April 19, 2024

Business Bib

Business & Finance Blog


5 min read

How to know if it is a good forex broker? Is FBS a good broker or not? This article will make it clear about some features of FBS for traders to decide whether they should work with this broker or not. FBS was founded in 2009 and now has been providing up to 35 currency pairs, 4 precious metals, 2 CFD, and crypto-currencies. These features below are based on the common standards of a good forex broker, which are the reliability, trading costs, conditions of trading and support for customers. Let’s find out more about these features and have an overall look about FBS.

The reliability of FBS

Regulation is an important factor that could indicate how reliable a broker is. It could be also said that a regulated broker is trustworthy. Because regulation is given by the trusted financial organizations to brokers to manage them, brokers who have licenses could protect and guarantee the safety for their customers. In fact, not many brokers could obtain licenses as it is difficult to meet the requirements of these regulations. Meanwhile, FBS has two of the most trusted licenses, which are CySEC and IFSC. Therefore, you can totally trust and trade safely in FBS.

However, there are many opinions that brokers having many regulations are often better than those who have less. This is definitely not true! The fact is that the broker should have one trusted regulation in the country where it serves and one is enough. Of course, it would be better if it has more than one license but it does not mean that the brokers with many licenses are better than those with less. If your country already has a regulation, brokers with your country’s regulation should be chosen. For example, FBS has IFSC, which is from South Africa. Therefore, African traders could trust and trade with FBS without any doubt or fear. But if your country doesn’t have any regulations, then you should choose a broker with at least one trusted license. In this case, FBS has CySEC, which is very famous and reliable in Asia countries. Having too many regulations only restricts the brokers with rules. A broker should obtain only 1 trusted regulation.

The spread, commission and bonuses in FBS

We are talking about the trading costs of FBS, which include spread, commission and bonuses. Spread is the contrast between the Ask cost and the Bid cost of a cash match. FBS offers one of the lowest spreads, which is only from 0.2 to 1.1 pips. It is even much lower than XM, FXTM, FXCM,

For commission, some brokers charge traders but some does not, depending on the types of account. At FBS, the commission is free-of-charge in Cent and Standard account, while Zero account and ECN account charge commission to traders.

Bonus program is a part of FBS, which attracts many traders from beginners to experienced traders with the highest bonus rate (up to $123). There are deposit bonus, welcome bonus and loyalty program. Welcome bonus is given when there is a new registration. It attracts new traders and beginners as it gives $50 bonus to user’s account instantly after they sign up a new account. Deposit bonus is based on the amount of deposit, especially for FBS, it gives back 100% of the deposit amount to traders. Loyalty program is mostly for long-term traders since it rebates an amount of money when a trading lot is completed. FBS rebates $7 for each finished transaction.

The conditions of trading at FBS

Types of account:

As mentioned above, FBS has 4 types of account: Cent account, Standard account, Fixed Spread account and the ECN account. Although there are some common features among the account types, each type has its own difference.

Cent account is for beginners or newbies. The conditions are simple and suitable for them. The minimum deposit amount is only $1 and traders are advised not to deposit much money at the beginning as they could lose much, too. But with only $10, traders could practice trading in real conditions and have experience for 3 months. The spread is low at 1 pip, while the order volume is from 0.01 to 1000 lots, which is kind of big. Especially, it has no commission for traders, which is very nice.

Standard account, in the other hand, is for experienced traders who are familiar to the market. The minimum deposit required is about $100, while the spread is better at about 0.5 pips. The leverage is up to 1:3000, which is better than that of XM’s standard account (only 1:888). The commission is also free-of-charge but the order volume is smaller from 0.01 to 500 lots.

Fixed spread account is also known as Zero spread account. As its name said, there is no spread charged in this account but instead, FBS charges commission to their traders. The commission is often $20 for each trader. Because it does not charge spread, the main income then should be from commission. The minimum deposit required is $500, while the other features are the same as those in Standard account such as leverage and order volume.

ECN account is especially for experts or long-term traders. The minimum deposit required is high at $1000 while the commission is lower than that of other brokers ($6). In this term, Exness, XM and FBS have the same commission rate, which is about $5 or $6.

Payment system:

US and UK have the great services in their countries but not in other areas such as Asia or Africa. They create many disadvantages for traders in Asia, especially in Thailand or Indonesia. Thai traders are not convenient with the payment methods of US and UK brokers because they are charged much when depositing by credit cards. The banks charge them from 1.7 to 4% of their total fund, while it is hard to get the profit rate at 5% monthly. This is not reasonable at all and then, Thai traders are told not to work with those brokers. Instead, they should trade with brokers having local payment system such as FBS. Accordingly, FBS has the excellent payment service. It allows traders to deposit and withdraw money through almost all local banks and e-wallets in Asian countries. It reduces a lot of cost and makes it more convenient to traders. In addition, FBS has the second fastest speed of transferring. It is only after the transferring speed of Exness. A transaction is completed within an hour with FBS, while it takes even up to days to finish a transaction with other brokers.

Customer support from FBS

Most traders need much support and a good broker should provide good support for its clients. FBS is a good broker with excellent customer services. The support team is wonderful with 24/7 online supporting service in English. Besides, FBS also has local offices in Indonesia, Malaysia, Egypt, Thailand, China, Korea and Myanmar to support its customers 5 days a week.