OFX Forex Broker

FeaturesOFXCompany NameOFX (Previously known as OzForex)Registered inAustraliaRegulatedYes (By ASIC in Australia)Years of EstablishmentSince 1998Trading InstrumentsCurrency Exchange, International PaymentsAccount TypesSmall Business, Medium Business, Online SellersMinimum Initial DepositNot Applicable (Focuses on currency exchange, not trading)Minimum SpreadNot Applicable (Offers competitive spreads in currency exchange)Trading PlatformProprietary Web and Mobile AppDeposit and Withdrawal MethodBank Transfers, Credit/Debit CardsCustomer Service24/7, Email, Telephone, Social MediaOverview of OFX OFX is an Australian-based financial services company, founded with the aim of providing a more efficient and equitable solution for international money transfers. Established over 25 years ago, OFX has served over 1 million customers, facilitating transfers in 55+ currencies to 197 countries. Beyond competitive exchange rates, OFX provides personalized 24/7 customer support. OFX claims to operate under the supervision of over 50 global regulators and collaborates with a carefully selected network of banking partners to ensure secure and reliable money transfers. Is OFX legit or a scam? OFX is entirely legitimate and not a scam. It is regulated by ASIC in 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. Furthermore, OFX has been in business for several years, gaining endorsements and partnerships with well-known entities like Travelex, MoneyGram, Xero, and Capital One 360, among others. These long-standing relationships add another layer of credibility to the firm. Additionally, their website is encrypted, ensuring that your data is kept secure.Pros and ConsProsConsMulti-currency support (over 50 currencies)User interface could be improved24/7 customer supportLimited educational resourcesCompetitive exchange ratesNo other financial instruments (stocks, cryptocurrencies)Reputation and reliabilityBusiness-friendly featuresPros:Multi-Currency Support: One of OFX's strongest suits is its ability to support transactions in over 50 different currencies. This makes it incredibly versatile for businesses and individuals who have diverse currency needs.24/7 Customer Support: In the world of international finance, the market never sleeps. OFX's 24/7 customer support means that no matter what time zone you are in, help is available.Competitive Rates: Unlike many traditional banks, OFX offers highly competitive exchange rates. They provide rates that are much closer to the interbank rates, thus saving customers money on each transaction.Reputation and Reliability: OFX has been around for years and has earned a reputation for being reliable and trustworthy. Partnerships with notable companies further cement its reputation.Business-Friendly Features: The company offers specialized accounts for small to medium-sized businesses and online sellers, allowing for better management of foreign transactions and multi-currency holdings.Cons:User Interface: While functional, OFX's online platform may not be as user-friendly as some of its competitors. This could be a turn-off for those who are new to forex trading or international money transfers.Limited Educational Resources: The company doesn't offer a wide range of educational materials for those who wish to learn more about forex trading. This could be a drawback for newcomers looking for guidance.No Other Financial Instruments: OFX specializes in forex and does not offer trading in other financial instruments like stocks or cryptocurrencies. For traders interested in a more diverse portfolio, this could be a limitation.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. This makes them highly specialized but also limited in scope if you're interested in a broader range of trading options. The company supports over 50 currencies and allows transfers to more than 190 countries. This extensive support makes them a significant player in the global foreign exchange market. Whether you're a business that needs to pay overseas suppliers in different currencies or an individual looking to transfer funds internationally, OFX provides a dedicated platform for your needs.Account Types OFX offers a variety of account types designed to meet the diverse needs of their customer base, from individuals and small businesses to medium enterprises and online sellers.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.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.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.How to Open an Account? Here's a generalized step by step guide on how to open an account on a website like OFX:Visit the Website: Firstly, visit https://www.ofx.com/.Sign Up: Look for the “Sign Up” or “Register” button, usually at the top right corner of the page or in a prominent location on the home page.Provide Information: You will be directed to a new page where you'll be asked to provide various details such as your full name, address, phone number, and email address. You may also need to provide additional identification information for security purposes.Set Up Login Details: You will be asked to select a username and a strong password. Ensure that your password is unique and secure. For added security, you might also be asked to set up a security question and answer.Confirmation: Once you've filled out all the necessary information, click on the “Submit” or “Complete Registration” button. You should receive a confirmation email from OFX. Click on the link in the email to verify your account. After that, you've successfully opened an account.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. The interface is straightforward, with easy navigation, though some users might find it less user-friendly compared to platforms designed with trading in mind.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. However, this might mean that transactions could take longer to process compared to platforms that accept credit or debit cards or e-wallets.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 Fitzwilliams 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).Brokers ComparisonFeatures/ BrokerOFXIronFXOctaFXHeadquartersSydney, AustraliaLimassol, CyprusSaint Vincent and the GrenadinesSpecializationCurrency Exchange, International PaymentsForex, CFDsForex, CFDs, CryptocurrenciesAccount TypesSmall Business, Medium Business, Online SellersMicro, Premium, VIPMicro, Pro, ECNLeverageNot AvailableUp to 1:1000Up to 1:500Spreads & CommissionsCompetitive Spreads, No CommissionsVariable Spreads, Some CommissionsLow Spreads, No CommissionsTrading PlatformsProprietary Web and Mobile AppMetaTrader 4, MetaTrader 5MetaTrader 4, MetaTrader 5, cTraderEducational ResourcesLimitedExtensiveModerateEducational 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. Its pros outweigh its cons, especially for businesses and individuals who don't require an expansive range of financial services but are seeking a specialized, reliable solution for their currency exchange and international money transfer needs.FAQsQ: Does OFX offer any tools for risk management in currency exchange? A: While OFX does not offer traditional trading tools like stop-loss orders or leverage, it does provide forward contracts that allow you to lock in exchange rates for future transactions, which can be a useful risk management strategy.Q: What is the minimum amount that can be transferred via OFX? A: OFX typically has a minimum transfer amount of around $1,000 or its equivalent in other currencies, making it more suitable for traders and businesses looking to move substantial sums internationally.Q: Is there any API support for automating my foreign exchange transactions? A: Yes, OFX provides API support that can enable automated currency transfers and conversions, which can be integrated into existing business systems for seamless financial operations.Q: How fast are transactions processed, and do they offer same-day service? A: Transaction speed depends on the currency pairs involved and the receiving bank. While OFX aims to complete transactions as quickly as possible, it is advisable to allow 1-2 business days for the funds to be received.Q: Are the exchange rates offered by OFX fixed or variable during the trading day? A: OFX's exchange rates are variable and influenced by the interbank exchange rates. However, once you lock in a rate for a specific transaction, it remains fixed for that particular deal.Q: Does OFX offer multi-currency accounts for traders who deal with multiple currencies? A: Yes, OFX offers a Global Currency Account that allows you to hold, pay, and receive in multiple currencies, which can be beneficial for traders and businesses engaged in international commerce.