FXB Trading Review
FXB Trading is an ECN forex and CFD broker, which provides multiple account types. There are huge differences in trading conditions, based on your initial deposit.
The Company. Security of Funds
Company Country Regulation
FAZCO CAPITAL LIMITED St. Vincent and the Grenadines N/A
FXB Trading is a brand owned by FAZCO CAPITAL LIMITED, which is registered on St. Vincent and the Grenadines. We generally advice proceeding with caution when dealing with off-shore entities. The company is a member of The Financial Commission (FinaCom) – an independent international organization, which assists in dispute resolution.
That being said FinaCom is not a financial regulator, by any means. Regulatory agencies are government institutions, which have the legal authority to enforce laws upon brokers, who are registered with them. A dispute resolution mediator, like FinaCom, may help traders in some cases, but it does not have the same power over its members, as the top-rated watchdogs do.
As an example, the United Kingdom has the Financial Conduct Authority (FCA), one of the most reputable regulators. It monitors the activities of the firms it oversees, and can put new rules in place. There are two major rules, which provide security for traders’ funds. First of all, there is the segregated accounts principle, which makes brokers keep their clients’ money separate form the company’s. This prevents the “accidental” spending of your investment on salaries, marketing campaigns and “corporate bonuses”. The second key rule is the mandatory participation in the Financial Services Compensation Scheme (FSCS). It guarantees client funds, in case their broker goes bankrupt. If you trade with an FCA-regulated company, your account will be safe, agianst their insolvency, up to £50,000.
Minimum Initial Deposit
FXB Trading requires and initial minimum deposit of $100, which is about what you would expect nowadays. Brokers like the FCA-regulated industry veterans at HYCM also demand a similar investment, for the creation of a new account.
That being said, the minimum deposit shouldn’t be viewed as that big of a factor by experienced traders, as it doesn’t tell you anything about a company’s credibility.
Average spreads & Commissions
The costs of trading at FXB Trading are spreads and commissions. The raw feed was rather tight during our testing, providing a 0.3-0.4 pip spread on EUR/USD in the early US session. Keep in mind you have to add the commission. The easiest way to calculate the effective spread, when dealing with this type of ECN offering is to remember that every dollar worth of commissions is equal to 0.1 pips (in pairs where the USD is the second currency).
For instance, with the Basic account at FXB Trading, the real costs of trading would amount to 1.5-1.6 pips (the aforementioned spread + 1.2 pips from the $12 commission). This level is close to the current offerings by other brokers, some of which you can check here.
The maximum leverage at FXB Trading is 1:1000, for smaller accounts. This is an absurd level, which can lead to big losses, but is not that surprising, given the current industry standards.
The thing which most some traders do not understand is that you should not use the entire leverage your broker provides at the same time. For instance, if you utilize your entire account at a 1:1000 ratio, all it takes to wipe-out your investment is a 0.10% market move in the opposite direction.
FXB Trading allows traders to utilize MetaTrader4(MT4). Although this platform is relatively old, especially for a software product, it is still considered the industry norm. Charting capabilities are top-notch, it can handle lots of instruments at the same time and execution times are lighting fast. The latter two are dependent on your hardware, internet connection and broker, of course. The interface may be a bit complicated for new users, but once you get the hang of it, you will enjoy the full potential of this amazing platform.
Probably the most unique feature of MT4 is the way in which it allows new add-ons to be created. The is a fairly simple coding language, which allows users to create new technical indicators or automate their trading strategies into Expert Advisors. Both of these tools can be bought in the MQL Marketplace – an online shop, which is totally independent from brokers. The coolest thing is, if you decide to move to another MT4 broker, you can easily transfer your entire collection to the new one.
Methods of Payment
FXB Trading accepts payments via few methods: Bank Transfer, Credit/Debit Card and China UnionPay. We must note, international bank transfers may take several business days. This is why some people prefer using e-wallets, such as Skrill.
FXB Trading is an off-shore forex broker. Although they are a member of FinaCom, they are not regulated by any state agency, which is still rather troubling. Trading conditions are almost competitive, with the more cash-demanding account types providing a pretty good offer.
FXB Trading Review Conclusion
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