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Abstract We designed a simple on-chip integrated optical isolator made up of a metal–insulator–metal waveguide and a disc cavity filled with magneto-optical material to enhance the transverse magneto-optical effect through the coin paradox spin–orbit interaction (SOI). The simulation results of the non-reciprocal transmission properties of this optical structure show that a high-performance on-chip integrated optical isolator is obtained. The maximum isolation ratio is greater than 60 dB with a corresponding insertion loss of about 2 dB. The great performance of the optical isolator is attributed to the strong transverse magneto-optical effect, which is enhanced by the coin paradox SOI. Moreover, the enhancement of the transverse magneto-optical effect through the coin paradox SOI is more substantial for smaller azimuthal mode number n. Benefiting from this, the transverse magneto-optical effect remains strong in a wide wavelength range. Additionally, a smaller cavity has a stronger transverse magneto-optical effect in the same wavelength range. Our research provides a new perspective for creating highly integrated magneto-optical devices.