Which is a Better Deal?
Transferwise Wins From Our Research
TransferWise is an online exchange service that specializes in helping you transfer money between two different currencies. They will charge with extremely competitive fees, but most notable about TransferWise
is that they will not take a margin on the exchange rate.
OFX is one of the world’s major companies that specializes in foreign exchange and international payments both are great choices, however TransferWise is easily the more affordable because of their zero margin on exchange rates (whereas OFX will charge on exchange rates that are above the mid-market, or “real,” exchange rate.
Apart from that OFX, is a bit more traditional — essentially it depends on local banks when transferring funds.There are certainly differences between the two, therefore, the following article aims to compare International money transfer companies TransferWise and OFX key points and services.
A comparative newcomer, TransferWise began in 2011 and rising quickly as a result of unique P2P (Sending over £800 million round the world each month!)
A P2P model implies for the user that TransferWise is usually extremely fast and very affordable to send money overseas.
P2P model may have limits. It could be the case that there are more people in one country who want to transfer large amounts of money.
OFX is very well established having began trading in 1988.
OFX more traditional approach means sometimes it can be more expensive to send money internationally. For more information on this leading money transfer company, click here to read the OFX money transfer service review
Compare Exchange Rates and Fees
This is very likely to be among the most important items for a lot of potential customers. Regrettably, it also among the most complex facets. The total cost will be different based upon your currency pairs and the sum of money that you are sending.
Generally, the cost of your transfer is going to be affected by two factors. These are the foreign exchange rates and fees which you incur. It’s safe to state that the lower the fee and also the nearer the exchange rate to the mid-market rate, the lower the costs will be.
Fees and Exchange Rates
When you send cash with TransferWise, the charges are based on a proportion of the total amount of money you’re sending internationally. If you’re planning to send a very low sum of money, some foreign currencies also have a minimum fee you will have to pay.
The fees are usually very low, but they do fluctuate based upon the money pairing you decide on. This may leave some money transfers costing over many others.
Many foreign currency exchange pairings have a charge of below 1 percent and a few are charged at 0.5 percent. The maximum fee does not really go above 3 percent, except for transfers to Ukrainian Hryvnia.
It’s exceedingly improbable you will find a better exchange rate compared to TransferWise because you get receive the mid-market exchange rate.
to sign up to TransferWise.
OFX Exchange Rates and Fees
OFX’s transfer methods approach is somewhat different which is excellent news if you’re planning to move a huge sum of money.
However, it’s worth noting that OFX don’t offer the mid-market rate for transfers. Although, the rate they provide is normally pretty low and may be no more than 0.4 percent, we have have discovered 0.8 percent to 1.2 percent on average for online money transfer quantities that range from $5k to $50k.
Who is the Winner
For smaller sums of money, TransferWise is very likely to be more affordable in respect of transaction fees (especially in the event that you pay the $15 OFX commission). Not only is that the commission charged as a small portion of your money transfer, they also provide you with the mid market exchange rate that you’ll be able to look up for yourself.
Things get a bit closer in respect of larger transfer quantities. In scenarios where you send over $10,000, which provider is more affordable depends on whether the margin OFX charge about on the exchange rate is more or less than the fee TransferWise charge you to make a transfer. We also notice that TransferWise is relying upon peers abroad so we wonder whether larger transfer amounts is an issue because of the matching that is required.
In the end, whichever you use, there’s a substantial cost saving compared to using your bank’s bank account transfer facility if you send money overseas. However, in the event you really have to squeeze every last penny, you will have to carefully compare TransferWise and OFX as it will depend on the flat fee structure and overall transactions fees which that apply in each country.
Comparing Transfer Speed
How long your move takes could be quite important when it comes to moving cash, particularly if you’re moving the cash for something urgent. Fortunately, you’ll be fairly well served with both these firms and, whichever way you move, it’s very likely your transfer will probably be faster than using a lender.
Transferwise Transfer Speed
TransferWise transfers require a maximum of 2 days. But, it’s fairly normal for transfers to take far less time with this and usually sending or receiving money will only take a matter of hours.
OFX Transfer Speed
OFX transfers normally take 1-2 days to get there. But some transfers can be finished within a much shorter time interval. For example money transfers from the US to Australia can arrive from the receiver’s account on precisely the exact same day that you send it.
In practice, regardless of the quick speed these two international money transfer companies operate, it is the case that the banks may need time to transact meaning two days can become 4-5 working days if you live in an area such as USA, UK or Australia in which the banking system is quite similar.
Obviously, as with transport fees, the specific of time your transfer is dependent upon a range of variables. There could be a bank holiday in the recipients country which could also impact the total time it requires.
Customer Services Comparison
In case you have ever had delays in sending money overseas, you will learn the importance of superior customer services to contact and ascertain what is causing the delay. By simply being able track your inquiries and receive quick responses can really give you reassurance. Let us take a peek at how both services compare.
Transferwise Customer Service
TransferWise can be reached through their website, through email, or on your phone in one of the international offices which is handy given the different time zones around the world.
OFX Customer Service
Similarly, OFX also has physical offices around the world meaning its easy to phone and talk to a representative of the business should a major issue arise.
Security is possibly the most important factor in regards to moving money abroad. Fortunately, you ought to have nothing to be worried about utilizing either TransferWise or OFX.
Both companies are regulated by several bodies in the countries they operate around the world, for example in the United Kingdom, this is the Financial Conduct Authority
(FCA). In Australia its the Australian Securities and Investments Commission. In Canada its the Authorite des Marches Financiers and Financial Transactions and Reports Analysis Centre of Canada. In Hong Kong, its the Financial Conduct Authority.
Another way to observe how great a money transfer company business is is to test out what others are saying about it through online reviews. We took a peek at both organization’s customer rating on TrustPilot to find out what comments appear for both TransferWise and OFX.
What do People Say About Transferwise
The 5 star reviews mention how easy it is to use their platform, in addition to its excellent service and the speed of money transfer.
Of the negative reviews of which there were very few, these appeared to reflect those who had difficulties in getting approved, credit card or debit cards not working, plus the odd international money transfer taking longer than it should have done. Click here to read the in depth TransferWise review
and discover even more about this leading international money transfer provider.
What do People Say About OFX
The 4 star reviews are very similar to that of TransferWise, with customer service, transfer speed high in the comments. Likewise, negative reviews echoed those of TransferWise issues eg sign up issues and the odd transfer amount taking far too long to be received.
to sign up to OFX’s service today.
OFX or TransferWise?
Overall, if you are looking to send small amounts of money overseas or the minimum transfer amount permitted, TransferWise is the obvious choice given their fee structure which means you only get charged a percentage of the actual transfer amount. However, if you are sending a large amount, especially amounts of $10,000 compare OFX and TransferWise together as its depends on the currency .