NextTrade Ltd is authorised by the Financial Services Commission of Mauritius under Licence GB25204563. This guide covers exactly what that regulation means, how client funds are protected, and where it sits against tier-1 regulators like the FCA and ASIC.
The Licence Details
The full regulatory profile as published by NextTrade:
- Regulator: Financial Services Commission of Mauritius (FSC)
- Licence type: Global Business Licence
- Licence number: GB25204563
- Company registration: 223260
- Legal entity: NextTrade Ltd
- Registered address: c/o AllServ Management Ltd, Office 306, 3rd Floor, Ebene Junction, Rue de la Democratie, Ebene 72201, Mauritius
The FSC is Mauritius's financial regulator, responsible for supervising non-bank financial services including securities dealing, forex brokerage, insurance and fund management. A Global Business Licence authorises a Mauritius-registered company to deal with clients internationally under FSC supervision.
What the FSC Regulates
For a broker operating under an FSC licence, the regulator requires:
- Segregation of client funds. Deposits must be held in bank accounts separate from the broker's operating capital.
- Minimum capital requirements. The company must maintain a minimum level of net capital appropriate to its business activity.
- Fit and proper management. Directors and senior staff must pass background checks and meet character and experience standards.
- AML and KYC procedures. Client identity verification and transaction monitoring are mandatory.
- Periodic reporting. The FSC requires regular financial reporting from licensed entities.
- Audit requirements. Annual audited financial statements must be filed.
These requirements are standard for offshore jurisdictions and are enforceable through the FSC's supervisory powers, which include fines, licence suspension and revocation.
How Client Funds Are Protected at NextTrade
NextTrade holds client deposits in segregated accounts at MauBank Ltd. MauBank is a Mauritius-based commercial bank regulated by the Bank of Mauritius. Segregation means that client money cannot be used for NextTrade's operating expenses, nor can it be claimed by NextTrade's creditors in the event of insolvency.
In addition to segregation, every NextTrade account has negative balance protection. This means that in the event of a sharp market move — for example, a currency peg breaking or an index gap on the open — a client's account cannot go below zero. The broker absorbs the difference, and the client is never liable for more than their deposited capital.
These two features combined — segregated client funds plus negative balance protection — give clients the core baseline of protection that any regulated retail broker should provide.
How FSC Mauritius Compares to Tier-1 Regulators
Honest comparison matters because regulation is the single most important input into broker safety. Here is how FSC Mauritius sits against the major tier-1 regulators traders typically compare against.
| Regulator | Jurisdiction | Max Retail Leverage | Compensation Scheme |
|---|---|---|---|
| FCA | United Kingdom | 1:30 on majors | FSCS up to £85,000 |
| ASIC | Australia | 1:30 on majors | No statutory scheme |
| CySEC | Cyprus (EU) | 1:30 on majors | ICF up to €20,000 |
| FSC Mauritius | Mauritius | Up to 1:1000 | No statutory scheme |
The trade-off is clear. FSC Mauritius permits far higher leverage, which some traders value. It does not provide a statutory compensation scheme of the kind offered by the FCA or CySEC, which means the ultimate backstop in a worst-case insolvency scenario is the strength of segregation arrangements and the bank holding client funds — not a government-backed investor protection programme.
For traders who want maximum statutory protection and are comfortable with tighter leverage limits, a tier-1 regulated broker remains the safer choice. For traders who want higher leverage and are comfortable assessing segregation and bank custody as the primary protection layer, FSC-regulated brokers like NextTrade fit the brief.
How to Verify the Licence Yourself
Every trader should verify a broker's regulatory claim independently rather than relying on the broker's own marketing. For NextTrade:
- Visit the FSC Mauritius public register at fscmauritius.org
- Use the licensee search function
- Enter "NextTrade Ltd" or the licence number GB25204563
- Confirm the entity is listed as active and the licence type matches
If the broker's claimed licence does not appear on the official regulator's website, treat that as a red flag regardless of what the broker's own site states.
What the Regulation Does Not Cover
Regulation is about supervision and fund protection, not about guaranteeing profits or execution quality. Even a tier-1 regulated broker can have periods of slippage, requotes or platform downtime. Regulation also does not cover the trader's own risk management decisions — high leverage used aggressively can still wipe out an account long before any regulatory or insolvency concern comes into play.
The sensible framing is that regulation is a necessary but not sufficient condition for a trustworthy broker. It sets the minimum bar. On top of that, a trader should evaluate execution quality, withdrawal reliability, customer service responsiveness and the broker's broader operational history.
Final Thoughts
NextTrade's FSC Mauritius licence is legitimate, published with full details including licence and registration numbers, and backed by segregated client funds at MauBank Ltd and negative balance protection on every account. This places the broker in a well-defined regulatory framework appropriate to the offshore jurisdiction it operates in.
For the full broker assessment including account types, spreads and who it fits, see our NextTrade review. For the context behind the launch, see our article on FunderPro launching NextTrade.
Frequently Asked Questions
Is NextTrade regulated by the FCA?
No. NextTrade holds a Global Business Licence from the Financial Services Commission of Mauritius, not a UK FCA authorisation. Traders requiring FCA regulation should look at alternatives.
Is my money safe with NextTrade?
Client deposits are held in segregated accounts at MauBank Ltd and all accounts have negative balance protection. There is no statutory investor compensation scheme in Mauritius equivalent to the UK's FSCS or the EU's ICF.
What does Licence GB25204563 mean?
It is the Global Business Licence issued to NextTrade Ltd by the FSC Mauritius. The licence authorises the company to provide financial services to international clients under FSC supervision.
Is FSC Mauritius a tier-1 regulator?
No. FSC Mauritius is generally classified as an offshore regulator rather than a tier-1 regulator. Tier-1 regulators include the FCA (UK), ASIC (Australia), CySEC (Cyprus) and the NFA (US).
Where can I verify NextTrade's licence?
On the FSC Mauritius public register at fscmauritius.org. Search for "NextTrade Ltd" or the licence number GB25204563 to confirm the entry matches what the broker advertises.