Xe vs OFX money transfers

Xe and OFX are both online transfer services that offer bank-beating exchange rates on international money transfers in more than 50 currencies. But for most transfers, Xe comes out on top.

The fees and rates used in this comparison are accurate as of December 24, 2022.

Quick verdict

Lower fees:
Tie

Exchange rates:
Xe

Fast transfers:
Tie

Which has lower fees?

Xe

Xe is fee-free on all international transfers above $500, but below this threshold they charge a fee of $3 and its equivalent in other currencies.

OFX

OFX doesn’t charge any fees on international transfers but similar to XE, they add a margin to the exchange rate.

Winner: Tie

OFX stands out in offering free transfers with no charges below a minimum threshold. However, for transfers above $500 and its equivalent, Xe and OFX come in at a tie.

Which offers better exchange rates?

Xe

When you convert USD 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 0.4-2% 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 = £0.8298
• Xe’s rate might be $1 = £0.8195

This is a margin of 1.02% added to the mid-market exchange rate.

OFX

OFX also adds a margin on top of the mid-market rate when exchanging your GBP. This margin varies between currencies but generally ranges anywhere between 1% and 4%. Using the same USD to GBP example:

• If the mid-market rate is $1 = £0.8298
• OFX’s rate might be $1 = £0.8159

This works out to be a margin of 1.06%.

• What's the mid-market rate?

  The mid-market rate is the real exchange rate that reflects the value of one currency versus another. It’s the rate you see listed on Google and on financial news reports, and it’s determined by the buy and sell rates on global currency markets.

Winner: Xe

We found that Xe 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?

Xe

Most transfers with Xe are completed within one to two days, but certain transfers may take up to four days.

OFX

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.

Winner: Tie

Xe’s claimed transfer times are slightly faster than those of OFX.

General features

	Payment methods	Receiving options	Maximum and minimum transfers	Transfer speeds	Currencies
Xe	Bank transfer	Bank account	Minimum: $1 Maximum: No limit on phone, online transfers limited to $535,000	Within minutes	130+ currencies
OFX	Bank transfer	Bank account	Minimum: $1,000 Maximum: No limit	24 hours	50+ currencies

Xe

You’ll need to sign up for an online account before you can send 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 transferred to your recipient’s account.

OFX

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.

Read review: Xe
Read review: OFX

Verdict

Both providers have a strong reputation in the money transfer space but XE just edges it. XE is cheaper than OFX for smaller transfers as they offer better exchange rates and lower fees. XE also have a wider selection of currencies and is available in more countries. Despite this, it’s also worth getting a quote from OFX as they could be cheaper for large transfers.

Ultimately, make sure you compare several transfer services to find the best value for your money.

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