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FSC Mauritius Review

FSC Mauritius, is the primary non-bank financial services regulator based in Mauritius. The Financial Services Commission was established in 2001 and was mandated under the Mauritius Financial services act of 2007.

The main activities of FSC Mauritius is to license, regulate and monitor the non-bank financial services activity conducted on the island. Therefore, if a forex broker wants to operate in Mauritius, they need to have a license from FSC Mauritius.

However, there are quite a few forex brokers who are licensed from FSC Mauritius and operate their services, accepting customers from many different parts of the world. As an FSC Mauritius regulated forex broker, the brokerage is subject to the supervision of the financial regulator.

In order to obtain a license, a forex brokerage company must establish an offline presence on the island. Following inspections and due diligence, forex brokers are then granted the appropriate license to operate and conduct the online forex trading activities.

In terms of the reputation of the Financial Services Commission, it has a reputation of being quite stringent and ensures that brokers with an FSC license adhere to the protocols. There is also a great stress from the FSC to ensure that the forex brokers operate in a transparent fashion.

What does it mean for you to trade with an FSC Mauritius licensed forex broker?

For the average retail trader, there is not much of a difference, trading with an FSC licensed forex broker or another broker who has a license from some other offshore jurisdiction. The license to operate non-bank financial services is applicable only for the jurisdiction of Mauritius.

But at the same time, this license, allows an FSC Mauritius regulated forex broker conduct their operations globally (most of Europe, Africa and Asia Pacific). In terms of jurisdictional reach, an FSC Mauritius licensed broker will not be of much help especially if you are a trader based in another country.

Having said that, a FSC licensed broker is of course a lot more reliable comparing to other similar jurisdictions.

One of the biggest things that attracts a forex brokerage company get an FSC license is the fact that it is a lot more cheaper comparing to a European forex license.

In terms of oversight of activities, the FSC is also quite stringent, which adds to its reliability. In recent times, the FSC has issued warnings against a few FSC licensed forex brokers when they have broken the rules of the law. In this way, the Financial Services Commission of Mauritius has a bit of reputation in its kitty.

Due to the offshore jurisdictions, forex brokers that have an FSC license are able to circumvent certain restrictions of offering forex and CFD trading services to some clients who are placed in restrictive countries.

In terms of leverage, which is an important aspect for traders when choosing a forex broker allows them to offer higher leverage. For example, a European licensed forex broker has to limit the amount of leverage that they can offer for retail forex traders.

Given the fact that many retail forex traders deposit a small amount, the limitation on the leverage can be detriment to them opening a trading account. In this aspect, choosing an FSC licensed forex broker offers a better advantage compared to the rest of the similar brokers that have an offshore forex license.

Why choose FSC Mauritius forex broker license?

Many forex brokers choose Mauritius as a destination for conducting financial services for a number of reasons. Primarily, Mauritius is one of the few places that has lower tax, which makes it attractive for many forex businesses.

By some estimates, forex brokers pay just 3% in tax when they are based in Mauritius and regulated by the FSC. Furthermore, because Mauritius is just two hours ahead of Europe, it also makes for a convenient location.

On the flipside, an FSC license does not however ensure segregation of funds. Therefore, traders need to do their due diligence on this aspect when dealing with a forex broker that only has an FSC license.

Another reason why forex brokers choose Mauritius as their destination for conducting business is because it is not a blacklisted country. Many offshore jurisdictions are often prohibited from conduction international transactions, let alone offering online forex trading.

This gives Mauritius a unique advantage over other offshore jurisdictions. In some ways, an FSC license offers a bit more reliability comparing to other offshore places such as the British Virgin Islands, or Panama, to name a few.

Given the fact that some of the most reputable forex brokers also operate with an additional FSC Mauritius license, this also brings about an additional sense of reliability.

Read 736 times Last modified on Thursday, 23 April 2020 19:12