When it comes to Forex trading, FBS Account types are one of the first things that you should know about. FBS stands for Foreign Currency Broker and it is a trading facility that is offered by many commercial banks. These commercial banks include HDFC, ING Direct, UBS AG, RCBS, and ING Direct. There are several different FBS Account types that you can open, depending on your requirements.
There are four main trading types: the base trade, the minimum deposit, the managed account, and the premium service. Among these four, the base trade accounts allow traders the flexibility to start small and gain experience in minimal time. Traders with minimum deposit can access the services of the broker quickly. The broker collects fees only from when a transaction is closed.
Islamic and standard trading are the other two FBS account types. Islamic accounts give traders the opportunity to trade using four different currencies, whereas standard account types are open to trading of five currencies. Standard account types also allow for trading in commodities, foreign securities, and interest rates.
The major benefits of opening an Islamic Trading account are the absence of minimum deposits and the ability to open accounts without registration. Islamic accounts do not require a minimum deposit to open and this makes them ideal for new investors. Islamic trading is fast and provides high returns. Standard trading accounts on the other hand, use minimum deposits to open accounts. However, traders may not receive high returns.
FBS also offers two major online trading facilities. The first one is a service called Forex Trading, where traders can open both standard and flexible accounts. Flexible accounts allow traders to trade in currency pairs using three major pairs – the UK’s pound/US dollar, euro/dollar, and Japanese Yen/dollar. The second is the CFTC (FCTC), which is the Commodity futures trading commission. CFTC allows traders to trade in four currency pairs – the US dollar/Spanish pound, euro/dollar, yen/dollar, and British pound/dollar. The CFTC also offers online CFTC services.
Both the standard and flexible FBS accounts offer traders the option of opening as low as two Swiss francs and as high as five hundred thousand Swiss francs. Traders may also open two types of managed accounts: the High-frequency Spread Betting Account and the Spread Dealing Account. Traders may open either short term or long term accounts.
FBS also offers three trading platforms for its clients. These include the Eurodollar Market, the Spot Market, and the New York Board Exchange (NYSE). All these trading platforms allow traders to trade in the major currency pairs on four different world markets including: the US dollar, the euro, the Japanese yen, and the Swiss franc. Most of these trading platforms allow traders to gain access to their accounts from anywhere in the world through internet connections. In addition, all traders can use their accounts to trade in foreign securities including equities, bonds, and derivatives such as interest rate contracts, currency swap contracts, forward contracts, and forex market transactions.
A trader may open an account with the FBS by paying the registration fee. This fee is charged under the Basel II implementation and is strictly regulated. However, copies of certificates of registration and authorization are offered free of charge to new members. An online trading account is one of the FBS Account types that gives you a lot of flexibility and potential growth opportunities.