Our #Bandicam settings
Minimal fps hit - only 4-5fps on #Intel HD 2500 Graphics + i5-3470
We used H264 CPU instead of Intel #QuickSync so that the integrated graphics can focus on processing the in-game graphics, while the CPU process the encoding. Besides, CPU utilization is very low due to the bottleneck-performance created by the integrated graphics, so why not give the CPU the load of encoding the recorded video.