FSC and GBOT regulators

[Riccardo C]

Hello,
are Mauritius GBOT and FSC regulators safe? Expecially GBOT, it seems, apparently, very serious.
I have read many threads on FPA about GBOT and FSC regulated brokers, some of these have an high rating here, but very often I have read many people here and in other forums advicing against Mauritius brokers. So I would know if GBOT and FSC "make a difference" or not to prevent scamming, and if possible, why.
Is never happened that a GBOT and FSC regulated broker was a scammer?
Sorry for my bad english

 

[Pharaoh]

I can think of some quick questions to see how serious a regulator is:

1. Can the regulator impose fines against a company that violates the rules? If so, has it ever done so?

2. Can the regulator force a company to pay money owed to clients? if so, has it ever done so?

3. Can the regulator directly or indirection bring criminal charges against a company? If so, has it ever done so?

As far as I know, the Mauritian regulators have kicked companies out of their registry and posted warnings about unregistered companies claiming to be registered. I don't know of any possible YES answers to any of my questions from them.

 

[quicksilver]

Adding my two cents.. I think any regulator.. (not just GBOT/FSC) can play a role only if you reside within their jurisdiction. i.e: if things go wrong, they are more likely to do something to appease customers in their regions rather than look after international clients.

If you are from some other part of the world, I don't see how they can help in terms of getting you your money back.

That being said, regulators are somewhat like lagging indicators in forex. They can only step in when the damage has been done. *think MF Global/PFG* At the end of the day, it comes down to doing your due diligence. Trust is an important factor.. and can be built up only over a period of time with a broker, which means it is best to start low and slowly build up your capital with the broker in question.

Reg GBOT, their website does look serious (akin to FSA in the UK). I heard that getting a GBOT license requires strict criteria for the broker.

 

[Riccardo C]

Thank you very much for your answers.
I hope someone can give an answer to Pharaoh's question too, it's not very clear from their site.