Experiment: $100K sent with OFX saves $3K vs $100K sent via a Bank

We came across an article in The Australian Financial Review today on an interesting experiment of splitting a $200K AUD->USD transfer into two, with half sent via OzForex and the other half by one of the ‘big four’ Australian banks on the same day to compare what arrives at the other end.

The results are illuminating….!

If you have ever converted currencies or transferred money overseas, you may have been shocked to discover how much you were charged by your friendly bank to move your money.

Recently, a friend was preparing to transfer $200K overseas. I asked him if he would split the transaction into two lots, in order to try OFX.

After signing up to their online platform, he transferred $100K through one of Australia’s big four banks and the other $100K through OFX.

The resulting conversions after fees were $US90,500 via the bank and $US93,500 through OFX. That’s a 3 per cent difference for the same simple service.

He came away from this experience “thoroughly recommending OFX for a great rate, ease of use and secure platform”. He wondered why he had not looked beyond the banks for currency conversions previously.

Over time, experiences like this and the resulting word of mouth may put pressure on large financial institutions to revise the exorbitant fees they charge. OFX spotted this opportunity in the late 1990’s, and therefore has first-mover advantage. Since then, it has grown to employ more than 170 staff in Sydney, London, Toronto, San Francisco, Hong Kong and Auckland, and conducts 460,000 transfers with a combined value of $9.1 billion a year.

AFR.com article on OFX 9 Oct,2013

We here at BestExchangeRates are glad other people are finally starting to notice what we have been saying for years…that people should definetly consider using the non-bank currency providers such as OFX when sending money abroad.

Register with OFX as an affiliate customer of BestExchangeRates to get all your transfers fee free.

Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.

5 Reviews for “Experiment: $100K sent with OFX saves $3K vs $100K sent via a Bank”

  1. Avatar s s says:

    Worst service provided by Ozforex, twice in a row, don’t use the service, search something better. I have been a customer for couple of years with them and they have been very unfriendly, rude. They have cancelled my transaction twice without even speaking to me which I once I got to know only after the money was sent from my account to theirs. That too when customer gets a good exchange rate. If the currency rate is going up, they like to sell it for cheap to u, whereas if u get a good deal and then the currency drops a little they try to tell stories and cancel the deal and customer absolutely has no say in it at all.
    They did not even put an effort In trying to resolve my issue the second time either. They used to give good service in the past, not anymore, there are companies offering better exchange rates and service
    I am going to try TorFX and see how it works for me, time to change.

    1. Avatar Bigi says:

      Same for me mat. They were quite good and fast in the past. No more so.

  2. Avatar M says:

    OzForex is not that good…. I tried to call and I was on hold for 15 min. Quality of voice over the line was really bad. Unless you want the conversion of main currencies Dollars/Euro they couldn’t be bothered. I could feel the other person being quite bored with my question. Not somone you feel like doing business with.
    TorFx answered the phone in 20 seconds and I was put straight to the broker. And yeas they did exchange my currency even if it was more “exotic”. Haven’t done the transfer yet so this is all I can say…. Hope is safe!

  3. Avatar Rob says:

    Bullshit of a story

  4. Avatar k says:

    That is so funny. Did your friend just bend over and pay or did he check first?

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