FBS Review 2023

Trust

Tradestone Ltd (FBS) is listed among the regulated entities on the CySEC websiteIn our trust category, we place the most importance on how a broker is regulated. So let’s look at how the different entities of FBS across the globe are regulated. We rate regulators on a scale of 1 to 3, with 1 reflecting the highest level of trust.

The various entities of FBS are regulated as follows:

• Tradestone Ltd. is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 331/17. We rate CySEC as a Tier 1 regulator.
• FBS Oceania is regulated by the Australian Securities and Investment Commission (ASIC) under license number 426359. We rate ASIC as a Tier 1 regulator.
• Tradestone SA (PTY) Ltd. is regulated by the South Africa Financial Sector Conduct Authority (FSCA), under FSP number 50885. We rate FSCA as a Tier 2 regulator.
• FBS Markets Inc. is regulated by the International Financial Services Commission (IFSC) of Belize, Registration No. 119717. We rate IFSC as a Tier 3 regulator.

Why is it important to know where your broker entity is regulated?

Different regulators provide different levels of protection. Clients of FBS in the EU and Australia benefit from segregated accounts due to CySEC and ASIC requirements. Segregated accounts safeguard clients if a broker becomes insolvent and declares bankruptcy. In the EU and Australia, FBS clients also have negative balance protection, meaning they cannot lose more than their deposit.

Meanwhile, clients outside of Europe, Australia, and South Africa are with the FBS Markets Inc. entity, which is regulated by the IFSC of Belize and does not offer the same level of protection. For example, client accounts are not segregated when trading with the FBS Markets Inc. entity.

The table below breaks down the protections and benefits by region and entity.

We checked the regulatory status of FBS in November 2022.

Stability and Transparency

In our tests for the trust category, we also consider how long the broker has been in business, how big the company is, and how transparent it is.

Founded in 2009, FBS has a substantial operating history and a client base numbering in the millions, according to its website. The company’s LinkedIn page lists the number of employees as 201-500, reflecting a relatively large brokerage firm.

Financial reporting requirements make it easier to see how stable a publicly traded company is at a given time. Since FBS is not publicly traded, it is harder to gauge its financial health.

From looking at the FBS website (fbs.eu) and social media presence, this broker has an adequate level of transparency relating to its fees, regulatory status, and overall company background. Prospective clients can view their regulatory standing on the Regulation and Licence page. Information relating to fees can be found in the Client Agreement/Terms and Conditions on the Legal Documents page.

Overall, we judged that FBS has a level of trust and stability somewhat above the average of the CFD brokerage industry.

Fees

FBS is a market maker/dealing desk broker, meaning that they take the other side of a client’s trades and that trading fees are built into the spread.

The spread is the difference between the bid (sell) price and the ask (buy) price. Narrower spreads allow you to enter and exit the market at a lower cost, which is especially important for active traders. We performed the tests using the MetaTrader 5 platform in November 2022.

Spread costs were better than average for popular currency pairs like EUR/USD, and overnight swap fees were average in our tests. FBS has a low inactivity fee of 5 EUR a month for accounts that are dormant for 180 calendar days.

Trading Fees

We tested the spreads across different asset classes in a live Standard Account, using the MetaTrader 5 platform at 8 AM GMT and 3 PM GMT on November 28, 2022.

Spreads in major currency pairs, such as EUR/USD, are competitive, but in others, such as GBP/JPY, they are average. Spreads in commodities and stocks range from average to above average. Spreads were relatively wide in some indices, for example, the Dax 30.

Note: The spreads in a standard account are the same as in a professional account.

Swap fees (the cost of holding a position overnight) at FBS were about average in our tests.

In the table below, you can see the Swap Long (the cost/credit of holding a buy position overnight) and the Swap Short (the cost/credit of holding a sell position overnight) for one full-sized contract. A full-sized contract is 100,000 units of the base currency (the first currency quoted in the pair).

We recorded the data on November 28, 2022.

Non-Trading Fees

FBS has no deposit or withdrawal fees and an inactivity fee of just $5, reflecting a customer-centric approach to pricing.

Are Fees at FBS Competitive?

We judged that fees at FBS ranged from average to competitive in relation to the CFD industry as a whole.

Platform and Tools

MetaTrader is an industry-leading platform used by millions of traders. FBS offers MetaTrader 4 and 5 for both web and desktop. For traders on the move, FBS offers the FBS Trader mobile app and the MetaTrader 4 and 5 apps. In our review, we tested the MetaTrader 5 web and desktop platforms and the FBS Trader mobile app.

Web and Desktop

FBS Trader Android App: Charts, Favorites and Economic Calendar Panels.The FBS Trader app has an attractive interface and allows users to trade various instruments on the move. A chat feature is available within the app, so customer support is readily available. Basic order types such as market orders, limit orders, and stop loss orders are available. An economic calendar and a calendar covering earnings and dividends for stocks are conveniently built into the app.

The interface is well-designed and easy to navigate, but the app lacks some of the features of MetaTrader. MetaTrader 4 and 5 mobile apps are available in 24 languages and offer popular features such as alerts and 1-click trading. MetaTrader 4 and 5 mobile apps provide a broader range of order types and more advanced charting. BS Trader is available for Android and iOS, and MetaTrader 4 and 5 are available for Android.

Order Execution

FBS is a dealing desk/market maker broker, meaning that they set the bid (buy) and offer (sell) prices internally and automatically take the other side of a client’s trade.

Tradable Instruments

CFDs (Contract for Differences) are financial derivative products that allow traders to speculate in various markets without owning the underlying assets. Tradable instruments at FBS include the following CFDs:

• 50 Currency Pairs. A currency pair combines two different currencies, with the value of one currency quoted against the other. For example, EUR/USD, which reflects the value of the euro measured in dollars.
• 5 Commodities. Commodities are raw products, such as gold and oil.
• 99 Stocks. FBS offers access to trading in global stock CFDs. A stock is a security that represents partial ownership of a corporation. Keep in mind that when trading stock CFDs, you are speculating on the price of a stock without actually taking ownership of the underlying asset.
• 11 Stock Indices. Available instruments at FBS range from Australian to German stock indices. A stock index is a basket of shares used to gauge a market sector, stocks within an exchange, or a country’s economy.
• 17 Cryptocurrencies. Cryptocurrencies, such as Bitcoin, are digital currencies secured by cryptography.

Below is a sampling of instruments across the various asset classes.

While a broad range of markets is available, some instruments, such as bonds and exchange-traded funds (ETFs), are unavailable. Overall the variety of tradable instruments at FBS is better than the industry average.

Customer Support

We tested support at FBS over the phone, live chat, and email with multiple inquiries. Responses were quick, with helpful and courteous agents. With live chat, there is no need to interact with a bot before being connected to a live representative. Agents answered phone inquiries within a few rings, and support replied to emails within 24 hours.

We tested the phone support by asking questions like ‘what is the maximum leverage available for professional accounts?’’ and got a prompt and satisfactory answer. Chat responses were generally good, but stumbled a little on more complex questions like ‘how can I place a trailing stop order in MT5?’.

FBS does better than most competitors by not charging transaction fees for deposits and withdrawals. Users are typically credited within 24 hours when using electronic payments. When using a wire transfer, processing can take up to 48 hours, and it can take 5-7 business days for funds to be available in your account.

Deposits

Deposits are free at FBS, and the following account funding methods are available. Funds are available immediately except for wire transfer, which takes 3-4 business days. Keep in mind that banks typically charge for sending wire transfers out.

Withdrawals

Withdrawals from FBS are also free and, in most cases, take 15-20 minutes, except for bank wire, which takes 48 hours to process. Processing by the bank may take as much as 5-7 business days. Withdrawals are available via the following methods:

Account Types and Terms

Account Opening

Research

FBS Economic CalendarFBS also provides classic research tools such as an economic calendar (covering currencies, stocks, and dividends), a forex calculator, and a currency converter. Traders can find the tools on the website under the Analytics and Education tab. As with the market analysis, FBS goes the extra mile with tools and provides an above-average offering.

Education