OFX Review: Rates, Fees & Safety 2024
OFX, founded in 1998, has established itself as a reliable and widely-used service in the international money transfer industry, known for its competitive exchange rates, no transfer fees, and extensive global reach.
HOW DID WE REVIEW OFX?
OFX, established in 1998, is a leading provider of international money transfer services headquartered in Sydney, Australia. Initially known as OzForex, the company rebranded to OFX in 2015, emphasizing its commitment to providing seamless global money transfer solutions. OFX is publicly listed on the Australian Securities Exchange (ASX: OFX), highlighting its financial stability and market presence.
OFX offers a comprehensive range of services including spot transfers, forward contracts, limit orders, and the Global Currency Account for managing multi-currency transactions. Supporting over 190 countries and 50 currencies, OFX is a versatile option for both individual and business clients. The company is renowned for its competitive exchange rates, often better than those offered by traditional banks, and transparent fee structure, with no transfer fees for most transactions.
OFX employs enterprise-grade security measures, including SSL encryption and two-factor authentication, to ensure the safety of client funds. The company is regulated by multiple financial authorities including the FCA in the UK, ASIC in Australia, and FMA in New Zealand, which ensures high standards of compliance and trustworthiness.
With a robust online platform and a user-friendly mobile app, OFX enables clients to manage their transfers conveniently 24/7. The platform features real-time exchange rate tracking, rate alerts, and comprehensive transfer management tools. OFX’s commitment to customer support is evident with its 24/7 phone and email assistance, providing reliable help whenever needed.
Overall, OFX is dedicated to offering secure, efficient, and accessible international money transfer services, backed by a strong regulatory framework and a solid reputation for reliability and customer satisfaction.
Benefits of using OFX:
- Competitive Exchange Rates: Costs typically range from 0.4% to 2%, often lower than traditional banks.
- Wide Range of Services: Includes spot transfers, forward contracts, limit orders, and Global Currency Account.
- Global Reach: Supports over 50 currencies and offers transfers to more than 190 countries.
- No Transfer Fees: Most transactions are fee-free.
- Regulation and Security: Regulated in multiple jurisdictions, including the UK, Australia, and New Zealand.
- Easy to Use Platform: User-friendly web and mobile app with real-time tracking.
- 24/7 Customer Support: Available via phone and email.
Disadvantages of using OFX:
- Variable Exchange Rates: Margins can vary depending on the currency and transfer amount.
- Slower Transfer Speeds: Transfers typically take two to four business days.
- Verification Process: Requires detailed personal information and documentation.
- Limited Payment Methods: Primarily funded through bank transfers, limiting alternative payment options.
How Trustworthy and Secure is OFX?
OFX is a highly regulated and secure provider of international money transfer services, ensuring robust compliance and security measures.
OFX is regulated by several financial authorities across multiple jurisdictions, including:
- Financial Conduct Authority (FCA) in the UK
- Australian Securities and Investments Commission (ASIC)
- Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
- Financial Markets Authority (FMA) in New Zealand
These regulations require OFX to adhere to strict compliance and security protocols, ensuring the protection of customer funds and data.
Below is a detailed overview of OFX's regulatory compliance and licensing across different countries.
OFX employs industry-standard security measures to safeguard customer information and funds:
- Two-Factor Authentication (2FA): Enhances account security by requiring an additional verification step during login.
- Encryption Standards: Uses advanced encryption technologies to protect data during transmission.
- Segregated Client Accounts: Customer funds are kept separate from the company's operational accounts, ensuring that client money is secure and accessible even if the company faces financial difficulties.
- Regular Audits: OFX undergoes frequent audits to ensure compliance with regulatory requirements and to maintain high security standards.
Additional Security Features:
- Fraud Detection Systems: OFX has implemented sophisticated fraud detection systems to monitor transactions and identify any suspicious activities.
- 24/7 Customer Support: Provides continuous support to address any security concerns or issues that customers may encounter.
These measures collectively ensure that OFX is a trustworthy and secure option for international money transfers, providing peace of mind to its customers.
Why Client Funds are More Secure with OFX Compared to a Bank
What Services and Features Does OFX Offer?
OFX offers a comprehensive range of services tailored for both individuals and businesses. These services include:
- Spot Transfers: Immediate currency transfers at the current exchange rate.
- Forward Contracts: Lock in exchange rates for future transfers, helping manage currency risk.
- Limit Orders: Set a target exchange rate, and OFX will execute the transfer when the rate is reached.
- Global Currency Account: Manage multiple currencies and streamline international business transactions.
Additionally, OFX provides tools such as rate alerts and currency conversion tools to help users make informed decisions.
How Does OFX's Multi-currency Account Work?
The OFX Global Currency Account is designed to simplify international financial operations for businesses and eCommerce merchants.
It offers multiple currency support, easy integration with marketplaces, and cost-effective management of international transactions.
Here’s a closer look at its key benefits, setup process, and use cases.
How Competitive are OFX’s Fees and Exchange Rates?
OFX is known for its no-transfer-fee policy for most transactions, making it an attractive option for cost-conscious users.
However, it is important to note that intermediary banks may charge their own fees, which are outside of OFX's control.
OFX offers competitive exchange rates, typically ranging from 0.4% to 2% margin.
The platform is transparent about its rates, allowing users to compare and ensure they are getting a good deal.
There are generally no hidden fees with OFX, and the company is transparent about any potential costs, including those that may be charged by intermediary banks during the transfer process.
Here are some sample rates we obtained using their online portal:
What is the OFX Currency Converter?
The OFX Currency Converter is a useful tool for getting an estimate of the exchange rate for various currency pairs.
This tool provides an indicative rate based on the current market rate and is accessible to anyone visiting the OFX website.
However, it’s important to understand that the rate displayed on the currency converter might not be the exact rate you receive when making a transfer as a registered OFX customer.
Indicative vs. Actual Customer Rates
- Indicative Rate: The rate shown on the OFX Currency Converter is an estimated rate derived from the current market rate. This rate includes OFX’s margin but excludes any potential fees. It provides a general idea of the exchange rate for planning purposes but is not guaranteed.
- Actual Customer Rate: Once you are registered and logged in to the OFX client dashboard, the rate you receive for your transfer will be more precise. The actual customer rate is influenced by several factors, including:
- The current market rate at the time of the transfer.
- The amount of the transfer (larger transfers often receive better rates).
- The frequency of your transfers and your transaction history with OFX.
- The specific currency pairing involved in your transfer.
Each OFX customer may receive a different rate based on these variables.
For the most accurate rate, it’s essential to log in to your OFX account and initiate a transfer.
Viewing Your Actual Rate
To view the exact rate you will receive for a transfer:
- Login to Your OFX Account: Access your account on the OFX website or app.
- Enter Transfer Details: Provide the amount and currencies involved in the transfer.
- Check the Rate: The OFX platform will display the rate you are eligible for, based on the current market conditions and your account specifics.
Does OFX Offer the Same Exchange Rates on Weekends?
When you book a transfer with OFX during the weekend, the transfer may cost more than the same transaction if you booked it on a weekday.
Typically, foreign exchange markets are open from Monday to Friday.
However, on weekends and certain holidays when the markets are closed, an additional markup may apply.
What Do Customers Say About OFX?
OFX has a strong reputation among its users, as reflected in its Trustpilot rating of 4.4 out of 5 stars from over 10,000 reviews.
Common Praises:
- Ease of Use: Many users appreciate the user-friendly platform, which simplifies the process of making international transfers.
- Competitive Rates: Customers frequently mention the favourable exchange rates offered by OFX, which often surpass those provided by traditional banks.
- Efficient Customer Service: The 24/7 customer support is often highlighted as a significant advantage, with many users praising the prompt and helpful assistance they receive.
Common Criticisms:
- Transfer Delays: A few users have noted occasional delays in transfer times as a downside.
- Verification Process: Some customers have found the detailed verification process to be cumbersome.
The majority of users report high levels of satisfaction with OFX's services, indicating that the company is committed to providing reliable and efficient money transfer services. The positive reviews and strong reputation underscore OFX's dedication to customer satisfaction and service excellence.
How Easy is it to Use OFX?
OFX’s platform is designed to be intuitive and user-friendly.
The OFX website features a clean design and straightforward navigation, making it easy for users to initiate and manage their transfers.
The platform provides real-time exchange rates, currency conversion tools, and tracking capabilities, ensuring a seamless user experience.
Account Setup Process
Setting up an account with OFX is simple and quick.
The process involves providing basic personal information and verifying identity, which can be completed within a few minutes.
Users need to submit identification documents as part of the verification process, which is a standard procedure to ensure security and compliance with regulations.
Transfer Process
Making transfers with OFX is seamless.
Users can easily input transfer details, view real-time exchange rates, and confirm transactions.
The platform offers tracking tools to monitor the status of transfers, providing transparency and peace of mind.
Additionally, users can set rate alerts to be notified when their desired exchange rate is available, helping them make informed decisions.
User Experience:
- Navigation: The interface is designed for ease of use, with clearly labeled sections and helpful guides.
- Support: 24/7 customer support is available to assist with any issues or questions, ensuring that users can get help whenever they need it.
How Does OFX Work?
Visit the OFX website to create an account.
Provide basic personal information and complete the verification process.
Log in to your OFX account.
Check the live exchange rates and choose the currency you wish to transfer.
Confirm the exchange rate either online or via phone with an OFX representative.
Provide the recipient’s bank details and the amount you wish to send.
Transfer your funds to OFX using your preferred payment method.
OFX will then convert and send the funds to the recipient’s bank account, typically within 1-4 business days.
Which Countries and Currencies Does OFX Support?
OFX supports international money transfers to over 190 countries, ensuring a wide global reach.
OFX offers services in more than 50 currencies, including but not limited to:
What Payment Options Does OFX Offer?
OFX provides various payment options to facilitate international money transfers, including:
- Bank Transfer: The most common method, allowing you to send funds directly from your bank account to the recipient’s bank account.
- Bank-to-Bank Transfer: Also known as Faster Payments for transactions under £1,000,000, typically clearing instantly or within 2 hours. For transactions above £1,000,000, you can send it through your bank as a CHAPS transfer, which usually clears within the same day or overnight, depending on the time of day the sending bank has made the payment.
- Debit Card: You can use your debit card for transfers up to £5,000 and £10,000 per rolling week.
What are OFX's Transfer Limits?
OFX has flexible transfer limits to accommodate different needs:
- Minimum Transfer Amount: The minimum transfer amount with OFX is typically $1,000 for most currencies.
- Maximum Transfer Amount: There is no maximum transfer limit with OFX, making it suitable for large transactions, often exceeding $500,000 per transaction, depending on the user's verification status and local regulations.
What Promotions and Discounts Does OFX Offer?
OFX occasionally offers promotions and discounts to its users, including:
- First Transfer Discount: New users might receive a discount on their first transfer.
- Referral Program: Users can earn rewards by referring friends and family to OFX.
- Seasonal Promotions: OFX runs seasonal promotions, offering reduced fees or better exchange rates during specific periods.
What Customer Support Does OFX Provide?
OFX prides itself on excellent customer support, providing multiple channels for assistance:
- 24/7 Availability: Customer support is available around the clock.
- Phone Support: Users can contact OFX via phone for immediate assistance.
- Email Support: For less urgent queries, email support is available.
- Live Chat: The OFX website features live chat for real-time support.
- Extensive FAQs: The OFX website hosts an extensive FAQ section covering common questions and issues.
How Does the OFX Mobile App Work?
The OFX Mobile App allows users to manage international money transfers conveniently from their mobile devices.
Available for both iOS and Android, the app provides an efficient, secure, and user-friendly experience. It is highly rated, with 4.7 stars on the App Store and 4.5 stars on the Google Play Store.
Key Features
- Real-Time Exchange Rates: Access live exchange rates for multiple currencies. Users can view both market rates and personalized customer rates.
- Quick Transfers: Easily set up and complete international money transfers directly from the app.
- Rate Alerts: Set up notifications to alert you when your desired exchange rate is available.
- Secure Transactions: Advanced security measures, including encryption and two-factor authentication, ensure your data and transactions are secure.
- Transaction Tracking: Monitor the status of your transfers in real-time.
User Experience
- Simple Navigation: The app features an intuitive layout with clear sections for exchange rates, transfer setup, and transaction history.
- Comprehensive Dashboard: The dashboard provides an overview of account activity, including recent transactions and current exchange rates.
- Customizable Preferences: Set preferences for notifications, currency pairs, and rate alerts to tailor the app to your needs.
When to Use OFX for International Money Transfers
Our Verdict
OFX is a highly reputable and reliable provider of international money transfer services, known for its competitive exchange rates and strong regulatory compliance.
With a user-friendly platform, 24/7 customer support, and a broad reach covering over 190 countries and more than 50 currencies, OFX is an excellent choice for both individuals and businesses looking to transfer money internationally.
While there are some limitations, such as the absence of debit/credit card payment options and potential delays in transfer times, the overall benefits, including no transfer fees and high transaction limits, make OFX a top contender in the market.
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Matt Woodley is the founder of InternationalMoneyTransfer.com, with degrees in Finance, Marketing, Economics, and History from the University of Auckland. Leveraging his expertise and experience in the international relocation industry, Matt has built a platform that simplifies global money transfers. His work focuses on efficiency, transparency, and making international currency accessible, driven by a passion for innovation and simplicity.
