Both ECN forex brokers and other types of forex brokers registered in Latvia are regulated by the Latvian Financial and Capital Market Commission (FCMC). This is a regulator that is under the jurisdiction of the European Securities and Markets Authority (ESMA), which means that trading conditions such as leverage is strictly regulated.
As opposed to so-called dealing desk brokers, ECN brokers do not match client orders themselves, but instead passes them directly on to a network of other market participants. This way, spreads are generally lower, and the brokers will instead make its money from commissions on trades. Both in Latvia and elsewhere, ECN brokers are often preferred by high-volume and professional traders.