requirements and let you know about documentation. OFX’s support representatives have demonstrated their willingness to offer better margins to the margins advertised on the platform. In some cases, they are also willing to match prices from competitors. If you’re unsatisfied with the charges for your preferred currency pair or you’ve found a better price elsewhere, let OFX know and you may be able to geta better deal.
How Does It Work?
OFX offers transfers from 15 major currencies into 47 major and minor currencies. The major currencies are: US dollar, Euro, British pound, Japanese yen, Swiss franc, Canadian dollar, Australian dollar, New Zealand dollar, Hong Kong dollar, Singapore dollar, Swedish krona, Norwegian kroner, Danish kroner, Polish zloty, and UAE dirham. The minor currencies include the Mexican peso, Brazilian real, Indian rupee, Malaysian ringgit, Philippine peso, Thai baht, Russian rouble, Turkish lira, and Israeli shekel.
When you enter the OFX site, the first thing you’ll see is an option to check rates. Note that these are mid-market rates and don’t take into account the margin OFX makes on all transfers. To see the amount the recipient bank account will receive on your transfer, you’ll need to sign up using the following steps:
Register for a personal or business account. For a personal account, simply fill in your name, email address, country, residential address, and phone number.
You’ll be asked for your preferred currency pair and be given the opportunity to calculate how much would be received for a transfer made at that moment.
An OFX customer support rep will call you shortly after you register to discuss your requirements and to let you know which documents to provide. Documentation usually consists of 1-2 proofs of photo identification (i.e. driver’s license, national ID card, or passport) and 1-2 proofs of current residential address, (i.e. bank statement, tenancy agreement, utility bill, or letter from a government body).
Once you send the documentation, you should be up and running within 1 business day.
Once approved, you can begin making payments. You can use your account to track payments online or through OFX’s mobile app.
How Long Does It Take?
After the money is sent, it typically takes 1-2 days for the funds to appear in the recipient’s bank account. Times can vary, depending on the currency pair and the recipient’s country and bank. Note that banks in some countries take longer to process incoming transactions. If a transfer takes longer than expected, you can check with your bank as to usual processing times and of course check in to your OFX account online or on the mobile app to track the status of your payment.
OFX Top Highlights
OFX is one of the largest currency transfer companies in the world. It draws on its wealth of experience to offer not only cost-effective transfers but also a range of additional services to benefit individuals and businesses:
24/7 English-language customer support based out of 6 offices around the world in Australia, the United States, Canada, United Kingdom, Hong Kong, and New Zealand).
iOS and Android apps. These can be used to see live exchange rates, transfer money and track transfers.
For small- and medium-sized businesses, OFX offers the following services: quick and secure payments to overseas suppliers; simplified payments to overseas staff with preferable exchange rates; protection against currency fluctuations, via options like forward contracts and limit orders.
Online sellers can get approved within 4 business days for the and collect global revenues in USD, EUR, GBP, CAD, AUD, or HKD.
As mentioned above, OFX provides 24/7 customer support from 6 locations around the world. A dedicated customer service rep will call you shortly after you register to discuss any special requirements and take you through the documentation needed to get setup. OFX can be contacted 24 hours, 7 days a week through a toll-free number.
Privacy and Security
OFX is a registered trade name of OzForex Ltd, a publicly traded company on the Australian Securities Exchange, and its subsidiary USForex Inc., a licensed money transmitter in the United States. USForex Inc. is registered as a Money Service Business with the US Treasury’s Financial Crimes Enforcement Network. OFX partners with Symantec to employ identity protection, fraud prevention, and SSL encryption, protecting customers every step of the way until the money is safely in the recipient’s bank account.
OFX is a global provider of bank-to-bank foreign currency transfers. It enables individuals and businesses to transfer money to foreign bank accounts quickly and easily and at much cheaper rates than those imposed by the banks. OFX imposes no transfer limits and no transfer fees. It collects only around a 1-2% margin on the exchange rate on each transfer.
In addition to forex payments, OFX offers a range of features including excellent customer service, simplified payments and currency protections for businesses, and an option to collect e-commerce payments in any of 6 currencies. OFX’s service is completely secure and customers around the globe have used it to transfer around $100 billion to date.