Is FBS legit? http://www.fbs.com/ ?ppk= myinsurance

larz

Corporal
Messages
79
Their advertisement on my facebook page goes like this:

TRADING WITHOUT LOSSES HAS BECOME REAL NOW with FBS!
Obtain Deposit Insurance for FREE!
Right now you can insure from 10% to 100% of your deposit. In case you lose it, FBS will pay you back.

Spammers keep on posting this on our facebook group. It seems unrealistic that they pay you if you lose your deposit.

Thanks for any comments on this.
 

Pharaoh

Colonel
Messages
19,919
From fbs.com/insurance/rules

For an insured account spread is 1 pip wider for all currency tools and a commission of 10$ per 1 lot is charged-off deals with metals.

From fbs.com/insurance

Insuring $100 requires 12 full lots to be traded. Insuring $500 requires 62 lots to be traded.


So, with a typical pip on a full lot being approximately $10, to collect insurance on a $100 loss requires you to pay FBS about $120 in added spread. Insuring $500 means you've paid FBS an extra $620.


Tell you what - make me your IB at a broker that pays me 1 pip per each lot you trade and I'll offer to insure you for less. :D
 

larz

Corporal
Messages
79
So the deposit insurance is not free after all. Why should should I pay $620 to insure my $500 from loss.
 

Pharaoh

Colonel
Messages
19,919
For xxxUSD pairs, that's exactly right. For other pairs, it varies a little, but the end result is that you've more than paid for the so-called insurance by letting them mark up your spread.
 

FBS Official Rep

FBS Representative
Messages
187
Hello, everyone, I would simply like to note - that for many FBS traders this is beneficial - and if a trader feels that the terms and conditions are fair and acceptable - then this promotion is great for them.
 

Pharaoh

Colonel
Messages
19,919
Why not lay it our directly for the clients? Ask them how fair and acceptable they feel the offer is once it's stripped down to what the terms really mean:

Hey FBS clients! After you pay FBS $120 in extra spread and meet some other conditions, you can get up to $100 of losses reimbursed. Or, you can ignore the "special insurance offer", make exactly the same trades, and have $120 with no conditions whether your trades win or lose.

Mr FBS rep, I'll arrange to insure your trades for $10,000 if you send me $11,000. I won't even place any other terms or conditions. Just let me know when you want to collect any amount up to the full $10,000 and it will be sent back to you. Do you think this is beneficial to you? Do you feel that it is a fair and acceptable offer? You should. It's far better terms than you are offering your own clients, so it should be great for you. How would you like to transfer the money?
 

FBS Official Rep

FBS Representative
Messages
187
Why not lay it our directly for the clients? Ask them how fair and acceptable they feel the offer is once it's stripped down to what the terms really mean:

Hey FBS clients! After you pay FBS $120 in extra spread and meet some other conditions, you can get up to $100 of losses reimbursed. Or, you can ignore the "special insurance offer", make exactly the same trades, and have $120 with no conditions whether your trades win or lose.

Mr FBS rep, I'll arrange to insure your trades for $10,000 if you send me $11,000. I won't even place any other terms or conditions. Just let me know when you want to collect any amount up to the full $10,000 and it will be sent back to you. Do you think this is beneficial to you? Do you feel that it is a fair and acceptable offer? You should. It's far better terms than you are offering your own clients, so it should be great for you. How would you like to transfer the money?
Hello Pharaoh.
Why not lay it our directly for the clients? - We do, I always emphasize: no matter what you are signing up for, please make sure you always read the full list of conditions, they are indeed there for a reason and for the benefit of both parties. Once you read the full list of condition, and you feel that this offer is beneficial for you, take it and use it for your benefit. If you do not like the conditions, then do not utilize the offer. I hope everyone has a pleasant day and HAPPY TRADING.
 

Pharaoh

Colonel
Messages
19,919
The reality is that if you made it very clear to clients that they would have to pay $120 extra to provide $100 in insurance (which has additional terms on whether or not it can be collected), no sane person would take the deal. The ones who sign up either didn't carefully read the offer or else didn't sit down and do the math.

I'm sure if a grocery store was unethical enough to put up a special "Buy 3 for the price of 4", a few people would misunderstand the sign and purchase the product to get the deal.



Amusing demotivators aside, you didn't really answer my questions.

Is my offer to insure your trades beneficial to you? Is it fair and acceptable? If not, how can you claim that an offer with worse terms (both in payment/payout ratio and complexity) is good for your clients?
 

FBS Official Rep

FBS Representative
Messages
187
The reality is that if you made it very clear to clients that they would have to pay $120 extra to provide $100 in insurance (which has additional terms on whether or not it can be collected), no sane person would take the deal. The ones who sign up either didn't carefully read the offer or else didn't sit down and do the math.

I'm sure if a grocery store was unethical enough to put up a special "Buy 3 for the price of 4", a few people would misunderstand the sign and purchase the product to get the deal.



Amusing demotivators aside, you didn't really answer my questions.

Is my offer to insure your trades beneficial to you? Is it fair and acceptable? If not, how can you claim that an offer with worse terms (both in payment/payout ratio and complexity) is good for your clients?

Dear Pharaoh - we have clients who insure their funds on a regular basis. I frankly do not understand why you continue to throw dirt and negativity on something that does not suit your needs but is well suited for others. If there is anything else I may clarify for you, I will be happy to - Thank you.
 

Pharaoh

Colonel
Messages
19,919
From my point of view, publicly warning traders about what appears to be a very bad deal is not throwing dirt or negativity. It's clarifying what some clients don't understand so they can stay with your company and pay lower fees. They will see "insure your money". I doubt even one of the people who uses this on a regular basis sat down with a calculator and determined that the best which could be hoped for was to pay a minimum of $120 for every $100 of potential benefit.

Again you skip answering my questions. Is this because you won't or because you can't?

Explain how this insurance suits the needs of anyone other than FBS. Under "perfect" circumstances, the client pays $120 and gets exactly $100. Under imperfect circumstances, the client could wipe out the account before reaching the minimum trade volume and be eligible to collect nothing. Or, the client could continue to pay extra trading fees above $120 without ever qualifying for the $100. What possible benefit can this provide to a client?

Explain why you won't even comment on my far more generous offer to you. I'll even be more flexible with the terms to meet your needs. If you like, I'll change it to any amount, as long as the premium is 10% above the maximum payout. If you like, you can pay in small installments and the policy will immediately apply to the part you've already paid for, again with payments collected to date being 10% above the maximum payout. Do you see any way in which the deal I'm offering you is inferior to the deal you are offering your own clients? If so, please explain. Do you see anything wrong with the insurance deal I'm offering you? If so, please explain.
 
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