FBS Research Editorial Desk · Independent analysis · October 2026
A low advertised spread is not the same thing as a low total trading cost. When comparing forex accounts, the important question is what a position costs to open, maintain and close under the conditions in which a strategy actually trades. This research guide examines the spread-versus-commission decision using current FBS pricing statements as a starting point and transparent calculations rather than promotional rankings.
What FBS advertises, and what it does not
FBS's international trading conditions currently describe floating forex spreads starting from 0.7 pips and no trading commission on its advertised retail offer. A starting spread is not the typical spread over an entire week, nor a guaranteed quote during major news. A floating quote can widen as market depth falls or volatility rises.
These marketing conditions provide a useful baseline but not a full cost forecast. Verify the live specification for your instrument, account and jurisdiction. Compare spreads at the market hours when you usually trade, instead of relying on an isolated screenshot of a particularly quiet period.
Spread versus commission: the basic difference
A spread is the difference between the tradable ask and bid price. In a spread-inclusive model, much of the transaction charge is embedded in that gap. A commission-based model may quote a tighter spread but levy a separately stated fee per side or per completed round turn. The narrower-looking quote is not automatically the cheaper account.
To evaluate either model, compute the spread in account currency and add the total commission for both entry and exit. Confirm whether a quoted commission applies to 100,000 units, one standard lot or another notional amount. Currency conversion may alter the final debit.
EUR/USD example: what the numbers mean
With a conventional 100,000-unit EUR/USD lot and a USD account, pip value is approximately USD 10 per full lot. A 1.1-pip effective spread therefore represents approximately USD 11 for one lot, or USD 1.10 for 0.10 lot. That is an arithmetic illustration, not a verified live FBS spread or execution result.
Imagine another account showing a 0.2-pip spread and charging USD 3.50 per side per standard lot. The approximate round-turn expense is USD 2 spread plus USD 7 commission, or USD 9. A fair comparison would measure the two products on the same instrument, during the same session and at the same traded size.
Trade frequency can overwhelm a small edge
Suppose a system takes 40 EUR/USD trades per month at 0.50 lot, experiencing an average effective spread of 1.2 pips. With an approximate USD 5 pip value at that size, spread expense alone is 40 × 1.2 × 5 = USD 240. If the average spread were only 0.7 pip the same illustrative strategy would spend roughly USD 140 before other charges.
An extra half-pip may look insignificant in one trade but matters to high-turnover strategies. Record actual fills and average spreads across more than one market session. A backtest that assumes permanently tight quotes may overstate the viability of short-target strategies.
Do not ignore slippage or overnight financing
The quote visible before an order is submitted may differ from the executed price, especially during major economic releases or gaps. This difference is slippage. When a position remains open through rollover, swap or other financing adjustments can create further costs, depending on direction and contract terms.
Gold also requires care: a gold price increment is not interchangeable with an EUR/USD pip. For a hypothetical 100-ounce contract, a USD 0.40 bid–ask difference represents around USD 40 at one lot. Confirm the actual gold contract size on the trading platform before applying that arithmetic.
How to compare FBS with a raw-spread broker
Record the instrument, observation time, position size, live bid and ask, commission per side, swap schedule and executed price. Express all figures in the same account currency. Avoid placing an advertised minimum next to an independently observed average, as that is not a meaningful like-for-like comparison.
Use the ForexReview comparison resource to organize cost assumptions, then cross-check the data against each broker's current specifications. Our FBS Trading Costs 2026 pillar examines more of these components.
A practical decision rule
Choose a pricing model based on documented transaction costs for your own strategy, not the headline fee format. A discretionary swing trader may care more about rollover and instrument coverage, while a scalper needs especially careful spread and execution observations.
Before deciding, run a consistent demo or small-sample log and compare effective transaction expenses to realistic strategy expectancy. Whatever the fee format, leverage amplifies market losses and a low transaction cost cannot turn an unsound strategy into a profitable one.
Frequently asked questions
Does FBS charge a separate trading commission?
FBS's published international trading conditions currently advertise no commission for the promoted offer; verify instrument-specific terms.
Is the FBS advertised spread of 0.7 pips the average?
No. It is an advertised starting level for floating spreads, not a guaranteed average or current execution quote.
Does a raw-spread account always cost less?
No. Add the complete round-turn commission and realistic spread observations before comparing accounts.
Sources and methodology
FBS Research uses primary broker documents and explanatory arithmetic; advertised minimums are distinguished from observed prices. Verify your contracting legal entity, symbol specification, account terms and payment availability independently before relying on changing figures.
Risk warning: Leverage magnifies losses and trading returns are never guaranteed. This is not personalized financial advice.