OFX and Wise are both great options for sending and receiving money internationally. These two companies have so much in common and will offer you better rates than your regular bank.
But how do they stack up against each other?
Here are comparative details of OFX vs. Wise:
- Wise is more affordable than OFX because they offer exchange rates based on the mid-market rate and have zero margins.
- OFX is a better alternative for sending large transfers; it charges no fees for transfers over $10,000, whereas Wise is perfect for smaller transfers.
- Wise has the option to transfer money to a multi-currency account, not available in OFX. It allows you to reroute funds in over 50 currencies and convert money in the account.
- OFX deals in more than 55 currencies, whereas Wise can hold and convert cash in 54 countries.
- While Wise charges a transparent fee for every transfer, OFX has no transfer fees, but third-party banks will deduct extra fees.
- Unlike OFX, Wise has more payment options on top of the standard bank transfers. They allow deposits into mobile phone e-wallet accounts in some countries.
Based on these differences, these platforms have distinct features and products that serve their set of clients. Here are the reasons why you should choose Wise over OFX.
Both Wise and OFX are excellent platforms for money transfer overseas. They are fast and take 1-2 business days to deposit the money into your account.
I recommend Wise if you want to save money on the exchange rate. They offer the mid-market rate at no margin. Their multi-currency account is also suitable if you are dealing in more than one currency.
On the other hand, if you have to send larger transfers of over $10,000, OFX is a better alternative.
What to Consider When Choosing Between OFX vs. Wise
When transferring cash with these platforms, here are some of the key things you should consider.
International money transfers need to be fast enough to get to the recipient. Whether you need to pay for a service, product, or bills, you are more likely to go for the alternative that affects the transfers faster. Both OFX and Wise take 1-2 business days for most of their transfers. However, this period could vary depending on the recipient country.
The money transfer platform you go for should cater to the currency of your recipient. Before sending the money, it’s advisable to confirm that the transfer covers the specific currency and its costs. Both Wise and OFX can hold and transfer money in more than 50 currencies.
- The Country
Not all money transfer platforms operate in every country. Just like the currency, the country is also critical. While Chime sends money to 80 countries, OFX can send it to 195 countries and has a network of 115 bank accounts globally.
- Mobile Apps
With international money transfers, mobile apps are very vital. Wise and OFX have mobile apps that support both iOS and Android. You can download the apps from the App Store and Google Play.
- Customer Support
Since most transactions are international, it’s critical to have an efficient customer support service. They both have customer service to handle any problems that arise, but OFX ranks better because of their personalized and 24/7 service.
When choosing a money transfer platform, it’s best to go for one that’s regulated. With the rise in online scams, a good platform will operate under financial regulations to protect your money. OFX is monitored by the Financial Conduct Authority as an Electronic Money Institution in the U.K and regulated by the ASIC in Australia.
On the other hand, Wise is regulated by the FCA in the UK and FinCEN in the US.
Why Should You Choose Wise
Let’s take a look at some of the reasons why you should choose OFX for your transfers.
- Lower Fees
When sending money via Wise, they don’t make a margin on the exchange rate. This platform is one of the only money transfer services that offer customers the mid-market rate. In addition, for every transfer, you’ll see the exact amount you pay as transfer fees.
- Multi-Currency Account
Using a Wise multi-currency, you send, hold and receive money. You can hold more than 50 currencies and convert them at your convenient time.
As a regulated company, Wise operates within the set rules that govern international money transfer. They also hold money with leading banks, which keeps your money safe. In addition, Wise has a data protection system to keep your personal data secure and a dedicated anti-fraud team working round-the-clock.
- Customer Reviews
When it comes to sending money, customer reviews are also critical. You should check sites such as Trustpilot to see other people’s experiences with the platform.
You’ll commonly find comments about the app’s functionality, transfer speed, and customer service access. Wise has a 4.6/5 rating, while OFX has a 4.3/5 score, both excellent ratings.
Why Should You Choose OFX
OFX has been in existence for more years. So why should you choose this option? Here’s why.
- Larger Transfers
OFX doesn’t have a limit on how much money you can transfer. For transfers over $10,000, they won’t charge you any fee.
- Wider Coverage
OFX can transfer money to more than 100 countries. This means you can send money to more countries compared to when using Wise. This platform has extensive coverage and handles more currencies.
- Customer Service
When you have an issue with your transfer, reaching the OFX customer support team is much easier. On top of being available 24/7 on the phone and via email, this company also has some physical offices in different parts of the world, including Ireland, Australia, Canada, Hong Kong, London, and the U.S.
Wise was previously known as TransferWise. It was founded in 2011 by Estonians, financial consultant Kristo Käärmann and Taavet Hinrikus, who was Skype’s first employee.
The two friends started the company with the vision of making international money transfers cheap, quick, transparent, and simple. Today, Wise has a multi-currency account that helps over 10 million people and businesses manage their money worldwide. Every month, the platform handles more than $6 billion.
Wise also has a debit card that customers can use to shop anywhere around the world. To cover more people, Wise has also partnered with companies such as Monzo, Bolt, and GoCardless, to provide their customers with the best international banking experience.
PayPal co-founder Max Levchin and Richard Branson are among the people who have invested in Wise’s vision.
The company now has 17 offices and 2,600 employees to further its global vision and build money without border limitations.
How Wise Works
Wise will help you send money, pay your bills, and receive payments from different parts of the world. You’ll need to set up a free account using an email address and password credentials to get started. You can also sign up with a Facebook, Google, or Apple account.
After you’ve accepted the terms, you’ll need to verify your account using your government-issued ID. Once approved, you can order a card, add money from your bank account, debit card, credit card, or Apple Pay. To receive payments or spend, you can now share your payment details and get started.
When sending money, you can use the app or website. You just need to select the currencies and amount of money you need to send, and Wise will provide a breakdown of all the fees and rates you need to pay. After you reviewed and confirmed payment, the money will be transferred to the recipient from your account.
Features of Wise
Here are some of the key features that define Wise as a money transfer platform.
- Multi-Currency Account
Wise allows you to manage your cash across more than 50 currencies. With this account, you can hold the money until you are ready to convert it.
- Multi-Currency Card
Wise has a debit card that has zero transaction fees and a low conversion rate. With this card, you can spend money and pay for products and services in countries such as the U.S., U.K, New Zealand, Australia, Japan, Singapore, and EEA.
History of OFX
OFX was started in 1998 by Matthew Gilmour in a garage in Sydney’s Northern Beaches. For the past 20 years, the company has grown from two employees to over 200. Customers now trust them across the globe with international money transfers. OFX has more than 1 million customers globally and continues to grow.
Over the years, the company has operated under territory-specific brands, including UKForex, NZForex, USForex, CanadianForex, before consolidating into one brand, OFX, in 2015.
The company now has over 115 bank accounts in its network to help meet customer demands. OFX has eight global offices in Australia, Canada, Hong Kong, Singapore, the United Kingdom, the United States of America, New Zealand, and Ireland to serve the customers better.
How OFX Works
To use OFX, you must register for an account. Once you open the site, you will be prompted to select whether you are moving cash for a business or its personal. If you are an individual, you should choose a personal account, and the business option is for companies or sole traders.
To create an account, you need to input details such as the country of residence, email address, and personal information.
Once you are set up, you can log in and enter the amount you want to send. You can either add the funds into your OFX account or link it to a bank account for a direct transfer. OFX will convert the cash and send it to the recipient via a bank transfer.
Features of OFX
Let’s examine the key features of OFX money transfer.
- Rapid Transfers
For international money transfers, we offer rapid transfers when you need to send cash right away. You can choose to go for Single transfers or “Spot Deals,” which allow you to lock in a great rate, send the cash to the OFX team and let them do the rest.
The other option is recurring transfers, ideal for payments such as a monthly mortgage or quarterly school fees. You’ll need to set up the transfer schedule, and the OFX team will process the payments on time.
- Forward Exchange Contract
This feature is ideal if you need to lock in a rate but want to transfer funds later. It allows you to book transfers to protect you against changes in the exchange rate.
- Global Currency Account
Once you sign up for this account, you can accept payments and get paid at no monthly fee. This is ideal for both businesses and individuals.
OFX and Wise are good choices for international money transfers. They both offer reasonable rates than most banks, making it easier to transfer funds across the globe.
They also have mobile apps that you can use to register an account and monitor your transactions on the go. While each has excellent features, they also have differences that set them apart.
OFX has been operating for 20 years; therefore, it has more coverage and handles more currencies. It’s also a good choice if you need to transfer a lot of funds.
You should go for Wise if you want a platform that has lower fees. Their exchange rate has no margins, and they don’t have any hidden fees after you’ve made the transfer.
- How Much Does It Cost To Send Money Via OFX?
The amount will vary greatly depending on the bank you are using to send the cash and the margin on the exchange rate. Also, keep in mind that your recipient might get charged to receive this cash.
- Can I Get The Wise Debit Card in My Country?
Currently, the Wise card is only available to residents in Europe, North America, some parts of Asia, and Oceania. You’ll receive your card within three days to two weeks, depending on your location. The company is working to roll out these cards in more regions.