OFX vs Wise (TransferWise)
We compare OFX and Wise to see which provider you should go with for your next transfer.
Key takeaways
- OFX often suits transfers over $10,000 with $0 fees, while Wise provides better exchange rates.
- Wise generally offers faster transfers, with card payments often arriving within minutes.
- OFX offers financial tools like forward contracts for locking in preferred exchange rates.
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Which has lower fees?
OFX
OFX charges a $15 flat fee unless your transfer is over $10,000, if you're a new customer they might waive the flat-fee to entice you. It's also worth noting, OFX has a minimum transfer amount of $250.
Wise
With Wise, fees depend on the payment method, the amount and the destination. Their fees normally range from 0.33% to 1.75% of your transaction. For example, sending $1,000 to Bangladesh will cost you $13.25, while sending $1,000 to Canada will cost you about $5.31.
Winner: Tie
For smaller transfers, Wise will be a better option for you in terms of the fees. But if you're making a larger transaction, OFX may end up being more cost-effective as you pay no fees above a certain limit and offer from forex tools. We're calling this one a tie.
Let's crunch the numbers: Sending $1,000 and $10,000 to the United States
To put this into the context of a real-world transaction, this is what two different transfers look like when sending money with Wise and OFX. Keep in mind that transferring to other currencies will have different fees involved and may take longer.
In our imaginary scenario, we'll be using a bank transfer.
Sending $1,000 to USA
| OFX | Wise | |
|---|---|---|
| Transfer fee | $15 | $6.02 |
| Exchange rate | $1 AUD = 0.680520 USD | $1 AUD = 0.68065 USD |
| Transfer speed | 1 - 2 business days | 1 business day |
| Total dollars received | 680.52 USD | 676.55 USD |
| Receiver gets | 3.97 USD more | 3.97 USD less |
Sending $10,000 to USA
| OFX | Wise | |
|---|---|---|
| Transfer fee | $0 | $47.77 |
| Exchange rate | $1 AUD = 0.680420 USD | $1 AUD = 0.68025 USD |
| Transfer speed | 2 business days | 1 business day |
| Total pesos received | 6,804.20 USD | 6.774.02 USD |
| Receiver gets | 30.18 USD more | 30.18 USD less |
The exchange rates were taken from each providers website on 7 October 2024. In both scenarios, OFX wins but as you transfer more money, the gap between OFX and Wise narrows.
Which offers better exchange rates?
OFX
A typical exchange rate at OFX is about 0.50% to 3% above the mid-market rate. For example, OFX charges a 1.84% markup on USD and a 2.09% markup on Euro transfers. So while OFX doesn't charge a fee for transfers over $10,000, it still makes money from this margin.
Wise
Exchange rates are where Wise shines. It's one of the few money transfer services that offer you the mid-market rate, the best available. So if you're sending $1,000 to the Philippines and the mid-market rate is $1 AUD = 37.09 PHP, that's the rate you're going to get.
Winner: Wise
There's no denying the power of paying the mid-market rate.
Which is faster?
OFX
Most currencies will take one to two business days. However, if you're sending money to the US, it often arrives within a day.
Wise
Depending on the currencies involved and your payment method, it could take up to five business days for your recipient to see your cash. Paying by card is by far the fastest method, with your money arriving there immediately in most cases.
Winner: Wise
Both providers can get your money there fast for certain payments or currencies, but Wise has the faster transfers overall.
General features
| Payment methods | Receiving options | Minimum and maximum transfers | Transfer speeds | Currencies | Safety | |
|---|---|---|---|---|---|---|
| OFX |
|
| Minimum: $250 Maximum: Unlimited | 24 hours | 50+ currencies | Regulated by: ASIC, FCA, FINTRAC, FinCEN, C&ED, MAS, FMA |
| Wise |
|
| Minimum: $1 Maximum: $1,800,000 | Within minutes | 40+ currencies | Regulated by: ASIC, FCA, FINTRAC, FinCEN, C&ED, KLFB, DIA, MAS |
OFX
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.
Wise
For Wise, 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, you're given Wise's bank details and PayID to send the money to. Wise sends the money once it's received.
Bottom line
When it comes to money transfers, OFX and Wise are forces to be reckoned with but serve different types of customers. Wise is suited for small, regular transfers while OFX is built for large, one-off transfers and provides better customer support. OFX can't compete with Wise's exchange rate but has tools such as forwards contracts that can give you competitive rates if your transfer isn't urgent.
Looking for more options?
Check out our comparison of over 25 providers to find you the best rates on your next transfer
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