The Best Way to Transfer Money Between Countries
A lot of people immediately think of using their bank to transfer money between countries, but there is a better—and more affordable—way to get the job done.
Banks charge both high fees and high margins on the exchange rate when sending money internationally, so using your bank may be your most expensive option. Make the smart switch to OFX, and you can send your money with little to no fees and a very low margin.
In order to understand how much you can save when you choose OFX, you need to know about the Interbank Rate, or the Market Rate. This is the rate that banks will use whenever they trade currencies with each other, and the rate changes throughout the day every day. But here’s the thing: banks often add a margin of as much as 5% on the Interbank Rate. This is on top of their fixed international transfer fees. So on a $10,000 transfer, you could pay $500 on top of fee to transfer the money. Sounds like a lot doesn’t it?
Because OFX doesn’t publish a firm daily rate, the service is adaptable to the minute-by-minute changes within the foreign exchange market. This allows OFX customers to save substantially on every international money transfer they make.