The Investment Account Decision
Once you have your Keren Hishtalmut and pension set up, you may want to invest additional savings beyond those mandatory and tax-advantaged accounts. The question for olim is whether to open an Israeli brokerage account, keep investing through your home-country accounts, or some combination.
The answer is not obvious and depends heavily on your citizenship status. American olim face particular constraints that make this decision more complex than it is for British, Canadian, or other olim.
Israeli Brokerage Options
Israeli investment accounts come in two forms: standalone brokerages and bank-linked investment accounts. The main players:
Standalone Brokerages
- IBI (אי.בי.אי): Largest independent investment house in Israel. Wide product range including TASE stocks, Israeli ETFs, mutual funds, US stocks, and bonds. Online platform is comprehensive but primarily Hebrew. English customer service available. Competitive commission rates.
- Meitav (מיטב): Major investment house with full brokerage capabilities. Good platform with some English support. Strong in mutual funds and structured products.
- Psagot (פסגות): Large manager with extensive product range. Strong institutional roots.
- Altshuler Shaham (אלטשולר שחם): Strong investment track record, popular for both pension and direct investment accounts.
Bank-Based Investment Accounts
Every major Israeli bank offers investment services through their branch or online portal. Bank Hapoalim (through Poalim Capital Markets) and Bank Leumi (through Leumi Partners) are the largest. Mizrachi-Tefahot and Discount also have investment divisions.
Bank-based accounts are convenient — everything is in one place — but fees are typically higher than standalone brokerages. Expect commissions of 0.2-0.5% per trade versus 0.05- 0.15% at a dedicated investment house. For passive investors making infrequent trades, this matters less; for active investors, it adds up quickly.
Kupat Gemel as an Investment Account Alternative
For long-term savings beyond pension, a קופת גמל (Kupat Gemel) (specifically a Kupat Gemel L'Hashkaa — investment provident fund) offers an alternative to a standard brokerage account with certain tax advantages. We cover this in detail in the savings vehicles module.
Opening an Israeli Brokerage Account
The process for Israeli residents is straightforward:
- Identification: Teudat Zehut (Israeli ID), plus sometimes a passport
- Bank account details: A linked Israeli bank account for transfers
- Investment suitability questionnaire: Legally required — honest answers help ensure you get appropriate product recommendations
- Tax classification form: You will typically need to declare Israeli residency for withholding tax purposes
The entire process can be completed online for most major brokerages. Some platforms offer English-language onboarding — ask specifically when comparing providers.
What You Can Buy
Through an Israeli brokerage account, you can typically access:
- TASE-listed stocks (Israeli equities)
- Israeli government and corporate bonds
- Israeli mutual funds (kranot nemanot)
- Israeli ETFs tracking TASE and international indices
- US-listed securities (stocks and ETFs) through dual-currency accounts
- Structured products and certificates
Access to European-listed ETFs is limited due to PRIIPs regulations. The US-vs-Israeli ETF question is covered in the next article, as it has significant tax implications for American olim.