OFX Money Transfer Review
Discover the features of OFX Money Transfer alongside the Zurich International Vista Savings Plan.
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Table of Contents
Introduction
In this article, we’ll have an OFX money transfer review to help you decide if this service provider suits your needs.
First, a little background.
Transfers can be made in over 190 nations using OFX, and the company supports over 55 different currencies. This definitely demonstrates the global footprint that OFX offers. Additionally, there are no restrictions placed on the total amount of money that can be transferred or the frequency with which it can be done.
Even so, OFX does not live up to expectations when it comes to the ways in which funds are wired. Bank-to-bank transactions are the only type of transfer that can be executed. Because of this, the receiver of the wire transfer cannot pick up the funds at a retail outlet or have the money forwarded to their residence, in contrast to the capabilities offered by some other remittance service providers.
OFX Money Transfer Review: Who Ought to Utilize the OFX Platform?
OFX is one of the top options to consider if you need to send or receive money and are interested in using a service that displays its fees in an open manner. It levies a one-time fee of 15 US dollars on all transfers that are for an amount that is less than 10,000 dollars. Meanwhile, OFX does not impose any transfer fees on transactions that are valued at more than 10,000 dollars.
Additionally, there is a widespread availability of OFX. It is able to transfer funds in more than 55 different currencies to over a hundred and ninety different countries. In addition, there is no limit placed on how much money can be transferred, nor is there a limit placed on the number of times that transfers can be made.
However, if you are searching for a payment platform that allows you to transfer funds to a person who does not have a bank account, you will not be able to use OFX because they do not provide this service.
Bank-to-bank transfers are the only kind of transfer that this company will accept. Only debit cards, not cash, credit cards, checks, or bank drafts, are acceptable forms of payment here. It is not possible to transfer funds to a recipient’s smart phone or to a retail store, for example, if you only offer bank-to-bank transfers as a payment option. Transactions can be completed digitally, via the app, or via phone.
OFX adds a markup to the exchange rate, which implies that the business generates revenue from charging you a sum that is slightly higher than the rate at which the currency is currently being traded. And if the amount you wish to transfer is less than a thousand dollars, you will be required to find another method to complete the transaction.
OFX Money Transfer Review: Features
The OFX website is very user-friendly and straightforward. The OFX app is available for download on Apple and Android devices, giving you the option to conduct business from your mobile device if that is more convenient for you. The following is a list of some of the most important aspects of the OFX platform.
What’s the OFX Spot Deal?
You can secure the current exchange rate with a spot deal, which is also referred to as a single transfer, and then start the process of transferring cash to another person. Your money needs to be received by OFX within twenty-four hours of the transaction being finalized at the latest. After OFX has obtained the funds, it will then send them to the person or organization that you have specified.
What are OFX Repeated Transfers?
With OFX’s recurring transfer function, you’ll be able to set up regular money transfers, like payments for your mortgage or school tuition, for example. It is necessary to make an initial payment, which is equivalent to one transfer payment, in order to set up regularly occurring transfers. The deposit serves as the final transaction in the recurring schedule that you have set up.
What’s an OFX Forward Contract?
This arrangement enables you to transfer money into the future (up to a year) at the exchange rate that is in effect at the time of the transfer. You may be protected from future exchange rate fluctuations as a result of this action.
This is of particular interest to you if you believe that the current exchange rate is advantageous, or if you prefer to avoid being subjected to the fluctuations in the foreign exchange market in order to more effectively manage both your cash flow and your risk. When you initially set up the forward contract, you are only required to pay a small deposit; the remaining balance is due when you actually make the transfer.
What is OFX’s Target Rate Transfer feature?
This feature, which enables you to establish a target exchange rate for a future transaction, can also be referred to as a limit order. You can do this feature up to a half year in advance. When the desired rate is achieved, OFX will begin the process of transferring the funds.
You won’t have to keep a close eye on the currency exchange rate if you do it this way, and you’ll have the ability to fix a price point that you know you won’t go above or below.
How do you keep your OFX account secure?
You can help keep your account secure by using either your fingerprint or facial recognition on devices that are compatible with both of those features.
Is OFX user-friendly and convenient?
In general, operating an OFX account is not overly complicated.
The procedures for opening a personal account and a business account are virtually identical. According to OFX, the registration process can be completed in fewer than five minutes.
What is OFX compatible with?
The App Store app is compatible with iPhones running iOS 11.0 and later versions, as well as Mac pcs (macOS 11.0 or later, or Apple M1 chip or later). In order to use the Google Play app, you must have Android version 5.0 or higher.
Is an OFX transaction fast?
OFX claims that it can process the majority of transactions in major currencies in just one to two business days after it receives the money from a client’s bank.
There is a possibility that transactions involving unusual currencies will take significantly more time, typically between three and five days. For instance, transactions involving certain currencies, such as the Chinese yuan, the South African rand, or the Korean won, are subject to regulations imposed by the government, which can cause a transfer to be delayed.
How much is the minimum transfer under OFX?
According to its website, the minimum amount that can be transferred using OFX’s service is a thousand dollars, and there is no cap on the maximum amount that can be transferred. In addition, OFX claims that it does not place limits on the amount of money that can be transferred based on time periods such as daily, weekly, monthly, or annual.
What are OFX rates and fees?
It is not necessary to pay anything in order to create an account on the OFX website, nor is it necessary to pay anything in order to download its app from Google Play or the App Store.
The fee structure for using OFX is laid out in a clear and understandable manner on the company’s website. One thousand dollars is the lowest amount that can be transferred. OFX does add a margin of profit to the exchange rate that it uses for customers’ transactions.
There are three different rates that are used to calculate the total cost of your money transfer as well as the amount of money that will be sent to the recipient.
• Exchange rate: The value of one currency expressed in relation to another currency is referred to as an exchange rate.
• Mid-market rate: Also referred to as the inter-bank rate or simply the inter-bank exchange rate, the mid-market rate is the exchange rate that is utilized when large banks trade currencies with one another.
• A markup on the currency exchange rate is included in the pricing of most transfer services by the majority of providers. As a means of turning a profit from the transaction, they offer their clients a rate of exchange that is calculated by adding a markup, or an additional percentage, to the rate that is found at the midpoint of the market.
OFX Money Transfer Review: How does OFX work?
1. Register by providing your information in the appropriate fields on the website.
2. Following the completion of your registration, an OFX representative will contact you by phone to finalize the setup process and address any questions you might have.
3. If extra validation is needed, which only occurs in a small percentage of cases, OFX will request that you submit additional documentation from you.
4. After successfully logging in to the OFX platform, request a real-time quote for the currency exchange rate.
5. Book your deal after entering the details of the bank account that will be used by the recipient.
6. Within the next 48 hours, send your money to OFX through a bank transfer, and the company will handle the rest of the process for you!
You are able to set up your transfer of funds with an OFX dealer via phone if that is more convenient for you, or you can do it through the OFX mobile app, which is compatible with mobile devices running Android as well as iOS.
The OFX app allows you to view live market exchange rates, start an international transfer of funds, and monitor your money while it is being transferred internationally, and you can do all of these things whenever and wherever you want.
OFX Money Transfer Review: Account Registration
What do I need to register for an OFX account?
In order to open a personal account with OFX, you will be required to provide the following information:
- Your country of residence
- Your email address
- Your currency pair
- Your projected transfer sum per annum
- Your full name
- Your birth date
- Your mobile number, as part of the provider’s two-step verification process to confirm your identity
- Your home address
- Your nationality
- Your job/profession
- Your password and your secret question
- Copy of your photo ID issued by the government, including a driver’s license, passport, or identity card
- Selfie taken on a smartphone
- Permission to utilize your personal data for the reasons outlined in the OFX privacy policy
- Confirm user agreement and e-sign consent agreement
OFX Money Transfer Review: Paperwork Requirements
Which of my documents does OFX need to review in order to verify my identity?
OFX is required to conduct an identity and address verification on you in order to ensure that they are not breaking any anti-money laundering (AML) or know your customer (KYC) regulations.
If you live in the UK, the US, Australia, New Zealand, or Western Europe and have not moved within the past few months, it is possible that they will be able to complete this transaction electronically. If this is not the case, you will be obligated to provide documentation for verification purposes.
OFX Money Transfer Review: Safety
Is it risk-free to use OFX?
OFX operates and is regulated in multiple jurisdictions, including Australia, where it is headquartered. It is regulated by the Australian Securities and Investments Commission (ASIC) under an Australian Financial Services License, while it is regarded an authorized payment institution that’s controlled by the Financial Conduct Authority (FCA) in the UK.
In the US and Canada, OFX is registered as a money services business with the Financial Crimes Enforcement Network (FinCEN) and Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), respectively, both on a federal level.
Because OFX is listed on the Australian Stock Exchange, the exchange mandates that the company adhere to a stringent set of regulations, one of which is the open and honest disclosure of particular pieces of information.
In accordance with the rules that have been established, OFX keeps the money belonging to its customers in accounts that are known as segregated accounts, which are maintained at highly regarded financial institutions.
Your money would be protected in the event that the company experienced any kind of financial difficulties. OFX is also obligated to fulfill stringent requirements concerning its capital and to implement a variety of internal procedures, some of which include employee training, risk management, auditing, and accounting.
Because it has been in business since 1988 and has completed more than 100 billion dollars’ worth of transactions since that time, OFX is currently considered to be one of the most seasoned and biggest foreign exchange enterprises in the entire world. OFX unquestionably has a global footprint.
All in all, OFX is presumably among the most trustable companies in the world that is involved in the international payments business and the foreign exchange business.
OFX Money Transfer Review: Pros and Cons
What are the upsides of using OFX?
Good customer service
A customer service department that is straightforward to get in touch with. As a result of OFX’s offices being located in a variety of time zones, it is possible to communicate with someone at any given hour.
Highly regarded mobile app
The OFX mobile app provides access to a number of helpful features, such as up-to-date and historical mid-market rates, as well as the status of transfers that are either still in progress or have been finished. The app consistently earns a lot of praise from its customers.
Zero transfer fees
No matter how much money is being sent, OFX will never charge you a fee to make a transfer, which sets them apart from some other providers of money transfer services.
However, similar to other service providers, OFX makes money by adding a markup to the exchange rates it offers. Its surcharges above the midmarket rate for transactions to certain countries tend to fall somewhere in the range of approximately 2% to 4% of the total amount.
Other service providers may add a markup to the rates they charge for bank-to-bank transfers to those countries ranging from less than 1% to approximately 4% of the total amount.
What are the downsides of using OFX?
Transfers will take significantly longer
The average time required to complete an OFX transfer is between two and four business days. This amounts to one half of a business day for the firm to get money from your bank account, and between one and three more days for handover to your addressee.
Considering that some other firms can deliver money internationally in a matter of minutes, speed is not an advantage that OFX enjoys over its competitors.
More difficult user experience
The user experience of the website is more difficult than that of other sites. The frequently asked questions section of the provider’s website is laid out in an organized fashion and provides a list of helpful information; however, there is no live chat function available online. The consumer exchange rates offered by OFX cannot be viewed on the website unless a user first logs in.
There is only one possible method of payment to choose from. You can only use a bank account to pay for transfers through direct debit or a domestic money transfer. Neither of these payment methods is available to international customers. You may be able to pay with a variety of different methods, including cash, credit or debit cards, and other electronic payment systems, with other providers of money transfer services.
OFX Money Transfer Review: Monetary Transactions Across International Borders
What should you know about transferring funds internationally?
A solid understanding of how currency exchange works is essential
Markups on the exchange rate are one of the ways that companies that transfer money can generate revenue for themselves. The majority of providers of transfer services will not provide you with the same exchange rate that you would find on a currency exchange platform such as the ones provided by Reuters or Bloomberg.
These websites will only provide you with information regarding the price of one currency in relation to another; however, they are a helpful starting point for determining what the most favorable exchange rate is at this very moment.
Checking the exchange rate for an international transfer using a service such as Western Union requires that you concentrate on the exchange rate price increase by looking at the amount of the foreign currency being transferred. The greater it is, the lower the price increase will be, and the more money will be received by your recipient.
Compare aggregate transfer costs across numerous providers
There are two different kinds of costs: an up-front fee, and a markup related to the exchange rate. Find a service provider who offers the best exchange rate you can get while also charging the lowest possible fee. Transfer fees can often be significantly reduced when using the services of an online provider that is not a bank.
Try to avoid using a credit card when you’re paying for something
It is a choice that can be made with certain service providers; however, the initial fee may be higher, and your credit card provider may tack on additional expenses like interest and fees for cash advances. A transfer that is paid for by directly withdrawing money from a bank account is typically the most cost-effective transfer method, despite being the most time-consuming.
If you need funds delivered on time, the best option is to use a debit card, which also comes with the benefit of having lower transaction fees than using a credit card.
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