Product Information

NOTE: If any words are capitalised, please refer to the definition section below for a definition.


1.1 Service Provider

The OFX service is provided by UKForex Limited [CN:04631395] (trading as OFX) (OFX) which is part of the global OzForex Group. OFX is a wholly owned subsidiary of OzForex Pty Ltd (ACN: 092 375 703). OFX is regulated by the Financial Conduct Authority in the UK as an Authorised Payment Institution (Registered No. 521566). OzForex Limited holds an Australian Financial Services Licence (AFSL No: 226 484) allowing it to deal and advise in relation to foreign exchange transactions. As an AFSL holder, it is regulated by the Australian Securities and Investment Commission ("ASIC"). It is audited by PricewaterhouseCoopers and is subject to the reporting and disclosure obligations that apply to financial advisers under the Corporations Act 2001 in Australia.

1.2 No Financial Advice

The information contained in this document is general in nature and is provided purely for information purposes. You will also find on our website some useful historical data and some charting and research tools. Additionally, we may also provide you with general oral advice about how foreign exchange transactions work during the course of our dealings with you. Please note however that none of the information we provide to you, either on our website or over the phone, will take into account your personal financial circumstances and needs. You will always need to exercise your own judgement and should obtain independent financial advice as to the amount, type and timing of any particular transaction you enter into with us.

1.3 Contact Us

If you do not understand any part of this document or anything on our website, or require further information, please contact us by telephone on 0845 686 1950 or by email on

1.4 Client Agreement

You will need to enter into a Client Agreement with us before we provide you with our service. We have two client agreements: one for companies and one for individuals. You must ensure that you fully understand the terms set out in the relevant Client Agreement before you transact with us.

1.5 Money Laundering

OFX is registered with HMRC as a Money Services Business (Registration No. 12219180). Please see the Money Laundering Statement on our website at


2.1 Our Service

We provide a 24 hour international online money transmission service. You can enter into an agreement with us to send your money overseas either immediately (ie: within the next 2 days) or at any time within the next 12 months.

2.2 Accessing and Using the Service

You can access our service directly online, by telephone or by email. We do not accept communications by fax. The simplest way to access our service is to register on our website at Registration is quick, costs nothing and is obligation free. Before we can process a transaction for you, we will ring you and ask you to comply with our identification procedures. The identification procedures are required by legislation (and apply to all money transmitters); as they are a legal requirement, it is very important that they are properly carried out, even if they are a little bit inconvenient.

After you are fully registered, you can book exchange rates with us 24-hours a day Monday to Friday. Once a transaction is booked, we ask you to pay the money you are transmitting into one of our accounts, either immediately or on the Maturity Date, then we convert it into the foreign currency and credit the Beneficiary Account you have nominated in the agreed amount of the foreign currency. Our service is very quick, but the actual time between booking a transaction and receiving the money in the Beneficiary Account will vary according to the currencies involved.

2.3 Deliverable Only Service

We are a money transmission business only. We do not facilitate any kind of margin or speculative foreign exchange trading activities. In all cases, you must deliver to us the full amount of the funds you are exchanging. We do not allow you to enter into any kind of set-off arrangement which would allow you to pay or receive on settlement only the amount of any profit or loss occasioned by fluctuations in exchange rates. If you want to speculate on exchange rate movements, you should not use our service.

2.4 No Cancellation

Once you have booked a transaction, you cannot cancel it. As soon as a transaction is booked, we enter into a matching transaction with our own foreign exchange provider which we have to settle whether or not you settle your transaction. If you fail to deliver to us the full amount of the money you are transmitting on the due date, or you fail to deliver any advance payment we have requested, we will close out the transaction. Closing out a transaction involves reversing the transaction we have entered into with our own provider. Sometimes, we will realise a loss on the reversed transaction as a result of exchange rate fluctuations. If there is a loss, we will ask you to pay any loss immediately. In no circumstances will we pay you any profit realised by us if we close out a transaction that you have failed to settle.


3.1 What is Foreign Exchange?

While we offer only a money transmission service, the transactions we enter into with you are referred to technically as "deliverable foreign exchange" transactions. Whenever you exchange one currency for another, you are effectively engaging in a foreign exchange transaction. The term "foreign exchange" refers to the simultaneous purchase of one currency and sale of another currency at an agreed exchange rate.

3.2 Exchange Rates

The "exchange rate" is the price at which one currency can be bought or sold in exchange for another currency. An exchange rate is the price of one currency expressed in terms of another currency. For example, if the current exchange rate for the AUD dollar against the British pound is 0.6194,this means that an Australian Dollar is equal to, or can be exchanged for, approximately 62 pence.

3.3 Quotation of Exchange Rates

The foreign currency market is an over-the-counter ("OTC") market, which means that there is no official or benchmark exchange rate for foreign currencies. Different service providers will quote different exchange rates at different times of the day. We cannot guarantee to offer the best rate available on the day, but we endeavour to be very competitive and will try to match any better rates.

3.4 Exchange Rate Fluctuation

Exchange rates fluctuate constantly and thereby give rise to risk and uncertainty. The chart below shows the fluctuations in the AUD/GBP exchange rate between 1990 and 2016.


3.5 Margin

We make our profit primarily from our Margin. The Margin refers to the difference between the rate we obtain from our own providers on the wholesale foreign exchange market (eg: the Interbank Spot Rate) and the rate we quote you. The Margin will vary from currency to currency and from time to time. While we do not disclose our Margin on every transaction, you are always free to compare the exchange rate we quote you with other providers to ensure that we are offering you a good rate.

3.6 Transaction Fees

OFX does not charge transaction fees. Third-party banks may still deduct a fee from your transfer before paying your recipient, but we receive no portion of it.

3.7 Transactional Risk

When you enter into a transaction with us, you are assuming a risk in relation to our solvency. While we maintain surplus liquid funds at all times, our liabilities are not guaranteed in any way by any other entity in the OzForex Group. However, as we don't assume any risk in relation to exchange rate fluctuations and have netting arrangements in place with other institutions to protect future cash flows, our business model is generally a low risk one.


4.1 Exchange Rates

As a technical matter, exchange rates may generally be quoted as: (i) Value Today (or "T"); (ii) Value Tomorrow (or "T+1"); (iii) Spot (or "T+2"); and (iv) Forward (up to 12 months). We offer only Spot ("T+2") and Forward Transactions, not Value Today or Value Tomorrow transactions. When comparing rates, you should make sure that you compare only T+2 rates, not T or T+1 rates, as they could be appreciably different.

4.2 Orders

We also offer an arrangement whereby you can enter into a Spot Contract or a Forward Contract only when a target exchange rate is reached. For a more detailed explanation of how our limit orders work, please go to paragraph 7.


5.1 What is a Spot Contract?

A Spot Contract is an agreement to exchange one currency for another at an agreed exchange rate within 2 days of the agreement being entered into. An individual or a company will enter into a Spot Contract when they want to transfer money overseas immediately; for example, when they are making a purchase overseas in a foreign currency and need to transfer funds to pay for the purchase.

5.2 Variables

In a Spot Contract, there are a number of variables that need to be agreed upon, including: (a) The denomination and amount of the currency being bought. (b) The denomination and amount of the currency being sold. (c) The exchange rate.

5.3 Settlement

A Spot Contract must be settled within 2 days of the transaction being booked. This means that you must pay us the money you are exchanging within 2 days. Actual receipt of the funds transferred by us into your nominated Beneficiary Account will take longer than 2 days and the actual timing of the payment to the Beneficiary Account will depend on the destination of the funds and the intermediary banks involved.

5.4 Fees

The following Fees/costs may apply to a Spot Contract. (a) Margin The Margin will vary from time to time and from currency to currency. (b) Exchange Rate The Spot Rate quoted by us will be calculated by taking into account the Interbank Spot Rate and the Margin. (c) Transaction Fees We do not charge any transaction fee. (d) Third Party Transaction Fees In some cases, the intermediary banks we use to process payments may deduct transaction fees that we have not anticipated and, in some jurisdictions, the receiving bank could charge a receiving bank fee, however we will try to send money through a low value network to avoid such fee deductions. We will try and notify you of these additional fees but, as they are outside our control, we cannot always do so in advance. You may find, in some cases, that the total amount you expect to receive in your Beneficiary Account is slightly less because such fees have been deducted. You should bear this in mind if you are paying the precise amount of an invoice, for example. If you have any questions regarding likelihood of third party transaction fees being levied by intermediary banks for your transaction, you should ask one of our dealers when you book a deal and we will be more than happy to indicate from our experience the type of third party transaction fees that may be charged in the jurisdiction where your nominated Beneficiary Account is held and with regard to the currency being exchanged.

5.5 Significant Benefits

The significant benefits of entering into a Spot Contract with us are: (i) speed and ease of transacting; (ii) certainty in relation to the exchange rate we offer you; and (iii) access to real time pricing.

5.6 Significant Risks

The significant specific risks involved in entering into a Spot Contract are: (i) as exchange rates fluctuate quite rapidly, you may find that the rate improves very soon after you lock in a rate or that another provider is offering a slightly better rate at any particular point in time; (ii) delays, which are rare but do happen; they can be caused by technical or administrative problems experienced by OFX or by intermediaries for reasons entirely outside OFX's control.


6.1 What is a Forward Contract?

A Forward Contract is a transaction that allows you to transfer money at some time (up to 12 months) in the future at an exchange rate that you agree now, so that you know what the exchange rate will be at the time the exchange of currencies becomes necessary. This allows you to avoid the risks and uncertainties associated with adverse exchange rate movements.

6.2 Purpose of a Forward Contract

The purpose of a Forward Contract is primarily to achieve certainty and to avoid possible losses attributable to adverse exchange rate movements. A forward contract enables future exchange risk to be avoided, although you may still face a loss if you do not settle the forward contract on or before the Maturity Date. A Forward Contract may be useful in the following circumstances: (a) importing and exporting goods where the invoice is in a foreign currency; (b) borrowing in foreign currencies; (c) investing in foreign currencies; (d) buying or selling property overseas; (e) receiving pension payments from an overseas jurisdiction; or (f) repatriating salary or interest payments received overseas. Forward Contracts are generally used by importers, exporters and investors who seek to lock in exchange rates for a future date in order to achieve contractual or cash flow certainty by avoiding adverse exchange rate movements. However, they can also be used by individuals migrating or buying property overseas who want to lock in a good exchange and not take the risk the exchange rate will be worse when they actually need the money.

6.3 Variables

The variables in a Forward Contract are: (a) The denomination and amount of the currency being bought. (b) The denomination and amount of the currency being sold. (c) The exchange rate. (d) The Maturity Date.

6.4 Forward Rate

In determining the rate of exchange for a Forward Contract, there are two components:

  • (i) the current Spot Rate; and
  • (ii) the forward rate adjustment ("Forward Points")

The Forward Rate quoted by OFX will not be the same as the Spot Rate, because it will take into account the interest costs in holding the money until the Maturity Date. It may be better or worse than the prevailing Spot Rate on the day depending on the difference in interest rates between the country from which the funds are sent and the country to which the funds are being sent.
The calculation of Forward Points is a complicated one. It will be influenced not just by interest rates in the two relevant countries, but also by the duration of the Forward Contract and less tangible factors such as the expected direction of interest rates in the two relevant countries prior to the Maturity Date. You may find that the Forward Points change quite significantly over a short period of time as a result of developments impacting on expectations of future interest rate changes.

6.5 Variation to the Maturity Date

We may, entirely in our discretion, agree to allow you to vary the Maturity Date you have booked by paying to us some or all of the amount you are transferring at some time before the Maturity Date ("Pre-Delivery") or by extending the Maturity Date ("Rollover"). If we do agree to such a variation, the Forward Points will change.

6.6 Advance Payment

All Forward Contracts must be settled by delivery of the full amount being transferred on the Maturity Date (also referred to as the Settlement Date). This means that we must be able to see the cleared funds in our bank account on the Settlement Date. There is a risk that you might not be able to settle the transaction on the date that you have agreed to. We therefore bear a Settlement Risk. To cover this Settlement Risk, in most cases, we will request that you make an Advance Payment (also referred to as a deposit) in relation to a Forward Contract.

The amount of any initial Advance Payment requested will be a fixed percentage of the value of the transaction and will normally be between 5% and 10% of the value of the transaction, but could be more depending on the duration of the Forward Contract. While the amount of any Advance Payment is at OFX’s complete discretion, as a general guide, short term Advance Payments (with a Maturity Date occurring within 0-3 months) will attract a 5% initial Advance Payment and long dated Forward Contracts (with a Maturity Date occurring within 3-12 months) will incur a 10% Advance Payment.

Whether or not you have already paid an initial Advance Payment, if the exchange rate continues to move unfavourably for you, we may ask you for one or more additional Advance Payments to cover the default risk.

In the event that we have requested payment of a Advance Payment at any stage of the transaction, you must pay it promptly. We expect to receive the Advance Payment within 48 hours of the request, failing which we reserve the right to Close Out the transaction without notice and ask you to pay the full amount of any loss occasioned by us immediately.
We do not pay interest on Advance Payments.

IMPORTANT: You should not enter into a Forward Contract if you are unable or unwilling to pay an initial Advance Payment of between 5% and 10% of the value of the transaction with the possibility of one or more further Advance Payments being requested at any time prior to the Maturity Date. If we ask you to pay an Advance Payment at any time and you fail to do so, we may Close Out your Forward Contract without prior notice.

6.7 Closing Out Transactions

The liability for an adverse exchange rate movement is crystallised at the commencement of the Forward Contract and not on settlement. If you want to calculate your liability to pay a Advance Payment at any point in time prior to the Maturity Date or your liability to pay a loss in the event that the contract is Closed Out, you need to consider the exchange rate at the time of closing out, because Closing Out involves entering into the same transaction in reverse and selling bought currency back into the market. In the event that a Forward Contract is Closed Out, we will calculate, as at the closing out date, the value of the transaction using prevailing market rates chosen by us in good faith.

IMPORTANT: If there is a loss on a transaction that is Closed Out, you will be liable to compensate OFX immediately upon demand for the full amount of that loss which could exceed the amount of any Advance Payment already held. In no circumstances shall OFX be liable to pay to you any profit arising from the closing out of a transaction.

6.8 Significant Benefits

The significant benefits of entering into a Forward Contract are: (i) cash flow certainty; and (ii) protection from adverse exchange rate movements.

6.9 Significant Risks

The significant specific risks involved in entering into a Forward Contract are:

  • (i) The opportunity to make financial gains as the result of favourable exchange rate movements is precluded; if you enter into a Forward Contract, you must always settle it on the agreed terms whatever the exchange rate is on the Maturity Date.
  • (ii)If the reason for entering into the Forward Contract ceases to exist (eg: the relevant supply contract is cancelled) prior to the Maturity Date, the Forward Contract may need to be Closed Out early and that may result in a loss if the exchange rate has moved unfavourably, as you are not able to cancel the transaction or transfer your obligations to anybody else.
  • (iii)An Advance Payment may be requested of at least 5% to 10% of the value of the transaction either at the beginning of the transaction or at any time prior to the Maturity Date, so you must ensure that you have the funds available to meet any such request. If for any reason you are unable to pay the Advance Payment, we may Close Out your transaction without notice.
  • (iv)Interest will be foregone on the amount of any Advance Payment/s held by us as we do not pay any interest on Advance Payments.


7.1 What is an Order?

You may enter into an agreement with OFX whereby your Spot Contract or Forward Contract becomes binding only when a certain exchange rate ("Target Rate") is reached. You are able to amend or cancel your Instructions by telephone at any time before the Target Rate is reached. However, once the Target Rate is reached and the Order is filled by us, you are bound to settle the transaction in accordance with its terms (please see Parts 5 and 6 for a discussion of Spot Contracts and Forward Contracts).


8.1 General Benefits Our trading platform offers:

  • (i) real-time pricing (just log in and request a live, and deal-able, rate);
  • (ii) immediate access to a trading platform 24-hours a day Monday to Friday;
  • (iii) reduced transaction costs;
  • (iv) competitive exchange rates;
  • (v) accurate transaction records with your personal deal history accessible at anytime by using your personal login on our website;
  • (vi) access to market research; and
  • (vii) we offer visibility to wholesale pricing and a completely transparent service where you can compare our rates against wholesale rates and against your bank’s rates.


9.1 Privacy

Please see the Privacy Policy on our website.

9.2 Money Laundering Regulations

By entering into the Client Agreement, you undertake that you will not knowingly do anything to put OFX in breach of the Proceeds of Crime Act 2002, the Terrorism Act 2000, Regulation EC 1781/2006 and the Money Laundering Regulations 2007 (collectively "the Regulations").You undertake to notify OFX if you are aware of anything that would put OFX in breach of the Regulations. OFX is required to comply with these laws, including the need to establish your identity (and, if relevant, the identity of other persons associated with your account). Instructions for completion of the identification process are included in the Client Agreement that you will need to complete. Additionally, from time to time, we may require further information to assist with this process.

9.3 Refusal to Transact

As a result of our obligations under international money laundering regulations, we reserve the right to refuse at any time and entirely at our discretion, to accept you as a client and to refuse to provide you with our service without explaining our reasons for doing so and without incurring any liability to you as a result of such a decision. This would usually happen before we transact with you if you failed to satisfy our internal identification requirements, but there may also be circumstances in which we are obliged to refuse to continue to provide our service to you after we have accepted you as a client and even though we have transacted with you in the past. This could happen if, for example, it came to our attention that information you provided to us when you registered subsequently appeared to be misleading or incorrect. In some (rare) circumstances, we may be obliged to freeze your account completely and retain any funds we are holding for you pending further investigation.


10.1 Internal Complaints Procedure

We have an internal dispute resolution process in place to resolve any complaints you may have quickly and fairly. Please see the Complaints Handling Policy on our website.

10.2 Arbitration

If the dispute cannot be resolved under our internal disputes policy, you can refer your case to an independent arbitrator. Under the Client Agreement you agree to be bound by a decision of an arbitrator.

10.3 Recovery of Sums Payable by You

If we Close Out a Transaction and you become liable to pay us an amount by way of loss on the Transaction, we will pursue any such unpaid amount immediately through legal action. Any such recovery action shall not be subject to our internal complaints procedure or to arbitration.


Advance Payment means a part payment of the amount being exchanged in such amount as OFX shall deem necessary to cover its Settlement Risk.

AUD means Australian Dollar.

Beneficiary Account means the bank account nominated by you to which we send your funds. It could be an account in your name or it could be an account of a third party (ie: a party whom you are paying for goods or services).

Client Agreement means the umbrella agreement that we will ask you to enter into before we begin transacting with you.

Close Out means cancelling the transaction and selling back the currency we have bought for you when you entered into the transaction.

Currency Pair means the two currencies that are the subject of the transaction.

Delivery means payment to us of the full amount of the currency you are exchanging.

Fees means all fees, costs and charges associated with your transaction.

Forward Contract means an agreement where one currency is sold or bought against another currency at an agreed exchange rate for settlement on a specified date in the future.

Forward Points means the amount by which a Forward Rate varies from the Spot Rate as a result of the differential in interest rates between the countries of the Currency Pair.

Forward Rate means the Spot Rate adjusted to a future date having regard primarily to the interest rates prevailing in the two countries in the Currency Pair.

GBP means pounds sterling.

Instructions means a request made by you to enter into a transaction.

Interbank Spot Rate means the wholesale Spot Rate that we receive from the foreign exchange interbank market. This is usually a preferential dealing rate given to organisations conducting large and frequent transactions.

Margin means the difference between the exchange rate we pay our provider, which we access through the wholesale foreign exchange market, and the rate that we quote to you.

Maturity Date means the agreed Settlement Date which may be brought forward or extended by us at our discretion.

OFX means UKForex Limited [CN:04631395] (trading as OFX).

OzForex Group means OzForex Group Ltd and its related bodies corporate.

Privacy Policy means the privacy policy on our website.

Settlement Date means the date on which the funds that are being exchanged must be received by us.

Settlement Risk means the risk we assume that you will fail to settle a transaction in accordance with its terms and that a loss will be realised by us as a consequence of exchange rate fluctuations.

Spot refers to a foreign exchange contract that must be settled within 2 days (48 hours) and is sometimes referred to as T+2.

Spot Rate means the exchange rate for settlement within 2 business days from the date the transaction was booked.

Transaction Fee means a fixed fee charged on smaller transactions to cover administrative costs.

Value Today refers to a foreign exchange contract that must be settled on the day it is entered into.

Value Tomorrow refers to a foreign exchange contract that must be settled within 1 day (24 hours) and is sometimes referred to as T+1.

We or Us means UKForex Limited [CN:04631395] (trading as OFX).