What Is OFX?
OFX is a digital platform that provides bank-to-bank transfers between overseas accounts. When you need to transfer money to someone living or traveling overseas, it gives you an affordable way to do so. Or, if you want to invest abroad, it makes it easy to fund your international bank accounts.
How Does OFX Work?
To use OFX for wire transfers, you must first create an account. The registration process is easy. Begin by providing your personal information through the OFX website. Once you register, a member of the OFX team will call you to complete the setup process, giving you an opportunity to ask questions as well. In most cases, OFX will automatically verify your identity, but they may request additional paperwork to complete your registration and verification.
Once your account is set up, the next step is to log in. To make a transfer, provide the bank account details for your recipient. Money will move from your account to an OFX account, where the funds will be exchanged and delivered to the receiving account in the local currency.
The process takes one to two business days for exchanges between major currencies. In other cases, the transfer process could take longer, depending on local regulations.
How Does OFX Compare?
Sending money overseas using a traditional bank account can incur multiple fees. Your bank will likely charge a flat fee for the service. Your bank’s wire service may charge up to a 5% margin on the exchange rate. And the recipient bank may charge a fee to receive your transfer. Depending on the size of your transfer, these fees can add up quickly.
OFX does not charge transfer fees. It also works to minimize or eliminate transfer fees charged by receiving banks. In addition, OFX typically charges a margin rate far lower than traditional banks.
What Are the Benefits of OFX?
OFX works with both individuals and businesses to provide international money transfers.
As an individual, you can send money to friends or family members living or traveling overseas. If you are living overseas, you can transfer money to your home country to pay taxes or bills. Or if you’ve made a substantial purchase from an overseas vendor, this service provides a safe, affordable way to send money for your purchase.
If you own a business, this service can smooth the way to paying or receiving payments from your overseas partners. You can also use it to pay employees located in other nations. And OFX has tools and options to help you make your transfers at times when the exchange rates are most favorable, which could save you thousands every year.
Whether you’re a business or an individual, you’ll enjoy the following benefits:
- Lower Rates – Compared to traditional banks, OFX saves you money on overseas transfers. This is because it doesn’t charge transfer fees, and its exchange rate markup is highly competitive.
- Good Customer Service – If you have questions about your money transfer, you can contact someone at the company to discuss your concerns.
- Experience: OFX has been in business for more than 20 years. It has the expertise and the technology to protect your money transfers from fraud. It also has offices in countries worldwide, so it knows the different regulations that could affect your transfer.
- Flexible Exchange Options – You have the option to set up future transfers that will only go through if the exchange rate reaches your ideal, specified rate. You can also set up a transfer schedule of regular payments for things like your mortgage if you’re traveling or living overseas for an extended time.
What Are the Drawbacks of OFX?
OFX is an excellent option for anyone who needs to transfer a substantial sum overseas. But there are some drawbacks to consider.
- Slower transfers – Compared to similar services, it may take more time to complete a transfer. Typically transfers take one to two business days to complete, but depending on the country you’re sending money to, they could take longer.
- Not for small transfers – There is a minimum transfer amount of $1,000.
- Login required – While OFX will let you view sample exchange rates for different amounts and currencies, you must create an account and log in to know how much your exchange will cost.
Should You Use OFX?
There are many situations where OFX might be helpful to you.
If you need to transfer money to other countries regularly, an OFX account can help you make those transfers and save on each one.
This service is also a good option for people living overseas who need to send money home, for people who regularly purchase large items like boats or jewelry from overseas vendors, or for people who have family living abroad and want a way to send money if needed.
And it can also help businesses save money when sending funds to overseas partners or employees who live and work abroad.
How to Get Started with OFX
Getting started begins with registering an account through the website. You’ll provide your personal information, and then an OFX team member will call you to complete the account setup. Typically, OFX can verify your identity automatically. If they need additional documentation, they will let you know.
After you register, the next step is to connect your bank account to the service. Then, when you need to make a transfer, you just provide the details of your recipient’s account and initiate the process. Money will go from your account into an OFX account and then into the indicated bank account. You can track your transfer through the company’s app or through your account on its website.
