Learn whether OFX is a good option for making international money transfers
OFX (formally known as Ozforex) is the largest Australian owned money transfer company. The company was born online and continues to develop easy, intuitive products.
Everything from account set-up to sending money overseas is done online. While OFX customers do most of their transactions online, they are backed up with exceptional customer service. It’s one of the main reasons the business has grown so strongly on word-of-mouth referrals.
|Very quick set-up backed up with excellent service over the phone||No transfers under $250|
|Better exchange rates than the banks||OFX don’t accept credit cards, cheques or cash|
|24-hour service||No personal advice|
|Low fees (free when you transfer over AUD 10,000)||They do not offer foreign currency accounts|
Related Video: The 2018 OFX Review
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OFX fees and charges
OFX charge in 2 ways – a transfer fee and an exchange rate margin
1. Transfer Fee
$15 for any transfer up to $10,000 (Australian dollars). For any transfer over $10,000, they do not charge a fee.
2. Exchange Rate Margin
OFX makes its money through buying currency at a market rate (the rate you see on xe.com) and then selling it to customers in smaller amounts at a customer rate. For example, if the market rate to buy US dollars using Australian dollars is 0.7400 OFX may offer you 0.7300 The difference between what they buy the currency for (0.7400) and your rate (0.7300) is known as their exchange rate margin.
Using OFX: How does it work?
To make a transfer with OFX, there 3 steps
- Set up your account – Thankfully, you only have to do this once. You'll have to register your details like name, address email and provide some identification.
- Make your transfer – You'll need to enter the bank account details of the person you are transferring the money to. This is also when you lock in the exchange rate
- Pay for your transfer – Before the money is transferred overseas, you'll need to pay for it. All companies offer their bank account details for a direct bank transfer. Most companies offer Bpay and some even allow you to pay using a debit or credit card.
If you would like a more in-depth guide on how it works, click on these guides:
OFX excels in 2 areas – Online experience and customer service. The company was born online and continues to develop easy, intuitive products. Everything from account set-up to sending money overseas is done online. While OFX customers do most of their transactions online, they are backed up with exceptional customer service. It’s one of the main reasons the business has grown so strongly on word-of-mouth referrals.
Their $15 fee for amounts under $10,000 does make OFX a less attractive option for smaller payments. For larger payments, non only are the transfers fee-free but their exchange rates improve making OFX a very good alternative to using a bank.
Learn More About OFX