Learn whether OFX is a good option for making international money and currency 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.
The Currency Shop says:
OFX excels in 2 areas – Online experience and customer service
Compared to Australian Banks, they offer superior exchange rates, lower fees and much better service
Use our comparison table to compare foreign exchange rates, fees and services of other providers.
We’re most interested in how safe OFX are, how they work and when you should use them. In this article, we’ll explore:
How safe and secure are OFX and who owns them
OFX Fees involved in sending and receiving international currency
How to send or receive money overseas using OFX
How good is OFX to use and what are they like?
OFX has an outstanding record for safety and security. They have robust compliance procedures and are regulated by ASIC. Their Australian Financial Service Licence is 226484. Find more information here.
For more information on their security policy, click here.
OFX is a publicly-owned company listed on the Australian Stock Exchange. For more information including their annual report, click here.
OFX charge in 2 ways - a transfer fee and an exchange rate margin
OFX Transfer Fee
OFX have a simple and easy to understand fee structure. They charge $15 for any transfer up to $10,000 (Australian dollars). For any transfer over $10,000, they do not charge a fee.
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.
It really depends on the currency and the amount you need. As a rule of thumb, OFX offer better rates for bigger amounts.
To get an indicative rate, you can use the online OFX currency converter. Type in your currency and amount – then the site will show you the market rate. Here’s the slightly confusing part. Unfortunately, the market rate they display is not the rate you will receive. To calculate that, you'll need to click on the "Get Extra" section and, even then, the customer rate isn't displayed. You have to manually divide your currency amount by your Australian dollar amount to get the real rate.
Alternatively, you can click here and use our exchange rate comparison engine. You can see OFX exchange rates and compare them to the Big 4 banks and other money transfer companies.
To transfer any money overseas using OFX, you need to register a new account.
Registration is free and is managed in these simple steps:
Enter OFX and apply promo code to receive your first two transfers for free
Enter your personal details
Fill in details of your money transfer
Confirm account details through phone/email account verification
Next? You get a rate quote for your transfer and, if it suits your needs, you simply input the receiving account details.
For security, OFX contact you for confirmation and you can also track the transfer online.
Depending on where your money is being transferred, money is usually received in 1-2 days.
If you are bringing money back into Australia and want to use OFX instead of a bank to convert your currency, you'll still need to register a new account with them.
Once you are registered, log on and get a rate quote for your transfer. If it suits your needs, you confirm the exchange rate. Next, you will receive their bank account details to pay your foreign currency into.
For example, if you are bringing US dollars back to Australia, OFX will provide you their US dollar bank account.
You need to then pay the US dollars into their account. As soon as they receive the funds, they will credit your local Australian bank account.
You can transfer funds to OFX in any major currencies using EFT or BPAY.
OFX does not accept direct credit card payment. Instead, your funds must be paid into OFX’s bank account – either directly by EFT or Bpay through your bank.
Need another alternative?
The only way around this is to arrange a domestic transfer from your bank to OFX by withdrawing available funds from your credit card into another account – and then sending it across.
It’s important to realise that this is treated as a cash advance – so watch out for the hidden fees. You may gain some benefit through rewards your credit card provider has on offer but check with your own credit card issuer.
OFX also do not accept payments via cash or cheque.
AED, AUD, CAD, CHF, CZK, DKK, EGP, EUR, FJD, GBP, HKD, HUF, IDR, ILS, INR, JPY, KRW, KWD, LKR, MAD, MGA, MXN, MYR, NOK, NZD, OMR, PEN, PGK, PHP, PKR, PLN, RUB, SAR, SBD, SCR, SEK, SGD, THB, TOP, TRY, TWD, TZS, USD, VEF, VND, VUV, WST, XOF, XPF, ZAR
You can’t use OFX to transfer money to these countries:
Democratic Republic of Congo
Republic of Congo
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.
Very quick set-up backed up with excellent service over the phone
Better exchange rates than the banks
Low fees (free when you transfer over AUD 10,000)
No transfers under $250
OFX don’t accept credit cards, cheques or cash
No personal advice
They do not offer foreign currency accounts
Related Link: Click here to visit the OFX website