The 2 main ways to send money overseas are via banks or a money transfer service like OFX. Both methods are secure and efficient but one can be much cheaper than the other. Can you guess which one?
Naturally, we like OFX the best but there’s a very good reason – cost.
The problem with using a bank to transfer your money
When sending money overseas through your bank, you will usually be charged a wire transfer fee that could be up to $301. Your fee might even be higher based on the currency you want to send and the bank you’re using. There might even be an extra fee to expedite your transfer.
Sadly, the disappointment doesn’t end there.
When you send money through your bank, you’ll probably pay a margin of up to 7%2 on the exchange rate. Ouch.
The exchange rate is the price at which one currency can be bought or sold in exchange for another currency.
Banks use something called the Interbank Rate to trade money with each other.
This rate fluctuates by the second, and it is the rate that you’ll see if you do a basic Google search like ‘AUD to USD’.
However, that’s not the rate that the banks give you.
Banks usually add a margin on top of the daily exchange rate, which means on a $10,000 transfer, you could be paying $500 on top of the fees, just to send your money.
We think that’s too much.
You can get bank-beating rates with OFX. We believe there had to be a better, fairer way to move money around the world.
Avoid the fees associated with International Money Transfers
OFX gives you a better and cheaper way to send your money internationally.
With us, there are no setup costs or monthly fees to keep your account open. All you pay is a flat fee of $15 on transfers under $10,000. That’s it. Nothing extra. No hidden fees.
Our prices are even better If you’re sending over $10,000 – it’s free!
To see how much you could save on transfers with OFX, try our Customer Rate Calculator.
Other perks of an OFX account include:
- Sending recurring transfers
- Making transfers on your schedule, not the bank’s
- 24/7 help from our OFXperts
- Locking in great exchange rates for future transfers with a Forward Contract
- Setting a target exchange rate with a Limit Order so you won’t miss out if the market reaches the exchange rate you want
Once you know there are better options out there, sending money internationally doesn’t have to be a headache.
Start saving on your international money transfers with OFX
Create your FREE account
To transfer money overseas without paying hefty fees:
You’ll feel at ease with OFX. Our online platform lets you track your transfer, every step of the way.
Money transfer types to suit your needs
Use the right transfer type, at the right time. See how we can help you with your next money transfer.
References
IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. OzForex Limited (trading as OFX) and its affiliated entities make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog
