OFX facilitates online money transfers from Singapore to many countries around the world, including Australia, Canada, New Zealand, the UK, and USA. Because of its competitive exchange rates and no transfer fees, OFX is a popular choice for making large transfers amongst individuals and SMEs based in Singapore. Both personal and business users are supported, with a range of specialised services that include paying overseas staff and suppliers as well as paying bills and taxes from abroad.

Another huge selling point of OFX is that they are MAS-licensed under the Payment Services Act. This provides additional reassurance for Singaporean users looking for a payment transfer service they can trust. Although there are many great reasons to transfer money with OFS, keep in mind that transfers can take some time compared to instant services like Wise.

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With so many payment transfer services out there, you may be wondering if OFX is the best option for you, both in terms of fees and convenience. If you fall under any of the below categories, you may want to consider giving OFX a try:

• Singaporean residents and businesses sending larger amounts (e.g., over S$10,000) overseas

• SMEs looking for business-friendly foreign currency accounts (OFX supports multi-currency needs)

• Individuals seeking cheaper alternatives to banks for regular overseas property payments, education fees, or retirement fund transfers

• Those who prefer phone support and personal dealer services over fully app-based transactions

• Clients willing to wait 1–3 business days for funds to reach the recipient 

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If you are looking to set up your first money transfer with OFX, keep in mind that transfers are bank-to-bank only. There are no options for making or receiving payments on your card or mobile wallet. Below is an overview of what you can expect with OFX:

• Transfer channels: OFX website, mobile app and telephone service (particularly useful for large transfers)

• Payment method: Bank transfer

• Receiving method: Bank account

• Transfer speed: Usually 1–3 business days after funds have been received by OFX

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Before setting up your money transfer, here are some important definitions you should know about:

• Mid-market rate: This is the midpoint between buy and sell rates you see on international currency markets. As this rate is set by the market and not a third party, it’s considered one of the ‘fairest’ ways to determine rates. Take note that mid-market rates can differ slightly between money transfer services.

• Exchange rate margin: This refers to the slight markup OFX applies on the mid-market rate, which averages out to around 0.4%-1.5% according to Bitcatcha and Jobaroo.

• Transfer fee: OFX charges zero transfer fees for Singapore-based users, unlike traditional banks which can charge up to $30 per transaction. Be mindful that you are still liable for fees charged by the recipient bank, which will be deducted from your total transfer amount.

An important thing to watch out for when making an international transfer is any hidden fees or markups, known as the hidden margin. A transfer with an attractively low exchange rate may end up costing you more than one with a slightly higher rate if the former comes with hidden fees. To avoid nasty surprises, always compare any quoted rate you get to the live mid-market rate.

• Use MAS-licensed options: To ensure that your money is protected under Singapore’s regulations, always check if the transfer service you are thinking of using is licensed by MAS.

• Plan ahead: If you don’t need the funds to reach your recipient urgently, consider setting up an exchange rate alert to catch your desired rate. Even a slight change in rate can make a big difference in the case of large transfers.

• Check recipient details carefully: Make sure to double-check your recipient’s details before approving any transfer. This includes making sure you have entered their full name and the correct SWIFT code. As banks may impose an additional fee for entering the wrong SWIFT code, this can be a costly mistake.

• Look at total transfer cost: As mentioned earlier, it’s a common mistake to overlook any additional costs when presented with a low exchange rate. Before making a transfer, be sure to check how much your recipient can expect to receive after the deduction of any fees. The lower the amount, the higher the markup (or hidden margin) charged by the provider.

• Diversify your options: We now know that OFX is a good option for making large transfers that are not too urgent. If you need to transfer small sums or require instant transfers from time to time, consider diversifying with options like Wise or Revolut. Making use of more than one payment transfer service can help you reap the best of both worlds.