Dominica is well-known as an offshore jurisdiction for forex brokers and other financial services firms, including some ECN brokers. These firms have flocked to Dominica over the years, much because of the lack of government regulations and low taxes on international businesses. To this day, ECN forex brokers and other brokerage companies are still not regulated by any government entity in Dominica.
ECN brokers in Dominica and other countries differ from so-called dealing desk brokers in that they do not match trades internally. Instead, all trades are passed on to an electronic communication network (ECN) that is shared with other financial institutions, where they are matched with each other. ECN brokers therefore charge commissions on trades, but generally offer much tighter spreads than other brokers.