OFX vs TransferWise:
4 Key Things That Make All the Difference
TransferWise and OFX have so much in common, it can be really hard to choose between them, but here we go:
TransferWise is different to OFX in four important ways:
- TransferWise have the Borderless Account. It's a great product for travellers and small businesses. OFX don't have anything that's even half as good.
- TransferWise are incredibly open and clear about what exchange rate and fee you'll pay
- OFX have a better service offering for larger businesses, with products like Forward Exchange Contracts.
- OFX still charge a flat fee for smaller transfers.
So, for small businesses, travellers and most international money transfers, TransferWise is usually cheaper.
For larger businesses and larger transfers, it pays to compare the total cost of each company to work out the best option.
OFX vs TransferWise: The Important Bits
Safety: Based in Australia, fully licensed and publicly listed
Rates: Vary based on amount and currency
Fees: $15 for transfers under $10,000. Fee free above $10,000.
Speed: 1-2 business days for most transfers
Service: Above average customer service, particularly over the phone
Safety: Based in the UK, licensed and well backed
Rates: You receive the interbank exchange rate on google
Fees: Percentage based fee
Speed: 1-2 business days for most transfers
Service: Limited phone support but excellent online resources
Learn more about OFX
Learn more about TransferWise
Fee Free Offer
The Currency Shop has partnered with OFX to offer fee free money transfers. Click on this offer, register your details and avoid paying a fee to transfer money overseas.
- After 20 years, OFX is one of the oldest money transfer companies and they have the expertise to go with it.
- Their rates are often better than the banks, especially for larger transfers.
- 24/7 phone support.
- They have a minimum transfer amount of $250
- Receiving or intermediary banks may charge fees on transactions
Learn More About OFX
The Australian Securities and Investments Commission (ASIC) is the government body that ensures and regulates fair and transparent conduct of financial services. Every financial service must be granted an Australian Financial Service (AFS) licence by ASIC to carry out business in Australia.
OFX are regulated by ASIC & AUSTRAC (AFSL 226484)
TransferWise are regulated by ASIC & AUSTRAC (AFSL 456295)
Like banks, money transfer providers make money in two main ways: Firstly, the margin from which they purchase currency at a wholesale rate and the cost of currency sold on to customers. Secondly, an additional transaction fee.
OFX makes its money by the two ways mentioned above.
TransferWise makes its money primarily in fees as they offer the real wholesale exchange rates to customers. It’s important to consider exchange rates and fees as those are the main cost factors for every transaction.
Exchange rates fluctuate all the time, rates can rise and fall in a matter of seconds. Hence, it’s crucial to compare exchange rates between providers before making a decision. We would provide a comparison today, but it may not be accurate by the time you read this. So here are four ways you can compare current exchange rates between OFX and TransferWise:
OFX don't charge any fee for transfers above $10,000. They charge $15 for any transaction below $10,000. Their also have an exchange rate margin that is built into the exchange rate they offer you (which will be different to what you see on google).
TransferWise makes money in fees calculated on a percentage of the transfer amount. The good thing is, they are very clear and transparent about how much they will charge you. For a full run down of there fees, click here.
Time For Transfer To Reach Recipient
When using an online transfer provider, your transfer is made to the company account to be processed before it is cleared and transferred to the recipient.
OFX and TransferWise generally take 1-3 business days. How long it takes usually comes down to:
- How long it takes you to pay them for the transfer
- Which country you are sending the money to. Some countries take longer than others
- How long the bank on the other end takes to credit the bank account
How easy are they to use?
Both companies are fairly similar when it comes down to using them.
To transfer money overseas with either of the providers, you must register an account. We review the steps for each provider below:
Accepted Payment Methods and Minimum & Maximum Transfer Amounts
OFX provides outstanding 24 hour customer service over the phone. You can be rest assured that you'll receive prompt response for any of your queries. With TransferWise, it was difficult to find their contact number. We had to use their live chat feature to get in touch with a consultant and received a response within 24 hours.