I just bought a new laptop and I have been playing TERA just recently and I've been told that it's a good laptop so I assumed that TERA would be able to run pretty smoothly on relatively high/medium-high graphics. Well when I'm in the game and it's on the "recommended" auto graphics settings which is everything high I get between 18-20 FPS? I tried playing around with the settings to get it as smooth as possible without ruining the graphics too much and no matter what I did I couldn't get 50-60 FPS? The only way I got 60+ FPS was by setting everything to the absolute minimum and even then it was only at 65. Maybe it's my machine. My specs are: Intel i7-4700QM Quad 2.40ghz NVIDIA GeForce GT 740M 8 gig RAM 1TB HDD windows 8.1.
Your processor is good, but your graphics card is weak. My advice is to look into getting a better graphics card. They're cheapest at Newegg.com
Laptops, unfortunately, don't typically allow for upgrading the graphics card - most laptop users are looking for mobility, not power. There's actually a pretty entertaining discussion about this on hackaday: http://hackaday.com/2015/03/26/a-laptop-with-an-external-graphics-card/
Yeah, that graphics card is weak sorry to say. That said, towns in general mess with framerates. Granted, I have everything on high/ultra, but I get pretty bad frame dips (18-20 range, like you) in hub cities, especially Velika. Also, when you said it capped at 65, I think Tera tries to limit the framerate to the refresh rate of your monitor. Even when I drop everything to low and I'm out in the field staring at a wall I only get around 65 FPS as well.
As others have said, your CPU is suitable but, the graphics card is too weak. Right now, your best bet is to upgrade your graphics card with a professional if possible, as upgrading modules in a laptop is considerably harder and more dangerous than a desktop computer. Otherwise, return the laptop (if possible sorry), and purchase one with a stronger GPU.
Your first mistake was trying to play this on a laptop. I'm sorry but gaming laptops to me are a rip off. Most laptops don't even allow upgrading. So when you need a new graphic or sound card to play the "latest" whatever, a lot of the time you're stuck. Things like this are why I always go with desktops.
I haven't had a very good experience with the performance of Terra either. It seems glitchy on any system I try it on.
Without seeing your ingame settings its hard to say, what does it run like when you turn everything off and down to low?
I think that the video card isn't really good for running tera with high settings. The other components seem quite Ok but I'd do an upgrade if I were you.