- Send 50 currencies to 226 countries
- Multi-currency business account
- No flat-rate transfer fee
- Direct deposit into the bank account
- 24/7 customer service
If you want to make online money transfers without paying steep fees, you should consider OFX. This service has offices around the world and plenty of OFXperts working to help you send money abroad. Keep reading this OFX review to learn more about OFX and what it can do for you. Here’s a quick take on OFX:
OFX is an excellent choice for money transfers. You can transfer over 50 currencies to one of 226 receiving countries. While not the fastest, it is one of the cheapest. Plus, they have extremely friendly customer service.
Pros and cons
- Supportive, easy-to-reach, and friendly 24/7 customer service
- Readily navigable website and mobile app platform
- No flat-rate transfer fees
- No maximum transfer
- Cheap exchange rates
- No live chat online
- Takes two to four business days to transfer money
- Fees may not be worth it for smaller sums
The minimum transfer on OFX is USD 1,000. You would send the equivalent in your starting currency, and they do not have a maximum.
OFX got rid of their flat-rate transfer fee, but third-party banks may deduct something. The company takes a small margin above the Current Market Rate. The markup is about 0.03% or less, compared to 0.04% for bank-to-bank exchanges. That means that for every $1,000 you send, they take a maximum of $30.
OFX was established in 1998 in Sydney, Australia’s Northern Beaches by Gary Lord and Matt Gilmour. The foreign exchange professionals developed the website in the late 1990s and early 2000s under the name OzForex.
Over the past couple of decades, OFX has sought to give its customers affordable and easy online money transfers. They have developed a global customer base with over 100,000,000 transfers totaling more than $1,000,000,000 sent.
They provide 24/7 customer support to help you make transfers whenever you need them. You can save money compared to conventional banking, and they offer mobile and desktop access to the OFX platform. They have offices in eight countries as well, such as:
- Hong Kong
- New Zealand
- United Kingdom
- United States
Why is OFX so special?
OFX lets you send money to around 226 countries in more than 50 currency types. They have multiple international bank accounts using their local subsidiaries. That way, OFX can approve transfers without entering the currency market.
You can send the money on the website or mobile app using your bank account. If you want, you can have OFX do direct debit. To accelerate the delivery, you can wire transfer money directly to OFX for a fee. The money goes to the recipient’s bank account.
OFX allows for single and recurring rapid transfers, and you can opt for a Target Rate Order or Forward Exchange Contract to manage your transfer risk. The latter work best for large sums of money as they add security.
Where is OFX available?
You can send money to over 226 countries in Africa, the Americas, Asia, Europe, the Middle East, and Oceania. However, they do not allow you to send money to a few African and Middle Eastern countries.
OFX has offices in eight of the most influential countries in the world as well. They employ over 200 people who are ready to help you make a transfer at all hours of the day no matter where you are.
How does it work?
To begin, you create an account on the OFX website or app. It takes about ten minutes to make an account. They approve your identity and account within four business days and deliver your receiving account details in two business days. If you need an immediate transfer, you can call them to see if they can expedite the process.
On your marketplace account, you can initiate the payment. Send the money to the verified OFX receiving account. You should expect it to arrive in two to four business days.
You transfer money to the domestic OFX bank account and they pay from that one to the local one in the recipient country. Since OFX uses its network of banks, they minimize the transfer fees for international wires.
Once at the destination country’s bank, OFX will send the money to the recipient’s account. They can start spending as soon as they receive the transfer in any way they want. You get an email notification when the receiving account receives the funds.
If you are setting up a business account, you will need English documents. The ones required depend on your country of origin and the type of company.
How to cancel a transfer?
To cancel a transfer, you need to call them as soon as possible. You may still lose money if you cancel the transfer. OFX views them as binding contracts because the specialists purchase funds to lock in the exchange rate.
If you have concerns over the payment, try to contact them before submitting the transfer request. That way, you can send what you can afford and avoid spending money you do not have.
You can check your email, phone, or account for the status of the transfer. It should tell you if the cancellation went through.
Keep in mind that they cannot guarantee a cancellation. The recipient would need to authorize the debit and recall, depending on how far along the process has gone.
Why is my transfer on hold?
If you have completed your transfer but find that the receiving account has no funds, it may be on hold. Funds bounce back if you give the wrong information to OFX.
You may also need to call the destination bank to see if the account is active and open. The bank may have unexpectedly closed your account.
OFX sends email and text notifications during the transfer. You can check the status on the platform’s “Deals & Orders” page.
Keep in mind that online payments may take between one and five business days, depending on the popularity of the currency.
You can check your transfer history on your account in the “Deals & Orders” section. The history is under “Settled Deals.” It tells you the exchange rates, maturity dates, and recipient details.
If you double-checked the information and have an open account, you can call OFX for them to investigate the situation.
How to send money abroad for free
You can create an account and receive a quote for free, but you cannot send money abroad for free using OFX.
You need to gather the recipient’s banking information, including the account name, bank account number, and routing number. Then, you create a free account with OFX, wait until you are approved, and get a live quote for the transfer.
Enter your banking details as well and press the “Finalize transformation” button to process the payment.
While OFX has relatively inexpensive services, the receiving country may have tax regulations that could drive up the price. They consider taxes based on:
- The amount you send
- How the money is used
- The money’s taxation history
- The source of the cash
How can I pay for my transfer?
You need to pay for your funds using your bank account. You log in to your bank account and initiate a domestic transfer to OFX using the Client Reference number given in your confirmation email.
Most banks allow for Electronic Funds Transfers. OFX prefers this method as you can more readily transfer EFTs to other banks.
Different countries have different rules. For instance, Australian customers pay using BPAY.
Corporate accounts can debit the funds from the designated account, saving you an extra step.
You will get notified via email of the different ways you can pay for your transfer. However, you will most likely need to link your bank account to pay.
How much money can I send with OFX?
You need to send a minimum of $1,000, or whatever that equivalent is in your native currency. Many popular currencies have no maximum limit. These include AUD, CAD, EUR, GBP, JPY, NZD, and USD. However, regulated ones have government regulations, such as CNY, KRW, and ZAR.
For the most part, you can send as much as you want. The platform can handle transferring billions of dollars at once.
OFX also does not impose limits on how frequently you can transfer money. You can transfer as much as you want at once, saving your recipient time and money from fees. OFX lets you transfer as many times in a year as you want. You could initiate ten transfers in a day if you wanted.
How long do OFX transfers take?
OFX takes between one and five business days to transfer funds. The speed depends on the origin country, the destination, and the currency used. If you count the account approval process, it might take around 11 business days for the recipient to get the money.
OFX takes up to four business days to approve your account. It takes another two to approve the receiving account details. Most transfers occur within two to four business days after account approval, but they can take more or less time.
Countries with more strenuous regulations on money transfers may take more time to process the funds. Those with less commonly used currencies also require more days to exchange the funds.
While you can submit the transfer at any time, the bank deposit may take a few minutes or days to process the funds. The specific bank, time of day, and date all impact when the money enters the account.
Since OFX only works with bank accounts, you cannot get the instant transfers offered by mobile money or cash pick-up services. On the bright side, the recipient will not need to wait a week for a home cash delivery.
How is OFX regulated?
OFX (OzForex Limited) is an Australian company, It has an Australian Financial Services License from the Australian Securities and Investment Commission (ASIC) The commission gives advice and deals with foreign exchange contracts.
The ASIC regulates OFX in Australia, but they have 50 global regulators to check their methodology in various countries.
Is my money safe with OFX?
OFX has had over one million customers from around the world. They have endorsements from popular companies like Bloomberg, the Business News Network, CNBC, Forbes, Market Watch, and Reuters.
While OFX does not receive the same governmental regulation as standard banks, they store your money in banks they control worldwide.
The website has several security measures in place. OFX offers two-step authentication, passwords, automatic time-outs, and security questions to prevent fraud and identity theft.
OFX has a fraud detection system that detects malware programs, fraudulent apps, and phishing. The site has Secure Socket Layer encryption to make a secure connection with the browser.
Who owns OFX?
OzForex (OFX) was created in 1998 by Matt Gilmour, who developed the website in his garage. Gary Lord became the joint managing director in 2005, and both are minority shareholders today. Matt stepped back from being the founder in 2013.
Skander Malcolm became the Managing Director and Chief Executive Officer of OFX in 2017. Selena Verth serves as the Chief Financial Officer, and Mark Shaw as the Chief Operating Officer.
Other board members include Steve Sargent (Chairman and Non-Executive Director), Grant Murdoch (Chair of the Audit Committee and Non-Executive Director), Douglas Snedden (Chair of the Remuneration Committee and Non-Executive Director), Cathay Kovacs (Non-Executive Director), and Connie Carnabuci (Non-Executive Director).
OFX has 4.3 stars on Trustpilot. 79% of the 4,562 reviewers gave it a 5-star rating (Excellent) and 7% gave it a 1-star (Bad) score. At 4.3 stars, OFX has lower ratings than its competitors CurrencyFair (4.7), Paysend (4.7), Wise (4.6), and Remitly (4.4), but higher than WorldRemit (4.1).
OFX has high-quality customer service. Since they have offices in eight countries, OFX can provide 24/7 customer support. They are friendly and patient as well, and many consider it one of their strongest aspects.
CurrencyFair is an Irish company founded in 2009. It utilizes a customer-to-customer approach instead of relying on a middleman, making it more affordable than many options. It works in around 150 countries with 20 currencies.
Paysend was created in 2017, but it provides easy online money transfer services with a streamlined approach. They minimize options, making their transfers faster and easier than other companies.
Wise charges some of the smallest fees around and uses the real exchange rate as opposed to a market one. You can complete your money transfers fast and for little money around the world.
Remitly has three million customers and focuses on immigrant families. They make accessible, affordable, and fast international money transfers using their global network.
WorldRemit lets you choose from 90 currencies and 150 countries. They have navigable services and let you send money quickly.
The bottom line
This OFX review has shown that the company is an incredible option for online money transfers. However, you may find cheaper rates from a different platform. Check your options as the costs change based on your location, the destination, and the currency.
Nevertheless, OFX has some of the lowest prices. If you do not mind waiting a few extra days, you can get away with this service.
As long as you compare multiple services, you should find one that meets your needs and budget.
Tommy Gallagher is an ex-investment banker and founder of TopMobileBanks.
He is an early participant in banking digital transformation and fintech development. His consulting clients include prominent startups in the US and Europe.
Here on topmobilebanks.com, he is covering macro trends in the digital banking industry.