Trading with the best Irish Forex brokers – Is it safe?

The Emerald Island is duly called the last homeplace of the ancient legends and true customer and traditions. The birthland of fiery tunes, beer, and whiskey, it seems like the entire country is generating happiness and a positive outlook. Ireland is a small island with a population of just over 4.9 million people and impressive economic growth. What this country managed to do in just 12 years is beyond impressive, and, one can probably say, can be attributed to the smallfolk that is said to be inhabiting those ancient. In the end, if it was not for some help from the Irish fairies and leprechauns, how did the country manage to make such a swift recovery from the devasting economic crisis of 2008?

The truth is, this mysterious and fascinating state was, truly, undergoing extreme suffering when the global financial crisis hit – so much so that it had to be bailed out of the European Union ( EU). Nevertheless, today the Irish national economy is doing better than ever – it has a GDP of over 400 billion USD, which, needless to say, is quite impressive for a small country. On top of that, Ireland has not only managed to develop its economy at a rapid speed but also ensured that a big number of various sectors of the economy have developed simultaneously – and the Forex trading market is no exception. Below we will have a closer look at the best Irish Forex brokers, the opportunities that the Irish FX has to offer, and the way in which it is regulated.

Who are Ireland’s top Forex brokers?

We are well aware that when it comes to choosing the right broker – there is little to none room for a mistake. What it comes down to is not only choosing the brokerage that will provide you with the most attractive tools, but also the broker that is most likely to be reliable and secure. Even the experienced traders are often struggling with such a choice, and it can become even more stressful and devastating for those with less experience in the Forex trading market. The overall purpose of our guide is to make people as informed as possible and to leave them with as little confusion as possible. For that reason, we have compiled a detailed list of the best Forex brokers in Ireland, that will, hopefully, make the task a little bit easier for you.

XM Group

XM Group Forex Review

Minimum deposit

5 USD

Licences

CySEC, IFSC, ASIC

Maximum leverage

1:30*

US Clients

No

Forex.com

Forex.com Review

Minimum deposit

100 currency units

Licences

CIMA, FCA, NFA

Maximum leverage

1:200

US Clients

Yes

IQ Option

IQ Option Review – can the broker be trusted?

Minimum deposit

10 USD

Licences

CySEC

Maximum leverage

1:1000

US Clients

No

Exness

An in-depth review of Exness Forex broker

Minimum deposit

1 USD

Licences

CySEC, FCA, FSA

Maximum leverage

1:Unlimited

US Clients

No

RoboForex

RoboForex Broker

Minimum deposit

100 USD

Licences

CySEC

Maximum leverage

1:200

US Clients

No

There are no top Irish Forex brokers without the CBI license

Similarly to the overall state of the national economy, the Irish FX regulatory conditions are currently both efficient and up-to-date.  However, once again similar to the Irish national economy, the FX market did not always enjoy such a favorable environment. At some point, it was mostly defined by a lot of confusion, lack of understanding of its main functions, and, by definition, a vast majority of traders losing a big amount of money. In general, such a state of the FX market has been extremely damaging to the reputation of the Forex trading brokers in Ireland, and largely discouraged people from getting into it. Luckily, this is no longer the case, and we are about to tell you why.

The Banc Ceannais na hÉireann, or the Central Bank of Ireland (CBI) was first created on the 1st of February, 1946, and its original functions were mainly focused on operating as the currency board. Ever since then, the body has made a long journey to becoming one of the countries’ most important financial institutions. The CBI’s areas of responsibility have increased rapidly after the adoption of the euro as the national currency in 2002. As of now, the Central Bank of Ireland is responsible for the supervision of price and financial stability, consumer protection, timely issue of the regulatory policy measures, and overseeing the proper functioning and development of various segments of the national economy, which, of course, includes the Forex trading in Ireland. Simultaneously with the Irish economy, the CBI too has been hit hard by the global financial crisis, however, as it was the case with the national economy. it has managed to make a swift recovery. It is now evident that this body is performing its functions extremely well, leaving no doubt about its competence in regulating and enhancing the Irish FX market and maintaining the high reputation of the Forex trading brokers in Ireland.

What it takes for brokers to get a CBI license

The process of licensing brokers in Ireland, although quite strict. is not very different from that of the other countries. The local brokers wishing to obtain a license from CBI have to meet a list of requirements that the body has put forward, and, upon doing that, they will be given permission to offer their services to the local brokers. Now one may ask, what is even the point of going through this time-consuming and elaborate procedure? Well, the answer is simple. When the license is granted to a specific broker, the CBI proceeds to add this broker to the list of its licensees, that is published on the regulatory body’s website at all times, and is constantly updated. For a broker, being added to this list means that the government has acknowledged their expertise and reliability, which, by definition means a more extensive client base. For the trader looking for a broker, the possession of the CBI license can become the single most important deciding factor. What it means is that the broker is deemed secure and trustworthy, and, in case of any misdemeanors, the government will be likely to step in on the traders’ behalf.

When it comes to the brokers that are not and do not wish to be physically located in Ireland but do, nevertheless, want to offer their services there  – all they need to do is to notify the CBI and possess a license from any other regulatory body from any country of the EU. Although at first sight, this might seem like a security concern, in reality, is it the furthest thing from it. If the foreign Forex trading broker in Ireland has managed to meet the high demands of the bodies like BaFin, FSA, or FCA that is guaranteed to operate with the best interests of their clients in mind.

Keeping the public informed

Although this should be going without saying, this particular measure of regulating the market is often largely overlooked by the regulatory bodies from across the world. While it is true that it is the responsibility of each individual who wants to get into the Forex trading to dedicate some time and effort into conducting the proper research of the field, it is also a good idea for the government to at least make the information available in a single place and compounded in a comprehensive manner.

When it comes to Ireland, the CBI ensures a continuous flow of information via various channels. For example, as we will discuss in further detail below, the CBI requires Forex trading brokers in Ireland to provide traders with a full of disclaimers of the possible risks, if the services that they offer are related to potentially risky enterprises such as trading Contracts for Difference (CFDs). Moreover, the CBI contains a detailed overview of how the Forex trading in Ireland operates, the advantages and disadvantages of getting into it, and the potential risks that are associated with it.

CBI’s restrictions and requirements on broker features

Restrictions

The whole idea of trading Forex should always be approached as a risky enterprise, however, within this notion, there are also a number of even riskier processes that, for a long time, were largely overlooked by the governments and regulatory bodies alike. Among those are the CFDs, which, as we have previously mentioned, can become a potential for either great profits or major losses. There is no common opinion on whether or not the provision of CFDs should be banned entirely, yet the widely accepted compromise is the necessity to have them regulated. In doing that, the regulatory bodies prevent inexperienced traders from ending up with a debt to their broker, often shortly after the first CFDs trading session has commenced. When it comes to the CBI, it requires Forex trading brokers in Ireland who wish to offer CFDs to boh provide traders with extensive disclaimers of the risks involved, and to have their own regulations in place to ensure that only the experienced traders can get into trading CFDs.

Similarly, when it comes to another controversial feature of trading, the CBI is taking all the necessary measures to protect the brokers’ clients. We are now talking about the leverages that can both bring its trader some lucrative profits with little financial input required, or leave them with devastating debt. In another effort to protect inexperienced traders, the CBI has introduced a number of caps on the leverages that the Forex trading brokers in Ireland can offer to their customers. The highest leverage that is available is 30:1, and it can only be used for the popular, and, thus, less risky pairs, such as GBP/USD or USD/EUR. The leverage of 20:1 can be provided for the more rare pairs, while the leverage of 10:1 can be offered for commodities such as gold and silver. Finally, the leverage of 10:1 can be offered for the other commodities, while only 2:1 can be used for trading cryptocurrencies.

Requirements

Since we are already on the subject of leverages, it is worth discussing one more, extremely efficient regulation that is used both by the regulatory bodies across the world, and the CBI in specific – the negative balance protection. What it basically means is that the trader cannot lose more money than they have on their account, and are not, therefore, left indebted to their respective traders. The need for this regulation became very apparent when the traders started to lose a lot of money while using leverages, often more so than they have originally invested. Thus, the CBI took it upon itself to ensure that the traders are protected from devastating losses at all times.

Investor Compensation Scheme, or, as it is commonly known outside of Ireland – Investor Compensation Fund is a regulatory measure that demands brokers to compensate the losses of their traders in the event of the broker going bankrupt. This is just an additional layer of security that shows that the CBI and its licensed Forex training brokers in Ireland are prepared to go the extra mile to maintain the safety of the traders. A similar incentive is behind the implementation of the segregation of funds regulatory measures. What this means is that the broker is required to keep their operational funds separately from the funds of its traders in order to avoid the latter being frozen or lost in the unfortunate event of the broker becoming bankrupt. On top of that, such regulatory measure comes in handy when ensuring that the broker does not misuse its clients’ money, whether accidentally or otherwise.

Is it expensive to start trading Forex in Ireland?

Anyone who has reached the legal age of 18 or beyond can get into Forex trading in Ireland. The overall process is relatively simple, and the only thing that the potential trader will have to do is to meet the standards of the broker of their choice. Moreover, joining the Irish FX market is completely free of charge, or, to be more specific, there will be no additional costs and fees associated with signing up with a specific broker. You will, however, be required to make a deposit that will consequently be used for your trading sessions. The minimum required deposit varies depending on the broker you end up choosing, and while some of the top Forex brokers in Ireland ask for as little as 5 USD, others, not any less reputable, will be asking for 500 USD.

Final thoughts on top Irish Forex brokers

Having examined the Irish FX market, we can say that it is definitely a good idea to explore the opportunities that it has to offer. The national economy has already managed to make a swift recovery from the devastations of the 2008 financial crisis and continues to showcase rapid growth. The local regulatory body – the CBI, does a terrific job of striking a perfect balance between the customer protection and the facilitation of the Irish FX market growth. If you are currently located in Ireland and consider exploring the opportunities that it has to offer to the traders, we highly suggest that you utilize some of the top Forex trading brokers in Ireland and the favorable conditions of their service provision.