OFX: Is It Good to Go? Broker Review

OFX is an Australian-based financial services company founded to provide a more efficient and equitable solution for international money transfers. Established over 25 years ago, OFX has served over 1 million customers and facilitated transfers in 55+ currencies to 197 countries.

Is OFX legit or a scam?

OFX is entirely legitimate and not a scam. It is regulated by ASIC in the Market Making (MM) business. They have physical offices in several countries around the world, including well-regulated financial markets like the United States and the United Kingdom. This not only provides a physical presence but also implies adherence to the regulatory requirements of these jurisdictions.

Market Instruments

OFX specializes in currency exchange and international money transfers. The company does not offer a wide array of financial instruments like stocks, bonds, commodities, or cryptocurrencies. Their primary focus is to facilitate international money transfers at competitive rates and with transparent fee structures. The company supports over 50 currencies and allows transfers to more than 190 countries.

Account Types

OFX offers a variety of account types designed to meet the diverse needs of its customer base.

1. Small Business Account: This account type is ideal for businesses that have a yearly trading volume of up to $1 million. It provides the basic features needed for international money transfers and foreign currency holding.

2. Medium Business Account: This account is suited for businesses with trading volumes exceeding $1 million per year. Additional features, like more advanced reporting and personalized service, are generally available for these account holders.

3. Online Sellers Account: Targeted at e-commerce businesses, this account type offers the ability to hold multiple currencies, making it easier to manage international sales. The account allows for receiving payments in different currencies without the need for multiple bank accounts, thus simplifying cash flow management.

Leverage

OFX primarily deals with currency exchange and international payments, and as such, does not offer leveraged trading. Their services are tailored for direct currency conversion and transfer, making them a safer but less flexible option compared to typical forex trading platforms that offer leverage.

Spreads & Commissions

OFX aims to provide transparent and competitive pricing for its customers. Unlike many traditional banks, which often charge a markup of up to 5% on the interbank rate, OFX maintains much lower margins. Their revenue comes from the spread between the interbank rate and the rate they offer their customers. This allows OFX to offer competitive exchange rates, especially beneficial for businesses and individuals who frequently need to convert large sums of money.

Trading Platform

The OFX trading platform is accessible through their website and mobile applications. While it does not offer the advanced charting tools, algorithms, or trading capabilities that specialized trading platforms do, it serves its primary purpose of facilitating currency exchange and international payments well.

Deposit & Withdrawal

OFX's deposit and withdrawal methods are somewhat limited but are designed to be secure and efficient. Most transactions are conducted via bank transfers, ensuring the safety of funds.

Customer Support

OFX offers a comprehensive customer support system to ensure that its customers' needs and inquiries are promptly attended to. Here are some of the key details:

Office Address: Their office is located at Fitzwilliam Court, 2 Leeson Close, Dublin 2, D02 YW24, Ireland.

Email: They can be contacted via email at customer.service@ofx.com for both personal and business clients. For business development, partnerships, and strategic alliance queries, the contact email is solutionsemea@ofx.com.

Telephone: OFX provides dedicated phone lines for client support, available 24/7. The international number is +353 1 582 5307.

They also have dedicated lines for

Ireland (1 800 948 364),

Germany (0800 181 7242),

Spain (900 838628), and

France (0805 080584).

Educational Resources

When it comes to educational resources, OFX falls a bit short compared to other brokers and financial service providers. While they offer some basic guides and FAQs on currency exchange and international money transfers, they do not offer extensive educational materials, tutorials, or webinars that some other platforms provide. If you're new to the world of forex and international money transfers, you might find the educational offerings of OFX to be limited.

Conclusion

OFX is a legitimate and reliable option for individuals and businesses looking for specialized services in currency exchange and international payments. With a multi-country presence, a strong reputation, and the backing of several high-profile corporate partners, the company stands as a credible financial services provider. While it may not offer the diverse range of financial instruments or trading features that some other brokers provide, its specialization in foreign exchange makes it an excellent choice for those specific needs.