Xe and OFX are reputable online transfer services that offer bank-beating exchange rates on international money transfers. Below we compare how both services stack up against each other.
The fees and rates used in this comparison are accurate as of April 21, 2023.
Which has lower fees?
Xe charges a small flat fee of $3 for transfers under $500, the fee is waived above this amount.
OFX charges a fee of $15 for transfer under $10,000, there is no transfer fee above $10,000.
Both providers require users to send a certain amount to save on fees. Xe has a lower threshold and OFX's $10,000 minimum makes them more suitable for large money transfers. Xe wins as their threshold is much lower.
Let's crunch the numbers: Sending $5,000 and $15,000 to the UK
To get a better idea of how Xe and OFX compare in an everyday scenario, let's take a look at the example of transferring $5,000 and $15,000 from Australia to the UK.
Sending $5,000 to the UK
|Exchange rate||$1 = £0.5352||$1 = £0.5377|
|Transfer speed||1-2 business days||1-2 business days|
|Total pounds received||£2,676||£2683.62|
|Receiver gets||£7.62 less||£7.62 more|
Based on our estimates, OFX saves you £7.62.
Sending $15,000 to the UK
|Exchange rate||$1 = £0.5357||$1 = £0.5381|
|Transfer speed||1-2 business days||1-2 business days|
|Total pounds received||£8,035||£8,072|
|Receiver gets||£37 more||£37 less|
While both providers offer better exchange rates on this larger transfer, OFX still comes out ahead, letting you send an extra £37 to your recipient.
Which offers better exchange rates?
When you convert AUD into another currency, Xe adds a margin on top of the mid-market rate. The size of this margin varies depending on the currency you want to transfer, but it's typically in the 0.4-3% range. For example, here is the exchange rate if you want to send a transfer to the United States:
- If the mid-market rate is $1 = 0.6713
- Xe's rate might be $1 = $0.6655
This is a margin of 0.87% added to the mid-market exchange rate.
OFX also adds a margin on top of the mid-market rate when exchanging your AUD. This margin varies between currencies but generally ranges anywhere between 0.50% and 3%. Using the same AUD to USD example:
- If the mid-market rate is $1 = $0.6713
- OFX's rate might be $1 = $0.6680
This works out to be a margin of 0.50%.
We found that OFX generally offered better exchange rates than OFX, which means that more of the money you transfer arrives in your recipient's bank account.
Which is faster?
Most transfers with Xe are completed within one to two days, but certain transfers may take up to four days.
Payments are usually made within one to two working days after OFX receives your funds. But transfers in less popular currencies can take three to five working days.
Xe's claimed transfer times are slightly faster than those of OFX.
|Payment methods||Receiving options||Maximum and minimum transfers||Transfer speeds||Currencies|
Maximum: $750,000 online (no max offline)
|Within minutes||100+ currencies|
|24 hours||54 currencies|
You'll need to sign up for an online account before making a transfer, then enter the full details of your transaction and review the exchange rate available. Xe will also send you an email/SMS notification when the funds have been arrived in your recipient's account.
To send a transfer, you'll need to create an account and then enter the amount and currency you want to send. Review the cost of your transfer and submit the transaction. OFX also offers a smartphone app if you want to send funds directly from your phone.
Both providers have a strong reputation in the money transfer space but OFX just edges it. OFX is cheaper than XE for transfers above $2,000 as they offer better exchange rates on key currency pairs. Despite this XE has a wider range selection of currencies and is available in more countries.
Ultimately, make sure you compare several transfer services to get the best value for your money.
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