In a digital economy, sending money for a wide variety of reasons has become a necessary activity. So maybe you’ve run across OFX’s money transfer service.
- Can you use OFX to send money overseas?
- Are OFX’s services reliable?
- Is OFX trustworthy?
- Are their rates reasonable?
We’ll answer these questions and more below.
Who is OFX?
Previously called OzForex, NZForex, UKForex, CanadianForex, ClearFX, USForex, and Transfers, OFX is now one of the world’s largest firms that specialize in international payments and foreign exchange.
It was first established in 1988 as a means of facilitating a digital mode of foreign exchange for both individual and overseas clients.
Since its founding, OFX has transacted over $100 billion in account transfers in 197 countries and over 50 currencies.
The company has its headquarters in Sydney with five off-shore offices in other parts of the world. OFX is large enough to be listed on the Australian Stock Exchange.
OFX operates 24/7 trading facilities over the internet and also by phone, which distinguishes it as one of the few currency trading firms that offer to trade during weekends.
Most firms are accessible on weekends, but your trades won’t be processed until the next weekday comes along. OFX executes your trades when you order them.
Since OFX leverages network effects, OFX can offer pricing and services that are generally exclusive to institutional customers.
OFX provides lower fees and improved exchange rates that will save you a ton of money when compared to using traditional financial institutions such as banks. OFX takes advantage of the size of the transactions that go through it to get the best rates possible for its clients.
Who should use OFX?
OFX will benefit people who are already digital natives, who can make the most of a digital experience from its easy-to-reach customer service.
You can do everything online, and services are available 24/7, so someone comfortable with the digital environment would love this platform.
Since OFX offers its services with no transfer fees, it works best for those who want to make a high volume of transactions.
OFX is a platform which works best for sophisticated investors who are ready to take their forex trading to the next level. All of its systems are designed to facilitate a modern forex trader’s rapid trading patterns.
OFX is the right platform if you have massive amounts of capital that you can deploy toward forex.
There is no limit to the amounts you can send per transaction.
And, because there are no transaction fees and remarkably low commission, you will lose very little when you transfer money from your home country to another.
The Pros and Cons
- No transfer fees and low exchange rate markups: this means that there are minimal costs for someone who wants to have a high volume of transactions.
- No maximum transfer amount: the only limit to your transactions is your wealth and your willingness to persevere in your trades.
- 24/7 customer service: so that you will always have someone available to talk you through your wealth-building process.
- It offers only bank-account-to-bank-account transfers: this limits the digital nature of the platform because of only those who want to use other means of transferring money to OFX.
- It doesn’t offer same-day delivery: the delay can put a damper on the enthusiasm of people who want to make money.
- The minimum transfer is $1,000: this means that only people who have significant capital can avail of OFX’s services.
No Transfer Costs
As with all providers, OFX earns money based on a markup when making exchanges.
Based on the majority of the countries where it offers its forex services, OFX has an above-average markup of just 1% by comparison. Most providers will give rates that are as high as 7%.
Having no transfer cost is a significant advantage. Transfer costs can sometimes eat up a large proportion of a transaction.
The receiving end might end up asking for an amount more substantial than agreed upon to compensate for the transfer costs and the markup during the exchange of the currency.
Transfers are done bank to bank, and they will take an average of two to four business days.
It takes 1 to 2 business days for OFX to receive the funds from your bank account and then another one to two days to deliver the funds to your intended recipient.
In an era where money in minutes is a possibility, OFX is not precisely competitive when it comes to transaction speed. While OFX is cheaper than most alternatives, this slow transaction speed will probably work against OFX.
Transfer Methods & Options
OFX can send money via the OFX website and its mobile app. However, you need to have a bank account to either direct debit or wire transfer funds.
The need to have a bank account on both ends of the fund transfer limits accessibility. Also, bear in mind that in addition to OFX’s fee, your bank might have a separate charge for wire transfers.
OFX is a comprehensive digital experience that integrates easy-to-reach customer service. It is possible to reach someone at any hour due to OFX having offices across multiple time zones. The OFX website is organized, with all the needed information easily accessible.
Some of the information tends to contain a lot of jargon so you may need to Google a few terms here and there at the start. But once you get the hang of the lingo, it should be a simple matter to navigate the site like a pro.
Also, the website does not allow you to see OFX’s exchange rates if you do not log in. The latter means that only users of OFX can even find out what the indicative prices are at OFX.
When it comes to user reviews, OFX’s website is thoroughly average.
OFX is an online money transfer provider that can provide forex deliveries to over 80 countries from the USA using its website or its mobile app.
The most significant advantage of OFX is the low cost since it is the cheapest among international money transfer providers based on recent surveys. There is no maximum transfer amount, meaning the sky is the limit for those who want to use their service.
Of course, we must temper the good with the bad. Bearing in mind that delivery relies on standard banking hours and processing, it is unlikely you will get same-day delivery when using OFX. The latter might be something to take into consideration if you feel that you need to settle accounts rapidly.
More importantly, you can only transfer via bank accounts, so you would need to have a bank account in the country where you are sending money to be able to withdraw your funds.
OFX offers unlimited money transfers at low cost but with a relatively steep minimum quantity and relatively slow settlement speed.
If you are ever looking for a way to transfer a large amount of currency to a different country, OFX might be a worthwhile option. Of course, this is if you can deal with its limitations.
The ability to send without limits to the amount could be a valuable asset to you.