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OFX Review

Last Updated: December 28, 2020

Score: 9.5
Score 9.5

OFX is an Australian based money transfer provider that delivers online payments to 80 countries. It is a cost-effective means of sending and receiving international payments. The company does not charge any transfer fees. It takes a relatively small percentage on top of the mid-market x-rate.

About OFX

OFX is an Australian based money transfer provider that delivers online payments to 80 countries. It is a cost-effective means of sending and receiving international payments. The company does not charge any transfer fees. It takes a relatively small percentage on top of the mid-market x-rate.

In the case studies used for this review, its average markup was 1% or less, depending on the currency pair and the amount. This makes it one of the most practical currency exchange platforms for businesses who trade with currencies and make regular international payments.

OFX is geared toward corporate and eCommerce businesses and has a minimum transfer amount set at $1,000 with no limitations on amounts sent. Its average delivery speed ranges between one to four days. It is a bank-to-bank delivery system, and clients fund the transactions via local wire transfer or direct debit.

Get Started with OFX

 

Streamlining Payments

OFX has local bank accounts in the countries where it operates. This expedites the payment process as funds are transferred internationally from the US bank account to local bank accounts. The payment is available in local foreign currency within two days. OFX then transfers it to the recipient’s bank account in their local currency. The most exotic currencies take three to five days for delivery into the recipient’s account.

  • Single Platform for Multi-Currency Outbound Payments – When users register an account on the OFX website, they can use their web and mobile platforms to manage all international payments. OFX has a user-friendly mobile app that is fully functional for making and tracking each transfer in real-time. The sender can follow the progress and keep the recipient informed throughout the process.
  • Inbound Marketplace Receiving Account – The OFX Marketplace on the site is an easy-to-use platform that centralizes all inbound forex payments. It completes an international settlement in a few quick steps. It is an efficient tool for sellers that collect payments from various marketplace accounts on a regular basis.

Payment Process

OFX payment process
OFX payment process_Mobile

Mass Payments

The Multipay function offered by OFX is an excellent tool for making multi-currency mass payments. It allows for up to 500 individual payments in one batch transaction, making the process ideal for businesses with global sales teams, vendors, affiliates, etc. Multipay simplifies international recurring expenses such as salaries or subscriptions. It offers a once-off, automated setup to complete each transaction in a timely manner and at the best currency pair mid-market rate.

  • Support – The OFX support team monitors the global currency markets 24/7, ensuring that clients have access to the most favorable mid-market rates. The client does not have to spend time trying to find the best rates for various markets. The OFX platform will automatically select the most cost-effective route for each currency pair.
  • Setup – To activate the OFX Multipay function, the client can contact their relationship manager through the platform and inform them of the request. The OFX relationship manager will assist the client by phone or online to upload up to 500 payees in a CSV file format. A CSV file is a simple Excel spreadsheet saved as a comma-delimited text file. The OFX software automates the process after uploading and processing each payee’s currency conversion at the best available market rate. It sends a batch file to the client for approval of offered rates, and if approved, completes the transaction with the click of one button.
  • Integrated Accounting with Xero – OFX clients can use the accounting tool’s integration that is freely available on its platform. It will track and report all mass payments processed by the platform.

Saving Money With OFX

Traditional banks often have multiple fees and costs attached to international payments and currency conversions. The OFX Money Transfers have transparent and straightforward calculations, and the client knows the price of each transfer. 

OFX does not charge any fees, including transfer fees, to open an account on its platform. It earns by charging a lower-than-average percentage on the mid-market rate. This is typically not higher than 1%. The standard banking norm can easily cost users up to 7% of the overall value sent.

Risk Management Tools

Mitigating risk is a large part of successfully managing international payments. Volatile currency markets can quickly absorb potential profit. If a company does not exercise control over foreign exchange transactions, it can affect its actual cash flow vs. forecasts and budgets.

OFX offers various tools to minimize exposure and help clients maximize currency conversion, both inbound and outbound. It can significantly help guarantee and secure the projected cash flow for the financial year by giving the client control over the conversion levels.

  • OFX Limit Orders – The OFX Limit Order is a great tool for payments that aren’t time-sensitive. It allows the user to choose a target rate on a currency pair conversion. Clients can use it per invoice or for specific currency pair transfers. OFX only releases the payment once the indicated exchange rate hits. It allows the client to plan for particular conversions with exact amounts in place that will not affect the projected cash flow.
  • OFX Forward Contracts – If a company has fixed international payments for goods or services, the OFX Forward Contract is the best way to secure favorable currency rates to various destinations. It allows the user to book a specific conversion rate for up to 12 months in advance. Regardless of how the market shifts during this contractual period, the client’s rates will remain locked.

Onboarding Process

1
Signup
On the official OFX website, complete and submit the one-page application that includes information of where the company transfers to and the amount they predict to send per year.
2
Phone Call
An OFX representative will call the applicant to complete the new registration. Among sharing other details, the user can supply all the various currency pairs with which they trade.
3
Documentation
The user will have to support the application with various documentation as requested by OFX. The documents can be uploaded directly on the website via a secure connection and will reach the relevant team for completion.
4
Confirmation
It typically takes four business days to open a Global Currency Account before the new client can start making transactions. OFX will email all relevant information to the client within two days of the account activation.

Expert Support

The OFX customer support team is made up of currency experts that can add valuable insight to a company’s international payment operations and hedging strategies.

  • Expertly Trained Reps – The support staff at OFX are trained experts in the currency exchange industry. With years of experience, they can assist OFX customers in finding customized solutions according to individual requirements.
  • Availability – OFX customers have 24/7 phone access to the business support team to make payments, confirm currency markets, and set up accounts. The support team is also available via email for less time sensitive matters.
  • FAQ’s – The OFX website offers an extensive FAQ section. It addresses most frequently asked questions from customers regarding its services and operations.

The Bottom Line

OFX_bottom line_desktop
OFX_bottom line_mobile

The OFX platform is user-friendly and easily integrates with existing software. Users can benefit from streamlining their international payments on one platform. The provider offers excellent support and customized solutions tailored to the client’s needs. It is a good option in terms of personalized payment and risk solutions.

  • Dashboard View – Users have a single view application to monitor all international payments, markets, and progress. It is easy to transact from the dashboard as all the relevant information is available at the click of a button.
  • Mobile Compatibility – The OFX platform is compatible with any mobile device and adapts to any screen size. It delivers a safe and efficient platform to make international payments while on the go.
  • Marketplace Integrations – OFX streamlines inbound payments from various marketplace providers via automated API integration.
  • Costs – OFX is one of the most cost effective foreign exchange providers. They do not charge flat transaction fees or other hidden fees. Clients have peace of mind that the quoted conversion amount will land in the receiving account.