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 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 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.
What is Mutual Fund?
A mutual fund is a professionally-managed investment scheme consisting of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.
A mutual fund is a financial structure that works like a piggy bank for an unlimited number of people, except for a bank’s management – only one company decides the money’s fate. Mutual funds are one of the most favorite instruments for an investor due to their convenience and low risks.
Types of Mutual Funds
There are many different mutual funds, with substantial or almost no difference between them. The type of fund depends on the asset the fund is investing in. For example, there is a fund for tech stocks, broad stock market, bonds of different countries, stocks with high volatility, biotech stocks, real estate investment trusts (REITs), etc.
Also, funds are divided by type of payment. For example, some funds invest all income back into chosen shares, increasing the price of Mutual Fund’s shares. Others pay dividends from stocks and bonds to their investors. Also, you can just sell fund’s shares and take your money from the market.
Finally, there are a closed-end and an open-end mutual funds. A closed-end fund has a fixed number of shares offered by an investment company through an initial public offering. Open-end funds are offered through a fund company that sells shares directly to investors.
Advantages of Mutual Funds
- Decisions are already made for you. Every mutual fund has a prospectus that has everything: from fund’s strategy and an expected annual return to payout and rebalancing terms. So you don’t need to analyze the market every day; a fund has already done it for you.
- Mutual funds are well-diversified and balanced. Even though most mutual funds focus on specific markets (bonds, stocks, etc.), they invest in hundreds of different instruments. Thus, if you buy shares of various funds, you will get a steady and safe portfolio.
Disadvantages of Mutual Funds
Any sane person knows that free cheese happens only in a mousetrap. You need to pay for managing your funds, and mutual funds are usually expensive. Almost all funds take a percentage of their income, generally around 1%. It may seem small, but year-by-year there will be lots of uncollected profit. That’s why you need to choose mutual funds carefully, looking for the cheapest and the most reliable one.
2022-07-27 • Updated