Correctly evaluating FBS‘s Zero Spread account can’t stop at just reading its name. This article walks through the actual cost-calculation process step by step, helping you determine for yourself whether Zero Spread genuinely fits your trading strategy.
Context: why this article is necessary
Across analyzing 13 forex brokers for this series, FBS Zero Spread is the case with the largest gap between NAME and REAL COST we’ve documented. While many other brokers have a “premium account that’s pricier but with unclear benefit” pattern (EC Markets PRO, Puprime ECN), FBS Zero Spread goes further: the name itself directly suggests being “free” or “cheap” when in reality it’s the most expensive account in the lineup. This is why this article devotes a detailed, dedicated process to analyzing it, rather than just a brief mention in the overview article.
Step 1: Understand exactly what “Zero Spread” means
“Zero Spread” only refers to ONE single cost component: the difference between the buy and sell price (spread) fixed at 0 pips. This doesn’t mean free trading — FBS offsets this with a fixed $20/lot commission, a fee entirely separate from the spread.
Step 2: Determine total real cost for your volume
Simple formula: Total cost = (Spread × Lots) + (Commission × Lots). With Zero Spread, the spread component is always zero, so the formula simplifies to: Total cost = $20 × Lots. For 1 lot, cost is $20; for 10 lots, cost is $200 — perfectly linear and easy to predict, a genuine plus of this cost structure despite the high absolute level.
Step 3: Compare with ECN — its closest direct competitor
FBS’s ECN carries a $6/lot commission plus a very low floating spread (usually under 0.2 pips under good conditions). For 1 lot of EUR/USD, ECN’s total cost typically ranges $6-8 depending on market conditions — significantly lower than Zero Spread’s fixed $20 in almost every realistic scenario.
Step 4: Identify when Zero Spread is genuinely advantageous
Zero Spread only beats ECN when ECN’s floating spread widens enough to exceed the $14/lot commission gap ($20 – $6). Specifically, if ECN’s spread widens beyond roughly 1.4 pips (a fairly high level, usually only occurring under poor liquidity or extreme volatility), Zero Spread starts to gain a cost advantage. Under normal market conditions, this scenario is rare.
Step 5: Consider the non-cost factor — predictability
Beyond pure cost, Zero Spread delivers one hard-to-quantify benefit: absolute predictability. For algorithmic strategies that need accurate backtesting based on a fixed cost model, entirely removing the floating-spread variable can simplify strategy development and testing, even though the absolute cost is higher than ECN in most cases.
Step 6: Decide based on your specific trading style
If you are: (a) a typical manual trader who doesn’t need absolute price precision, ECN is almost always the more economical choice; (b) an algorithmic trader who needs a fully fixed cost model for backtesting purposes, Zero Spread can deliver value beyond a pure cost calculation; (c) a new trader unsure of your specific needs, start with ECN or Standard and only move to Zero Spread once you’ve clearly identified a specific reason you need it.
Cross-check: does FBS publish why Zero Spread costs more?
Public information doesn’t explain in detail why Zero Spread’s commission is so much higher than ECN’s despite both aiming for low spreads. This is a reasonable question to ask FBS support directly if you’re genuinely considering this account — understanding the reason behind the cost structure helps you assess whether there’s any undisclosed hidden benefit (e.g., priority execution) not covered in public materials.
Comparing Zero Spread with Standard at small trading volume
For extremely low-volume traders (under 0.1 lots per trade), Zero Spread ($20/lot × 0.1 = $2) can actually be competitive against Standard (whose floating spread could be equal to or higher at this volume depending on market conditions). This is one of the few scenarios where Zero Spread isn’t clearly the worse choice — proof that you shouldn’t rule out any account purely based on first impressions, but should calculate specifically for your own actual trading scale.
How to ask FBS to clarify its fee structure before committing capital
If you’re still considering Zero Spread after running the numbers, a cautious approach is to contact FBS support directly with three specific questions: (1) is the $20/lot commission round-turn or one-way, (2) is there a volume-based commission discount for cumulative trading volume, and (3) is there any non-cost benefit (priority execution, dedicated support) attached to this account not covered in public materials. The answers to these three questions will help you decide based on fuller information rather than relying solely on public figures that may not reflect the whole picture.
Frequently asked questions about the Zero Spread account
Is Zero Spread suitable for scalping? In theory, possibly, thanks to cost predictability, but purely on total cost, ECN with lower commission is usually still more economical for high-frequency scalping — calculate carefully based on your expected volume before choosing.
Can the $20/lot commission change over time? Possibly — any broker’s fee schedule can be updated, always confirm the current exact figure on the trading platform before calculating based on an outdated assumption.
Can you try Zero Spread on a demo account first? Yes, most brokers let you open a demo account matching each real account type — the safest way to experience the cost structure before committing real capital.
Does Zero Spread’s leverage differ from ECN’s? Yes — Zero Spread allows maximum leverage of 1:3000, much higher than ECN’s 1:500. This is worth an additional consideration: if you choose Zero Spread for its higher leverage (not for cost reasons), understand clearly that this is a separate risk trade-off, unrelated to the “Zero Spread is more expensive than ECN” issue analyzed above.
Should you switch from Zero Spread to ECN if you accidentally opened the wrong one? Possibly — most brokers let you open a new account under the same profile and gradually shift trading activity there, though confirm the specific process with support if you need to fully withdraw capital from Zero Spread first.
Now that you know how to calculate cost correctly, ready to choose the right account at FBS? ECN or Standard are usually the more economical starting point for most traders.
FBS currently has a welcome offer for new accounts for a limited time — terms may change, check directly when you register.
Forex and CFD trading involves leverage and carries a high risk of capital loss. The fee figures in this article are for reference at the time of writing and may change — always check the latest official fee schedule. This is not investment advice. Learn more at FXM680’s Forex Academy.