How to open an FBS account?
Click the ‘Open account’ button on our website and proceed to the Personal Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading.
How to withdraw the money you earned with FBS?
The procedure is very straightforward. Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.
How to start trading?
If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.
How to activate Level Up Bonus?
Open Level Up Bonus account in web or mobile version of FBS Personal Area and get up to $140 free to your account.
Compound Annual Growth Rate
Compound Annual Growth Rate (CAGR)
What is CAGR?
The compound annual growth rate or in short, CAGR, is one of the most precise methods to calculate and define returns for an investment over some period.
What CAGR can tell an investor
The compound annual growth rate doesn’t represent the exact return rate, it should be rather viewed as a representational figure. So, the CAGR is a number that shows the rate at which an investment would have increased its value if it had grown at the same rate every year. That’s assuming the earnings were reinvested at the end of each year. Some may argue that it’s unreal for an investment to grow at the same rate every year, and they will be right! The CAGR is usually used to smooth fluctuations of returns for a better understanding.
Formula of CAGR
CAGR = ((value at the end / value at the beginning /) 1 / number of years – 1) x 100
Let’s say a random person has invested $10,000 in a stock portfolio with the following returns:
- From 2018 to 2019, the portfolio grew to $13,000 (the 30% annual growth).
- From 2019 to 2020, the portfolio grew to $14,000 (the 7.69% growth).
- Finally, the portfolio rose to $19,000 in 2021 (or 35.71% from 2020 to 2021).
Let’s calculate the CAGR using the formula above.
CAGR = (($19,000 / $10,000 /) 1 / 3 – 1) x 100 = 23.86%
The compound annual growth rate of 23.86% over three-year investment period allow an investor to evaluate past performance, compare options for the capital, and also make predictions for future investment value.
2022-04-05 • Updated