OFX Exchange Rate Calculator
0.4% (Large Transfer > $100k)
0.7% (Standard Transfer)
1.2% (Smaller Transfer < $10k)
2.0% (Retail Rate)
Transfer Estimate
Recipient Receives:
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Effective Exchange Rate:
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Total Cost (Margin + Fees):
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Understanding OFX Exchange Rates
When sending money internationally with OFX (formerly OzForex), the total cost isn't always immediately obvious. Unlike banks that charge high upfront fees, OFX primarily makes money on the "spread" or the margin added to the interbank exchange rate.
How OFX Pricing Works
The calculation for an OFX transfer involves three main components:
- Mid-Market Rate: This is the "real" exchange rate you see on Google or Reuters. It is the midpoint between the buy and sell prices of two currencies.
- The Margin: OFX adds a small percentage (usually between 0.4% and 1.5%) to the mid-market rate. The larger the amount you transfer, the lower this margin typically becomes.
- Transfer Fees: OFX often waives transfer fees for amounts over a certain threshold (typically $10,000 AUD/USD), but smaller transfers may incur a flat fee.
Step-by-Step Calculation Example
Let's say you want to transfer 10,000 USD to EUR.
- Interbank Rate: 0.9200 (1 USD = 0.9200 EUR).
- OFX Margin: If OFX applies a 0.7% margin, the rate they offer you would be 0.9200 * (1 – 0.007) = 0.9135.
- Conversion: 10,000 USD * 0.9135 = 9,135 EUR.
- Fees: If there is a $15 fee, that is deducted from your 10,000 USD before conversion, or added on top.
Why Use an OFX Calculator?
Using an exchange rate calculator helps you compare the "Effective Rate" against your local bank. While a bank might offer a "zero fee" transfer, they often hide a 3% to 5% margin in the exchange rate. OFX generally offers much more competitive rates, especially for high-value transactions like buying overseas property or paying international tuition.