Live exchange rates are constantly in flux while the market is open, because of the non-stop trading of currencies and futures by banks. The validity of a published exchange rate depends on on your money transfer provider.
Banks publish a daily rate, which means they need to build in a margin in order to protect their profits from currency volatility. Unfortunately, this margin is high–often 5% of your transfer, so on a transfer of $20,000, you could be paying $1,000 to your bank. That seems excessive doesn’t it?
At OFX, our customer rates are tied to the live interbank or market rate. So we don’t have to build in a wide margin, which means you could save up to 75% on your money transfer when you send money overseas with us.*
Why do exchange rates change so much so fast?
There are several reasons why exchange rates are always fluctuating. Interest rates, inflation, geopolitical stability, and export and import levels are some of the factors that play a role.
The benefits of live exchange rates
Live exchange rates are becoming increasingly popular compared to daily quoted rates. Increasing numbers of foreign exchange providers, including OFX, are choosing to work with live exchange rates instead of daily quotes. This is because live rates are accurate and transparent, while daily quotes will give you an exchange rate for the whole day, even if the actual rate is lower or higher than what you’re quoted.
Know exactly how much to send
So how do you know how much money you should send internationally and how much your recipient will receive? Before you make a transfer on OFX, use our handy currency converter to learn the current market rate. Then check your bank’s rates. We’re pretty sure you won’t like what you see.
Because we aren’t publishing a daily rate, OFX can adapt to the changes occurring in the market from one minute to the next. That lets us transfer your funds at substantially lower margins, saving you money. End of story.
Register with OFX today and keep more of your money.
*Average savings based on a sample of OFX Customer deals between 5 July and 9 August 2016 on an AUD$10,000 to USD single transfer against published rates of ANZ, Westpac, NAB and CBA for the same period. Fees and transaction costs excluded. Quoted savings are not indicative of future savings. Please consider OFX’s PDS and your circumstances before making a decision about any financial product.