Home FAQs Ways To Transfer

Ways To Transfer

Yes, it’s easy to set up a recurring transfer using OFX’s Regular Payments so you never have to worry about initiating your transfers on time. You can schedule payments for up to 12 months in advance. 

Contact an OFXpert who will send you a Regular Payment Form. Once this is signed, returned, and approved an OFXpert will give you a call to set up your transfer plan.

 

The best way to send money online is to use a specialist payments provider. A payments provider with a robust online platform could save you hundreds when compared to using a bank or big-name money transfer company. Make sure you choose a company that can handle heavy market volatility, so you don’t miss out on a great rate.

What to look for when you want the best way to send money online:

Live exchange rates. Currency exchange rates are constantly in flux gaining and losing value by the second. Bank’s publish a daily exchange rate which often leaves customers paying about a 5% margin above the market rate at the time of your transfer. Companies like OFX take substantially smaller margins and give you exchange rates that are based on the live market rate for your currency transfer.

 

Locked-in rates. Peer-to-peer models may claim to use the live market rate, but sometimes, the rate they publish isn’t the rate you get when your transfer finally goes through. In the terms of service of one peer-to-peer platform, it says the company will only cancel your transfer if the market moves more than 3% before your transfer is completed. That means you could end up paying 2.9% more than you thought you would. And if the exchange rate does move 3% or more? Peer-to-peer companies cancel the transaction altogether, so you have to go through the whole process again. What kind of deal is that? Those types of limitations meant many transfer companies closed during Brexit, so their customers couldn’t move their money at exactly the time when their customers needed to.

 

If you want to move your money when you want to, use OFX. We’re one of the few providers who stayed open during Brexit, because our robust platform can handle even heavy market turmoil. When you transfer with us, your exchange rate is locked in, so you always know exactly how much you’ll be getting on the other end. It’s simply a better system to help you retain more control when you send money online.

 

No to low fees. You know that margin that the banks charge on your international money transfer? Well, they usually charge a hefty fee on top of that (usually around $30 depending on your bank.) But that’s not the end of it. Your recipient may also pay a similar fee to receive the money.  In an effort to reduce those fees, OFX uses our network of 115 global bank accounts to send your money. Basically, you pay into our account in your home country, and we pay out from our local account in your recipient’s country. By using local banking networks, your recipient is less likely to have to pay a fee when you use us. We can’t guarantee it, but we can guarantee that we’ll keep working hard to help you save more of your money. So you can make an informed choice, we do want to let you know that OFX charges a small $15 fee to send transfers that are less than $10,000. 

 

Instant 24/7 access.  One of the advantages of sending money online is 24/7 access. When your bank is sleeping, you can use an online payments provider to book a transfer on your schedule. Nights, weekends, holidays? No problem.

 

Security. Choose a reputable vendor. You don’t have to pay the premium that the banks charge just to get peace of mind when sending your money overseas. OFX is a listed company on the Australian Stock Exchange. We handle the international payments for the likes of MoneyGram and Macquarie Bank. Plus, we use SSL encryption and recently won an award for our outstanding fraud prevention efforts. When you transfer with us, you can rest easy knowing your money will be delivered safely and swiftly.

 

Speed. You need your money moved fast. We get it. OFX processes most major currencies transfers within one business day from the time we receive the money from your bank. Exotic currencies may take a bit longer, but our network of local banks all over the world usually expedites every single transfer we make.


So what is the best way to send money online? Well, 600,000 savvy customers think OFX is the smarter way to move money internationally, but you should decide for yourself. If you have any further questions about our service, contact our customer service support anytime.

A peer-to-peer money transfer uses a website or app to transfer funds from one person to another over the internet or mobile networks. For international payments, peer-to-peer will match buyers and sellers of different currencies to deliver a competitive exchange rate.  

Peer-to-peer is convenient, yet limited

Peer-to-peer (P2P) is a good way to save on the excessively high exchange rates margins charged by banks for international money transfers. Banks often charge 5%, while P2P services usually charge a commission of 0.5 to 1.5%. But there are substantial drawbacks to the P2P model.

  • Estimated rates. When you book a peer-to-peer transfer, the low margins can be enticing, and the rates are certainly competitive. The problem is, the rate you see may not be the rate you get. P2P sites will publish the rate that’s available right now, but by the time your deal is booked and paid for (it can take 3-5 days to find a buyer), the currency rate may have moved substantially. With P2P, you never know how much you’re actually going to get until the deal goes through. At OFX, when you book a deal with us, the rate is locked in. What you see is what you’ll get.
  • Delayed processing. Currencies change rapidly and suddenly and P2P models automatically pause your transfer if the currency has moved 3% from when you booked your deal. When that happens, you may end up waiting an extra week for your money. If you can’t afford to wait, that kind of delay could be problematic.
  • Imbalanced buyers and sellers. P2P transfers rely upon there being the same number of buyers and sellers available at any given time. When this balance doesn’t exist, as happened during Brexit, you may not be able to make the transaction at all, and you could miss out on a great exchange rate. Look for a company with a robust online platform and established banking relationships, so you can keep control of your money. To learn more about how Brexit-style volatility can impact peer-to-peer, click here.

Select a Better Alternative: OFX

At OFX, we focus on making it easy and affordable to transfer money for business or pleasure, and we even provide support to online sellers. Choose the money transfer provider who can adapt to your unique needs.

When you transfer money with OFX, every transaction will be swift and secure, and you can reach us by phone 24/7 if you need to. When it comes to international money transfers, you’ve already got a friend in the business: OFX.

Sources:

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

Forward Contract Pros and Cons

A Forward Contract may be beneficial for business and individuals if exchange rates are particularly attractive now, and you want to lock in that rate to hedge against uncertainty in the future. This can be especially helpful for small businesses who want to keep their cash flows predictable when buying or selling overseas.

However, a Forward Contract precludes you from taking advantage of further beneficial movements, if your currency pair continues to move in a profitable way. To avoid missing out on further profitable movements, some people use a Forward Contract for a smaller portion of their total payment (say 50%) as a way to hedge against volatility.

Ways to manage foreign exchange risk: OFX

OFX offers a number of alternatives that help you manage your business and personal foreign exchange risk.

  1. With our Limit Orders option, you won’t have to miss your target rate if it happens overnight or while you’re busy. Instead, you can set your rate and, once triggered, we’ll get in touch to let you know you can complete your transfer.
  2. With an FX Option, you retain the right but not the obligation to transfer funds at an agreed rate at a later date. You pay a small premium on the option to gain protection against exchange rate shifts while being able to profit if the exchange rate shifts in your favor.

Talk to one of our dedicated dealers today to develop a currency strategy that’s right for you.

Whether you’re looking to transfer for personal or business needs, OFX has a transfer option for you.

If you want to make a one-off money transfer, our Spot Transfer option may work best for you. If you’d like to make multiple transfers, or set up recurring payments on a fixed schedule our Regular Payments option will allow you to set up an automated transfer schedule. If you’d like to make mass payments in just one click, our Multipay function is a great payroll solution. 

Beyond our rapid transfer options are Forward Contracts and Limit Orders, which help manage your currency risk. These options are better suited for larger transfer amounts and help provide you with rate security.

Find out more about OFX's transfer options.

*If you book a Forward Contract, it may mean losing out if the market rate improves because you’re contracted to settle at the agreed rate. Read more.

Money transfers or wire transfers are the best way to send money internationally. An online specialist money transfer provider can save you a lot of money compared to using a bank. Your money will usually arrive faster when you use a company that has a global network of local bank accounts to send money from one account to another.

Exchange rates matter when you send money internationally

When you want to transfer money from one bank account to another, it’s simple to do it domestically. When you want to send money overseas, and you need to exchange currencies, things get a bit more complicated.

You may think it’s easiest just to use your bank to transfer money from one bank account to another--even if the recipient lives overseas. But be careful. Banks often charge high 5% margins above the daily exchange rate when you transfer money internationally. (That’s on top of the usual fee of about $30.)

Our research showed that 80% of consumers were unaware of these high bank margins that equate to roughly $500 on a $10,000 transfer.* When informed of these hidden charges most people (75%) felt the costs were ‘very high’ or a ‘bank rip-off’. We tend to agree.

Choose a smarter way to send your money

When you use OFX to transfer money from one bank account to another, you can save substantially when compared to using your bank. Think of it this way: if you were to pay for an overseas wedding using OFX, you might save enough to cover the cost of the cake.

OFX is an international money transfer specialist. All we do is send money overseas at a fraction of the cost of what the banks charge. That’s it. That’s why we’re the preferred provider of Macquarie bank and MoneyGram. If you’ve ever sent money with them, chances are, you’ve already done business with OFX.

Our online platform and friendly customer service team are available 24/7, so when your bank is sleeping, we’re not. It takes just a few minutes to sign up with OFX, so you can start saving money on all your international money transfers from here on out.

We know that sending money overseas can seem difficult because international banks have different names for different banking codes. From IBANs and SWIFTs to BSCs and NCC, we’ve done it all before, so our forms are simpler to fill out because they use the local code names, not the international ones. If you have any questions, we’re here to walk you through it on your schedule. Nights, weekends, holidays? No problem.

If you’re going to be doing multiple international payments from one bank account to another, we do also help our customers manage their currency exposure. Whether you’re an international business guru or just someone who wants to pay for their kid to study abroad, you get access to our highly-skilled foreign currency specialists, who can help you keep more control over your money.

Make the smart switch to OFX today. And if you’re still on the fence, just ask yourself: does your bank really deserve more of your money?

*Survey conducted by Galaxy Research on behalf of OFX (August 2016). Sample size: 1000 Australians.

There are no extra transaction fees when you set up a Recurring Transfer with our Regular Payments product, just the added peace of mind knowing your payments will be made on time.

You simply pay your regular instalments and the advance payment (deposit) as agreed in the transfer plan and OFX will complete the transfer at the agreed exchange rate. Find more information here or contact an OFXpert.

Yes, if you want to lock in a rate up front for your Regular Payments. 

If you are happy to accept a rate on the scheduled day of the payment then no deposit would be required.

For more information about Regular Payments or deposit amounts, contact an OFXpert.

Yes, you can lock-in a rate before you send us your funds. This is how it works:

  1. You lock-in a binding exchange rate and provide the recipient bank account details.
  2. Send us the currency you have sold.
  3. Once we’ve received your funds we’ll send the currency you’ve bought to your recipient.

Simple!

Yes, the maturity date (the date we make the transfer to your recipient) can be extended by changing your single transfer to a Forward Contract. If you’d like to switch your single transfer to a Forward Exchange Contract, you will need to speak with one of our transfer experts.

This is only available for transfers made with major currencies and the exchange rate will change according to the interest rate differentials between your currencies. Once you’ve made the switch we’ll require a deposit, and the balance is due a few days before the maturity date of the contract. Then all that’s left is for us to complete your transfer on your chosen date.

 

If you decide to cancel your Recurring Transfers part way through the agreed term, you may be liable for remaining payments.

If a Recurring Transfer is terminated, we’ll sell the balance of the purchased currency (if any) and buy back the balance of the original currency. Your advance payment (deposit) will be returned minus any losses that may have occurred due to exchange rate variations. If the deposit doesn’t cover losses, you’re obligated to transfer the owed amount. 

Contact an OFXpert for more information.