The trader is ultimately responsible for the decision that he makes while choosing a broker to trade the Forex markets. The purpose of such control is to enforce and maintain a safe and fair environment for consumers. The narrow choice of CBI regulated brokers is thus not really disappointing or frustrating for Forex traders in Ireland, as the available brokers are high-class companies which gladly accepted the strict regulation by the Central Bank of Ireland.
Excellent CBI Regulated Forex Brokers In 2018
First and foremost, and CBI regulated Forex broker is required to obtain a permission from the Central Bank, explicitly allowing the company to engage in brokerage activities. However, this is only the beginning. All CBI regulated Forex brokers are required to maintain their financial liquidity at all times. Furthermore, regulated companies must submit to annual audits of all of their accounts and business activities.
They need to fully disclose their financial positions, their investment activities throughout the year, as well as other related financial activities.
All reports must be submitted no later than six months after the end of the fiscal year. CBI provides a central electronic system which makes submitting all necessary reports as easy as possible. As long as Forex brokers in Ireland conduct their business in line with the regulation, they have nothing to be concerned about. Due to strict CBI regulations, the number of fully regulated and licensed Forex brokers in Ireland is not big. The Bank has also been responsible for creating statutory codes of conduct for financial bodies to ensure operations are carried out transparently, fairly, and in the sole interest of clients.
The bank ensures CBI Forex brokers and other regulated concerns are following the guidelines, rules, and regulations with on-site visits. The bank also has very good powers of enforcement. On paper, it all seems great but there are suspicions lurking under the surface. The Central Bank of Ireland has received some pretty bad press over the years. There are plenty of Forex brokers to choose from and you might want to consider looking for authorization and regulation from a more respected body as well.
What is the Central Bank of Ireland responsible for regulating? It also regulates the activities of: Investment intermediaries, credit institutions, financial exchanges, stockbrokers, collective investment schemes, funds, compensation of investors and other related issues Insurance including life and general insurance along with related consumer issues Mortgage and credit providers, moneylenders, monitoring customer charges by such companies and related consumer issues Credit unions As you can now appreciate the CBI has to pay attention to the operations of a number of individuals and businesses.
Was the information useful? Get the latest Forex updates now! Receive the latest Forex broker reviews and offers Learn more about trading Forex through our academy section Start trading with a demo account and teach yourself to be a trader No thanks, maybe later. Although the CBI had initially attempted a move towards introducing a separate regulatory authority, the effects of the financial crisis were far reaching into the Irish economy, which required massive support from the ECB.
However, the CBI is indeed considered to be a competent regulatory authority that offers a thriving regulatory environment for protecting the rights of the consumer and ultimately protecting the Irish economy against financial malpractice.
The CBI has issued a circular to all CBI regulated brokers to follow the guidelines issued by the MiFID and the ECB on the proper functioning of brokers as well as other financial entities to ensure that the European economy is not affected by any financial crimes or investor abuse. The CBI works proactively with its member firms on the following aspects of regulations: Forex brokers regulated by the CBI should be financially stable and should hold a minimum amount of capital that is directly proportional to the trading capital held in client accounts.
CBI regulated brokers should be highly transparent in its pricing structure, and should not interfere with the markets that will directly or indirectly result in unfavorable conditions for the traders. Brokers should always ensure that traders will receive accurate feeds of pricing from the interbank markets, and the platforms, as well as the trading environment, are free from any manipulation. CBI has many duties for regulating member firms and has created a regulatory framework that incorporates all aspects of regulations as provided by the MiFID derivative.