How to Start Investing in Israel
Bank against brokerage against foreign broker — how they differ on cost, tax and what you actually get.
The three routes and how they differ
You can invest through the bank holding your account, through a non-bank exchange member, or through an international broker. All three give market access and differ in cost, convenience and how tax is handled.
A bank is the easiest starting point and usually the most expensive in commissions. A non-bank member is generally cheaper and needs a separate account. A foreign broker can offer low costs and wide access while transferring tax reporting responsibility to you.
The fees worth checking before opening an account
Three change the picture: the buy and sell commission, the securities account management fee, and the currency conversion charge if you buy foreign securities. The third is the most often forgotten and is sometimes the largest.
Each usually carries a minimum. On small amounts the minimum, not the published percentage, is what you actually pay — 0.1% with a minimum of tens of shekels is a very high charge on a small trade.
What does not depend on the route
Whichever route you take, what decides the outcome over time is what you bought and how long you held it, not who you held it through. Choosing between brokers affects costs, which matters, but it does not substitute for deciding what to invest in.
It is also worth knowing what leaving looks like: transferring holdings between institutions is possible but not always immediate or free, and that is better understood before you need it.
Frequently asked questions
Where should you open an investment account in Israel?
Through a bank, a non-bank exchange member, or an international broker. They differ on cost, convenience and tax handling. VAQO does not recommend specific providers and is not an investment adviser.
Which fees matter most?
Buy and sell commission, securities account management fee, and currency conversion for foreign securities — including each one's minimum, which is what you actually pay on small amounts.
Is a foreign broker cheaper?
Costs are sometimes lower, but no Israeli entity withholds tax at source and reporting responsibility passes to you.
Israeli companies we do cover
Tel Aviv market data is not available here. Israeli companies listed on Nasdaq and the NYSE — Teva, Elbit, Check Point, CyberArk, NICE, monday.com and others — do carry live prices and full analysis.
Israeli stocks on Wall Street →
More on the Israeli market
- The TA-35 Index
- Israeli ETFs and Index Funds
- Capital Gains Tax on Investments in Israel
- The Shekel, the Dollar and Your Returns
This is neither investment advice nor tax advice.
Last updated: 2026-09-27