There are several caveats to their 3 options. To simplify everything, if you have a static IP it's by far easiest to use "option 3" on that page and set up a connector that allows relaying by IP. One can control access out by firewall rules.
For "option 1" (username/password) you have to enable SMTP AUTH for your account or for your tenant, and use 587. In pfSense, despite the web page saying to set "TLS/StartTLS" to "enabled" you have to uncheck the TLS option and use 587 as @viragomann suggested.
"option 2" also is easy to set up but you can only send to your domain...however you can set up a distribution list to send to external addresses.
@Gertjan said in notification:
microsoft.com really told you to use 465
I think you misread, he said to use 587 not 465. :) Never mind I didn't realize you were responding to OP there.