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Central Bank of Ireland (CBI) Brokers 2024

Written By

Christian Harris

Written By

Christian Harris

Christian is a seasoned journalist with decades of experience. He transitioned from tech journalism to finance to follow his interest in investing. He has been trading stocks, futures, forex, and cryptocurrencies for more than 5 years, becoming an eToro Popular Investor. With hands-on expertise across various assets, he offers valuable trading insights.

» Christian Harris Profile Page

Edited By

James Barra

Edited By

James Barra

James is an investment writer with a background in financial services. As a former management consultant, he has worked on major operational transformation programmes at prominent European banks. James authors, edits and fact-checks content for a series of investing websites.

» James Barra Profile Page

Fact Checked By

Michael MacKenzie

Fact Checked By

Michael MacKenzie

Michael is a writer and editor with over a decade in journalism and publishing. His niche lies in editing and fact-checking content in the financial services sector, with a focus on online brokers and trading platforms. Michael previously reported on politics and economics in the Middle East and edits books for established publishers.

» Michael MacKenzie Profile Page

Updated

Oct 22, 2024

The Central Bank of Ireland (CBI) plays a crucial role in Ireland’s financial landscape, particularly in regulating brokers. This regulation is of significant importance to Irish traders, as it ensures a secure trading environment.

Brokers operating in Ireland must adhere to a comprehensive regulatory framework established by the CBI, with the agency earning ‘green tier’ status in our Regulation & Trust Rating. This framework incorporates the Markets in Financial Instruments Directive (MiFID) set by the European Union (EU), ensuring firms comply with stringent standards for investor protection.

The CBI is an active regulator, taking action against breaches and maintaining a growing warning list of over 880 investment firms that are unauthorized in Ireland.

We’ve identified the best brokers regulated by the CBI after personally verifying their credentials on the regulator’s Register of Authorized Firms.

Best CBI Brokers

Following testing, these 1 CBI-regulated trading platforms emerged as the best:

Click a broker for details

1. 1

   
   Interactive Brokers
   Go To Interactive Brokers

   Interactive Brokers Review

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   Ratings

   Regulation & Trust 4.5 / 5

   Accounts & Banking 3.5 / 5

   Assets & Markets 4.6 / 5

   Fees & Costs 4.3 / 5

   Platforms & Tools 3.3 / 5

   Customer Support 3 / 5

   Research 4.4 / 5

   Education 4.3 / 5

   iOS App 4.3 / 5

   Android App 4.5 / 5

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   Minimum Deposit $0

   Minimum Trade $100

   Leverage 1:50

   Regulator FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM

   Instruments Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies

   Platforms Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral

   Payment Methods Cheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit Card

   Account Currencies USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

   Go To Interactive Brokers

Here is a short summary of why we think each broker belongs in this top list:

1. Interactive Brokers - Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.

CBI Brokers Comparison

CBI Brokers Comparison

Broker	Minimum Deposit	Markets	Platforms	Leverage
	$0	Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies	Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral	1:50

Interactive Brokers

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

Christian Harris, Reviewer

Interactive Brokers Quick Facts

Demo Account	Yes
Instruments	Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
Regulator	FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM
Platforms	Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
Minimum Deposit	$0
Minimum Trade	$100
Leverage	1:50
Account Currencies	USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

Pros

• The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
• IBKR is one of the most respected and trusted brokerages and is regulated by top-tier authorities, so you can have confidence in the integrity and security of your trading account.
• While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.

Cons

• TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
• You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
• IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.

Visit Interactive Brokers

Interactive Brokers Review

Methodology

To identify the top brokers regulated in Ireland, we:

How Can I Check A Broker Is Regulated By The CBI?

Checking a broker is regulated by the CBI is straightforward:

1. Navigate to the CBI’s Register of Authorized Firms
2. Enter the broker’s name in the search box and click the ‘Search’ button
3. Click on the search result to check broker details, such as full trading name, entity type, and description

Below is the result of a search I ran on AvaTrade (which supports the excellent DupliTrade copy trading platform), showing that the broker is authorized .

It took me less than two minutes to check they were indeed regulated in Ireland, so it’s an easy check for any day trader to run.

Christian Harris

Author

What Rules Must CBI-Regulated Brokers Follow?

The CBI imposes comprehensive rules and regulations on brokers operating under its jurisdiction. These rules are designed to ensure that trading platforms operate with integrity, maintain financial stability, and protect the interests of their clients.

Here are the fundamental rules and requirements that CBI-regulated brokers must follow:

• Brokers must maintain sufficient capital to cover their operational risks. The minimum capital requirements depend on the size and nature of the business.
• Effective risk management systems must be in place to identify, assess, and mitigate risks associated with their operations, for example, through stress testing.
• Brokers are required to execute client orders on the most favorable terms available and publish details of how they will do that, which is beneficial for day traders who require high-quality order execution.
• Client funds must be kept separate from the broker’s funds through segregated accounts to protect clients in case of broker insolvency.
• Brokers must provide traders with clear, accurate, and comprehensive information about their services, including risks, costs, and potential conflicts of interest.
• Brokers must ensure that their financial products suit their clients, considering their knowledge, experience, financial situation, and investment objectives.
• Advertising and promotional materials must be truthful, not misleading, and provide a fair representation of the products and services offered.
• Transactions must be monitored continuously for suspicious activity, and any transactions must be reported to the relevant authorities.
• Brokers must submit regular reports to the CBI, including financial statements, risk assessments, and compliance reports.
• Brokers must disclose significant information publicly, including financial performance and any material changes to their operations or management.
• Brokers must have robust procedures to handle client complaints efficiently and effectively.

The CBI maintains compliance by imposing substantial monetary fines, public reprimands, and operational restrictions on brokers who fail to meet regulations. These penalties are a strong deterrent against regulatory breaches, safeguarding active traders and upholding market integrity.

What Powers Does The CBI Have?

The CBI is not just a passive regulator but an active enforcer. It monitors compliance and takes swift enforcement actions against brokers who breach regulations. These actions can include fines, sanctions, and even license revoking, ensuring a secure trading environment for Irish traders.

For example, on 27 February 2024, the CBI fined Goodbody Stockbrokers Unlimited Company (Goodbody) €1,225,000 for “failing to put in place an effective trade surveillance framework to monitor, detect and report suspicious orders and transactions about market abuse in the period July 2016 to January 2022, some five and a half years.” Goodbody admitted to the breach.

When failures occur, the CBI expects firms to be accountable for regulatory breaches.

The CBI also often issues public statements highlighting enforcement actions, deterring other market participants. These statements detail the nature of the breach and the penalties imposed.

Bottom Line

For Irish traders seeking a secure trading environment, prioritizing brokers regulated by the CBI is a wise choice. The CBI enforces strict financial transparency standards, offering robust security and protection for your investments.

However, the number of CBI-regulated forex brokers is very limited compared to other parts of Europe, including the UK and Cyprus, potentially restricting your choice.

It’s also important to remember that even CBI regulation doesn’t eliminate inherent trading risks. Fast-paced strategies like day trading can still lead to losses. Always adhere to the golden trading rule: only risk what you can afford to lose.