In the world of international money transfers, OFX and Wise have emerged as leading brands in Australia. They typically offer better exchange rates and lower fees than your local but cater to different audiences. OFX specialises in large money transfers and Wise is more suited for smaller amounts. Below we cover how their fees, exchange rates and transfer speeds differ to help you make the right choice.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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 have 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 0.45% to 1.5% of your transaction. For example, sending $1,000 to Bangladesh will cost you $9.25, while sending $1,000 to Canada will cost you about $5.85.
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
$5.29
Exchange rate
$1 AUD = 0.6298 USD
$1 AUD = 0.6332 USD
Transfer speed
1 - 2 business days
1 business day
Total dollars received
620.95 USD
629.85 USD
Receiver gets
9.45 USD less
9.45 USD more
Sending $10,000 to USA
OFX
Wise
Transfer fee
$0
$47.77
Exchange rate
$1 AUD = 0.6304 USD
$1 AUD = 0.6335 USD
Transfer speed
2 business days
1 business day
Total pesos received
6,304 USD
6,304.84 USD
Receiver gets
0.84 USD less
0.84 USD more
The exchange rates were taken from each providers website on 1 November, 2023. In both scenarios Wise 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.
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. However, as a customer, you'll rarely get that rate. Instead, banks and services add a margin on top to cover their own fees.
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 four 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.
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.
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.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
No, both Wise and OFX offer bank account transfers only.
Yes. Both OFX and Wise give you the chance to wait for a more favourable 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 favourable.
Rosie Russell is a money transfers producer at Finder. She is on a mission to make personal finance easier to understand. Rosie has a Bachelor of Communication (Journalism) and Bachelor of Arts in International Studies from the University of Technology Sydney.
What are the best options for sending or receiving a large amount of money overseas? Read this $50,000 case study with exchange rates and fees comparison.
If you need to transfer money overseas using your credit card, you can do so via your bank, MoneyGram, Western Union and PayPal. This can be useful in emergency situations, but credit card transfers are usually not a cost-effective option.
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