📢 Disclosure: This article contains affiliate links. If you open a Wise account through our link, we may earn a small commission at no extra cost to you.
OFX and Wise are two of the most popular alternatives to Canadian banks for converting US dollars to Canadian dollars. Both offer much better rates than RBC, TD, or BMO — but they work differently, and depending on how much you're transferring, one can be meaningfully cheaper than the other.
How Each Service Charges for USD→CAD
OFX (formerly OzForex)
OFX is a FINTRAC-regulated money transfer service popular among Canadians for large transfers. It charges no transfer fee — OFX makes its money entirely through an exchange rate margin of approximately 1.0%–1.5% above the mid-market rate. There is a minimum transfer of CA$1,000 but no upper limit. For very large transfers, OFX clients are often assigned a personal dealer who can negotiate a tighter rate.
Wise
Wise uses the real mid-market rate (the same one you see on Google or XE.com) and charges a transparent fee of approximately 0.55%–0.65% of the amount, plus a small flat component of roughly CA$4–6. No hidden spread. Wise's lower margin wins on smaller amounts — but on very large transfers, OFX's zero flat-fee structure eventually catches up.
Head-to-Head Cost Comparison
Using a mid-market rate of 1 USD = 1.3900 CAD (live — updates automatically):
| Amount (USD) | OFX (~1.2% margin) | Wise (~0.6% + CA$5) | Difference |
|---|---|---|---|
| US$5,000 | CA$6,867.10 | CA$6,904.30 | Wise +CA$37.20 |
| US$10,000 | CA$13,734.20 | CA$13,813.60 | Wise +CA$79.40 |
| US$20,000 | CA$27,468.40 | CA$27,632.20 | OFX +CA$163.80 |
| US$50,000 | CA$68,671.00 | CA$69,088.00 | OFX +CA$417.00 |
* OFX: mid-market × 0.988. Wise: mid-market × 0.994 minus CA$5 flat fee. Live rate from Bank of Canada API.
Pros & Cons
| OFX | Wise | |
|---|---|---|
| Rate margin | ~1.2% above mid-market | ~0.6% above mid-market ✅ |
| Transfer fee | None ✅ | ~CA$5 flat fee |
| Min. transfer | CA$1,000 | ~CA$1 |
| Speed | 1–2 business days | Instant–1 business day ✅ |
| Regulation | FINTRAC (Canada) ✅ | FINTRAC + FCA (UK) ✅ |
| Best for | Large transfers ($20k+) | Transfers under $10k–$15k |
When to Use OFX Instead of Wise
- Large transfers over US$20,000. OFX's zero flat-fee structure beats Wise once the transfer is large enough.
- You want a dedicated dealer. For transfers above CA$10,000–CA$20,000, OFX often assigns a personal FX dealer who can negotiate a tighter rate.
- You need to lock in a rate. OFX holds your rate for 24 hours from quote to payment.
When to Use Wise Instead of OFX
- Transfers under approximately US$10,000. Wise's lower margin (0.6% vs OFX's 1.2%) saves more than its CA$5 flat fee costs at these amounts.
- You value full transparency. Wise shows the exact mid-market rate and itemizes every fee upfront. OFX's margin is embedded in the rate.
- You want a multi-currency account. Wise lets you hold USD, CAD, EUR and 40+ currencies, receive payments, and spend abroad with a debit card.
- Speed matters. Wise is often instant or same-day; OFX typically takes 1–2 business days.
Get the mid-market rate on your next USD→CAD transfer
Wise charges ~0.6% with no hidden spread — see exactly what you pay before you send.
Open a Free Wise Account →Affiliate link — we earn a small commission if you sign up, at no cost to you.
Real Cost on 5 Common USD Amounts
OFX advertises "no transfer fees" but builds the cost into the exchange rate spread, while Wise advertises a percentage fee on top of the mid-market rate. The amount where one beats the other depends on the spread OFX happens to give you that day. Below is the typical real all-in cost for each on five common USD amounts, using BoC mid-market 1.3703 and OFX's typical retail spread of 0.6–1.0%.
| Amount (USD) | Wise (0.45–0.6%) | OFX (0.6–1.0%) | Typical Winner |
|---|---|---|---|
| $1,000 | ≈ $5–$6 | ≈ $6–$10 | Wise |
| $5,000 | ≈ $25–$30 | ≈ $30–$50 | Wise |
| $10,000 | ≈ $50–$60 | ≈ $60–$100 | Wise |
| $25,000 | ≈ $125–$150 | ≈ $150–$250 | Wise (online) or OFX with negotiated rate |
| $100,000+ | ≈ $500–$600 | Negotiable, often 0.3–0.5% | OFX (after phone call) |
The crossover happens around $50,000 USD, but only if you actually phone OFX and ask for a better rate. OFX's published rate is typically not its best rate for amounts above $25,000 — the assigned dealer has discretion to tighten the spread to win the deal.
The OFX Customer Experience — What It's Really Like
OFX uses an assisted-dealing model that some users love and some find friction-heavy. Here is what it actually looks like:
- Onboarding: takes 1–3 business days. You provide ID and address, OFX phones to verify before your first deal. Wise does this in 5–10 minutes online.
- Quoting a transfer: for small amounts you can lock the rate online. For amounts above ~$10,000, the OFX system prompts you to phone the dealer for a "spot deal" rate, which is usually slightly better than the online rate.
- Settlement: 1–4 business days depending on the destination currency and the time of day you book. CAD destination from USD source typically settles in 1 business day.
- Recurring transfers: OFX supports scheduled transfers at a locked rate up to 12 months in advance — useful for snowbirds paying recurring US bills. Wise does not match this feature; its rate updates per transfer.
Practical recommendation: for one-off transfers under $25,000 USD, Wise's online flow is faster and usually cheaper. For repeating transfers, large lump sums, or anyone who prefers a human voice on the line, OFX's model is worth the extra friction.
When OFX's Forward Contracts and Spot Deals Truly Win
The two OFX features Wise cannot replicate:
- Forward contracts: lock today's rate for a transfer that will happen up to 12 months in the future. Useful if you have, say, a US$100,000 condo deposit due in 6 months and you want to remove FX risk from the equation. OFX charges a small forward premium (typically 0.5–1% above spot, depending on the term), but in volatile markets this can save several percent of the principal compared to converting at spot on the future date.
- Negotiated spot rates on amounts above $50,000: OFX dealers have authority to tighten the spread for large clients. A first-time $100,000 deal at "best published rate" might come in at 0.6%; a returning client who asks for a better rate usually gets to 0.3–0.4%. Wise's rates are public, fixed, and identical for everyone regardless of relationship.
These features are genuinely valuable for one specific buyer profile: Canadian snowbirds and cross-border real estate buyers. For everyone else, Wise's transparency and online speed are the better trade.