FBS Fees Explained

FBS Fees Explained

Trading fees directly impact profitability and reveal and can provide an insight into a broker’s preferred trading strategies. High fees may discourage certain strategies, while low fees may indicate it is a strategy the brokers actively support’s its clients to trade. Therefore, traders should carefully evaluate the total cost of trading and compare them accordingly. The FBS fees will depend on the account type in question, with notable competitive differences between the seven FBS account types.

Our FBS fees review breaks down the trading and non-trading costs to allow traders an informed decision on which FBS account type to choose. How competitive are the FBS trading fees?

Overview of FBS Fees and Charges

FBS fees are competitive in both commission-free and commission-based accounts, but traders must choose the proper account type, to avoid paying more fees than necessary to run their required trading style / strategy. The commission-based Pro option grants the cheapest costs with minimum floating spreads of 0.3 pips or $3.00 per 1.0 standard round lot, but average ones are usually from 0.6 pips or above. The Standard account has minimum floating spreads of 0.5 pips and an average spread of 0.9 pips. If you opt for the commission-based Pro account, you can enjoy the lowest costs with a minimum floating spread of just 0.3 pips or $3.00 per one standard lot. However, on average, the spreads are typically around 0.6 pips or higher. The Standard account offers a minimum floating spread of 0.5 pips and an average of around 0.9 – but the deposit requirements are exceptionally low. FBS offers the Standard option with a minimum deposit of $1 versus $1,000 for Pro.

Cryptocurrency traders get fixed spreads from 3.0 pips for a commission of 0.10% per round turn trade, 0.05% for buying, and 0.05% for selling. Equity CFD traders pay a 0.0005% commission in the Pro account and 0.70% in the Standard alternative. High-volume traders can significantly decrease final trading fees payable by taking advantage of the FBS cashback program, which pays up to $15 per lot rebate potentially.

Here is a snapshot of FBS fees:

FBS Fees, Spreads, and Commission Explained

Traders should understand the FBS fees to realize what is the total cost of trading, why they must pay certain fees, and how those costs compare to other brokers. Trading costs for all brokers fall into two main categories: trading and non-trading fees.

Trading fees are:

• Spreads (the difference between the bid and the ask price of an instrument, FBS maintains a competitive market spread in its Pro account)
• Commissions charged on the deal ticket usually a fixed % (asset-and-account dependent, ranging from competitive to expensive)
• Swap rates (charged on leveraged overnight positions, where FBS ranks only average and fails to reward risk through applicable positive swaps)
• Currency conversion fee (not applicable at FBS)

Non-trading fees are:

• Deposit fee (not applicable at FBS)
• Withdrawal fee (dependent on the payment processor)
• Inactivity fee (not applicable at FBS)
• Currency conversion fee (not applicable at FBS)

FBS Trading Fees

Traders must pay FBS trading fees on each transaction. They vary across assets and account types.

Here is an overview of average FBS trading fees in the Pro account:

Overnight Fees (Swap rates)

Swap rates apply on leveraged overnight positions, which triple on Wednesday to account for trades not settling on the weekend, as the usual T+2 trade settlement convention applies in FX (Trade plus 2 working days). If traders keep positions open past close of trading day, generally 5 p.m. EST swaps are applied. The ‘cost of negative carry’ can be a significant extra cost, dependent on the trading instrument in question. It’s a factor that is often overlooked by traders so be aware, especially if you hold trades for long periods of time.

MT4/MT5 traders can easily access swap rates from their platform by following these steps:

1. Right-click the desired symbol in the Market Watch window and select Specification.

2. Scroll down until you see Swap Long and Swap Short.

Noteworthy:

• FBS does not offer positive swap rates on major or minor currency pairs, only on exotic pairs.

Currency Conversion Fees

FBS does not levy a currency conversion fee, which usually applies each time the quote currency of an asset does not match the account base currency. For example, buying a US Dollar denominated asset from a Euro trading account, but FBS uses the prevailing market rate at the dated conversion time.

FBS Non-Trading Fees

Non-trading fees are deposits, withdrawals, and inactivity. They are less frequent, but traders should understand them to avoid confusion.

FBS Deposit Fee

A deposit fee does not exist at FBS, meaning a trader making a $1,000 deposit will receive $1,000.

FBS Withdrawal Fee

FBS Withdrawal fees depend on the payment processor, and FBS lists one free method.

FBS Inactivity Fee

FBS does not levy an inactivity fee, there is no pressure to trade.

FBS Safety and Security

FBS segregates its client deposits from the firm’s corporate funds and offers negative balance protection, ensuring clients cannot lose more than their deposited amount. The broker complies with two regulators, and FBS has a clean track record over its 12+ years of operation. It caters to 16+ million traders and uses additional security systems such as an Intrusion Detection System (IDS) to protect its operation and clients. Therefore, FBS ranks well as a safe and secure broker.

FBS Trading Fees Bottom Line

The FBS Pro account offers traders the lowest fees, making it the most competitive option, but it requires a deposit of at least $1,000. Traders can benefit from lower final FBS fees via the cashback program, which results in ultra-low trading fees FBS does not levy any inactivity fees. For more information about FBS, read the full broker review.

FAQs

Does FBS charge raw account commission?

Yes, a $6 commission per 1.0 standard round lot for raw spreads applies, which equals 0.6 pips, the industry standard.

Does FBS charge inactivity fees?

No, FBS does not charge any account inactivity fees.

When does FBS charge fees?

Spreads apply instantly to a trader when a position is opened, but commissions only apply in the two commission-based account types and for cryptocurrency trading. All traders pay swap rates on leveraged overnight positions after the cut-off time.

How much does FBS charge for withdrawal?

Withdrawal fees depend on the payment processor.

What trading fees does FBS charge?

Spreads apply to each asset, but commissions depend on the account type and trading instrument. FBS levies swap rates on leveraged overnight positions. Overall costs depend on the account type and assets.

Does FBS charge a commission?

FBS has two commission-based accounts. One features a commission of $6 per round lot, and the other has a minimum commission of $20. Cryptocurrency traders also pay a commission of 0.05% on each leg of the transaction, for buying and selling, meaning to open and close a trade total commission of 0.10% applies.

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