MoneyGram vs. OFX: Who has cheaper, faster transfers? | finder.com
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MoneyGram vs. OFX

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We compare an established company with a relative online newcomer to learn which is better for your next transfer overseas.

When it comes to international money transfers, MoneyGram is a major player. It’s been sending money overseas since 1940 and offers services online and at agent locations in more than 200 countries around the world. OFX, however, is a digital transfer service that serves a diverse range of needs for people and businesses managing payments abroad.Overall, OFX will save you money with better exchange rates and lower fees. But if speed is a priority, MoneyGram may be what you’re looking for.

moneygram ofx
MoneyGram OFX
Fees Starts from $4.99 $0 on minimum transfers of $1,000
Exchange rates 5% or more above the mid-market rate 0.4% above the mid-market rate
Speed 2–4 business days 1–2 business days to transfer to OFX; 1–2 business days to transfer to recipient
Max Transfer Amount Varies by country No limit

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MoneyGram and OFX: How they work

MoneyGram and OFX both offer easy online transferring to get your money where it needs to go.

MoneyGram

With MoneyGram, you go to its site, enter the amount you need to transfer and confirm your payment and how it should be received. (You also have the option of visiting or calling an agent.) Once you approve the exchange rate and fees you’ll pay, MoneyGram converts and delivers your money to your recipient’s bank account or for cash pickup at locations worldwide.

OFX

With OFX, you’ll need to create a free account, but it’s easy to set up as part of your transfer. It’s a simple process: You go to its site, enter how much money you’ll be transferring, and send your funds to an OFX account. OFX then converts your currency and sends it to your recipient, who collects it via bank transfer.

Who offers lower fees?

MoneyGram

Fees vary depending on how much money you’re transferring, how you’re sending it and the country you’re sending it to. Unless you actually initiate a transfer, it’s not easy to find out up front how much you’ll pay. As an example, to send $1,000 to China from a bank account, you’ll pay $8 in fees; to pay for that same amount by credit or debit card, you’ll pay $48. To send $1,000 for cash pickup in the Philippines, it’s $4.99 from a bank account and $10 by credit or debit.

OFX

OFX charges no fees on all minimum transfers of $1,000.

Exclusive offer: Lower exchange rates with OFX

Because OFX is a trusted partner of finder.com, you can enjoy exclusive exchange rates by initiating a transfer through our site.

  • Winner: OFX

While MoneyGram’s fees can start at $5, costs can soar to $48 or more depending on the details of your transfer. OFX’s $0 fees on all transfers is unbeatable.

Who offers better exchange rates?

To understand who offers better exchange rates, you need to first look at the mid-market rate. The mid-market rate is the average of the buying and selling rate of a global currency — and the rate banks and transfer services use when they trade among themselves.

We’ll look at the rates MoneyGram and OFX offer compared to the mid-market rate.

MoneyGram

MoneyGram makes its money from transfer fees and by padding the exchange rate for a profit. Depending on where you’re sending your transfer, the exchange rate could be 5% or more above the mid-market rate. If you’re sending a large amount of money, this could mean hundreds of dollars that go straight into MoneyGram’s pockets.

Say you’re sending $1,000 to China:

  • If the mid-market rate is 1 USD = 6.90 CNY
  • MoneyGram’s exchange rate may be 1 USD = 6.82 CNY

OFX

A typical exchange rate at OFX is about 0.4% above the mid-market rate — a competitive rate any way you look at it.

So sending $1,000 to China:

  • If the mid-market rate is 1 USD = 6.90 CNY
  • OFX’s exchange rate could be 1 USD = 6.89 CNY
  • Winner: OFX

OFX’s stronger exchange rates put more money into your recipient’s pocket than MoneyGram’s will.

$1,000 to Japan

Say you want to send $1,000 to buy office equipment for a business expansion in Tokyo. Here’s what an online bank-to-bank transfer would like with MoneyGram and OFX.

MoneyGramOFX
Transfer fee$25$0
Exchange rate1 USD = 113.580 JPY1 USD = 117.117 JPY
Transfer speed2–4 daysUp to 4 business days (1–2 to OFX, 1–2 to recipient)
Total received113,580 JPY117,117 JPY

By skipping MoneyGram for OFX, you not only save $25 on transfer fees (though you can enjoy a $0 transfer fee with finder.com’s exclusive offer), but also more than $30 on the stronger exchange rate alone. That’s $55 you could put toward supplies.

Who’s faster?

MoneyGram

Delivery speeds vary by transfer options and countries. At an agent location or by phone, your transfer could be delivered in minutes (with higher costs). In general, your cheaper options will take from two to four business days to be received.

OFX

To transfer your money to OFX, it takes one to two business days. It takes another one to two days to send that money from OFX to your recipient. You’re looking at least two business days to complete a transaction from send to receipt.

  • Winner: MoneyGram

Your average transfer will likely take about the same time with both services, though MoneyGram takes a slight lead with faster (and more expensive) cash pickups.

Who offers more options?

Providers Payment Methods Minimum and maximum transfers Delivery methods Transfer speeds Countries and currencies
MoneyGram Bank account, credit or debit card, in person Minimum and maximum varies by country Bank account, cash pickup, other options by location 2–4 days 190+ countries and 45+ currencies
OFX Electronic funds transfer (EFT) $1,000 minimum; no maximum Bank transfer 1–2 business days to transfer to OFX; 1–2 business days to transfer to recipient 190+ countries (exclusions include Afghanistan, Cuba, Iran, Iraq, North Korea, Libya and Syria)

Bottom line

OFX’s lower fees and more advantageous exchange rates makes it a major competitor in the international money transfer market. Though to get it there in a day, only MoneyGram offers expedited cash pickups. Ultimately, you’ll need to compare your options to find the service that’s right for you.

Frequently asked questions

How do MoneyGram and OFX stack up against other services?

I want to send

to

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
$0 3 - 5 days USD 0.00 0.872 EUR 4,360 Transfer up to $500,000 with no minimums and no fees. Go to site Show details
USD 1,000 1 day USD 0.00 0.876 EUR 4,382 Exclusive offer: $0 transfer fee
No-limit transfers with competitive exchange rates for 100+ currencies.
Go to site Show details
USD 1 Within an hour USD 3.99 0.875 EUR 4,370 Use promo code FINDER to send your first transfer at no fee to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up. Go to site Show details
$8 1 - 2 days USD 5.00 0.874 EUR 4,365 Exchange money on your terms. Go to site Show details
USD 1 3 - 5 days USD 50.00 0.883 EUR
4,369
Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks. Go to site Show details

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Important Information*
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