5 reasons to buy this attractive growth stock today

Ozforex is poised to grow rapidly over the next 5 years. Here are are five reasons why you need to buy shares today.

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Ozforex Group Ltd (ASX: OFX) is a low-cost, easy-to-use, provider of foreign exchange services which attracts in excess of 120,000 users per year. Here are five reasons to buy this attractive growth stock today:

1) Oxforex provides a simple and efficient way to exchange foreign currency at a fraction of the cost of the banks and other traditional foreign exchange dealers.

2) In addition to offering a lower price, Ozforex provides customers with the convenience of being able to transact at any time and from anywhere in the world, with a simple online registration and transaction procedure. Furthermore, Ozforex offers a significantly faster settlement time than the banks and other players.

3) Ozforex has a large potential addressable market. The company estimates that it currently only captures 5% of the market in Australia and therefore has huge growth opportunities in Australia and overseas.

4) Oxforex has operations in Australia, North America, the UK, Hong Kong and New Zealand, providing the company with a significant advantage of being able to "net-off" transactions between customers without accessing foreign exchange markets.

5) Oxforex earns income by charging customers a small spread on the interbank cash rate for exchanging currency. The external fees paid by Ozforex in executing transactions and hedging for currency risks are low. With transactions made online, little human involvement and cost is needed which allows the company to generate high margins. Further, with the majority of costs being fixed, the Oxforex business model is highly scalable, meaning the majority of increased revenue should fall straight to the bottom-line as profit.

Ozforex is in a strong position to take advantage of a rapidly growing industry. It is a company that has the potential to become a lot larger over the next five years. Furthermore, at the current share price of $2.54, the company is not expensive and is well off its 52-week high of $3.50.

Motley Fool contributor Bradley Murphy owns shares in Ozforex Group mentioned in this article. The Motley Fool owns shares in Ozforex.

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