Sending money no longer means putting up with high bank fees and unfavorable exchange rates. Now you can get your cash where it needs to go in one to two days with little to no fees.
OFX has been in the money transfer business for 17 years. It serves a diverse range of needs for people and businesses managing payments abroad, offering strong exchange rates and charging a mere $5 for transfers of up to $5,000 and no fees for higher amounts.
Established in 2011, TransferWise uses peer-to-peer technology to match users looking to send money in one currency with customers in other countries looking to receive the same money. So if you need to get pounds to someone in the UK, TransferWise will find someone in the UK looking to send dollars to the US, essentially swapping your funds.
OFX and TransferWise: How they work
To use either OFX or TransferWise, you’ll need to create a free account, but it’s easy to set one up as part of your transfer. With TransferWise, you can also sign in with an existing Google+, Facebook or PayPal account.
With OFX, you go to its site, enter how much money you’re transferring and send your funds to an OFX account. OFX then converts your currency and sends it to your recipient, who collects it via bank transfer.
For TransferWise, you go to its site, select the currencies you are exchanging and indicate how much you want to send. After reviewing your rate and fee, money is pulled from your bank account and matched to a sender.
Who offers lower fees?
OFX
OFX charges a flat $5 fee for transfers under $5,000. Transfers of more than $5,000 are free.
TransferWise
With TransferWise, fees depend on where and how you’re sending money. They range from 0.5% to 1.5% of your transaction — and sometimes a bit higher, depending on the currency you’re transferring to. To send $1,000 to China, you’ll pay 1.5% of your transaction (or $15); to the Philippines, the fee drops to 1% ($10). You can easily find out what you’ll pay by visiting its “How much does TransferWise cost?” page.
Exclusive offer: $0 fees with OFX
Because OFX is a trusted partner of finder.com, you can avoid fees on all qualifying transfers. Enjoy competitive exchange rates and pay $0 in fees by initiating a transfer through our site.
Winner: OFX
Both offer lower fees than a lot of other services, especially for larger amounts. But OFX’s transparency and flat $5 fee make it easier to estimate how much you’ll pay.
Who offers better exchange rates?
To understand who offers better exchange rates, you need to first look at the mid-market rate. The mid-market rate is the average of the buying and selling rate of a global currency — and the rate banks and transfer services use when they trade among themselves.
We’ll look at the rates OFX and TransferWise offer compared to the mid-market rate.
OFX
A typical exchange rate at OFX is about 0.4% above the mid-market rate — a competitive rate any way you look at it.
So if you need to send $1,000 to the Philippines:
If the mid-market rate is 1 USD = 49.74 PHP
OFX’s exchange rate could be 1 USD = 48.88 PHP
TransferWise
Exchange rates is where TransferWise shines. It’s one of the only money transfer services that offers you the mid-market rate. So if you’re sending $1,000 to the Philippines and the mid-market rate is 1 USD = 0.82 EUR, that’s the rate you’re going to get.
Winner: TransferWise
Though OFX and TransferWise offer similar competitive rates, there’s no denying the power of paying the mid-market rate.
Sending $1,000 to Mexico
Say you want to send $1,000 to buy office equipment for a business expansion in Mexico City. Here’s what an online bank-to-bank transfer would look like with OFX and TransferWise.
OFX
Transferwise
Transfer fee
$5
$9.90
Exchange rate
1 USD = 21.525 MXN
1 USD = 21.529 MXN
Transfer speed
Up to 4 business days (1–2 to OFX, 1–2 to recipient)
1–4 days
Total received
21,525 MXN
21,529 MXN
This one is a close call. While you could shave some time off the transfer speed with TransferWise, you save nearly $5 on the transfer fee alone by going with OFX. The difference between exchange rates, however, is too minimal to weigh.
Who’s faster?
OFX
To transfer your money to OFX, it takes one to two business days. It takes another one to two days to send that money from OFX to your recipient. You’re looking at least two business days to complete a transaction from send to receipt.
TransferWise
Depending on the currencies involved and your payment method, it could take up to four business days for your recipient to see your cash.
Winner: Tie
Your average transfer may take about the same time with both services.
Who offers more options?
Providers
Payment Methods
Minimum and maximum transfers
Delivery methods
Transfer speeds
Countries and currencies
OFX
Electronic funds transfer (EFT)
$150 minimum; no maximum
Bank transfer
1–2 business days to transfer to OFX; 1–2 business days to transfer to recipient
190+ countries (exclusions include Afghanistan, Cuba, Iran, Iraq, North Korea, Libya and Syria)
Transferwise
Bank account
$1 minimum; $36,000 maximum
Bank account
1–4 days
Nearly 40 currencies
Bottom line
When it comes to international money transfers, both OFX and TransferWise are forces to be reckoned with. It’s too close to call which is better for your situation. Ultimately, you’ll need to weigh your specific details or compare further options to find the service that’s right for you.
Frequently asked questions
Does either OFX or TransferWise offer cash pickups?
No, both TransferWise and OFX offer bank account transfers only.
Who offers better customer service: OFX or TransferWise?
OFX customer service is open 24/7 at 1-888-288-7354. If you have more time, you can use its online contact form.
TransferWise is open from 9 a.m. to 7 p.m. EST at 1-888-908-3833. For faster service, search its online support center.
Can I get a more favorable exchange rate for my transfer?
Yes. Both OFX and TransferWise give you the chance to wait for a more favorable exchange rate if you are transferring money to another currency. By locking in your preferred rate, you can exchange money when the rate is more favorable.
See how OFX and TransferWise compare to other money transfer companies