Opening an Investment Account
Step-by-step guide to opening an investment account at a bank or brokerage, including fee comparison and platforms.
Opening an investment account in Israel is simpler than most people think. Whether you want to invest in stocks, bonds, ETFs, or mutual funds, the first step is setting up a brokerage account (Tik Hashkaot) with a licensed provider.
Where to Open an Account
You have two main options: a traditional bank brokerage account or a non-bank investment house. Banks like Hapoalim, Leumi, and Discount offer brokerage services, but their fees tend to be higher. Non-bank firms like IBI, Meitav, Excellence, and Altshuler Shaham typically offer lower commissions and more modern platforms.
What You Need to Get Started
To open an account you will need your Israeli ID (Teudat Zehut), proof of address, and a linked bank account for deposits and withdrawals. The process can usually be completed online in about 20 minutes. Some providers require a minimum deposit, though many have dropped this requirement.
Understanding the Fee Structure
Israeli brokerage fees include trading commissions (per transaction), custody fees (for holding foreign securities), and currency conversion fees if you trade in USD. Compare the total cost across providers rather than looking at any single fee. For passive investors who trade infrequently, custody fees matter more than commissions.
Your First Investment
Once your account is funded, start simple. Many new investors begin with a broad index fund tracking the S&P 500 or the Tel Aviv 125. Set up a regular monthly purchase to benefit from dollar-cost averaging and resist the temptation to check prices daily.
In this guide
Frequently asked
Expand/collapse: Where should I open an investment account in Israel?
You can open at a traditional bank (Hapoalim, Leumi, Discount) or a non-bank investment house (IBI, Meitav, Excellence, Altshuler Shaham). Non-bank firms typically offer lower fees and more modern platforms.
Expand/collapse: What do I need to open a brokerage account?
Your Israeli ID (Teudat Zehut), proof of address, and a linked bank account. The process can usually be completed online in about 20 minutes.
Expand/collapse: What fees should I watch for in an Israeli brokerage?
Trading commissions per transaction, custody fees for holding foreign securities, and currency conversion fees for USD trades. For passive investors who trade infrequently, custody fees matter most.
Expand/collapse: What is the minimum amount to open an investment account?
Most Israeli brokerages and investment houses have no minimum deposit requirement. You can start with any amount and add through regular monthly contributions.
Expand/collapse: Can I open multiple brokerage accounts in Israel?
Yes, there is no legal limit. Some people use one account for Israeli securities and another for foreign ones. Just keep track of all accounts for tax reporting purposes.
Expand/collapse: Is my money protected if the brokerage goes bankrupt?
Yes, your securities are held in your name at a custodian, separate from the brokerage's own assets. If the firm fails, your investments remain yours. Israel has investor protection regulations in place.
Expand/collapse: Should I use a bank or non-bank brokerage?
Non-bank investment houses typically charge lower fees and offer more modern trading platforms. Banks offer convenience if you want everything in one place but usually at a higher cost.