FBS Review 2024

Trust

FBS Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the several entities operating under the FBS trade name:

• Tradestone Ltd is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 331/17. We rank CySEC as a Tier-1 regulator.
• Intelligent Financial Markets Pty Ltd is licensed and regulated by the Australian Securities and Investments Commission (ASIC) under license number 426359. We rate ASIC as a Tier-1 regulator.
• Tradestone SA (Pty) Ltd is licensed and regulated by the Financial Sector Conduct Authority (FSCA) in South Africa under FSP number 50885. We rate the FSCA as a Tier-2 regulator.
• FBS Markets Inc. is licensed and regulated by the Financial Services Commission (FSC) Belize under license number 000102/460. We rank the FSC as a Tier-3 regulator.

We have summarized the most essential aspects of FBS in terms of regulation and safety in the table below:

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities because it allows them to serve clients worldwide. However, licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection. Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders need to familiarize themselves with the safety mechanisms ensured by the entity they want to open an account beforehand.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All of FBS’s entities ensure the segregation of client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. All FBS entities provide negative balance protection except for the one operating out of South Africa.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities in the unlikely event that the company becomes insolvent. The CySEC entity is the only one that ensures a compensation scheme. Its clients are insured up to EUR 20,000 under the Investor Compensation Fund (ICF).
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum retail leverage with FBS is 1:3000 under the FSC entity.

Is FBS Safe to Trade With?

Our research indicates that all FBS entities comply with crucial safety measures, including negative balance protection, segregated funds, a cap on maximum retail leverage, and a compensation scheme. Consequently, I consider FBS to be a safe trading option, particularly its European entity regulated by CySEC.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, how big the company is, and how transparent it is in terms of readily available information.

I reviewed FBS’s legal documents, including its Client Agreement and execution policy. I found that the essential information on the website is detailed, concise, and easily accessible. Moreover, the broker has issued a ‘best execution policy’, obligating it to offer clients the most favorable price quotes under current market conditions.

Unlike most brokers, FBS displays two risk warnings, one of which is right next to the ‘Open Account’ button on the main page. This is a rather rare example of a broker’s commitment to transparency and underscores FBS’s reliability. I also checked its fee transparency by evaluating the spreads and commission information on the contracts specification page, and everything seems in order.

In summary, my research indicates that FBS can be regarded as having a quite high level of trust and stability due to the following factors:

• Authorized by two tier-1 regulators – CySEC and ASIC.
• Has issued a ‘best execution policy’
• Has a fairly transparent website.

Fees

FBS’s Trading Fees

FBS’s Spreads

I tested FBS’s spreads during the most actively traded times – the London open at 8:00 a.m. GMT and just after the U.S. open at 2:45 p.m. GMT. The test was conducted on 27 December 2023. The results are shown in the table below:

Broken down by asset class and compared to the broader industry, FBS charges low spreads on FX pairs and share CFDs, low-to-average spreads on commodities, and high spreads on indices.

FBS’ Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

The overnight fees charged by FBS are average compared to the broader industry. This means that the broker’s services are also suitable for implementing longer-term trading strategies, such as day and position trading.

FBS Commissions

At FBS, trading in all asset classes, except for share CFDs, is commission-free. However, for trading share CFDs, FBS imposes a commission of 0.7% per traded lot. This rate aligns with the industry average.

FBS’s Non-Trading Fees

FBS does not charge a handling fee for deposits and withdrawals, though third-party banking fees may apply depending on the chosen payment method. There is also a relatively small inactivity fee of EUR 30 charged on accounts that have been dormant for more than 180 calendar days. The fee is charged quarterly until account activity resumes or the balance drops to zero.

Are FBS’s Fees Competitive?

The competitiveness of FBS’s fees depends on the instruments traded. That is so mostly because the broker’s floating spreads vary significantly across different markets. Generally speaking, FBS’s fees meet the industry average.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees on FBS’s Standard account and a typical STP account in the industry. It illustrates the spreads and commissions I have recorded on the EUR/USD pair with FBS and what I usually record on STP accounts with other brokers. The table shows how much you will have to pay to trade 1 full lot (100,000 units) on the EUR/USD with a pip value of $10.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My tests indicate that FBS’s trading costs on FX Majors fall slightly below the industry average. Such a trade would normally cost around $10 with most other brokers.

Platforms and Tools

MetaTrader 5 has many essential features, such as one-click trading, an alarm setting option, and a depth of markets tool. Because of its simplistic and straightforward design, I would say that MT4 is a good stepping stone for beginner traders learning essential charting skills on a platform with an easy learning curve. They can also take advantage of FBS’s extensive educational content.

MT5 is suitable for copy trading and also supports automated trading via its Expert Advisors (EAs) feature. I assessed that FBS is particularly suitable for automated trading because it achieves average execution speeds of under 40 milliseconds. Meanwhile, the mobile app version of the platform supports trading on the go.

On the other hand, I found MetaTrader 5 rather cumbersome. Its charting capabilities are outclassed by newer and sleeker platforms, and chart artists are likely to struggle to conduct probing technical analyses. I had a tough time scrutinizing price action because the platform makes it very difficult to scale it up and down. My other gripe with MT5 is the lack of an instruments search bar. Instead, you have to scale through the entire list of available instruments to find the particular asset you are looking for.

FBS’ Desktop MetaTrader 5 Platform

General Ease of Use

MetaTrader 5 is easy to navigate because of its simplistic design. Account info is displayed at the bottom of the screen; charts occupy the middle portion of the window; a watch list of selected instruments and tools screen is positioned on the left side of the window; and a panel with various settings and configurations can be found at the top of the window.

Charts

I consider the chart screen a platform’s most important feature. It aids technical analysis by providing an overview of price action behavior and allows traders access to a number of analytical tools and chart configuration possibilities. In my view, a good chart should afford easy scaling up and down of price action.

I have broken down the available analytical tools and chart configurations below:

• 38 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next. The problem with MetaTrader 5, in my opinion, is that applying 2 or more indicators to the chart obscures price action rather than contextualizing it. This is due to the ruggedness of MT5.
• 24 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. Despite the rather big collection of drawing tools, the ruggedness of MT5 makes it difficult to discern price action behavior.
• 21 timeframes. MT5 allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term. The standout feature of MT5 is its wide range of timeframes, including ones with a period lower than 1 minute. These can be used for high-frequency trading like scalping.
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity makes it possible to examine potential trading opportunities from different angles.

Orders

I have broken down the available order types on the MetaTrader 5 platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing the MetaTrader 5 Platform

I appreciated the possibility of fast and precise order execution, especially via MT5’s EAs feature, but I reckon chart artists will find MT5 insufficient for spotting intricate trading developments. Though noticeably more advanced than its predecessor, MetaTrader 5 still suffers from the same underlying issues. In my opinion, carrying out comprehensive technical analyses is obscured by MT5’s rugged design.

FBS’s MT5 Mobile App

FBS’ mobile app affords traders quick and easy access to the market on the go. It is very useful for making snap adjustments to any open trades. The market is volatile and ever-changing, and staying on top of the latest developments is made easy with the mobile app version of MT5. You can also use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades.

My Key Takeaways After Testing MT5’s Mobile App

MT5’s mobile app suffers from the same underlying problem inherent to other mobile apps. Analyzing price action behavior on low-resolution devices is extremely difficult. That is why I recommend using the mobile app only to monitor the development of any open positions and make changes if needed.

Tradable Instruments

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery. For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars. One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With FBS?

I have broken down the available instruments with FBS below:

• 43 Currency Pairs
  Major, Minor, Exotic
• 11 Commodities
  Metals and Energies
• 99 Share CFDs
  Retail, Tech, Pharmaceuticals, Other
• 11 Indices
  US, Europe, Asia

Compared to the broader industry, FBS offers a low amount of share CFDs, an average amount of FX pairs, and a high amount of commodities and indices. There are no cryptocurrencies or alternatives to CFDs.

Forex	Commodities
EURUSD | GBPJPY | EURCHF | CADJPY | GBPUSD | USDBRL	Gold (XAUUSD) | Palladium | Gold (XAUEUR) | Crude Oil | Natural Gas

Share CFDs	Indices
Apple | Tesla | Gilead Sciences | General Motors | Barclays | Citigroup | Disney	Dow Jones 30 | Nasdaq 100 | FTSE100 | CAC40 | Germany 30 | Japan 225

My Key Takeaways After Exploring FBS’s Tradable Instruments

FBS offers a decent range of instruments. However, there is a noticeable absence of lower-risk securities, like bonds and ETFs, and higher-risk assets, such as cryptocurrencies. These are available with the broker’s overseas entities.

I found FBS’s general offering sufficient for the implementation of most trading strategies.

Customer Support

The fastest and easiest way to get in touch with FBS is the live chat which is available from the bottom-right corner of the main page. Alternatively, you can request a callback from their end.

FBS Customer Support Test

When we test a broker’s customer support team, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my test on 27 December at around 09:55 a.m. CET via live chat. An agent connected almost instantly, and I appreciated that she introduced herself before answering my questions. I inquired into the broker’s commission policy and instruments offering and found the agent’s answers well-informed and satisfactory.

Deposit and Withdrawal

FBS Deposit Methods

FBS Withdrawal Methods

Some withdrawal methods may require a transaction fee when there is a withdrawal request without any prior trading activity. FBS has reserved the right to impose a 5% fee in such cases as it deems necessary.

Account Types and Terms

Why is Choosing the Right Account Type Important?

Your account should reflect your goals, needs, and ambitions on the market. You should take into consideration several factors, such as whether the account type has a minimum deposit requirement, its spreads and commissions, the execution method, and more.

What Account Types Does FBS Offer?

I have broken down the features of FBS’s Standard account type:

I tested the Standard account and determined that it caters to the needs of all kinds of traders. Its relatively low minimum deposit requirement of EUR100 makes it quite affordable, even to traders with more moderate means, while its fast execution speeds and high leverage (with its Pro version) are geared toward seasoned, high-frequency traders. EUR and USD are both available as base currencies.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

FBS’s Execution Model

FBS utilizes market execution. The broker operates on a Straight-Through-Processing (STP) basis without a dealing desk. Order requests are transmitted to the interbank level, where FBS’s liquidity providers fill them. As long as there is enough liquidity in the market, all order requests will be filled at varying speeds. The broker has access to deep liquidity because it averages execution speeds of under 40 milliseconds.

FBS’s Account Opening Process

The account creation process with FBS is straightforward and quick. You can go at your own pace, though realistically, you will be done with everything within an hour. I have summarized the step-by-step process below:

• Step 1. Click ‘Open Account’ at the top-right corner of the main page.
• Step 2. Enter your name and email address, and agree to the terms and conditions of the Client Agreement.
• Step 3. Choose a password.
• Step 4. Check the confirmation link sent to the email address you provided.
• Step 5. Select an account type and platform.
• Step 6. Complete a survey as part of FBS’ client categorization policy.
• Step 7. Upload proof of ID and address to verify your account.

Why is a Demo Account Important?

FBS offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself alongside your live CFD account.

FBS’s Restricted Countries

FBS does not accept clients from the U.S., Canada, North Korea, or other jurisdictions where trading with leveraged products is prohibited.

Research

Research Tools

Please note I have only listed the currently available research tools:

• Economic Calendar. The economic calendar is an essential tool in a trader’s arsenal. It informs traders of upcoming market events and releases that have the potential to stir price action, thereby creating viable trading opportunities. FBS’s calendar is available from the website.
• Currency Converters. The currency converters, as the name suggests, are useful tools for estimating market exposure. Traders use them to calculate the size of their positions, costs, value of trades, and more.

My Key Takeaways After Exploring FBS’s Research Content

FBS used to provide well-balanced research content comprising of probing market breakdowns (written articles and videos), trade ideas, and more. However, these have not been updated in several months. I hope that the broker resumes publishing regular content once more, as I found it very useful, especially for those interested in reading about viable trading opportunities in the short and mid-terms.

Education

I have broken down FBS’ main types of educational content below:

• Educational Course. Three-tier course (beginner, intermediate, advanced), available from the client area. The topics covered include an introduction to online trading, an explanation of Japanese candlesticks, and Algo trading with MQL5.
• Educational Guidebooks. Available on the website, these guidebooks are free for all visitors. They offer a basic introduction to essential trading topics, covering areas such as technical and fundamental analysis, studying price action behavior (trends, ranges, breakouts, and breakdowns), risk management, and more.
• Regular Webinars. FBS frequently conducts webinars on several major topics, including event trading, market outlook, real-time analysis, and trading skills. Recorded past webinars are available on FBS’s YouTube channel.
• Forex Glossary. This comprehensive glossary contains explanations for hundreds of entities, covering the most important trading terms.

The Bottom Line

FBS, established in 2009 and headquartered in Cyprus, is a reputable derivatives broker serving both beginners and professionals. It boasts an impressive average execution speed of under 40 milliseconds, ideal for high-frequency trading while providing extensive educational materials for new traders.

The broker offers commission-free trading with competitive floating spreads across various asset classes. Although it utilizes the user-friendly MetaTrader 4&5 platforms, it lacks a proprietary platform, and MT’s design can be challenging for in-depth technical analysis.

While was impressed by the scope of FBS’s educational materials, its research content has been dormant for several months. However, I was assured that the broker plans to start publishing research content again soon.

Overall, I estimated FBS to be well-suited for high-frequency, intraday, and scalping traders, especially those trading currency pairs. While beginners may have a learning curve with MetaTrader, they can benefit from the FBS’ extensive educational collection.

FAQ