Forex brokers in Latvia are overseen by the national financial regulator known as the Financial and Capital Market Commission (FCMC). Besides forex brokers, the organization is also tasked with regulating insurance brokers, electronic money institutions, pension funds, and other players in the financial services industry in Latvia.
As part of the European Union, forex brokers in Latvia are also subject to strict regulations from the European Securities and Markets Authority (ESMA), including caps on the amount of leverage it can offer to non-professional forex traders. In addition to the ESMA rules, the Latvian regulator has also tightened its own oversight following scandals involving the forex industry in Latvia in recent years. Forex brokers based in Latvia today are therefore seen as highly reliable and trustworthy companies.