Last update: 28 August 2020
6 min read

List of FCMC Regulated Brokers

Are you trying to find the best brokers regulated by the FCMC? If so, you’re in the right place. Our experts are here to share advice with you on finding the very best FCMC regulated brokers, as well as some background on the regulator – and tips on what to do if you need to make a complaint.

Latvia has a strategic position sat between Russia, Germany, and Scandinavia and in the past has enjoyed acting as a trading hub between these areas. It has a very healthy foreign exchange industry and is able to cater to local and overseas traders. When it comes to trading an important consideration is to choose a broker that is licensed and regulated by a local regulatory body. There are a number of well-known regulators such as the FCA in the UK, BaFIN in Germany, and CySEC in Cyprus. But each individual country usually has a regulator of its own. In Latvia, financial services are regulated by the FCMC, as are forex brokers in Latvia.

If you can’t find many FCMC regulated brokers, try some of the best CySEC regulated brokers:

  • Hot Forex
  • XTB
  • HF Markets
  • Oinvest
  • Plus500
  • FXTM

Best and most trusted forex brokers in April 2024

Finding the best FCMC regulated brokers

Any FCMC regulated brokers also receive passporting rights to offer their services across the European Economic Area. This is due to the passing of MiFID.

MiFID stands for Markets in Financial Instruments Directive and was passed to harmonize standards and investor protection across the EU.

MiFID covers three areas pertaining to European financial markets:
Business conduct – This includes rules relating to best execution, client categorization, investment advice, commodity derivatives, reporting requirements, client order handling, and marketing reporting.
Business organization – This includes rules relating to licensing, cross-border passporting, risk management, compliance arrangements, record-keeping, conflicts of interest, systems and controls, controllers and governance.
Transparency of the equity market – This includes rules regarding pre-trade and post-trade transparency.
One of the areas included in the Directive is the need for regulated brokers to offer a process for handling consumer complaints and to settle disputes.

The fact that all the best FCMC regulated brokers are held to these standards means you can explore different brokers comfortably. Just make sure you check to see that they have a valid license.

FCMC scandals – is it safe?

A number of scams and fraud scandals have caused Latvian traders to be far more cautious and in turn have forced the FCMC to beef up the regulations. Forex trading customers are becoming increasingly educated on risk management. While their appetite may not have disappeared, they are using much less risky trading strategies.

The run of scandals wasn’t helped by recent international criticism. The US is calling for much stricter supervisions of transactions from the country’s regulator following a string of money laundering scandals. This even led to the head of the Commission resigning in an effort to help rid the FCMC of suspicion.

What is the FCMC?

logo fcmcFCMC stands for Financial and Capital Market Commission and it is an autonomous organization which is responsible for supervising insurance companies, insurance brokerage firms, market pension funds, payment institutions, electronic money institutions, and participants of financial instruments markets. It was created to provide stability and competitiveness, while also serving to develop financial markets and protect market investors.

Why the FCMC was created – and what its duties are

The Commission was created in 2001, following the passing of the law “On the Financial and Capital Market Commission” which was adopted by the country’s parliament in 2000. Up until the creation of the Commission, financial markets in Latvia had been supervised by the Credit Institutions Supervision Department of the Bank of Latvia, Securities Market Commission and the Insurance Supervision Inspectorate.

The reason for its creation was the expansion of financial markets and the need to merge supervisory authorities into one cohesive regulatory body. It allowed more efficient supervision of financial transactions, and the opportunity to assess market conditions in a more objective manner. This made it easier to identify risk factors affecting market participants and clients.

Understanding what a FCMC regulated broker is

It’s impossible to overstate the importance of regulation. Regulatory bodies reduce the likelihood of consumers being scammed and force financial service providers to act in a fair and honest way.

Many countries around the world will have their own regulatory body, and there are a number with a much better reputation than others. However, trading in a country where there is no regulation – or choosing a broker that has no license – is a recipe for disaster.

Latvian traders in a superior position

Those of you trading from Latvia are in a much better position than a number of other countries, due to its membership of the European Union. MiFID ties European regulators together and is evidence of the EU’s commitment to providing a common market for financial services. It means brokers are able to offer their services in other EU member states, and you as a trader can be served just as well by another European regulatory body. For example, the Financial Conduct Authority in the UK.

The scope of forex regulation does vary from country to country with some deciding to go above and beyond the basic requirements of MiFID. MiFID, however, has set in place a number of protections for traders and continues to work hard to ensure brokerage firms operating in the EEA operate on a level playing field.

Does the FCMC handle customer complaints?

The Financial and Capital Market Commission (FCMC) provides information regarding the handling of consumer complaints and settling disputes. This helps ensure that consumers are aware of their options if they have a problem with an FCMC broker – or any other institution providing financial services.

The FCMC is not authorized to interfere with contractual relations between a service provider and client or resolve disputes between the parties. Should there be a violation of consumer rights it is the duty of the CRPC (Consumer Rights Protection Centre) to investigate the matter. It is, however, the responsibility of the consumer to try and resolve the dispute with the financial provider in the first instance.

How can I check for FCMC regulation?

If you want to use Latvia’s best brokers, they’ll require FCMC regulation. Fortunately, it doesn’t take too much effort to find them. You can simply check the broker’s website for a license number, which is typically found in the footer of any page.

To be fully safe, you can cross check this information with the full list of brokers on the official FCMC website. If the information checks out, you’re safe to proceed with trading there.

Frequently Asked Questions (FAQs)

What is FCMC? Arrow
What does FCMC do? Arrow
Are FCMC regulated brokers safe? Arrow
How do I know if a broker is regulated by FCMC? Arrow
How do I make a complaint to FCMC? Arrow
Was the information useful?