FBS Cent Account – What are the Benefits?
FBS Forex broker is one of the most reliable and trustworthy brokers in the financial industry. Established in 2009, the operator provides decent services to clients and enjoys a lot of popularity because of its unique features.
FBS cent account is one of such innovations, which perfectly suits those, who are making the first steps in trading. As the description “cent account” itself suggests, it is a trading account where the balance is shown in cents. At the same time, transactions are also executed in cents. For example, if you have $5 on your account, the balance will be displayed in 500 cents. Furthermore, such an account is less risky and novice traders will certainly find this an attractive option. With the lower initial deposit, you are able to trade smaller lot sizes. FBS Cent accounts support 35 currency pairs, metals, indices, and stocks. It is a perfect choice for experienced traders as well.
FBS Cent Account Details
In order to open an FBS Cent account, $1 is enough, which is technically less than a cup of coffee. Spreads start from 1 pip and what makes the account so special, is that there are no commission fees. Leverage is up to 1:1000, which will benefit mostly experienced traders, who have some experience in trading. Maximum open positions and pending orders are equal to 200. Order volume starts from 0.01 to 1000 cents with lots. Market execution starts from 0.3 sec. In every way, the FBS Cent trading account has a lot of benefits to enjoy.
Available Trading Platforms
The FBS broker supports trading on cent accounts via MetaTrader 4 platform. The latter is one of the most popular tools that allows a convenient, functional, and efficient trading process. Numerous analytical patterns and strategies are also provided. Unfortunately, MetaTrader 5 platform is not supported at the present moment.
As we have already mentioned above, available leverage for a cent account is up to 1:1000. This is a really large amount and, mostly, experienced traders go for it. However, with decent practice, even rookie traders could find the use of such leverage. Leverage is necessary to execute orders that are significantly exceeding the initial deposit. Different account types on FBS have different leverage sizes. If you want to make the maximum profit, you can go for the maximum leverage but it could be risky. You should always think about risk management. At FBS, your account is protected from negative balance.
FBS Cent account offers floating spreads that start from 1 pip. There are different types of spreads both in size and amount and depending on the type of account, you can choose between them. Spreads are like commission fees on brokers’ websites. In order to reduce trading costs and maximize trading benefits, FBS Forex brokers offer narrow spreads to trade with. In general, it could be said that the spreads that are offered from the broker are really good and trading on a Cent account will bring you notable benefits.
FBS Cent vs Micro Account vs Zero Spread
We have mentioned that FBS offers several types of accounts for traders. Each of these accounts has its pros and cons, different requirements and conditions for traders. There is no ideal one and whatever kind of trader you are, you should go for that option. We will compare FBS Cent, Micro, and Zero Spread accounts with each other in different criteria.
Let’s start with a minimum deposit. On the FBS Cent account, $1 initial capital is enough, while on Micro and Zero Spread accounts you will need $5 and $500 respectively. The latter is more oriented toward experienced traders and of course, not everyone can risk such a high amount of money.
FBS Cent account offers floating spreads that start from 1 pip. Micro and Zero Spread accounts in their turn provide fixed spreads from 3 and 0 pips. Cent and Micro accounts do not have commission fees for trading. On Zero Spread account commission fees start from $20/lot.
As for leverage, you can use leverage up to 1:1000 on a Cent account, while both Micro and Zero Spread accounts have a leverage of 1:3000. Each of them has the same amount of maximum open positions and pending orders, which is 200.
Order volume is another key indicator which we should point out. While on Cent accounts it starts from 0.01 to 1000 cent lots, on Micro and Zero accounts it starts from 0,01 to 500 lots
(with 0,01 step). Market execution is similar for every one of them – 0.3 sec.
As for trading platforms, MetaTrader 4 is the only platform you can use for trading. At the same time, Demo versions are also available. They support currency pairs, metals, indices, and stocks so you will find everything you are interested in.
Pros & Cons of FBS Cent Account
FBS Cent account is an excellent platform for new traders, who are starting on their way to success in Forex. Having a lot of positive sides, there are some negative moments as well, which we should definitely consider. Let’s have a look at both advantages and disadvantages of the FBS Cent account.
Starting with pros, there are quite a lot of advantages we can mention. First of all, there are no commissions, which is brilliant for newly-established traders. Floating spreads are definitely worth mentioning, as well as order volume and the amount of minimum deposit which is as low as $1.
One of the main advantages of the FBS Cent account is the absence of any kind of commission fee. As soon as you check the details of the account, you will find out that there are no additional fees for keeping a balance or something like that.
Floating spreads on the FBS Cent account start from 1 pip. The floating spread may change depending on the market conditions. Usually, during the period when important Forex statistics are released, it grows. There are times when the difference between the bid and ask prices grows up to 50 pips.
Order volume on FBS Cent accounts starts from 0,01 to 1000 cent lots (with step 0,01). In trading, it’s the number of lots traded in a currency pair or in the entire market within a specified time period.
The main reason why the Cent account is more focused on newbie traders is the size of the minimum deposit. Even with $1 you can start trading and earn money. Of course, the balance will be displayed in cents, which in this case would be 100.
Traders should not think that cent accounts are a solution to everything and they will immediately start earning after creating an account. There are certain disadvantages as well which we should have a look at.
No Fear of Losses
While you are trading with a significantly lower amount of money than any other types of accounts, it could be a disadvantage as well. Most traders might lose even $10 from their balance but that does not mean anything for the purse. When you have more money, you are more concentrated and make reasonable decisions, and eventually, you might screw up the whole trading process.
No entering the real market
This type of account, as we have reiterated several times, is more of an educational style and does not include entering the real market. You should understand that when you are building strategies to earn money on a cent account the broker is on the other side of the screen and not traders.
FAQ on FBS Cent Account
How does the FBS cent account work?
FBS Cent account works in a very simple way. Balance is depicted in cents. For example, if you have $10, it will be shown as 1000 cents, and transactions are also carried out in cents. This account is oriented towards beginner traders mostly.
What is the difference between a Cent account and a standard account?
The main difference between a cent account and a standard account is in details, primarily, in leverage, spreads, and the initial deposit that is necessary to open an account. If you are a beginner it is better to have a cent account rather than a standard one.