If you often make use of a conventional financial institution to send funds over seas, then you definitely’ll without a doubt be conscious that the procedure might be slow, very cumbersome and expensive. It really is amplified whenever you’re trans acting at a currency aside from your . Therefore, it’s worth paying the opportunity to work out a currency transfer assistance which is able to help save money, and also ease faster trades.
One company that asserts to become considered a pioneer inside this room is OFX. In the event you’re considering making use of OFX to your own foreign currency transfer wants, afterward we’d propose studying our in depth guidebook before all else.
We’ll talk about who OFX is, what type of expenses they cost, just how fast their transfers are, along with additional. At the finish of scanning our OFX review from beginning to end, then you will be in a position to see whether they really are the ideal currency transport provider foryou personally.
Let’s beginning with researching who OFX is.
Who is OFX?
Launched back 1998, OFX can be a global currency transfer supplier situated in Australia. Even though business today dabbles in a wide selection of various solutions, their own overarching intention would be to truly save money when shifting funds globally.
Since OFX’s beginning in 1998, the Business has increased very appreciably, together with offices to the Other Side of the UK, U.S., Canada, Hong Kong, along with New Zealand. The crew in OFX asserts to get cultivated over fifty billion in transfers to financial institution account in 197 nations.
OFX is currently in direct contest with all conventional highstreet financial institutions and currency transportation providers like Western Union and MoneyGram. But, OFX is still generally in the majority of court cases, maybe not merely more economical, however also faster. This causes it to be perfect for people attempting to move smaller, more routine sums of income globally.
The essential dilemma when working with conventional associations to generate income over seas is which you commonly become billed a horizontal transportation cost, in addition to a exceptionally adverse exchange speed. This leaves delivering smaller sums unviable. OFX can also be helpful when you’re searching to get a speedy move, since 80 percent of big money trades are supposedly processed over daily.
On the flip side, it’s essential to be aware that OFX just concentrate in financial institution deposits. Which usually means that unlike both Western Union and MoneyGramthe lien won’t be able to collect the funds in person.
This could make it problematic for those wanting to send funds to somebody located in the third world.
So now that you have a better idea of who OFX is and what they do, let’s take a look at how a money transfer actually works.
How Does a Money Transfer Work at OFX?
In a nutshell, OFX is an intermediary in the middle you as the sender and the receiver. The standard process when using OFX to transfer money overseas is to initially lock-in a currency rate via the online platform.
Next, you then input the amount that you want to transfer, as well as details pertaining to the bank account of the person you want to send the funds to. Once you’ve done this, you are then required to send the amount that you plan to transfer directly to a segregated OFX client bank account.
As soon as OFX receives the money, alongside your unique customer reference, they then take care of the rest. They’ll transfer the funds directly to the bank account of the beneficiary, which is usually within 24 hours.
Although it might seem like you’re essentially adding an additional party to the transaction, you’d be surprised how many cheaper the OFX process is in comparison to an traditional international bank transfer. The key argumentation for this is that OFX utilizes a process known as’Global By Local Processing’. We’ll explain this in more detail beneath.
OFX: What is Global By Local Processing?
When using a specialist money transfer provider like OFX, you are accustomed to significantly better fees in comparison to a traditional bank. When you transfer money internationally with a bank, they’ll charge you a percentage rate on top of the current interbank rate, as well as a flat fee.
In order to facilitate this, banks use an intermediary known as SWIFT. The SWIFT system is not only expensive, but its also extremely slow — with cross-border transactions often taking up to 3 days before they are received by the beneficiary, sometimes more.
On the contrary, OFX uses Global by Local Processing. In layman terms, this means that the provider holds currency reserves in 115 different bank accounts located worldwide. For example, let’s say that you wanted to transfer 1,000 from the UK to a person located in Hong Kong.
When using OFX, you would initially transfer the 1,000 to the company’s UK bank account. This would not only be free of charge, but due to the Faster Payments system, the funds would arrive instantly.
Once OFX have the funds in their UK account, they would then instruct their Hong Kong bank to transfer the HK Dollar equivalent of 1,000 to the beneficiary located in Hong Kong.
This allows you as the sender to receive ultra-cheap fees, and the beneficiary will receive their funds in a many quicker time-frame.
So now that we’ve explained how OFX is able to facilitate fast and cheap transfers, let’s take a look at just how many you can save in comparison to traditional providers.
OFX Fees: How Cheap is OFX?
One of the most important aspects to consider when using a new money transfer service is fees. This essentially comes in two key forms — transfer fees, and the exchange rate of the currencies you are looking to transact in.
First and foremost, OFX does not charge a transfer fee to send money internationally from the UK. However, if you’re not based in the UK, then you are likely to be accustomed to a small transfer fee.
This is charged if you are sending less than $10,000, and it amounts to a flat fee of $15. If you’re sending more than the $10,000 threshold, then the $15 fee is waived.
OFX is not crystal-clear on their transfer fee, as they use terminology such as “price payable on a few transfers”. Moreover, OFX also states that the recipient bank may charge a fee, however, OFX does not receive any of this themselves.
When making the comparison, although international transfer fees charged by banks will vary on an institution-by-institution basis, it’s well worth looking at a quick example.
If you’re based in the U.S. and you used Chase Bank to transfer funds internationally, then you would likely pay a flat transfer fee of in the middle $40 — $45.
When it comes to the exchange rates applied, Chase Bank will add 6% on top of the current interbank rate, which is super expensive. On the contrary, OFX charges an average of 0.4% above the mid-market rate, which is excellent value.
In a further example, if you used UK financial institution NatWest Bank to transfer 1,000 to an account based in the U.S., then you would pay a flat fee of 22. However, you will also need to pay an additional 4-6% on top of the mid-market exchange rate, which would, of course, cost you additional money.
All in, using a specialist international money service provider such as OFX is significantly cheaper in comparison to using a traditional bank.
OFX: Minimum Transfer Amounts
One of the main flaws of the OFX website is that there is often conflicting information depending on the specific country you are reading about. Moreover, minimum transfer amounts are sometimes quoted in a different currency to that of your home currency.
For example, OFX state that the minimum transfer amount when sending funds from the UK is AUD$250. However, on a separate part of the site OFX state that UK minimum is 100.
This means that sending money from the UK is great for small transfers, as there is no transfer fee charge by OFX, and you can send as little as 100.
On the other hand, the U.S. part of the OFX website states that the minimum transfer amount is $1,000. This is a significant disparity in comparison to the UK.
OFX: How Long do Transfers Take?
OFX also makes it somewhat unclear as to the specific time-frame for a transfer to be received by the beneficiary. OFX state that most international transfers — when using major currencies (such as GBP/USD/EUR/AUD) are processed within 1-2 days.
This is again conflicting information from the team at OFX, as other areas of the website states that 80% of major currency transactions are processed within 24 hours. As such, you’re best off aiming for 2 working days, just to be on the safe side. p>
If you are transfering funds to a country that uses an exotic currency, then transfer times can take upto 3-5 days.
For those unaware, when we refer to exotic currencies, these are currencies linked to an emerging economy. Examples would include the Turkish Lira and South African Rand.
An exotic currency time-frame of 3-5 days is actually about the similarly as a traditional bank. However, although the transfer is just as slow, you need to remember that the underlying fees are going to be significantly cheaper with OFX.
How Safe is OFX? Are my Funds Secure?
OFX is one of the most established players in the international money transfer space. They were formed back in 1998, subsequently giving the company a trading history that exceeds two decades.
We should also note that OFX is in full receipt of multiple regulatory licenses.
In the company’s home country of Australia, OFX is regulated by ASIC.
If you’re from the UK, then you’ll be pleased to know that OFX is authorised by the FCA as an Electronic Money Institution (Firm Ref No. 902028)
Over in the U.S., OFX is registered with FinCEN, and they are licensed as a money transmitter on a state-by-state basis.
While there is never any guarantee that your funds are safe with OFX, the company not only has a long established reputation in the money transfer sector, but they also hold the required regulatory licenses.
OFX Mobile App
If you like to have the option of transferring funds on the go, OFX offers a native mobile app. The app is available to download free of charge across both Android and iTunes.
You can perform the vast majority of account functions via the OFX app, such as making transfers, review previous transactions, and view exchange rates in real-time.
The best feature available within the app is the ability to check the status of outstanding transfers. This allows you to keep tabs on a transfer that was made to friends or family, and essentially notify them when the money arrives in their local bank account.
However, upon analyzing customer reviews, it appears that the app is riddled with flaws. One such complaint is that the app constantly freezes, meaning that users need to restart the app and go through the login process again.
A further issue that seems to be a common occurrence with the OFX app is that when users attempt to transfer funds, the loading wheel spins indefinitely.
So now that we’ve covered the mobile app, in the next part of our OFX review we are going to discuss customer support.
OFX Customer Support
One of the most overlooked factors when choosing a money transfer service is customer support. After all, there may come a time when you need urgent assistance regarding a previously made transfer.
The good news is that the OFX team can be contacted by telephone 24 hours a day, 7 days a week. You can access local toll numbers in the UK, U.S., Australia, Hong Kong, New Zealand, Canada, Ireland, Spain, France, and Germany. Alternatively, you can also send OFX an email, however, this is only advised if your query isn’t One of a urgent character.
The overall consensus from the publicdomain name is the customerservice is Topgrade in OFX, therefore this really is a plus point.
It might be fine in the event the stage made available a livechat centre, but it doesn’t appear that the team will be looking to install this any time soon.
How to get Started with OFX
If you think that OFX is the right online money transfer provider for your individual needs, then we’ve created a useful step-by-step guide to show you what you are likely to experience.
Step 1. Open an account
In order to use the services of OFX, you will need to open an account. You can head over to the official OFX homepage by clicking here.
At the top right-hand side of the page, click on the’REGISTER’ button.
Step 2. Choose your Account Type
Before entering your personal information, you before all else need to determine what type of account you want.
If you are an individual sending money to family and friends, then you’ll want to go for a Personal Account. Alternatively, if you are a company looking to send money overseas, select the Business Account option.
Step 3. Enter your personal information
Next, you need to select the country that you live in, and enter your email address. Take note, your email address will be your OFX username.
On the next page of the account opening process, you’ll need to select the main currency pair that you want to transact in, as well as an estimated annual amount. Select your home currency in the left box, and the currency that you plan to send to the beneficiary in the right box.
In our example, as we’re opening an account from the UK, we’ve selected GBP on the left, and NZD on the right.
Don’t stress that it is possible to delve in virtually any money which you would like as soon as you’re accounts is available, so that you won’t be restricted to just the one pair.
Scroll down and you will see a range of fields that need to be entered regarding your identity.
You will need to provide OFX with the following:
- Full legal name
- Date of birth
- Primary contact number
- The country you live in
- Home address
Step 4. Choose your account credentials
You’ll now need to create your login details. As your email address will be used as your username, you don’t must be worried about it.
You have to pick out a solid password and also a security dilemma.
Finally, acknowledge the expressions and requirements and then click the’SUBMIT’ button to finish your OFX accounts app.
Step 5. Log to your accounts
Now you’ve enrolled a free accounts together with OFX, sign into to your accounts working with the qualifications which you created.
Once you’re on your accounts portal site, you’re going to have the ability to check whether you want to confirm selected info. In a few instances, OFX should be in a position to mechanically confirm your individuality using thirdparty origins. But in the event you have to give additional info, then you’ll observe a box such as the beneath.
Step 6. Confirm your id
In order to make certain OFX stays entirely compliant with both national and worldwide anti-money laundering legislation, it’s’s probably you have to add files to confirm your id.
The records that OFX asks from you will change based upon which you’re established, but in the majority of scenarios this is going to function as subsequent:
- Photo Identification: You have to incorporate a copy of the government issued ID. This may be a legal passport, driving permit or federal id card.
- Proof of speech x-2: You’ll also probable will need to incorporate two copies which support your present speech. Supplying a credit announcement is compulsory, meaning you’ll even must incorporate a utility bill along with even a letter by your government service (like tax monthly bill ). You may even upload your own driving permit for a confirmation address, provided that you simply didn’t use it as your primarily ID.
Once the team at OFX have verified the uploaded documents, you’ll then be able to start using their services.
How to Send Money with OFX
So now that you’ve gone through the account opening process, you’re now ready to start sending funds. Here’s a very brief overview of what you need to do.
Step 1. Lock-in your exchange rate
In your account portal, you’ll need to select the currency you want to send, and the currency that the beneficiary will receive. Lock-in the exchange rate
and enter the amount you want to transfer.
Step 2. Add details of the beneficiary
You’ll now need to enter the account information of the person you are sending funds too. This will include their full legal name and their respective bank account details.
If the person you are sending money to is a frequent beneficiary, then you won’t must finish the measure (unless of course his accounts details shift ).
Step 3. Affirm the transports
Review the info which you entered in the prior actions, also once joyful, click on’CONFIRM’. Now, you’ll subsequently get a message summarizing information on this trade, and the way you are able to pay to this.
Step 4. Purchase OFX
As OFX can be an thirdparty intermediary in the middle you and the recipient, you have to send out OFX the capital which you would like to move. Once OFX gets the amount of money, then forwards to the beneficiary’s bankaccount.
In the majority of court cases, you have to cover OFX using a financial institution transfer. But, specified states are used to other charge procedures, like a credit or debit card.
Step 5. Monitor transfer standing
As so on as OFX has got processed the trade, then you’ll get a notification by means of e mail. You may monitor the condition of the transfer by means of your accounts portal site — either on line and over the OFX program. In the event you are interested in being informed the minute the trade was processed, then you also can set account alarms.
OFX Review: The Verdict?
In short, making use of OFX to transport capital over seas is much less expensive than having a conventional financial institution. In a few instances, you won’t pay OFX any transfer fees, and the exchange rate on offer will be substantially more favorable in comparison to the rates offered by financial institutions.
Moreover, OFX claims that 80% of major currency transfers are received on the very similarly day, which is ultra-fast. On top of offering a 24/7 customer support helpline, OFX is also in possession of multiple regulatory licenses.
The only slight qualms that we had with the platform is that some of the information stated on the OFX website is contradictory, and the mobile app is really glitchy. However, it is hoped that the team at OFX will be able to resolve these minor concerns in the very near future.
Ease of Use
- Better Exchange Rates than Banks
- Simple & Easy to Use
- Great Customer Support
- Support for 55 currencies
- Fast Money Transfers
- Poor Mobile App
- No cash payments or pickup