OFX vs TransferWise, 2023: Which Money Transfer Service is Better?

The OFX vs TransferWise (now: Wise) debate is a common one.

OFX and Wise are two international money transfer services that allow you to send money across borders more quickly, conveniently, and sometimes cheaper than bank transfers do.

So, which should you choose? Despite their having some similar features, there are several key differences between them. In the following few minutes, you will discover which one outperforms the other for your specific requirements. 

You’ll learn what OFX vs TransferWise do differently, as well as which features they provide that the others don’t, their exchange rates; which firm is more likely to be suitable for you; and so on. You’ll know precisely which service provider is ideal for your specific situation after reading this post.

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Quick Verdict: OFX and Wise

Wise is cheaper than OFX for small money transfers and for some cross-currency transfers. For large money transfers, OFX may be less expensive than TransferWise.

Wise keeps their fees low and gives their users even more savings by using the mid-market rate to process transfers.

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OFX Money Transfer vs TransferWise

OFX Overview

OFX (previously known as OzForex, UKForex, NZForex, CanadianForex, ClearFX, USForex, and Transfers) has been in operation for more than 20 years to make international money transfers more accessible and more affordable for customers.

OFX is a licensed money transfer company that offers services to businesses and consumers. The firm has been in its current form since 2016, following many name changes. It’s one of the most convenient and cheapest options for international bank transfers, especially when sending a considerable sum of cash.

OFX is based in Sydney, Australia, and has employees working in their offices worldwide, including Toronto, Canada. Their services and support are available 24 hours a day.

Wise Overview

Since its inception in 2011, Wise (formerly TransferWise) has been a leading international money transfer service provider.

With low fees and competitive mid-market exchange rates, as well as a fantastic online experience, it’s no surprise that Transferwise is at the top of its class.

TransferWise allows you to send money to over 80 different nations quickly and simply using Transferwise’s website or mobile app. You can use credit cards, debit cards, bank accounts, and wire transfer accounts to make payments.

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Compare OFX vs TransferWise: How do they Work?

How OFX Works

To send money using OFX, go to the website and sign in. You then enter the transfer amount. You may deposit funds into an OFX account for transfer or link your bank account for a direct transfer, which means that OFX will withdraw the money for you. OFX will then convert the currency and send it to a recipient who receives payments via bank transfer.

OFX allows you to move money from one bank to another using the phone or online. If you do it over the phone, it is 24/7, and you’ll come across a “dealer” who can answer any questions and ensure that everything goes according to plan.

Most individuals, on the other hand, do their banking entirely online, and in this case, you will discover a simple yet effective platform. However, when dealing with large amounts of money, extra assistance is occasionally required for various reasons, mainly owing to the banks involved. So because of the assistance from these friendly dealers, OFX is recommended for sending massive amounts.

How Wise Works

By providing a straightforward application, TransferWise makes it easy for you to send money directly between banks. Their excellent online platform with phone support allows you to manage bank-to-bank transfers. Their low fees make them especially appealing for smaller amounts in conjunction with great client service and transparent pricing.

They also provide a sleek and user-friendly online experience, from sign-up to transfers, making it a pleasure to utilize.

Simply use the app or website to choose your currencies and how much money to transfer. Wise will then break down the costs and charges for the transaction, providing transparency! The cash will be taken from your account and delivered to the recipient after approval and confirmation.

Wise also allows you to transfer money to a multi-currency account. You can then divert funds in over 50 currencies and convert them between currencies inside the account.

Read More>> TransferWise Canada Review

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OFX vs TransferWise: Transfer Fees

OFX Fees

OFX charges no transaction fees. Thus, if you frequently move funds across borders, this can save you a lot of money.

However, a third-party bank may charge a fee for the transfer. OFX has no power over whether or not they charge you a fee; thus, it can’t do anything about it.

Wise Fees

The costs you may anticipate paying when sending money with Wise differ based on several variables.

Some of these variables are: How much money you’re transferring? The country you’re sending the money to and whether you’re using a bank account, debit card, or credit card to fund the transfer.

Wise fees are clearly stated, and you’ll always be able to determine how much you’ll be charged before completing your transaction.

✅ Verdict: Wise Wins

Although OFX has no transfer fees, third-party banks may charge additional fees, and the recipient may receive less money as a result. The disadvantage of this is that you will not anticipate how much you will pay for an international money transfer ahead of time.

Wise charges a modest, transparent fee for each transfer, and you’ll always know the exact amount you’ll pay before.

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OFX vs TransferWise: Exchange Rates

The mid-market or interbank rate should serve as a reference point when it comes to foreign exchange rates.

The mid-market rate is the midway point between the buy and sell prices of a currency pair’s pair. This rate serves as an excellent baseline for OFX vs Wise comparisons.

OFX Exchange Rates

OFX charges a typical margin of 0.4 percent above the mid-market rate. However, you may get margins of around 0.8% to 1.2% when transferring amounts between $5,000 and $50,000.

Once you’ve decided on the exchange rate, OFX locks it in for the duration of the transaction to protect you against currency fluctuations.

The true cost of sending CAD to USD

Wise Exchange Rates

TransferWise does not charge a margin on exchange rates. All conversions are done at market mid-market rates. Compared to other money transfer services and alternatives, Transferwise’s market mid-market rate makes them highly cost-effective. When sending funds through TransferWise, you can expect similar pricing as your bank.

You may secure your exchange rate with Transferwise when sending money to specific countries. Depending on where you’re sending money, you have between 24 and 48 hours from when you set up your transfer to pay for it in full. If you start your transfer on a Friday, your exchange rate will be held for the whole weekend.

You will be charged the mid-market rate if you do not fully pay your transfer by the end of the secured period. Because this price fluctuates, you may find yourself paying more or less than you anticipated when making the transfer.

✅ Verdict: Wise Wins

There’s no doubting the importance of paying a mid-market rate.

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OFX vs TransferWise: Coverage & Currencies

OFX

OFX allows its customers to send money to almost 200 countries and territories around the world. Like Wise, they offer a comprehensive list of 55 or more currencies on the currency front. Australia-UK, Australia-USA, USA-UK, Canada-UK, and UK- Spain are among the most popular transfer corridors.

Wise

Wise provides global money transfers through its platform to over 80 countries, and they support 55+ currencies.  This includes the most common currencies such as US dollars (USD), British pounds (GBP), Euros (EUR), Japanese Yen (JPY), and more. You can see a complete list of supported currencies on Wise’s website. 

✅ Verdict: Wise Wins

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OFX vs TransferWise: Transfer Speeds

There are two distinct phases to an online money transfer. The first is transferring the money from your chosen payment method to the service provider. The second step is delivering funds to the intended recipient.

OFX Transfer Speed

OFX has a worldwide network of banks, allowing them to transfer money securely and swiftly across international borders.

For example, if you’re sending from the United States to Europe, they can typically deliver same-day service. Most major currency transfers take between 1 and 2 days (from the time OFX receives your funds). With most uncommon currencies, this procedure might take anywhere from 3 to 5 days.

Wise Transfer Speed

It takes roughly 1-2 business days to complete a transfer via the Wise platform. Smaller transfers might take just hours to reach your recipient, but larger payments may take a few days.

Each currency and country is unique. It might take up to two working days to change your funds. However, this is rare. How quickly your payment arrives depends on the payment methods available in the country you’re sending from and how quickly your recipient’s bank can handle your money.

 ✅ Verdict: It’s a Tie

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OFX vs TransferWise: Payment & Transfer Methods

OFX 

Electronic Funds Transfer (EFT) is the most common payment option for OFX transfers, followed by BPAY in Australia and direct debits for corporate customers. Once you have committed to the transaction, OFX provides you with a list of payment options. Bank transfer is the only payout choice available on OFX.

Wise

Wise accepts bank transfers, credit cards, debit cards, ACH bank debit, and bank wire transfers when sending money to Australia, the United Kingdom, Canada, or Europe. 

You can make bank transfers in person, online, and over the phone. Wise’s primary payout method is bank deposits.

However, countries such as Bangladesh, Ghana, Kenya, and the Philippines allow mobile phone e-wallet deposits.

✅ Verdict: Wise Wins

There are more payment alternatives with Wise. Wise also outperforms OFX based on the number of money transfers and payout possibilities available.

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OFX vs TransferWise: Customer Support

When you entrust your money to a company, you need to be confident that if something goes wrong, they will respond promptly. As a result, customer service is critical when it comes to money transfers.

OFX

The company can be reached by email and phone. There is no option for communication via chat. Every country has a different phone number, which you may call at any time. The following is a list of the countries supported for making calls:  Canada, the UK, the US, Australia, Hong Kong, New Zealand, Ireland, Spain, Germany, and France.

TransferWise

You may reach them by email, chat, and phone. The phone number you can reach varies based on the office you want to contact. Each country has its phone number, office, and office hours during which your call will be taken.

The following is the list of countries with offices: UK, Germany, United States, Canada, Spain, Australia, France, Brazil, Japan, Austria, Hungary, Singapore, and Italy.

✅ Verdict: It’s a Tie

Both companies are doing an excellent job when it comes to customer service. They are both represented in significant areas throughout the world and have several ways of contacting them.

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OFX vs TransferWise: Ease of Use

OFX Ease of Use

OFX can be accessed via a computer, tablet, or smartphone. An app for Apple and Android smartphones is also available. You may also talk to an OFX agent to start a money transfer.

TransferWise Ease of Use

The TransferWise website may be accessed from your computer, tablet, or mobile device. You may also install the TransferWise app for free on your iPhone or Android device. Transferwise users appreciate all of their platforms, with many calling them easy and straightforward.

✅ Verdict: It’s a Tie

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OFX vs TransferWise: Business Offerings

OFX Business Offerings

OFX excels in terms of business solutions and partnerships. Small and large businesses around the world may use their several services to interact with global consumers and suppliers. They also play an essential role in currency risk management.

What OFX for business offers

• Multi-currency accounts
• Risk management
• Global payment methods
• Xero accounting integration
• Business specialists

What OFX for business doesn’t do

• OFX doesn’t offer an FX-optimised business debit card.

Wise Business Offerings

A recent update to TransferWise’s functionality is scheduled transfers. This can help minimize administrative work for suppliers and staff who make regular monthly and weekly payments.

As Wise is solely an internet company, a business client does not receive currency fluctuations and trends assistance. However, transactional foreign currency receipts and payments are readily available with Wise.

TransferWise offers businesses:

• Xero and Quickbook integration
• Batch payments
• Multi-user account access
• FX optimized business debit card
• Regular and scheduled transfers

TransferWise does not offer businesses:

• Risk management tools
• Business account management

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OFX vs TransferWise: Pros and Cons

OFX Pros and Cons

Pros

• OFX is licensed and regulated with FINTRAC in Canada, ASIC in Australia, FINCEN in the USA, FCA in the UK, New Zealand, Hong Kong, and Singapore
• For transfers, they provide 24-hour phone assistance.
• There are minimum or maximum limits on the amount of money that may be transferred.
• Bigger transfers attract lower fees.
• The sender countries all have a physical presence, which is particularly advantageous for more significant amounts.
• There is a business account that offers more advantages.

Cons

• OFX only supports bank-to-bank transfers
• Banks may charge a fee that is not known upfront

Wise Pros and Cons

Pros

• Transferwise is available in all of the same nations as OFX, plus Belgium and the European Economic Area (EEA), Japan, India, Malaysia, and United Arab Emirates. 
• It is available in over 80 countries.
• No unexpected fees. The fees are low and transparent.
• They have local bank accounts in all of the supported countries.
• Multi-currency account
• Ideal for online purchases and travelling, with Mastercard debit card TransferWise Borderless.
• Excellent customer service

Cons

• There is no phone assistance to assist you in setting up transfers.
• There’s no physical presence
• Transfers are bank-to-bank only
• Large transfers may be somewhat more expensive than other alternatives.

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Significant Differences between OFX vs TransferWise

• OFX can be used both online and over the phone (24/7), while Wise has just phone operators for assistance. 
• A Mastercard debit card and bank information are available through Wise in almost every major currency, whereas OFX does not.
• Wise offers multi-currency wallets, whereas OFX does not.

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FAQs: OFX vs TransferWise

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Final Thoughts: OFX or Wise – Which is Better?

OFX vs TransferWise is a tough decision, mainly because both platforms perform well in many areas. They provide comparable services, but there are also other elements that one will have that would appeal to some people but not others. 

Wise comes out on top as the overall winner. It excels in most categories, but it is too close to call in a few others.

What should you do? Compare all the features, pros, and cons of each platform before selecting the ideal one for you.

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