Forex Trading in Latvia
Regulated by Latvijas Banka (ex-FKTK) · Currency: EUR · Language: Latvian/English
Trading Overview
Latvia’s financial supervision is conducted by Latvijas Banka (Bank of Latvia) since 1 January 2023, following the merger of the former FKTK (Finanšu un kapitāla tirgus komisija). Latvia joined the EU in 2004 and adopted the euro on 1 January 2014.
The 2018 ABLV Bank scandal triggered a comprehensive cleanup of Latvia’s financial sector. Non-resident deposits dropped from 53% to under 10%, and supervisory capacity was significantly strengthened. The Moneyval 2024 evaluation confirmed improvements.
Latvia applies a flat 20% PIT on capital gains from financial instruments. A 10% reduced rate exists for capital assets held 12+ months, but this does not apply to derivatives. No social contributions apply to trading income (unlike Romania’s CASS). Losses can be offset within the same year but cannot be carried forward.
Latvia adopted a distribution-based CIT model in 2018 (inspired by Estonia’s), taxing only distributed profits at 20%. Retained corporate earnings are untaxed until distribution, making SIA structures potentially tax-efficient for traders reinvesting profits.
Riga is the largest Baltic city and hosts Citadele Bank, Rietumu Banka, and the Nasdaq Riga Stock Exchange. Popular brokers among Latvian traders include IG, Pepperstone, Saxo Bank, and Exness.
Regulator
Latvijas Banka (ex-FKTK)
Currency
EUR
Compensation Limit
EUR 20,000 (Investor Protection Scheme)
Language
Latvian/English
Tax Information
Forex trading profits are taxed at a flat 20% personal income tax (PIT) rate. A reduced 10% rate applies to capital assets held 12+ months, but not to derivatives (forex/CFDs). Losses can be offset against gains within the same tax year but cannot be carried forward. No wealth tax, no FTT, no social contributions on capital gains.
This is general information only. Consult a local tax advisor for guidance specific to your situation.
Investor Protection & Compensation
Compensation Limit: EUR 20,000 (Investor Protection Scheme)
If a regulated broker operating in Latvia becomes insolvent, eligible clients are covered by the national investor compensation scheme up to the limit shown above. This protection is mandatory under EU law for all regulated investment firms.
All EU-regulated brokers must also provide negative balance protection and keep client funds in segregated accounts separate from their operating funds.
Popular Brokers in Latvia
The most widely used forex brokers among traders in Latvia, all regulated for the EU market.
Min Deposit
None
EUR/USD
0.6 pips average
Max Leverage
Up to 1:30
BaFin
FCAIG is one of the longest-established retail brokers (founded 1974), offering 17,000+ instruments, a BaFin-regulated EU entity, and an award-winning proprietary platform.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Min Deposit
None
EUR/USD
0.0 pips
Max Leverage
Up to 1:30
CySECPepperstone serves EU clients through its CySEC-regulated entity (part of a group also licensed by BaFin, the FCA and ASIC), offering razor-sharp spreads, zero minimum deposit, and excellent execution across MT4, MT5, cTrader, and TradingView.
73.7% of retail CFD accounts lose money.
Min Deposit
None
EUR/USD
0.6 pips
Max Leverage
Up to 1:30
Saxo Bank is a fully licensed Danish bank offering 72,000+ instruments including real stocks, bonds, and futures via its award-winning SaxoTrader platform.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Min Deposit
$10
EUR/USD
0.0 pips
Max Leverage
Up to 1:30
FSAExness is a high-volume global broker with ultra-tight pricing and instant withdrawals. Holds CySEC and FCA licences but closed EU/EEA/UK retail onboarding in 2019 — available to non-EU residents only.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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