Is OFX really affordable money transfer service or not? Let's find out!
What is OFX?
OFX is among many online money transfer services that allow individuals, businesses, and online sellers to transfer funds from one bank to another. The company claims to offer cheaper international money transfers with no limits. The signup for a business of a personal OFX account simply takes a few minutes, and at the same time, you can get live exchange rates with its all-in-one currency converter, on the website as well as on the app. With almost two decades of experience in international money transfer service, OFX’s key benefit is the absence of a commission in sending funds overseas. Besides, you may also get a better exchange rate for many currency pairs such as AUD/US, AUD/EUR, AUD/GBP etc. OFX separates the supported currencies into two categories- standard and exotic. You can view the entire list of supported currencies here.
To send money through OFX, two conditions must be met; the recipient needs to have a current bank account in one of the supported currencies, and the sender must register first before making his first transfer. I recommend checking this guide that explains the registration process in easy steps. To transfer funds to OFX, you can pay easily from your currency account. Personal users can also use their debit cards for transfers (kindly note this offer is unavailable for business users). OFX currently does not supports/accepts transfer made to them through cheque and cash.
It only takes 1-2 days to send funds overseas for major currencies (EUR, GBP, USD, INR, CNY, KRW etc), and around 3-5 days to transfer other currencies. The transfer speed also depends on standard banking hours and the time taken to process the payment. The minimum amount you can send through this service is 100 GBP (or equivalent).
Ways to transfer with OFX
There are two ways to send funds through OFX:
1. Rapid Transfers
A common way to send money transfers. When sending through rapid transfer, you have two options; a single transfer that lets you lock in the exchange rate at the time of transfer confirmation. You can also choose recurring transfers for needs such as monthly, quarterly or repeating payments (mortgage, school fee), and set up a transfer schedule. This method comes with no OFX fee and the availability of direct debit.
2. Risk Management
This method lets personal and business users manage foreign exchange risk. It comes with three options; buy now, transfer later which allows you to lock in the exchange rate by using a forward contract, but you can schedule your transfer between two to twelve months. You can also set the target rate transfer through a limit order. Whenever your target rate (which is valid for up to six months) is triggered, an OFX representative will contact you to complete the transfer. The last way is an FX option that offers you a right (not obligation) to complete a transfer at a certain rate and time. In exchange, an upfront premium is required but you will be protected against exchange rate shifts.
Is OFX safe?
OFX is among the trustworthy international payment services and foreign exchange companies, and it has been operating for many years in various jurisdictions. It is listed on the Australian Stock Exchange that requires the company to adhere to strict requirements such as disclosing certain information in a transparent manner. OFX is also regulated in many countries such as Australia, the UK, the US, Canada etc as a money service business/money transmitter. Therefore, with its global footprint, OFX is an experienced and reliable money transfer service. The clients’ funds are also held separately from OFX’s operational funds, and in case of shutdown, the users will get their money back.
- OFX does not charge fees regardless of the transfer amount.
- No limit on the amount of funds transfer.
- No excess bank charges when transferring locally.
- Various flexible options for money transfer
- Wide range of currencies supported (55+).
- 24/7 customer support.
- Does not offer a multi-currency wallet.
- The service is online only, no in-store cash payment.
- The website only supports English language
- There is no live chat option.
- OFX does not support transfer to a mobile wallet, or a cash pickup location. The recipient must have a bank account.
- User must verify his information by call before making the first transfer.
Usually, It depends on the currency you are trying to send, and the service provider. If you are using OFX money transfer, there are no limits on sending amount or time. OFX does not restrict how much a user can transfer in a specific time period.
While OFX exchange rates are competitive, their transfer fees vary for different countries. Please visit this link, and select your country from the drop-down menu located with the sign-in option to see if any transfer fees apply.
OFX supports many global as well as exotic currencies. To view a complete OFX currency list, visit this link.
First, you will confirm your request before sending funds to OFX.
You will receive an email confirming your request along with a specific reference number and available payment methods.
Now send your money electronically to OFX. Don’t forget to include the reference number.
Questions & answers
OFX does not currently offer digital wallets for individuals, do you plan to do that in near future?
No we are not looking at wallets for individuals at the moment.
OFX currently supports customer registrations from limited countries such as UK, US, Europe, Canada, New Zealand, etc. Do you plan to expand the list of supporting registration countries?
We do not limit registrations to these countries. We can take registrations from anywhere in the world except sanctioned countries. We are only limited by our currency coverage as we don’t offer all currencies around the world – we offer 55 at the moment.
For the Askwallet user, could you explain the breakdown of OFX fees percentage when making a transfer?
This changes by currency and country that the client is based in. we work with our clients to offer a competitive and fair price when we set up their account after they register.
The AskWallet score for OFX is positive as our users have reviewed this service as good and affordable. Their customer support is very helpful in resolving your issues. A few negative reviews are focused on its verification process and delays in transfers. Since OFX adheres to extra compliance checks, the users are required to verify their identities on call from the OFX representative and submit the required documents. The delay in the transfer is an issue with many money transfer services, and it also depends on the time taken by banks at either ends. Besides, transfers can be slow if you are sending money during weekends or any information is missing.
It is a fast and secure service with various transfer options. I also find its FAQ section very comprehensive. Now I will answer if it is the best service for your needs. Well, there is not any service that can fit a variety of needs. I will recommend OFX for large transactions as it is slightly expensive if you are sending a smaller amount. For larger transfers (10,000 USD or above), you will save big, and other services such as Wise, Currency Fair etc, might be ideal if you want to send smaller amounts frequently.