Based out of Australia, OFX is a provider of international money transfers and foreign exchange services with over one million customers around the world.
But are they the best payments provider for your business? To answer that question, our OFX review looks at who can get an account, their products and fees, and how they compare to Statrys.
What is OFX?
Headquartered in Sydney, OFX offers a money transfer service to businesses and individuals in 55 currencies and across 170+ countries. It was founded in 1998 by Matthew Gilmour under the name OzForex. Currently, Richard Kimber is the CEO and they have offices in Dublin, Toronto, Hong Kong, Auckland, Singapore, London, and San Francisco, and they are listed on the Australian Stock Exchange since 2013.
OFX is an online money transfer provider with 24/7 customer support and a mobile app. For SMEs, it also offers foreign currency hedging services.
OFX is not a bank but it is licensed by financial regulators in Australia, Singapore, Hong Kong, New Zealand, the UK, the EU, the USA, and Canada. So you can feel assured that OFX is adhering to anti-money laundering laws and that your money is safe with them.
Requirements for opening a business account
Individuals and businesses can open an OFX account to transfer money.
OFX is available to businesses registered as sole traders, partnerships, trusts, not-for-profits, private companies, and public companies.
Businesses in most countries are eligible to apply. OFX does not mention any country restrictions, so if you are unsure it might be best to confirm with them directly. It is recommended to contact OFX for more details on your eligibility for an account.
How to apply for a business account
The account application process is 100% online. When you click ‘Sign up now", you will be asked to fill out an application form with the following information:
- Name
- Currencies wanting to transfer
- Email address
- Business Information
- Identity verification.
You can verify your account by uploading your ID and supporting documentation. After completing the registration process, an OFX team member will call you to complete the onboarding process and request further documentation, if needed.
If you have sent OFX documents, they aim to respond within a few business days. OFX accounts are normally approved within 4 business days and your local currency account details typically become available in the following 2 business days, so around 6 business days in total.
OFX products
Business accounts
With an OFX account, you can create seven local currency accounts in the following major currencies: USD, EUR, GBP, CAD, AUD, SGD, and HKD.
To reduce the fees involved in any international money transfer transaction, OFX uses a network of 115 global bank accounts to send and receive money. For example, when sending money, you transfer money to a local bank and it stays there. OFX then instructs a local bank in the destination country to make the transfer of the amount to your payee.
This global by local (GBL) processing system - which can process transfers on the same day, even when banks are closed - helps protect OFX from currency exposure and pass on the benefits to its customers. OFX can also process transactions when currency volatility is high, unlike some other money transfer providers.
Receiving funds
To receive money, a sender pays money into OFX’s local bank in their home country. You receive the physical money from OFX reserves in a local bank in your country, which is why the process is reasonably quick.
You can accept payments from some of the world’s largest online sellers, like Amazon, eBay, PriceMinister.com, Newegg, Buy.com, Game, Wish.com, CDiscount.com, Rue du Commerce and Shop.com.
Sending funds
You can make an OFX transfer in 55 currencies to over 190 countries. OFX says it has every corner of the globe covered. They provide a full list of currencies supported [*].
You can lock in an exchange rate when sending funds with an OFX expert. You then make an electronic bank transfer of funds from your bank account to your OFX account. Once OFX has received your money, they will send the currency to your recipient from a local bank in the destination country. You can track this process on the OFX app.
There are no transfer limits, but amounts under USD 10,000 attract transfer fees. OFX says they are flexible when it comes to minimum amounts for OFX money transfers. If your business needs to regularly transfer small amounts, contact OFX directly for more information about fees.
Cards
OFX does not offer debit cards or payment cards as some other money transfer providers do.
Foreign exchange
You can make foreign exchange transactions by selecting a target rate of exchange you would like to execute the transaction at (the Target Rate option). Once that rate is reached, OFX will contact you to let you know you can complete your transfer.
OFX also offers a forward contract on exchange rates, meaning you can lock in a rate now for a future date. Forward contracts help you to avoid adverse currency fluctuations. You pay a small premium for protection against exchange rate movements and can profit if the exchange rate shifts in your favor.
For most foreign currency transactions with OFX, you will be paying a ‘hidden fee’, which is OFX’s margin above the mid-market rate between two currencies. Like many money transfer companies, OFX does not state what its margin is. They say banks charge 5%, which they regard as high, so we are left to assume their rate is lower than 5%.
Additional services
As is the case with other online money transfer providers, OFX offers Xero integration with its multi-currency accounts, meaning your OFX transactions are automatically posted to Xero. You can also manage and track your OFX transactions within Xero [*].
If your business requires you to regularly make transfers of the same nature, OFX offers the ability to set up an automated transfer schedule. This is a more common feature among today’s money transfer services.
Fees charged
| Fees | |
| Account Opening | Free |
| Monthly Fee | Free |
| Sending fee (Amount less than HKD50,000) | HKD60 |
| Sending fee (Amount of HKD50,000 or more) | Free |
| Foreign Exchange | Flat fee or margin above the mid-market rate |
Actual fees depend on currencies and transfer size. Third-party intermediary banks may deduct a fee from transfers before paying your recipient.
This fee may vary, and OFX says they receive no portion of it. OFX says each customer may get a different rate depending on the market rate, the amount sent, how often it is sent, and the currency needed. OFX says its fees are less than the fees banks charge, which are typically around 5%. It is recommended to contact OFX to get a clearer understanding of their fees.
Getting in touch
OFX recommends you use their website and FAQ page before trying to call them. When calling, wait times can be over 10 minutes. They offer local phone numbers in their local currency account destinations. If your inquiry is not urgent, you can email them at customer.service@ofx.com.
Our recommendation
Being an SME operating across international borders, you want a money transfer company that is cheap, easy to use, and transfers money quickly. That is easier said than done. The big attraction for OFX is that it offers the ability to transfer most major currencies to most countries around the world quickly. This is a big plus if you do business in smaller or less common countries.
The catch is their fee structure. While they don’t charge transfer fees, they earn ‘hidden fees’ on the premium they charge above the mid-market exchange rate for international transfers. Some fintech will state openly what their exchange rate markups are, but OFX says it depends on the currencies and transfer amounts involved. We assume their margin is lower than 5%, the rate they say banks charge and describe as being too high an amount to pay.
If you send money regularly under HKD50,000, you should also be aware you will pay HKD60 each time. Do the maths to see how quickly that could add up. If you are sending money in amounts over HKD50,000, OFX could help you save money, but make sure to check there are no fees being charged by intermediary banks along the way.
And keep in mind you can only use bank transfers or wire transfers to send and receive money with OFX. Cash, credit cards, direct debit, cheques, and payments in person are not on the table. If you want flexible transfer options, OFX is not for you.
Hong Kong-based payments provider Statrys is upfront about its pricing. Its very low FX fee of 0.1% is matched with a monthly account fee of HKD88, and flat sending fees of HKD5 for local payments and HKD75 for international payments. Its multi-currency account features 11 currencies, and you have the option to apply for payment cards for flexibility in making payments. Every client gets their own dedicated account manager who can be accessed within 15 minutes via Whatsapp, email, phone, and WeChat. Statrys also offers a human chat function on its website.
🔎 If you're on the lookout for a business account, take a look at our dedicated Business Account Reviews and see which one fits best for your business.
Final note
We do our best to source all of the information and data we can find and present it succinctly in our reviews, to save you the leg work. If we missed anything about OFX, please send us a message and we will update this review to make it even more comprehensive.
This review is based on information available on the OFX website as of February 2023.
FAQs
Can I trust OFX?
OFX is a money transfer service that is licensed by financial regulators in multiple countries which include Australia, Singapore, Hong Kong, New Zealand, the UK, the EU, the USA, and Canada
Does OFX have a minimum transfer amount?
Where can OFX transfer to?
Sources
Disclaimer
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, or other professional advice from Statrys Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in the publication is accurate, complete, or up to date.
