There are plenty of reasons why you would need to transfer money internationally.
Reasons include sending money to friends and family overseas, purchasing investments or divestments, buying a home abroad, or directly paying for accommodations for an upcoming international vacation.
This is why it is crucial that you find an international money transfer service that provides low transfer fees and low exchange rate markups. If you’re looking for such a service, you may want to take a peek at OFX Money Transfer and see if it is a right fit for your needs.
OFX Money Transfer Overview
OFX is an online money transfer service that delivers from the United States to countries around the world. You can access OFX Money transfers through their website or their mobile app, and their best advantage as a provider is their cost.
OFX does not have any transfer fees, and they have one of the lowest exchange rate markups among international money providers.
OFX boasts having served 160,000 customers worldwide in 2018, making transfers of over $21.2 billion within that period. Since its establishment in 1998, the provider has transferred over $128 billion in multiple currencies and countries around the world.
OFX transfers to 197 countries around the world and exchanges to over 55 currencies (as of writing), including all major and exotic currencies.
OFX is regulated by the United States Department of Treasury Financial Crimes Enforcement Network, ensuring that all the services they provide are legitimate, and all their transactions are legal and subject to government oversight.
Who Should Use OFX?
If you are one of the following, then OFX Money Transfer is an excellent fit for you as a service provider:
- You’re looking to purchase overseas properties for personal use or as an investment opportunity
- You’re looking to make significant investments overseas
- You have friends and families abroad who you support with a regular allowance
- You have a child or grandchild studying overseas who need monthly tuition payments
- You’re looking to take a luxurious vacation overseas or host an event such as a wedding abroad
- You have significant projects and need to pay your independent contractors located overseas
How OFX Money Transfer Works
OFX has two main channels to conduct transfers, their website, and their mobile app.
After registering for an account, you need to get verified, and then you can log in to your account. Once you’ve logged in, you only need to enter your recipient’s bank account details and then lock in the transfer.
You can then either set up a Direct Debit to your bank account or send the funds through a wire transfer, and you’re all set.
OFX Money Transfer Options
Transfer method for OFX is limited to bank accounts only. If you’re doing business deals with people overseas or you’re sending money to a child or relative, they need to set up a bank account before you can send them money through this provider.
You should also be wary of the standard transfer times with this provider. Being limited to bank-to-bank transfers means that all their transactions follow standard bank processing times and are limited to business days.
That means you cannot expect same-day or even next-day delivery of your transfer. It usually takes four business days for a transaction to be credited to your recipient’s account.
It takes two days for OFX to get the funds from your bank and another two days to send the money to your recipient’s account.
OFX Fees and Minimums
The best feature of OFX’s money transfer service is that they do not charge any flat fees for their services. OFX derives their income from the markups on the currency exchanges, and even this charge is lower than most online money transfer providers out there.
However, OFX does have a minimum transfer amount of $1000, but they do not have a maximum transfer amount.
While OFX does not charge any transfer fees, third-party banks do occasionally deduct a cost for the transfer before it is paid out to a recipient. This is something that the company has no control over, nor is this a “hidden” charge where they get a share.
It is best that you check the policies of your bank and your recipient’s bank with regards to international transfers so that you are not surprised by sudden deductions to your transaction.
Pros and Cons of OFX Money Transfer
OFX does not charge any transfer fee regardless of how much you send. And, more importantly, their markups are lower when compared to other providers.
OFX interbank rate markup rates are roughly around 1-2% while other services’ markup rates can be as much as 5-7%.
The latter is impressive, considering that this is the only way the provider makes money, evidencing the fact that they would rather gain more clients than make more money off of each client.
No Maximum Transfer Amount
OFX does not have a maximum transfer amount. This is crucial if you want to do large transfers for things such as purchasing real estate for yourself or commercial real estate for renting or investing in opportunities abroad.
The ability to make bulk transfers in the comfort of your home is a considerable advantage in our book.
24/7 Customer Service
OFX provides excellent customer service by creating a completely digital experience that you can quickly contact at any time of the day. With multiple offices across time zones, you can promptly reach anyone 24/7 for any concerns that you have with your money transfers.
Minimum Transfer Amount
While OFX does not have a maximum transfer amount, they do have a minimum transfer amount of $1,000. Therefore, this provider isn’t for you if you’ll be sending money to relatives or making transactions below this amount.
Bank-to-Bank Transfers Only
Limiting transactions to bank-to-bank transfer is probably the most severe limitation of OFX. When you have family or friends traveling abroad, you will not be able to send them money through this service unless they have an international bank account.
No Same-Day Delivery
Due to the limited method of transfer, delivery relies on standard banking hours and processing times; hence, you cannot expect same-day or even next-day delivery with OFX.
Transactions typically take two to four business days. It takes two days for OFX to receive the money from your bank and then two days to transfer the funds to your recipient.
No Live Chat Feature and Exchange Rates for Non-Registered Users
One of the most significant complaints users have when it comes to the OFX app and website is that they lack a live chat feature that other money transfer providers have.
Moreover, users need to log in to the site before they can see consumer exchange rates.
Should You Use OFX Money Transfer?
OFX Money Transfer is a great service provider if you’re looking to transfer more than a thousand dollars overseas and speed is not a problem.
They have one of the lowest costs among money transfer providers, especially for transfers to industrialized countries like the United Kingdom, Germany, and Italy.
OFX isn’t an option for anyone who wants to send a small amount or someone who requires same-day delivery.