OFX Vs Wise: The Key Differences (Comparison Guide)

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OFX and Wise are both financial institutions that are good options for small businesses looking to make online transactions securely. OFX and Wise are both considered to be the best financial institutions among those that provide a free solution for online transfers, but OFX and Wise do have some key differences as well as similarities.

Points To Be Considered While Choosing Between OFX & Wise:

Fees

Online banks are known for having very little or no fees when it comes to checking/savings accounts.

High-interest rate

Online banks tend to have lower interest rates compared to traditional brick-and-mortar banks, but some online banks manage to offer competitive interest rates on savings accounts and CD rates that are close to brick-and-mortar banks’ interest rates. Online banks also offer CD rates, savings account rates, and checking account bonuses which can help you earn extra money on your savings or interest earned on checking accounts.

Websites

Online banks have simple websites that are easy to use, but some online banks such as Ally have a superior website that is easy to use and provides 24-hour access to account information. Online banks make it easy for customers by allowing them to transfer money from the online bank directly to their other accounts or using an ATM machine for free if they are within the network of the online bank’s ATMs.

Additional Services

Online banks also tend to offer special promotions that can be helpful for some customers. Online banks sometimes offer tools or services that traditional brick-and-mortar banks do not have, which allows them to provide a unique service they wouldn’t otherwise provide.

Mobile App

Online banks also have mobile apps that allow you to access your money from your phone, but they aren’t as reliable as having a dedicated mobile app. Online banks are becoming more reliable when it comes to their mobile apps, but sometimes they still have problems with the reliability of their mobile banking services.

Security

FDIC-insured online banks are safe, but make sure to research the online bank before signing up. Online banks also have security features you can use to protect your accounts, such as setting up a password or PIN number that is needed when withdrawing money from an ATM machine.

Online banks are insured by the FDIC just like traditional brick-and-mortar banks are. Online bank security is monitored around the clock by a 24/7 monitoring center that constantly checks for any threats to online bank accounts and will shut down any threats immediately.

Let Us See The Difference Between OFX & Wise:

In terms of fees:

OFX is known to charge no fees on international money transfers. Wise is known to offer lower transaction rates, and Wise charges $2 per month per account for their premium service.

In terms of availability:

OFX supports a greater number of marketplaces. OFX has a higher volume of transactions, and OFX is known to have in around 190 countries and it supports 50+ currencies. On the other hand, Wise supports only 20 currencies for international transfers and 30 currencies for local transfers.

In terms of ways of sending money:

OFX has many ways of sending money, like OFX cards, OFX mobile app, bank transfer, and OFX direct. Wise has three ways to send money: via bank transfer, via debit card, or by cash pick-up.

In terms of customer support:

OFX offers customer support via phone, OFX offers financial education and OFX provides an OFX magazine. Similarly, Wise also offers good customer support (including over the phone and same-day response time) and educational resources for customers.

In terms of interface:

OFX has an easy-to-use online banking system, while Wise has a basic interface with limited functions. OFX is available in many languages, while Wise is available in a few languages.

What is OFX?

OFX is a relatively new company. OFX was originally created in 1998 by Matthew Gilmour. OFX was later bought by OFX Group, which is based in Australia.

Since its acquisition in 2012, the company has grown exponentially. The company now provides its services to more than 700,000 clients in 29 countries. They have also formed a number of strategic partnerships with major financial institutions.

OFX offers a wide range of currencies that can be exchanged for either wire transfer or via their website. OFX also transfers the funds to over 50 banks worldwide. The company has been known to run specials from time to time typically around holiday seasons. All OFX money transfers are done in compliance with OFX regulations.

OFX is a very easy and efficient way to transfer funds, and it is open 24 hours a day, 7 days a week. OFX is an easy and efficient way to transfer money, but there are some limitations on how you can send/receive funds.

OFX is a very popular method of transferring money overseas due to its high speeds and low costs. Overall, OFX is an affordable way to transfer money overseas. It is relatively quick and safe with minimal fees. The only downside of OFS is that there are no options for sending or receiving funds directly to the recipient’s bank account.

What are the features of OFX?

  • Transfer money to over 50 different countries worldwide.
  • The company has its own app for both iOS and Android users.
  • OFX uses the latest encryption technology to ensure the security of your information. OFX is frequently updated with new features and programs.
  • ALL OFX money transfers are done in compliance with OFX regulations.

Why should you choose OFX?

  • OFX is known for its fast service, enabling you to transfer your money within minutes.
  • Compared to other companies that offer international exchanges, OFX offers reasonable prices with minimal fees.
  • There’s no transaction fee, no matter where you are transferring money.
  • Some of the advantages of OFS are that it is relatively cheap, quick, and safe with low fees.
  • OFX offers a wide range of currencies to choose from including over 50 different countries worldwide.
  • The new encryption technology ensures maximum security for OFX users.
  • The company provides 24/7 customer support, so in case of emergencies, users can contact at any hour.
  • You can track your money every step of the way through SMS, email, the app, or the website.
  • It’s completely free to open an account.

Why should you not choose OFX?

  • The only downside to OFS is that there aren’t any options for direct deposits.
  • The credit card of OFX cannot be used as a payment method overseas.
  • Transferring money or sending payment might be delayed sometimes. There is no option of same-day delivery.

What is Wise?

TransferWise is an online money transfer service that makes use of peer-to-peer technology to enable customers to transfer their money. While TransferWise may sound like a name belonging to some other startup, it’s actually not. TransferWise is headquartered in London and the service has been operating since 2011.

Transferwise has an average exchange rate compared to traditional transfer services, but fees can be kept down by transferring larger amounts. TransferWise is one of the leading online money transfer service providers today as it’s been able to attract a significant amount of investors as well as customers over the years.

TransferWise allows customers to send money across borders by transferring it from one bank account to another instead of the traditional method which is taking cash and delivering it physically or electronically through a different system.

This peer-to-peer technology has allowed offering lower fees as well as a more convenient system of sending money. TransferWise has been the recipient of an incredibly large sum of funding from some big names in the industry such as PayPal co-founder Max Levchin, who announced his investment during TransferWise’s million-pound fundraising campaign, and Richard Branson.

TransferWise has been able to balloon into a company worth millions of dollars while its transfer fees are only 0.5% on average compared to the 3% that customers normally pay. Customers can use TransferWise’s service to transfer money from one bank account and have it available on another in as little as one day, depending on the payment method they choose for their transfers.

What are the features of Wise?

  • TransferWise offers a convenient, easy-to-use system.
  • TransferWise offers a wide variety of currencies and payment methods, allowing customers to transfer their money quickly and easily without any hassle.
  • TransferWise has been accredited by the UK government for being trustworthy while it ensures that customers’ money is held in a separate trust account until it’s ready to be transferred.
  • The fees for using the service vary depending on the country where the transfer originates as well as other factors including payment method and amount. TransferWise does not charge any transfer fees and instead makes its money by charging a small service fee of 0.5%.
  • TransferWise has been able to attract customers over the years because it offers customer support 24 hours a day, seven days a week as well as a real-time chat feature on its website. TransferWise’s phone support is provided by a friendly and highly bilingual customer support team from Europe who can communicate with customers from Australia, Canada, India, New Zealand, the United Kingdom, and the United States.

Why should you choose Wise?

  • TransferWise guarantees lower fees compared to other transfer services.
  • TransferWise offers a convenient, easy-to-use system that allows customers to get their money transferred quickly and easily.
  • TransferWise does not charge transfer fees, instead of making money by charging a service fee of 0.5%.
  • TransferWise offers the quickest and most convenient delivery system for transferring money, allowing transfers to be delivered within minutes.
  • TransferWise offers a wide variety of currencies and payment methods so customers can choose the one that is most convenient for them.
  • TransferWise has been accredited by the UK government for being trustworthy. It also offers a multi-layered security system that involves rigorous background checks on all employees, as well as SSL encryption of its website and regular audits by reputable third parties. TransferWise accepts cash, card, and bank transfer as well as other methods of payment.
  • TransferWise is available on iOS and Android phones, as well as on their website so customers can transfer their money from one place. TransferWise also offers a desktop version for those who prefer to use a computer.

Why should you not choose Wise?

  • TransferWise’s system may seem complicated to some customers who may not be familiar with peer-to-peer technology.
  • TransferWise does not offer phone support and instead relies on its FAQs, Help Center, or live chat feature if customers have any issues, TransferWise may be inconvenient for those who prefer speaking to a customer service representative over a phone call.
  • TransferWise does not accept cryptocurrency as a method of payment. TransferWise focuses on offering customers fiat currencies. TransferWise is one of the best online money transfer services out there, with the quickest trades and among the lowest fees around.
  • TransferWise does not offer a recurring transfer feature as TransferWise focuses on handling one-off transfers. TransferWise is not ideal for those who need to make repeated monthly, weekly, or daily transactions.

How OFX works?

You can transfer money using the OFX website, app, or with a credit card. Users must enter their information to successfully make an international transfer. After completing the necessary steps, users must schedule their transfers and pay for them via credit card.

The company sends funds internationally through SWIFT (Society for Worldwide Interbank Financial Telecommunication). After OFX receives your payment, it will send the money via international wire transfer. The whole process is completed in a few minutes.

How Wise works?

First, customers need to set up an account with TransferWise. Next, customers choose how much money they want to get for the currency they are receiving. TransferWise then sends the money to the customers’ banks. TransferWise charges a small fee based on the exchange rate and in some cases, it might be free in order to provide customers with the best rates.

TransferWise then sends customers their chosen currency. TransferWise has partnered with over 350 different banks in Transferwise’s network so customers are guaranteed to have fast, easy bank transfers TransferWise’s website is secure and it offers a multi-layered security system which includes Transferwise’s regular audits by reputable third parties.

My Recommendation:

OFX and Wise are both good options for your business, but OFX might be the best one out of these two services because OFX offers almost every service that you could possibly need for online money transfer. OFX can also help you manage all of your financial needs through OFX.com. OFX is also more widely used, which means that your money transfer will be done with ease and convenience all over the world.

OFX has an established reputation worldwide for being the best option in terms of online banking. OFX can provide you with great customer support, security, rates, international transfers, OFX cards, OFX mobile app, OFX direct, OFX e-Transfer, OFX Transfer API, and bank transfers. Wise is also a good option to consider, but OFX has an edge over Wise because OFX has been around for longer than Wise. OFX offers more services than Wise does so if you are looking for long-term value beyond just the transfer, OFX might be the best option for you.

I lead product content strategy for SaltMoney. Additionally, I’m helping our broader team of 4 evolve into a mature content strategy practice with the right documentation and processes to deliver quality work. Prior to Instacart, I was a content strategy lead at Uber Eats and Facebook. Before that, I was a content strategist at SapientNitro, helping major Fortune 500 brands create better, more useful digital content.

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