OFX Review

OFX is a leading currency broker offering currency services to more than 55 countries around the world. Originally known as OzForex, it was launched by Matthew Gilmour in 1998 as an information only website. Since then, it has grown rapidly handling more than AUD$150bn transfers with more than a million customers worldwide.

The platform offers a range of services to individuals, small and medium sized businesses as well as a platform for online sellers, who use online marketplaces to sell their goods. It is a partner of the Amazon Payment Services Provider Program designed to protect both sellers and buyers online from fraud.

Using a global currency account, they promise to deliver the benefits of a local bank account in global markets such as the US, UK, Europe, Australia and Hong Kong. They can be particularly useful for any firm selling to foreign-based customers who need an account in a specific currency.

Their main point of difference is their cost. They promise no exchange fees, or transaction fees for transfers over $10,000 unless working through third parties, and a highly competitive exchange rate.

OFX Currency Transfers

OFX offers trusted money transfers around the world with zero transfer fees and better exchange rates than you can expect from a bank. It is designed to be more transparent allowing its customers to see how much money they will get and when it will be sent. To use it, you can register by telling them how much you want to send, to where and in what currency. You then deposit the money with them with a bank transfer either online, through their app or by phone. They will send it on to the recipient. Transfers usually take between one and two working days and you can track their progress with their app. They do not take cash, credit or debit card transactions, cheques or bank drafts.

The service is cheaper than banks by cutting out transfer fees and offering more competitive interest rates. However, there are a number of other low-cost currency transfer services such as XE.com and Wise (formerly known as TransferWise). Both off a similar deal of fast, affordable money transfers.
Its service is great for businesses and small businesses but is relatively limited. It only works with bank transfers so if you’re looking for cash a service such as WorldRemit or Western Union might be more appropriate.

OFX Exchange Rates, Charges & Fees

OFX is pretty transparent about what fees they pay. They have a promise of no exchange rate fees and offer highly competitive exchange rates. These vary depending on how much you intend to transfer but seem to be around 0.4%.

0 - 1,000 0.4%
1,000 to 10,000 0.4%
10,000 to 100k 0.4%
100k to 500k 0.4%
500k to 1m 0.35%
Over 1m 0.35%

For smaller transfers they charge a flat fee of $15, but this ends at $10,000 beyond which they charge no fee at all. The more you’re willing to send the better value they become.

They bill themselves as being much more open and transparent than traditional suppliers. Many extract substantial charges in the form of transaction fees, margins and other hidden costs. This can lead to customers receiving substantially less than they might have been expected.

Providers such as OFX are more affordable and more transparent. They are, though, not the only provider to operate in this way. A number of others such as Wise, XE.com, TorFX and Currencies Direct make a similar offer. Which one is best for you often depends on how much you’re sending and the type of transaction you’re looking to make.

OFX Money Transfers

You can transfer money to more than 55 countries in 21 currencies as standard including the United Arab Emirates Dirham, Australian Dollar, Canadian Dollar, Swiss Franc, Danish Kroner, Euro Pound Sterling Hong Kong Dollar, Hungarian Forint, Israeli Shekel, Japanese Yen, Mexican Peso, Norwegian Kroner, New Zealand Dollar, Polish Zloty, Swedish Kroner, Singapore Dollar, Thailand Baht, Turkish Lira, US Dollar, South African Rand. They also offer a wide selection of exotic currencies including the Czech Karuna, Sri Lankan Rupee and the Kuwaiti Dinar, among others. You can see a full overview of their currencies, here.
At around 55 they offer a reasonable selection of currencies – significantly more than Wise for example and only slightly less (60) than XE, but there are some significant omissions such as parts of Africa and South America such as Argentina, Nigeria and Brazil. While you can only send money in Chinese Yuan if you have a business account.
You’ll pay a standard fee of $15 for transfers lower than $10,000 at a competitive exchange rate. Anything over $15 will have no fee. They take a small margin on the exchange rate, but this falls as transfer totals increase. This makes it competitive against other major low-cost providers with Wise charging 1% for transfers from the US and 0.5% for most others. XE, meanwhile, charges just £2 for all international transfers under £250 with anything over being free.

OFX Customer Support

OFX offers a multi-channel customer support option encompassing the web, email, phone and social media. They have 24/7call center support for Australia, Canada, France, Germany, HongKong, Ireland, Singapore, Spain, the USA and the UK. They also suggest contacting them by email at: [email protected] or contacting them on their Facebook and Twitter pages.
You contact transfer money over the phone in which case you’ll have to speak to a dealer who can provide support. This is a popular option for larger sums where you may want a more personalised approach.

They also point you to online support at their website, but this is relatively limited and mostly takes the form of FAQs and blogs. There is no online chat support option.

OFX Live Exchange Rates

OFX provides a comprehensive set of live exchange rates for the following currencies:
Australian dollar, Canadian Dollar, GBP, Euro, Dollar, New Zealand Dollar, Norwegian Krone, Swiss Franc and the South African Rand. These are updated throughout the day and provide you with an indication of the gross exchange rates before any deductions or fees are made. These are important as they allow you to view the fluctuation of exchange rates throughout a single day giving you a more transparent idea of how much you can expect to receive.

This is a similar option to that offered by many of their competitors such as XE.com which also have a lot of information about currency rates.

In addition to this they offer additional content in the form of a currency report, as well as check individual graphs for specific currencies. This comes as part of their blog which provides information about the company as well as general advice about money matters.

OFX Currencies

OFX offers a total of 55 currencies with 21 being listed as standard. Others, such as the Chinese Yuan, are down as being exotics. They have some patchy coverage in South America and Africa with the Argentinian peso, Brazilian Real and Nigerian naira among some notable absentees.
The most popular, according to their website include the AUD, GBP, EUR, USD, CAD, Polish Zloty, Pakistani Rupee, HKD and the NZD. This puts it in the middle range with slightly fewer currencies than XE and a little more than Currencies Direct with 40.

OFX App

For those who want to transfer money on the go the OFX app is a great choice. It is available for download onto Android and Apple devices free of charge. This allows you to make single transfers, keep track of transactions, view exchange rates, add and review recipients, contact business and personal contact desks, view current and historical exchange charge, keep up with the latest news and register for an account via the mobile site.
You can also transfer money direct from their website on your desktop computer, or through a telephone dealing service which gives it a useful point of difference against some of its online only competitors.
For most online providers, an app has become almost a must have. Like its competitors it is simple and relatively easy to use offering a similar level of service you’d expect from the main website. Where it excels is in the amount of supplemental information it offers via its currency reports, latest news and historical currency data.

OFX Online Platform

OFX makes it quick and simple to register and send money online. All you need to do is register for an account, supply any additional verification information they require and let them know how much you want to send, in what currency and to where. You then deposit the funds, and they will make the transfer. It should clear within one or two working days.

It offers a similar service to the app, with the ability to track the progress of payments online so you know exactly what is happening and when.

Overall, it’s a relatively robust service, however the need to register makes it a little slower and more cumbersome than other services which make it much faster to exchange money as and when you need to. With dedicated accounts designed for personal and business customers, it is also a particularly good service for small businesses and those selling online.

OFX Business Account

The OFX account offers an affordable personalised service designed to help businesses manage their foreign currency exposure. Their service is much less expensive than a traditional bank, meaning they can offer considerable savings for those regularly making international money transfers.
They offer several different options depending on the nature of your business:

• For small businesses who make frequent exchanges up to €1million a year.
• Medium businesses looking to transfer more than €1million.
• Online sellers using online marketplaces who want accounts in specific currencies to receive payments.
• Partner program for those who need access to a currency exchange platform.

Their business accounts offer more functionality than their personal including support from their experts, ability to set up payments for overseas staff and the use of options such as forward contracts and limit orders to mitigate exposure to currency fluctuation.

OFX Euro Exchange Rate

The cost of sending money in euros fluctuates throughout the day. OFX provides currency charts providing the latest exchange rates and will make your transaction based on the latest mid-market rates. They promise no exchange fees for transactions over $10,000 and competitive exchange rates based on a sliding scale starting at 2% and becoming progressively cheaper the more you transfer. Other apps such as Wise, XE.com and Currencies Direct make the same promise of low transfer fees based on the most up to the minute exchange rates. However, each one will vary a little as rates fluctuate depending on the amount transferred.
At the time of writing, if you transfer £10,000 you would receive €11,595. This compares favourably against XE.com which would deliver €11,533.

OFX US Dollar Exchange Rate

OFX offers fast transfers into dollars with transactions normally taking between one and two working days. They promise no OFX transfer fee, with competitive exchange rates, but these can vary during the day. At the time of writing transferring £10,000 would mean the recipient getting $14,053. XE.COM, meanwhile would deliver $13,984. In terms of price, therefore, OFX performs well, even against other low-cost providers, although the difference is small. The real value comes when comparing it to average bank transfers which are full of additional fees and offer a much less favourable interest rate.

OFX Security & Regulation

As a multinational company, OFX requires multinational regulation. They are licensed by ASIC in their native Australia, FINTRAC in Canada, FINCEN in the USA, FCA in the UK as well as Singapore, Hong Kong and New Zealand. This is important as it provide an additional level of reassurance that the service is safe, reputable, reliable and comes with certain consumer protections. Here in the UK for example, regulation by the FCA not only ensures a certain level of standards, but it protects consumer funds under the Financial Services Compensation Scheme. This protects all consumer funds up to a limit of £85,000.

OFX Pros

• Easy to use and to navigate.
• Extensive 24/7 customer support with teams available in support offices around with world covering multiple languages.
• It’s one of the biggest companies in the business offering extensive coverage thanks to its banking network offering fast, reliable and secure transactions.
• Hast transactions available 24/7 within one or two working days. They also offer prompt, fast and friendly help.
• An information rich website offers plenty of help about making transactions.
• Offers daily currency reports allowing you to track the latest movements.

OFX Cons

• Governance: Overall it has excellent customer service reviews. However, one of the few areas of complaint seem to come from people who feel it has been over eager at closing accounts on suspicion of fraud.
• Languages: The site is only available in English which could be a problem if you come from one of the many non-English speaking countries, they say they can offer.
• Lack of flexibility: You can only transfer money electronically using a bank transfer. You will not be able to make credit or debit card payments. In addition, it does not offer cash pick up which does not make it ideal for immigrants sending money to friends and family back home.

OFX Alternatives

Although OFX compares its costs against banks, its real competition lies with other, online money transfer companies which offer the same deal of fast transactions at a low cost. These include:

• XE.com: Like OFX this is a large and established company. They have no fees and charge similar exchange rates to OFX.
• Wise: The platform formerly known as Transferwise is one of the most popular options out there. It’s a peer-to-peer money transfer service so works in a slightly different way to OFX. It has a strong reputation for its fast transaction speeds and low rates.
• TorFX: With no transfer fees it offers great exchange rates for larger transaction amounts. It is also licensed to give personalised advice.
• Currencies Direct: A currency broker founded in 1996 which offers fast affordable money exchange services.

Although they all have similar strengths of good customer service, low cost and fast speeds, they all have different features which make them better in certain situations. OFX has a sliding scale of fees which makes it cheaper for larger transfer amounts. It also offers the option of telephone dealing which many do not as well as online transactions. For larger sums, people might enjoy being able to talk to a dealer to straighten out any difficulties.

Wise, for example, is a much cheaper option for smaller amounts, while XE offers an extremely wide reach. OFX, meanwhile, is a good option for ecommerce businesses looking to buy and sell products with the benefits of a local currency account. When choosing any of these options you should consider your specific requirements and how each option matches up against them

Sarah Webb, OFX UK President on the importance of personal service for large currency transfers

Foreign exchange is a minefield. No one really knows what is going to happen to currency rates when markets are incredibly unpredictable.  Mis-timing a transaction can seriously leave you vulnerable if you aren’t prepared.

So, if you have any upcoming large transaction how do you know what broker is going to offer you the best rates, advice or service?

To help you decide we sat down with Sarah Webb, President of OFX, UK to get her thoughts on running one of the largest currency brokers in the UK.

Sarah Webb, thank you very much for talking to the Good Money Guide. Why did you decide to join OFX?

Thank you, Richard. I guess if I take you back to the beginning of my career, I’ve always worked in the payment space. I was at American Express and Barclays before, and joined OFX almost to the day a year ago. In fact, it’s my work anniversary tomorrow!

I think what really drew me into the FX space was a couple of things. It was the culture of OFX, especially at the leadership level. I was very much attracted to the heritage of the company, and why it was founded.  20 years ago, two surfers on a beach in North Sydney decided to develop an FX quoting engine. It was created solely as a disrupter to the banks to expose high rates and fees. It then morphed into a platform enabling the customer to do their own FX deals and take advantage of more competitive, transparent pricing. From its humble Australian beginnings, the company branched out globally with the UK office opening in 2005.

Offering fairer rates and better value to customers is the legacy of the company and remains what OFX stands for today. This extends to the leadership ethos, which is what attracted me to OFX.

Equally, having worked in payments for the last 20 years, looking at all the ecosystems, it really felt like there was still a lot of room for disruption in the FX space to help people move money overseas seamlessly.

What is it about OFX that makes you stand out from the crowd? Why should a customer come to you as opposed to your competitors?

That’s a great question. I always love to talk about this.

The customer is always at the heart of what we do. I guess I put it into a phrase that we use often, which sounds a little bit corporate, but it is the ‘digital plus human’ service approach we offer. This approach allows our clients to do business with us however they choose, with access to a currency expert 24/7.

We offer a brilliant digital experience for anyone registering online or using other devices to set up an account with us. It’s simple and easy to do and clients can then transact with us quickly.

But we also have a team of currency specialists on the floor who work closely with clients every day. They will make introductory calls and help with the registration process as well. Ultimately, the team is here to provide reassurance for clients.  An example of that could be before a client makes a large transaction. Timing of moving large amounts of money and even key market events can certainly make a difference when it comes to saving or losing money.

If it was my first time working sending money abroad, I wouldn’t want to move large sums if I didn’t speak to someone about it. Generally, when clients are comfortable, many of them prefer to transact online.  However, some clients will always want to consult with our team first – it’s simply a matter of preference.

Is there a trend where more customers are doing transactions online or do clients still like to have a key account manager or someone they know who understands the currency market?

It’s a mixture, but you do see clients become more comfortable transacting online once they’ve made a transaction. But if they wish to get an expert opinion, they may appreciate having access to one of our specialists 24/7.

I believe knowing you can call someone day or night and speak to a real person is quite important. It’s as simple as that. We’ve all moved money from account to account, whether it be a foreign exchange transaction or not. If it’s a large sum, you want to make sure you’ve make an informed decision regarding the timing of the trade and the purchasing power of your domestic currency.

So when it comes to the added value that your account managers can add, can you just briefly talk us through, other than updates on the transaction, what sort of transaction advice or strategy advice they can provide a customer who’s looking to do a fairly small transaction now but then let’s say £30-£40,000 for a deposit on a villa and then perhaps with £500 to a million in six months’ or two years’ time?

With our customers moving money to buy a house, or some of our small to medium-sized enterprise customers, we have specialist teams on the ground.  Both focus on the high net worth consumer segment as well as the corporate segment. What they do day in and day out is stay close to the markets and key geopolitical events, such as Brexit. It’s incredible how key events can impact major currencies so dramatically, just look at the rise and fall of the pound in recent years!  The average person simply doesn’t have time to stay on top of market trends to this level of detail, which is why a third-party currency provider can help them make informed decisions.

It is important people are able to get advice, but equally to plan with confidence. As we know, the UK market has been volatile since 2016 as a result of the referendum. And frankly, what’s ahead with the General Election is anyone’s guess.  So well timed guidance from a trusted specialist is critical, but also understanding what the right combination of currency products can do to mitigate future risk, when markets are unpredictable OFX can provide peace of mind and help you save. For example, if a client wanted to trigger a transaction when a rate hits a certain level, they could. Or, if they wanted to book in a future deal at a specific rate, they could also do that.  It’s all about managing risk more effectively.  We work closely with individuals and business clients to develop bespoke strategies to support their currency objectives today and in the months ahead.

I always say it’s very difficult to make money speculating on FX, but it’s very easy to protect yourself from losing more.

Yes, that seems to be the theme here and rings true for most of our clients. Whether they are buying a property abroad or paying an international supplier, everyone wants to get the most from their money and that’s exactly what OFX helps them do.  I can’t stress enough, it all comes down to market expertise and the right suite of currency products to help clients plan with confidence and minimize their FX exposure.

Absolutely. So you’ve been here a year. In the year you’ve been here, what have been your best moments? What are you most proud of since joining OFX?

I’ve been most proud of a couple of things, and it goes back to what I said about the human plus digital.

We’ve really focused on the digital experience this year to make it extremely seamless, without compromising any of our regulatory requirements. We’ve done it in a way that’s focused on creating a fantastic customer experience, allowing them to do business with us quickly.

Our Net Promoter Score (NPS) tells us if our customers are happy with our service.  I’m proud to say our UK scores are in the high 70s. Being ranked that high puts us at the top globally, which is something I’m immensely proud of. Compared to our competition and other new entries into the FX space, we’re more than holding our ground.  So that’s extremely exciting for me as it shows we’re getting it right.

We’ve also made a big investment in growing our corporate business as well, and we’re already seeing some fantastic growth in that space off the back of it. It’s not often you get to enjoy in-year growth, but it’s proven to be effective at a faster than anticipated rate.  So that’s been an exciting challenge and opportunity.  Watch this space for more exciting initiatives down the line.

And of course, when talking about finance, you must be balanced, so that was the best moment. What has been the worst or the hardest moments since you’ve joined? Is there anything you wish could’ve gone smoother?

To be a little flippant, I (and every other person living in the UK) wish we knew what’s going to happen with Brexit. That’s created a lot of uncertainty, a lot of stop/start, which has made getting on with life and business decisions challenging.  Our clients talk to us about this daily with great frustration!  I would say it’s such an unprecedented time in history, nobody knows where the market is going to move.  And if they tell you they do, they must have a crystal ball.

It makes it difficult to help manage your customer's expectations, but we do give them support by ensuring we keep them informed and help them plan for different scenarios.  It’s certainly a challenge and with the General Election next week, more market volatility is sure to come.

Managing expectations is one of the most important aspects from how long the AML’s going to take to get your account open, through to these black swan events, like the very start of Brexit or Trump getting in, or whatever it is that was not odds on favorite that’s going to happen.

Exactly. I think it’s managing through that dynamic with Brexit, but it’s all part and parcel of what we do, day in and day out.

It does make it interesting at times. When the Brexit deal was looking like it was going to go through, it was all very exciting. Since the referendum, we’ve had to become quite dynamic in how we help our customers manage through uncertainty.

I think what’s interesting is when the Referendum result came out, I wasn’t here, but it took people by surprise across the industry. One of the things that we’re immensely proud of was that we were able to continue trading without any caps on the transfer levels that people could make and keep our doors open for business. This wasn’t the case for all currency providers.

Some of our competitors had to put caps on transaction amounts. But the way we’re structured as a company allowed us to continue trading, which was came down to our proprietary, international partner network. We take pride in being there for our customers when they need us and will continue to do so.

On a personal level, I think the one of the most challenging elements is working for an Australian-headquartered company.  Whilst there’s a lot of empowerment and autonomy in running the business here in the UK it does mean VERY early starts and late finishes and some odd hours across different time zones.  You need to grab your down time when you can, it’s essential!

But I would say that we gain from having such a great company based out of Australia. There’s lots to be said for working on a truly global exec team.

Why do you think that pricing from currency brokers is still so opaque?

It’s so easy to google live interbank rates these days, but you shouldn’t run into issues with credible brokers telling you what margin they charge, in fact, transparency is a key selling point.

At OFX, we always offer fair and transparent prices on all our currency conversions. Every transaction is fee-free so it’s purely the margin that we add on. We’d also say that we’ve got some very competitive prices, particularly at the top end of transactions based on the amount volume. If you’re making a large transaction and did the calculation around what the margin counted for, there could be a big difference between a high percentage and an almost zero margin.

However, when you’re looking across many of the players in this space, we can all appear similarly priced. The real differentiator is going to be the service you receive. The margin becomes secondary if you’re talking to an expert and getting the right information. This determines when you transact, what could be the best rate and how to minimize your risk when it comes to executing any FX transaction.

For a customer who’s potentially got a large transaction coming up, can you, having been in the industry for a while, recommend any resources that they should turn to that can help them be more educated on foreign exchange pricing, market timing, where to learn about risks and rewards and so on?

Obviously, I certainly recommend using OFX as a great resource. We have a daily market commentary to keep clients informed on where the markets are moving and upcoming events that are expected to impact the major currencies.  It also goes without saying that our UK and global currency specialists are available 24/7 and offer any support our clients need when it comes to making a transaction – large or small.

On top of that, the resources that I use include, ForexLive.com. There’s a good blog there to keep tabs on market movements and events.

Equally, Bloomberg would be a resource that I would go to. We sometimes do some commentary for Bloomberg as well.

I think my advice for people would be, if making a large transaction, the best decision is an informed decision. It’s important to make an unpredictable market work for you by planning ahead.

Sarah Webb is UK President of OFX