At OFX, our goal has always been to provide the best possible exchange rate, and we’ve delivered. Saving our customers more money on the rates that the banks typically charge. We’ve also been stated to offer outstanding value for international money transfers, and 80% of people have rated us 5 stars on Trustpilot, a lot of people wonder, how do we deliver such great exchange rates? Here’s the basics:
Global By Local (GBL) processing
When sending money overseas with a bank, you’ll often be charged a hefty foreign exchange fee. But that’s not the only part that means you could end up losing money in the transfer.
Banks use something called the ‘interbank’ rate to trade money with each other. The rate fluctuates by the second, and it is the rate that you’ll see if you do a basic Google search like ‘1 AUD to USD’. But that’s not the rate that the banks give you, they usually add up to 5% on the daily exchange rate. So on a $10,000 transfer, you could be paying up to $500 on top of the initial fee. For example, say you wanted to transfer $10,000 from AUD to USD. With your standard bank you would receive $6,758 in return.2 With OFX, you’d receive $7,028. That’s a saving of $270!
OFX uses a network of 115 bank accounts worldwide, where we hold currency reserves. When you send a transfer at the rate you’ve locked in with one of our foreign exchange specialists, most of the time your money will go into a local account in your home country and stay there. We then pay your recipient from our reserves in the destination country. That’s why your money arrives so quickly when you use us.
This GBL system has a number of benefits. It protects our business from currency exposure and lets us pass those savings onto you. It also means we can stay open during times of high currency volatility – unlike many of our competitors. We know that timing is critical when you need to move your money, this system often allows us to process same day transfers3 24/7, 360 days a year – even when the banks are closed.
OFX uses a network of 115 bank accounts worldwide, that’s why your money arrives so quickly when you use us.
We’re an online company
Unlike the banks and other money transfer companies, our operations are only online and over the phone. We don’t have retail outlets, so you don’t have to pay for them.
We’ve built many automated processes for money transfers that let us operate with maximum efficiency. Your transfer is automated whenever possible, which reduces the risk of input errors, saves on staffing costs and expedites processing.
Customers from around the globe can use our easy online service, and brand new app on iOS and Android to send money on your schedule, not the bank’s. This can be done without incurring any fees on transfers over $10,000, and on transfers under $10,000, we charge a flat fee of $15. That’s it, no hidden costs.
Other exchange rate perks with an OFX account:
- You can lock in a great exchange rate and transfer your funds later through a Forward Exchange Contract.
- You can also target an ideal exchange rate with a Limit Order, and we call you once it’s triggered to complete the transaction.
To get started
- Average savings based on published rates of ANZ, Westpac, NAB and CBA on a single transfer of AUD$10,000 to USD between 6.9.18 and 8.10.18 excluding weekends. Transaction costs excluded. Quoted savings are not indicative of future savings.
- Delivery times are indicative and measured in business days from the time your funds are received by OFX.
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. UKForex Limited (trading as “OFX”) and its affiliates 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.