Is FBS a Scam?

We’re aware that numerous trading platforms claim to help you earn money, but many turn out to be scams or Ponzi schemes.

What about FBS?

Is FBS a Scam?

In this FBS review, we’ll delve into the joining costs, compensation plan, product offerings, and whether users are experiencing financial gains.

Let’s dive in.

Disclaimer
Please note, that I am not a member or an affiliate of FBS.

This review is based on research and information available online in the public domain.
Any recommendations and conclusions are only opinions and may not apply to all persons or situations.

What Is FBS?

FBS is an investment company founded in 2009, providing opportunities for profit through the marketing of its services and products.

As per their Privacy Policy, the company is regulated by the Cyprus Securities and Exchange Commission.

While Cyprus is known for hosting some questionable companies, it doesn’t automatically brand FBS as a scam, at least not initially.

Primarily focused on forex trading, FBS offers educational products for traders.

With claims of over 15 million active traders in 190+ countries, the site FBS.com receives substantial monthly traffic (over 2 million visits).

However, certain red flags emerge, such as the inability for individuals from specific countries, including the US and UK, to register with FBS.

Earning money with FBS involves two methods:

1. Investing and Trading: Involves inherent risks, and caution is advised due to the prevalence of pyramid and Ponzi schemes in the investment landscape.
2. Promoting FBS: Operating on a multi-level marketing model, users can earn commissions by building a team below them. While recruiting is optional, the real income potential lies in this aspect.

In essence, FBS functions as a multi-level marketing company, emphasizing recruitment as the primary avenue for substantial earnings.

Let’s explore further

Who Runs the FBS?

The ownership of FBS remains unclear as the company does not disclose information about its CEO or founder, which is a notable red flag.

Legitimate companies typically provide transparency about their leadership.

Adding to the lack of clarity, FBS associates with various shell corporations, including:

1. FBS Inc. in the Marshall Islands
2. HDC Technologies Ltd in Cyprus
3. FBS Markets Inc. in Belize

While FBS has a YouTube channel featuring webinars hosted by Elizabeth Belugine, her role is not specified.

Based on her Facebook profile, she is from St. Petersburg, Russia, suggesting she is likely an employee rather than the founder.

The absence of clear ownership details raises concerns about the transparency of FBS.

Who Is FBS For?

FBS caters to both beginners and advanced traders, offering a platform suitable for various experience levels.

However, it’s important to note that there are certain countries where their services are not available.
The restricted countries include:

1. USA
2. Canada
3. Japan
4. Brazil
5. Israel
6. Myanmar
7. Iran

The reasons for these restrictions are not explicitly stated, but it raises the question of whether these countries have stringent regulations against potentially dubious companies.

On the flip side, FBS accepts traders from a range of countries, including but not limited to:

Australia, Thailand, United Kingdom, South Africa, Singapore, Hong Kong, India, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar, and many others.

Is FBS a Pyramid Scheme?

The distinction between a regular MLM (Multi-Level Marketing) and a pyramid scheme is crucial.

Every MLM company has roots in a pyramid scheme, but for legitimacy, the company must provide retail products.

Distributors or IBOs (Independent Business Owners) should earn primarily from selling these products, whether tangible (as in the case of Mary Kay or Amway) or intangible, such as courses or services.

Given that FBS offers services, it cannot be classified as a pyramid scheme.

However, for those interested in understanding how to spot a pyramid scheme, here’s a short video guide.

How to Register with FBS?

To register with FBS, follow these steps, ensuring you are not from a banned country:

1. Go to the FBS website.
2. Enter your email to initiate the registration process.
3. Complete the required information to receive your assigned account details.

Ensure compliance with any additional verification steps as per FBS guidelines.

Before making a deposit, you must complete a survey, providing personal data such as:

• Date of birth
• Citizenship
• Address
• Phone number

The survey includes questions like:

• A politically exposed person status
• Trading frequency over the past year
• Employment status and field
• Source of income and net annual income

Based on your survey results, you will be assigned a retail status along with a recommended deposit amount for trading.

After that just select the way how you want to make the deposit.

These are not exactly products, but rather accounts you can open. 

What Products (Accounts) Does FBS offer? 

FBS offers a range of account types tailored to different trading preferences:

1. Standard Account: Designed for experienced traders, requiring an initial deposit of $100.
2. Cent Account: Geared towards beginners in Forex, with a minimal initial deposit of $1.
3. Micro Account: Suited for those who enjoy calculations, featuring a minimum deposit of $5.
4. Zero Spread Account: Ideal for fast-paced traders, with a minimum deposit of $500.
5. ECN Account: Best suited for confident traders wanting to utilize ECN technologies, with a minimum deposit of $1,000.

Depending on your experience level, you can start with as little as $1 or opt for a more advanced account with a $1,000 deposit.

Both MetaTrader platforms, MT4 and MT5, are available, including mobile apps for convenience.

These apps enable trading on financial markets through Android and iOS devices.

Users can monitor account status, execute buy and sell orders for financial instruments, and track trade history.

Compensation Plan

Unlike many MLM companies with complex compensation plans spanning dozens of pages, FBS offers a straightforward and simple structure.

They employ a 3-level uni-level system, as depicted in the image above.

Trading commissions are distributed across three levels:

• Level 1: 100% commission on the trading activity of your direct affiliate or trader.
• Level 2: 15% commission.
• Level 3: 5% commission.

This uncomplicated structure makes it easier to understand and navigate the FBS compensation plan.

Is FBS a Scam?

FBS is not categorically a scam. Beginners have reported earning money initially, but issues arise with support and communication, particularly concerning withdrawals.

The MLM structure also raises concerns, as it may not provide sufficient earnings for most individuals.

While there’s a genuine opportunity to make money with forex, caution is advised when considering companies with unclear ownership operating from countries associated with dubious practices.

My advice is to exercise caution and conduct thorough research. Look for legitimate companies with a transparent history and inclusive policies, avoiding those that restrict certain countries.

It’s important to note that MLM structures often operate as follows:

Positive Aspects of FBS

• Simple and Clear Compensation Plan: FBS offers a straightforward and easily understandable compensation plan.
• Established Since 2009: With a foundation laid in 2009, FBS is a long-established company in the industry.
• MT4 and MT5 Integration: The integration of both MetaTrader platforms, MT4 and MT5, provides users with versatile trading options.”

Concerns about FBS

• Limited Availability in Major Markets: FBS is not accessible in significant trading markets like the USA, Canada, and Japan.
• Lack of Company Leadership Information: The absence of details about the founder or CEO raises questions about transparency.
• Affiliation with Shell Companies: FBS has connections to shell companies operating from Belize and the Marshall Islands, contributing to concerns about its organizational structure

Conclusion

FBS doesn’t appear to be an outright scam and emphasizes the inherent risks of forex trading, there are notable red flags that raise concerns.

The lack of clear information about company leadership and affiliations with shell companies, coupled with restrictions in major trading markets, contribute to a cautious stance.

Personally, I do not recommend FBS.

It’s crucial to adhere to the golden rule of investment: only invest what you can afford to lose.

Feel free to share your thoughts and questions in the comments section below; your insights can be valuable to other readers.

Thank you for reading,
Mike.

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