- 1 All you need to know before you Sign Up for TransferWise or OFX
- 1.1 OFX vs TransferWise
- 1.2 These fundamental differences can be explained by how they work.
- 1.2.1 How OFX Works
- 1.2.2 How TransferWise Works
- 1.2.3 Charges for Money Transfer
- 1.3 Final Verdict on OFX vs TransferWise
All you need to know before you Sign Up for TransferWise or OFX
OFX vs TransferWise
There are many options available for transferring money overseas like Banks, PayPal and, many International Money Transfer Companies. OFX and TransferWise are two such companies that stand apart to help you transfer money overseas at much cheaper rates than the banks.
These fundamental differences can be explained by how they work.
How OFX Works
With OFX, you can send money bank-to-bank by phone or by using online internet devices like desktop or mobile. Most people prefer to transfer money online using a simple and effective platform offered by OFX.
However, when large amounts are involved, it is advisable to transfer money bank-to-bank by phone with the help of OFX dealers. They provide (24/7) support and are ready to answer all your queries to ensure everything is transaction happens smoothly.
How TransferWise Works
TransferWise is completely focused on its excellent online platform for money transfer and provides telephone support for troubleshooting. There is complete transparency on their low fees and you can see exactly what you will pay for in the widget before the actual money transfer is done. The great customer service they offer makes them a highly recommended platform for smaller amounts.
Charges for Money Transfer
Both TransferWise and OFX provide money transfer services that are far less expensive than the banks but the actual rate may vary for different currencies and different amounts.
TransferWise – 0.4% to 1%
OFX – 0.4% to 2%
Banks –3% to 7%
PayPal – 6% to 8%
OFX provides its services mainly in Australia, New Zealand, US, Canada, UK, Singapore, and Hong Kong and lets you transfer money for up to 190 countries worldwide.
TransferWise operates in 69 countries and lets you send money to 60 countries worldwide. However, it is to be noted that the TransferWise Borderless card is only available in the UK, Europe, Australia, New Zealand, and the USA.
As of date, OFX supports money transfers in 190 countries worldwide in 50+ currencies. Whereas TransferWise supports 30 currencies for local transfers and up to 20 currencies for international transfers. But TransferWise Borderless expands your reach for local and international transfers.
Charges or Fees involved
OFX charges a flat $ 15 fee on all transfers below USD 10,000 plus a margin on the exchange rate. Although the margin on the exchange rate tends to decrease as the amount goes up and they charge no transfer fees for transfers above $10,000.
OFX has no maximum limits for transferring money locally or internationally. This makes it an ideal choice for moving large amounts, especially when phone support helps transactions run far more smoothly.
TransferWise’s fees, on the other hand, depend on various factors like the amount to be transferred, target currency, and how the account is funded. Typically, a small percentage (0.4 to 1%) of the amount is charged while initiating the transfer at the mid-market rate.
TransferWise is ideal for small transfers ($7,000 USD and below) as it does not charge a margin on the exchange rate.
How the Money is sent
OFX supports direct debits from banks, Debit Card, Wire Transfers, and some location-specific methods such as BPAY. TransferWise supports Credit cards and debit cards, Direct debits from banks, SWIFT Payments, and Location-specific methods like SOFORT and iDEAL
Final Payout Methods
OFX only supports bank-to-bank transfers. Whereas TransferWise also supports bank-to-bank transfers, but they do allow you to fund transfers using a credit or debit card (for a fee).
OFX generally takes 3-5 days for overseas money transfer. However, TransferWise may take 2-5 days for overseas money transfer
OFX can be contacted through email or can also be reached by their location-specific numbers. They provide excellent support over the phone, to help you answer your queries or any other support required to transfer the money.
TransferWise provides supports via phone, email, or live chat. Although they don’t offer phone support to carry out money transfers, their Help section has country-specific guides that can answer all your questions.
Final Verdict on OFX vs TransferWise
OFX serves as a good platform and helps you save more on large money transfers. Use OFX for amounts above $7000 and for amounts below $7000 USD you may compare the fees with other Money Transfer companies.
TransferWise is ideal for you if you are required to send smaller amounts ($7,000 USD and below) on a frequent basis. It also has the added advantage of setting you up with a multi-currency wallet and a pre-paid MasterCard debit card when you sign up for TransferWise Borderless.