How To Use OFX – A Review

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There’s no getting around it – it’s nearly impossible to avoid living an internationalised life these days. This fact is especially true for us Britons.

Many of our kids go to uni on the Continent. We holiday in the South of France, and some own second homes there. And then, there is the internationalisation of business to consider. Even those with blog-based/info product businesses make use of outsourced talent.

In all these cases, transferring currency across international borders is an inevitability. If you’ve been doing it through your bank, I’m afraid I have bad news – you’re paying far too much! Fortunately, online money transfer providers are considerably cheaper. Not only that, but they also offer better customer service.

As Britons, we have many online cash transfer providers available to us. However, when you consider all the available options, I heartily endorse OFX. This Aussie firm has been moving money for clients since 1998 – along the way, they’ve received scores of positive reviews from clients.

In this blog, I’ll brief on everything you need to know about OFX – so, let’s get started.

Stop Moving Money Through Your Bank

Before I break down OFX in detail, though, I realise you may be sceptical about online money transfer. First and foremost, know that online money transfer providers are just as safe as your bank.

OFX, like other legitimate cash transfer providers, is licensed and regulated by the Financial Conduct Authority, or FCA. They gladly follow guidelines that protect consumers. Most notably, FCA rules require OFX to keep client and operational funds separate. That way, in the unlikely event that OFX defaults, your funds will be secure.

Secondly – know that every time you move money through a bank, they are ripping you off. There is no other way to put it. Now, I realise this is a provocative statement to make. So, let me prove it to you with an example.

Let’s say you have an account with the Royal Bank of Scotland (RBS). Lately, you made an offer on a French Riviera holiday home, and the owner accepted. To complete the sale, you now need to send 50,000 EUR.

Firstly, know that RBS charges 15 GBP per outgoing wire. Second, they cap transfers at 10,000 GBP per day. And third, their exchange rate is 2%-3% off the interbank, or real rate of exchange.

Knowing all this, let’s move our money to France. To do this, we would have to space the transaction out over five days. To send exactly 50,000 EUR, you’d have to send 9,144 GBP each day at their GBP/EUR rate of 1.09546. In total, you’d send 45,720 GBP to the Continent.

How bad is that deal? To illustrate, let’s move our cash like a banker – fee-free and at the GBP/EUR interbank rate of 1.12373. If you could, you’d only have to ship 44,495 GBP. Put simply, you’d be paying RBS 1,200 GBP to send your down payment – outrageous!

OFX: A More Cost-Effective Way To Send Money Abroad

We don’t have to put up with our banks anymore. In the past decade, e-commerce has taken off, and so has the acceptance of online financial services. Whilst money transfer providers have attacked the bank’s huge profit margins, inter-niche competition has driven costs even lower.

Today, you can get decades of experience at a stunningly low price. OFX is a pioneer in the money transfer field, as they started moving money online in 2001. Before we get into why I love this firm, though, let us demonstrate how much they can save you.

Firstly, OFX has no maximum transfer limit. Secondly, they don’t charge any fees. And lastly, they offer exchange rates that are breathtakingly close to the interbank rate. When we wrote this article, they posted a GBP/EUR rate of 1.12037. Under these conditions, you would only need to mobilise 44,629 GBP to send 50,000 EUR to France.

In other words, by using OFX, you’d save 1,100 GBP versus your bank. That’s more than enough to throw a cracking housewarming party! 

 

OFX: More Than Just An Online Money Transfer Provider

OFX hasn’t become one of the world’s top money transfer firms by accident. 22 years ago, this Aussie firm chose their lane, and has excelled in it.

OFX focuses on processing large transfers – 2,500 GBP is the smallest amount they’ll move. This policy allows them to focus on a smaller number of clients. As a result, OFX can execute 80% of transfers within 24 hours. Large capital transfers are stressful – the sooner they resolve, the better.

However, there is more to OFX than quick transfers. They also offer clients a suite of specialised services. They include, but are not limited to, the following:

Paying Overseas Contractors

Have a distributed team of freelancers, remote workers, or vendors overseas? As you add to your business infrastructure, paying everyone can become a hassle. With OFX, you can create recurring transfers to up to 500 recipients. Streamline hours of work with a few mouse clicks!

Forward Contracts/Limit Orders

These days, currency markets are stormier than ever. Recently, the COVID crisis made Brexit turbulence look like a stiff breeze.

These market movements are no joke – sudden gyrations in currency markets can cost you hundreds of GBP per transfer. Forward contracts guard against this. They establish a locked-in rate upfront so that you can set up worry-free transfers well in advance.

You can also take advantage of Forex movements by setting limit orders. This OFX service allows you to make transfers when the market moves in your favour. Use a limit order to set up a transfer at a specific price – if it is met, the trade executes.

Receiving Accounts

If you’re an entrepreneur, you may have set up a shop on an e-commerce giant like Amazon or eBay. And why not? After all, they allow us to effortlessly sell our products in marketplaces around the world. However, when the time comes to repatriate our international profits, these sites charge extortionate fees and margins.

OFX’s receiving accounts solve this problem. By setting up an account in the local currency (e.g., USD), you can do free domestic transfers. Then, when you repatriate your profits via OFX, you’ll pay much lower fees/margins.

Dedicated Dealers

Finance is a complex subject. Through no fault of our own, we frequently make money mistakes. Sadly, the more money that is involved, the more these errors are magnified.

Any time you need to send a significant cash transfer, ask OFX’s dedicated dealers for help. Their training qualifies them to offer advice on a variety of subjects. From the current state of the market to specialised tactics (e.g., moving inheritances in tranches to minimise taxes,) they have the in-depth expertise you’ve been searching for.

OFX: Your Best Option For Large International Money Transfers

The more money we have, the more we fear losing it. Banks capitalise on this by charging obscene rates on their transfers. Fortunately, there are better options out there these days. By partnering with OFX, you can minimise your losses and maximise your gains. 

Disclaimer:  Remember the information you read here does not represent advice.  Any ideas or suggestions are just that and may not work for you.  Read the full disclaimer here.


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