An island state located off the west coast of the Great Britain, Ireland is ranked as one of the top performing economies in the Organisation for European Economic Co-operation (OECD). Its success is built upon a modern knowledge economy that focuses primarily on high tech industries and financial services. As a 2005 survey conducted by the Economist has tagged Ireland as a country having some of the highest quality of life in the world. From the period starting from 1995 to 2005, the country experienced a period of extremely high growth, even surpassing the growth rates of many high achieving economies in Europe. In fact, the impressive growth rate achieved by Ireland has even led to the country being dubbed “the Celtic Tiger”.
However due to the global financial crisis in 2008, Ireland’s economy went into a downturn resulting in severe economic hardships to the majority of the households in the country. By March 2008, the household debt to disposable income ratio was at a whopping 190%, the highest in the developing world. Cash strapped, many turned to online trading such as binary options trading as a means to supplement their household income. With the tax free status on the gains earned from trading binary options in Ireland, this has helped to further popularize this form of online investments.
Best Brokers in Ireland
Since there are no regulations in Ireland that forbid Irish residents from trading binary options, a trader in Ireland can practically sign up with any brokerage firm from around the world. Although this this is the case, we highly recommend our readers to only deal with brokers that are regulated by the Central Bank of Ireland. The benefit of doing so is the legal protection that the Central Bank of Ireland is able to provide investors dealing with those firms that are under its jurisdiction. Alternatively, traders in Ireland can also sign up for a trading account with binary options brokers that are regulated and authorized within the European Union (EU). This is due to the fact that under the EU’s MiFID rules, financial services providers from an EU member state can “passport” their license and authorization to another member state. The only requirement which the passporting broker has to fulfill is to register its operations with the regulatory body of the country which it has passported to. To help our readers narrow down the search, we have compiled a list of recommended authorized Ireland binary options brokers.
Regulatory oversight under the Central Bank of Ireland
In Ireland, the main financial regulatory body is the Central Bank of Ireland. Established in 1943, the Central Bank of Ireland is part of the European System of Central Banks (ESCB). It performs 2 main functions: that is acting as a Central Bank for the Irish government and as the regulator for the financial services industry in Ireland.
Its statutory duties include the following:
- Acting as a banker for the government
- Dealing with payment, currency and settlement oversight and their operations
- Develop Regulatory policies for the financial industry
- Ensuring financial stability
- Ensuring price stability
- Protection of Consumer interests
- Provision of economic data
- Supervision and enforcement of the financial industry
With regards to the legality of binary options trading in Ireland, the Central Bank of Ireland does not expressly forbid it in the country. In the interest of protecting retail customers, the Central Bank of Ireland requires financial services providers such as binary brokers to operate in a transparent and equitable manner. It conducts on site visits to ensure that these regulatory requirements are met and complied with. Brokers which fail to abide by the regulatory requirements will have their operating licenses revoked. This was the case when the Central Bank of Ireland threatened to revoke the licenses of several retail investment brokerage firms for non-compliance of regulatory requirements.
Financial Services Ombudsman
For those investors trading with brokers that are regulated by the Central Bank of Ireland, they have the benefit of being able to refer their complaints to the Financial Services Ombudsman (FSO). The FSO is an impartial arbiter that traders can approach for assistance should they be unable to resolve their disputes through the broker’s internal dispute resolution mechanism.
Founded in 2005, the FSO was established by the Central Bank and Financial Services Authority Ireland Act 2004. An independent and impartial body, it investigates, mediates and adjudicates the unresolved disputes of clients of financial services providers regulated by the Central Bank of Ireland.
Deposit Methods Available in Ireland
As one of the leading economies of the developed world, Ireland has a well developed payment infrastructure. With a well established banking system, binary traders in Ireland have no difficulties in funding their trading accounts through bank wire transfers. Credit cards and debit cards are also well accepted as a form of payment in the Irish economy. In short, most traders in Ireland will also be able to fund their trading accounts using internationally recognized credit cards such as VISA, MasterCard and Diners. As a modern economy, the majority of the population in Ireland is familiar with eWallets hence giving them another option of funding their trading accounts using eWallets such as Skrill or NETELLER.
- Is it legal to trade binaries in Ireland?
Yes. There are no regulations in Ireland which expressly forbid residents in Ireland from trading these options.
- Are binaries regulated in Ireland?
Yes. Binary options in Ireland is regulated by the Central Bank of Ireland.
- How to trade binaries in Ireland?
To trade binary options in Ireland, you need to first open a trading account with a broker that is regulated by the Central Bank of Ireland or with a European Union authorized broker.