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3 min read 08.02.2022 366
Ibrahim Busari
Ibrahim Busari
Ibrahim is a fintech writer at AskWallet
Wise (former TransferWise) vs OFX

Wise (former TransferWise) vs OFX

Whether you’re looking to send money abroad to your family or friends, or you need to pay overseas contractors and vendors, there are plenty of options available. Each provider offers its own pros and cons, but one of the main things you’ll want to compare before choosing one over another is their transfer rates. If you’re thinking about using OFX (or Transferwise), this guide will help walk you through the key things you should know before signing up and making an international transfer.

OFX vs Wise (formerly TransferWise): Which is the Better Option?

Transferring money abroad has become a cogent aspect of our lives, and the search to find a better medium to do so is even more important. This article will differentiate between OFX and Wise (Formerly TransferWise). The following paragraphs will highlight the strengths and weaknesses of both platforms on basis of Transfer Rate, Transfer Speed, User Experience, Customer Services & Support. Hopefully, after going through this article you will have the prerequisite knowledge to make a decision that suits you. 

Personal features 

Here we will break down what both platforms have to offer and how you can take advantage of any of them when it best suits your circumstance.

OFX

  • OFX has a better transfer fee, cos the higher the amount you are sending the lower you are charged.
  • Great mobile and online user interface platform, that is easy to use. 
  • It covers over 190 countries, and is listed on the Australian Stock Exchange (ASX) and monitored by over 50 regulators globally.
  • No minimum or maximum transfer limits, with a physical presence in all countries covered.
  • OFX has a business product for medium & small structured companies, startups, and online sellers looking to access a multi-currency account to pay or get paid.
  • OFX offers a personal account manager, but doesn’t permit cash pick up or international bill payment.

WISE

  • WISE, on the other hand, has a marginal transfer fee, this should not be overlooked because it is the best option when transferring a lower amount.
  • The same goes for WISE, with an extra touch of creativity that gives it a better look.
  • WISE covers 80 countries, with direct debit in the UK, Europe, US, and Canada.
  • WISE provides borderless online payments and traveling on their Debit Mastercard in the UK, USA, Australia, and New Zealand.
  • 50% of payments arrive instantly or arrive in an hour, you can also integrate WISE with Quickbooks or Xero accounting software.
  • WISE offers scheduled and recurring transfers depending on a sufficiently funded borderless account.

Cost and Fees (including hidden fees)

Both platforms are considerably cheaper compared to local banks, but we here to decipher the actual and hidden fee paid when sending money on both platforms. 

OFX transfer fees range from 0.4% to 2%, they charge a flat $15 fee on transfers below $10,000 plus a margin on the exchange rate depending on the currency. It’s also crucial to reiterate that OFX doesn’t charge any fee when you transfer money above $10,000. 

While WISE transfer fees range from 0.55% to 2.35% of your transaction depending on where and how you send the money, you may be charged a fixed fee depending on the currency you are transferring to. WISE doesn’t charge a margin on the exchange rate, which makes them suitable for transfers below $7,000. WISE (ex. TrasferWise) makes money in fees calculated on a percentage of the transfer amount, making its dealings very clear and transparent about how much they charge you.

Both WISE and OFX run a local bank in every area they service, which protects you from unforeseen charges that the banks at either end of the transaction can charge. This means they can often reduce said fees very low or nothing at all.

Currencies and exchange rates

Every Financial Institution leverage on gaining income from both transfer charges and the cost of currency sold to customers. It will be smart to consider the exchange rate of both platforms before making a choice.

OFX supports transfers to 190 countries, with over 50 currencies, with a 0.4% exchange rate above the mid-market rate that is giving other money transfer platforms a run for their money.

WISE (TRANSFER WISE) supports transfer to 80 countries, with 20 currencies for international transfers and 30 currencies for local currencies. WISE dominates the scene when it comes to exchange rates with a staggering mid-market exchange rate deal. Like I said you have to be smart when picking a money transfer platform based on the exchange rate it offers.

Ways to send money 

You will have to open an account to operate on both of the money transfer platforms. By providing your personal details online, fill out details of your money transfer, verify your email and phone number, select currency type and amount receive a quote of your transfer, fund your account, and finally make a transfer to the recipient.

For OFX you can fund your transfer via direct debit from banks, debit card, wire transfer, and BPAY in some specific location.

While for WISE you can also fund your transfer through SWIFT Payments, direct debit from banks, credit cards & debit cards, and in some specific locations — SOFORT AND iDEAL. WISE offers numerous ways to fund your transfer. Funding your transfer with a credit or debit card is more expensive compared to a bank direct debit but they make up for these by keeping the fees low by not charging a margin on the exchange rate.

Ways to receive money

Receiving money from WISE (TranferWise) is just like receiving money into a regular bank account. All you have to do is share the currency you want to be paid to the person or business that wants to pay you. You can only receive money directly into your account in Australian dollars, British pounds, Canadian dollars, Euros, Hungarian forints, Malaysian Ringgit for Malaysians, New Zealand dollars, Romanian leu (available for the resident in the EEA, Switzerland, UK, Japan, Australia, Canada, Australia, Canada, and the USA), Singapore dollars, Turkish Lira and US dollar.

While for OFX just like WISE, it also supports several currencies and works just like an ordinary account. After confirming the bank details and money transfer OFX will notify the recipient to finalize the transaction and exchange rate over the phone or online.
 

Payout methods

OFX

  • OFX supports only bank-to-bank transfers.

WISE (TransferWise) 

  • WISE also supports bank-to-bank transfers only, but they permit debit or credit card fund transfer for a fee.

Transfer speed

Both platforms have a good reputation when it comes to delivery time but one is better than the other when it comes to transferring speed.

OFX

  • OFX takes between 3 to 5 days for the recipient to receive the money transfer.

WISE (TransferWise)

  • WISE takes between 2 to 5 days for the recipient to receive transfer value.

Safety 

OFX

  • OFX is regulated by AISC under the Australian Financial Services Licence, the UK (Authorised Payment Institution regulated by the FCA), FinCEN in the US, and licensed as a Money Transmitter in 49 states. It is also regulated in multiple jurisdictions.
  • OFX banks with a 1st class bank to keep your money safe.

WISE (TransferWise)

  • WISE is regulated in the US by FinCEN (Financial Crimes Enforcement Network), with financial regulators in every state its services are rendered.
  • WISE safeguards your money by baking with 1st class banks like JP Morgan Chase.
  • WISE offers HTTPS encryption and 2FA or two-factor authorization to protect your transaction. 2FA is required anytime you log in.
  • WISE offers 3D Secure (3DS) technology, which is an extra layer of security for online payments.
  • WISE is registered with The Information Commissioner’s Office. Protecting you and your data is of high importance.

Business account options

OFX 

  • Offer auto payment that saves time.
  • You can integrate your account with Xero accounting software.
  • Offers risk management, business specialists.
  • OFX offers you the ability to lock the current exchange rate on offer even if you are yet to transfer funds to OFX.
  • Limit orders, helps you choose an exchange rate better than what is offered in the market.

WISE (formerly TransferWise)

  • Offers business banking without the high rates, hidden charges, and monthly fees.
  • Offers batch Payment, Xero, and Quickbook Integration with cloud accounting software, FX optimized business debit card.
  • Offers Multi-user account access, Regular and Scheduled transfer.
  • Offers invoices to local receiving accounts in 10 currencies around the world.

Customer service & Support 

OFX

  • OFX offers a 24hrs help desk that can be reached via email or via their location-specific phone numbers.
  • They provide bespoke support over the phone, whether you need to set up a transfer or if you need any information related to your transfer.


WISE (TranferWise)

  • WISE also have a reputable customer service unit that goes out of their way to help users with any and every problem it may encounter.
  • Their customer service team can also be reached via email, phone, or live chat (depending on their workload). While they don’t offer phone support to set up transfers, their help section has country-specific guides that can answer all questions.

Our ranking

Both of these transfer money services are listed on our website. They both have received great reviews from users on our service. Our team of specialists has also taken a look at the EMIs and given them rankings. OFX has a rating of 4.1/5 while Wise is rated at 4.5/5. 

Conclusions

Picking a definitive winner may be impossible because they are equally matched, with both of the platforms dominating in different aspects of the comparative section. Therefore the case will be to pick the best that suits your current situation and leverage on the offers presented by both platforms. For more up-to-date news about EMIs, check out the AskWallet blog posts.