The decision to go with OFX or PayPal for overseas funds transfers can be difficult to make if you do not know how to differentiate between the two. Both companies let you transfer funds in various currencies, to countries the world over. Generally, both companies offer better deals when compared to the big banks.
When pitted against each other, does one company deserve your attention more than the other?
Selecting PayPal or OFX requires that you address your specific requirements. The following sections of this comparison highlight the similarities and differences that require your attention:
- Exchange Rates
- Ease of Use
- Regular Overseas Payments
International Money Transfer Fees
Whether you use OFX or PayPal, the fees your transfer attracts will, in all likelihood, be considerably lower than those most banks charge. Pay attention to the fee structures followed by both companies before making a decision.
- The currency used to pay for the transfer and the transfer amount have a bearing on the fees OFX charges.
- If the transfer amount exceeds a predetermined threshold, you do not have to pay any fees.
- Transfers below USD $5,000 attract USD $5 as fees.
If you transfer under £3,000, you have to pay a £7 fee.No more fees for OFX (UK) or UKForex Sterling transfers.
- If the transfer amount is less than ¥1,000,000, a ¥1,500 fee applies.
- Transferring less than AUD $10,000 requires that you pay AUD $15 as fees.
- Check the OFX fee structure for other currencies online.
- The country of your residence has a bearing on the fees you have to pay.
- If you use a linked bank account or your PayPal balance to pay for a transfer originating in the U.S., you will have to pay 0% to 2% of the transfer amount as fees.
- In Australia, payments made via linked bank accounts or PayPal balances attract 0.5% to 3.3% of the transferred amount as fees.
- Paying using a debit or credit card tends to attract higher fees.
- Your PayPal transfer might attract an additional currency conversion fee.
Ease of Use
You can register with PayPal or OFX in a matter of minutes. Once the company you sign up with verifies your details, you can start transferring funds. If you want website access in a foreign language, this PayPal vs. OFX comparison favors the former.
- The OFX Group operates dedicated websites for the U.S., the UK, Canada, Australia, New Zealand, Singapore, and Hong Kong.
- OFX forward contracts and target rate orders can prove to be beneficial if you are transferring large sums.
- International customers can pay via electronic bank transfers. Residents of the U.S. can pay via direct debits and wire transfers. If you reside in Australia, you can pay via BPAY.
- OFX provides free bank account details in multiple currencies through its Global Currency Account.
- The company provides apps for iOS and Android.
- You can use the PayPal website in various languages other than English, some of which include Spanish, French, Italian, Portuguese, Russian, Chinese, and Japanese.
- You can use your PayPal balance to pay for your transfer. Other methods include using a linked bank account, a debit card, or a credit card.
- You can transfer funds only to another PayPal account. Once the transfer is complete, the recipient can withdraw transferred funds into a local bank account.
- PayPal users can make use of their account balances for shopping online.
- You can use PayPal apps with devices that run on Android and iOS.
Regular Overseas Payments
Selecting OFX or PayPal based on this aspect is easy. While OFX lets you pre-schedule transfers according to your needs, PayPal does not offer this feature yet.
- Read the full review of OFX.com money transfer service.
- Compare OFX and TransferWise. Who would you choose?
- Looking for an alternative to OFX (Why would you?).
- Who is similar to OFX.com?
- Learn how to apply the CurrencyFair Coupon.
- Watch video on How CurrencyFair Works.