| Updated: November 27, 2024Traders looking for the best broker to offer forex trading to Israelis should take a look at the list we have compiled. We have reviewed a few of the top performers in the Israeli forex trading market, ensuring fair and secure trading conditions for all of their clients. All of the brokers we have covered have been thoroughly tested by our team of experts, evaluating anything from pricing to available platforms, ensuring our readers will be able to make informed decisions when picking the right broker.
Fusion Markets74-89% of retail CFD accounts lose money
Pepperstone75.5% of retail investor accounts lose money
Global Prime74-89% of retail CFD accounts lose money
Forex.com77.7% of retail investor accounts lose money
AvaTrade76% of retail investor accounts lose money
Eightcap76.09% of retail investor accounts lose money
Libertex74.91% of retail investor accounts lose money
Admirals73% of retail investor accounts lose money
Vantage FX
Iron FX67.62% of retail investor accounts lose moneyIsraeli Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. Fusion Markets | 1,862 | 4.9 ⭐ |
| 2. Pepperstone | 2,789 | 4.6 ⭐ |
| 3. Forex.com | 1,668 | 4.5 ⭐ |
| 4. Global Prime | 161 | 4.5 ⭐ |
| 5. AvaTrade | 8,855 | 4.4 ⭐ |
| 6. Eightcap | 2,668 | 4.2 ⭐ |
| 7. Libertex | 9,456 | 4.0 ⭐ |
| 8. Admirals | 1,851 | 3.9 ⭐ |
| 9. Vantage FX | 4,089 | 3.5 ⭐ |
| 10. Iron FX | 0 | N/A ⭐ |
Israeli Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Admirals | 0.1 | 10 | 0.00003 | 1.00 |
| 2. Fusion Markets | 0.07 | 0.13 | 0.23 | 1.01 |
| 3. Global Prime | 0.13 | 0.28 | 0.28 | 1.11 |
| 4. Iron FX | 0.7 | 0.4 | 0.9 | 0.8 |
| 5. AvaTrade | 0.9 | 1.3 | 1.2 | 1.3 |
| 6. Pepperstone | 1.00 (min) | 1.0 | 1.2 | 1.00 (min) |
| 7. Vantage FX | 0.2 | 0.5 | 0.3 | 0.4 |
| 8. Eightcap | 1.00 (min) | 1.1 | 1 | 1 |
| 9. Forex.com | 1 | 1.2 | 1.3 | 1.3 |
Israeli Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. AvaTrade | $0 |
| 2. Libertex | $0 |
| 3. Iron FX | $0 |
| 4. Forex.com | $0 for Standard accounts; $5 per standard lot per side for Raw accounts |
| 5. Eightcap | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts |
| 6. Vantage FX | $3 per side on Raw; $1.50 per side on Pro |
| 7. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 8. Admirals | $3 per lot |
| 9. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 10. Pepperstone | $0 (Standard Account), $7 round-turn (Razor Account) |
Important Note: Forex trading in Israel is regulated under the Securities Law of 1968, with the Israel Securities Authority (ISA) being the body responsible for the regulation of financial market services, including forex trading. To be able to offer forex trading services to Israeli traders, brokers must be licensed by the ISA. Additional information about the local regulator and any relevant updates on the forex trading market in Israel can be found on the ISA’s official website or its X account.
Top 10 FX Brokers in Israel
Fusion Markets Broker Details Supports HebrewNoIsraeli Currency (ILS)No
Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView Trustpilot Rating 4.9 out of 1,862 reviews Number of CFD Forex Pairs to Trade 90+ Leverage Forex & Metals CFDs: 1:30 (1:500 for forex and metals via VFSC)
Index CFDs: 1:5
Cryptocurrencie CFDs: 1:2 (ASIC), 1:10 (FSA, VFSC)Spread EURUSD: 0.07
USDJPY: 0.13
EURGBP: 0.23
GBPUSD: 1.01Forex Commission per Lot per Trade $0 Classic Account, $4.50 round turn on Zero Account Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire, ZotaPay, VNPay, DuitNow, XPay, DragonPay, VAPay, FasaPay, AstroPay, PayID, Jetonbank, Sticpay, Interac, LuqaPay, Zotapay, MiFinity Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity, Interac, PayPal, AstroPay, Jetonbank, DragonPay Key Pros
- Offers some of the lowest spreads
- ASIC clients enjoy a negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment solutions
Key Cons
- Does not offer investor protection
- Traders outside Australia have no negative balance protection
- Cannot set up an account in a minor currency
- Has no FCA license
Global Prime Broker Details Supports HebrewNoIsraeli Currency (ILS)No
Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.5 out of 161 reviews Number of CFD Forex Pairs to Trade 56 Leverage Forex & Metals CFDs: 1:500 (1:30 for ASIC entity)
Index CFDs: 1:100 (1:20 for ASIC entity)
Cryptocurrencie CFDs: Up to 1:2 (ASIC); Up to 1:5 (Pro and VFSC)Spread EURUSD: 0.13
USDJPY: 0.28
EURGBP: 0.28
GBPUSD: 1.11Forex Commission per Lot per Trade $0 Standard Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto Withdrawal Methods Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could use more trading platforms
- A limited range of educational resources
- Does not offer Islamic or cent accounts
Pepperstone Broker Details Supports HebrewNoIsraeli Currency (ILS)No
Regulators UK FCA (No.684312), CySEC (No. 388/20), ASIC (No. 414530), BaFin (No.151148), DFSA, CMA, SCB (Bahamas) Min Deposit $0 Trading Platforms TradingView, MT5, MT4, cTrader Trustpilot Rating 4.6 out of 2,789 reviews Number of CFD Forex Pairs to Trade 90+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.00 (min)
USDJPY: 1.0
EURGBP: 1.2
GBPUSD: 1.00 (min)Forex Commission per Lot per Trade $0 (Standard Account), $7 round-turn (Razor Account) Deposit Methods Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill Withdrawal Methods Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill Key Pros
- Winner of multiple industry awards
- Commission-free FX trades via standard accounts
- Over 1,200 instruments across all major asset classes
- Competitive spreads on FX trades via Razor accounts
- Seamless withdrawals within 1 to 3 workdays
Key Cons
- A somewhat limited range of deposit and withdrawal options
- High swap rates on overnight positions
Admirals Broker Details Supports HebrewNoIsraeli Currency (ILS)No
Regulators CySEC (No. 201/13), ASIC (No. 410681), FCA (No. 595450), JSC (No. 57026), FSCA (No. FSP51311), EFSA (No. 4.1-1/46), CMA (No. 178), CIRO, FSA (No.SD073) Min Deposit $100 ($1 for Invest MT5 Account) Trading Platforms MT4, MT5, WebTrader, MT Supreme Edition, StereoTrader Trustpilot Rating 3.9 out of 1,851 reviews Number of CFD Forex Pairs to Trade 82 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.1
USDJPY: 10
EURGBP: 0.00003
GBPUSD: 1.00Forex Commission per Lot per Trade $3 per lot Deposit Methods Visa, Mastercard, Skrill, Klarna, Bank Transfer, PayPal, Neteller, iDeal, POLi, Perfect Money, Cryptocurrencies Withdrawal Methods Bank transfer, Visa, Mastercard, PayPal, Neteller, Skrill, Perfect Money Key Pros
- Over 8,000 markets available
- 80 forex pairs tradable through CFDs
- Swap-free forex accounts for Islamic customers
- Offers forex trading in micro lots
- No fees on deposits
Key Cons
- Only one free withdrawal per calendar month
- Does not trade publicly on a stock exchange
AvaTrade Broker Details Supports HebrewNoIsraeli Currency (ILS)No
Regulators FFAJ (License No.1574),CySEC (No. 347/17) ISA (No. 514666577), IIROC, ADGM / FSRA (No.190018), CBI (No.C53877), BVIFSC (No. SIBA/L/13/1049), FSCA(No.45984), ASIC (No.406684), JFSA (No. 1662) Min Deposit $100 Trading Platforms MetaTrader4, MetaTrader5, WebTrader, AvaTadeGO, AvaSocial, AvaOptions, DupliTrade Trustpilot Rating 4.4 out of 8,855 reviews Number of CFD Forex Pairs to Trade 53 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2 for EU residents 1:25 for non-EU residentsSpread EURUSD: 0.9
USDJPY: 1.3
EURGBP: 1.2
GBPUSD: 1.3Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Skrill, WebMoney, Neteller, bank wire Withdrawal Methods Visa, Mastercard, Skrill, WebMoney, Neteller, bank wire Key Pros
- Regulated by 9 jurisdictions in 6 continents
- Offers various trading platforms suitable for beginners and expert traders
- Enables smooth mobile forex trading via dedicated app
- Offers 55 forex options and numerous CFDs
- Easy copy trading via the AvaSocial platform
Key Cons
- Retail account pricing trails behind top brokers’ offerings
- Desktop platform may seem a tad outdated
- Many payment solutions are country-specific
Libertex Broker Details Supports HebrewNoIsraeli Currency (ILS)No
Regulators CySEC (CIF Licence number 164/12), BaFin (BaFin ID: 10161686 / Bak No.: 161686) Min Deposit $10 Trading Platforms Libretex Trading Platform, MT4, MT5 Trustpilot Rating 4.0 out of 9,456 reviews Number of CFD Forex Pairs to Trade 50+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.1
USDJPY: 0.3
EURGBP: 0.3
GBPUSD: 0.4Forex Commission per Lot per Trade $0 Deposit Methods PayPal, Visa, Mastercard, Sofort, iDeal, Trustly, Skrill, Giropay, Sepa International Bank Wire, Multibanco, P24, BLIK, Eps, Neteller Withdrawal Methods SEPA International Bank Wire, PayPal, Visa Mastercard, Skrill, Neteller Key Pros
- Great variety in terms of markets
- Users have a range of deposit and cashout solutions to pick from
- Available in English, Spanish, French, Portuguese, and other languages
- Negative balance protection
- Traders can contact the customer support staff via live chat
Key Cons
- No longer available for UK traders
- Does not accept traders from the US
- Somewhat lacking in terms of educational resources
Iron FX Broker Details Supports HebrewNoIsraeli Currency (ILS)No
Regulators FCA (licensing no. 585561), FSCA (licensing no. 45276) Min Deposit $100 Trading Platforms MetaTrader 4, WebTrader, VPS, PMAM, TradeCopier, Mobile App Trustpilot Rating N/A out of N/A reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.7
USDJPY: 0.4
EURGBP: 0.9
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Bank Wire, Skrill, Neteller, China Union Pay, Fasapay, Perfect Money, Bitwallet, Paysafecard Withdrawal Methods Bank Wire Key Pros
- Offers a wide selection of trading instruments
- Supports several popular trading platforms
- Enables easy trading on the go via dedicated app
- Supports various deposit methods
- Traders can choose from 7 different account types
Key Cons
- Bahamas entity operates with no license
- Trustpilot score not available due to many fake review detected
- Withdrawals are possible only via bank wire
Forex.com Broker Details Supports HebrewNoIsraeli Currency (ILS)No
Regulators ASIC, MAS, FCA, CIRO, JFSA, CFTC, CySEC, CIMA, SFC, CySEC Min Deposit $100 Trading Platforms MetaTrader 4, MetaTrader 5, TradingView, WebTrader, NinjaTrader Trustpilot Rating 4.5 out of 1,668 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1
USDJPY: 1.2
EURGBP: 1.3
GBPUSD: 1.3Forex Commission per Lot per Trade $0 for Standard accounts; $5 per standard lot per side for Raw accounts Deposit Methods Visa, Mastercard, Skrill, Neteller, Bank Transfer Withdrawal Methods Visa, Mastercard, Skrill, Neteller, Bank Transfer Key Pros
- Supports a great selection of trading platforms
- Enables easy mobile trading
- Offers over 80 currency pairs
- Provides a vast variety of products
- Forex spreads can be very competitive
Key Cons
- Navigating platforms can be difficult for beginners
- Instruments on MT4 platforms are significantly fewer than other platforms
- Charges monthly fee after 12 months of inactivity
Eightcap Broker Details Supports HebrewNoIsraeli Currency (ILS)No
Regulators SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296) Min Deposit $100 Trading Platforms MT4, MT5, WebTrader, TradingView, Capitalise.ai, FlashTrader Trustpilot Rating 4.2 out of 2,668 reviews Number of CFD Forex Pairs to Trade 50+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.00 (min)
USDJPY: 1.1
EURGBP: 1
GBPUSD: 1Forex Commission per Lot per Trade $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, PayPal, Mastercard, Wire Transfer, Neteller, Skrill, Tether, Bitcoin, BPAY, Dragonpay, Fasapay, Interac, Pix, UnionPay Withdrawal Methods Mastercard, Visa, PayPal, Skrill, Neteller, Bitcoin, Tether, Wire Transfers, BPAY, Fasapay, Pix, Interac, UnionPay Key Pros
- Commission-free FX trading via standard accounts
- Spreads from 0 pips on major currency pairs
- Accepts cryptocurrency deposits
- Fantastic variety of deposit and withdrawal methods
- Insights section with webinars, trade ideas, and weekly forecasts
Key Cons
- Below-average range of tradable instruments
- Crypto withdrawals incur transaction fees
Vantage FX Broker Details Supports HebrewNoIsraeli Currency (ILS)No
Regulators FCA (license no. FRN: 590299), VFSC (reg. No. 700271), ASIC (license no. no. 428901), FSCA (license no. 51268), CIMA (no. 1383491) Min Deposit $50 Trading Platforms MetaTrader 4, MetaTrader 5, ProTrader, TradingView, Copy Trading Trustpilot Rating 3.5 out of 4,089 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.2
USDJPY: 0.5
EURGBP: 0.3
GBPUSD: 0.4Forex Commission per Lot per Trade $3 per side on Raw; $1.50 per side on Pro Deposit Methods Visa, Mastercard, Union Pay, Boleto, Bank Wire, Skrill, Neteller, Crypto, POLi, FasaPay, Perfect Money, BPay, Pagsmile, AstroPay, JCB Withdrawal Methods Visa, Mastercard, Union Pay, Bank Wire, Skrill, Neteller, Crypto, AstroPay, Perfect Money, JCB Key Pros
- Regulated by reputable authorities
- Offers over 1,000 CFD products
- Supports various popular platforms
- Enables easy copy trading on mobile app
- Tight spreads and low commission for forex traders
Key Cons
- Some banking methods are exclusive to certain markets
- Could add more currency pairs to its products
- Limited educational materials
Is Forex Trading Legal in Israel?
Forex Trading is a legal and completely regulated financial activity in Israel. As already mentioned, it is the ISA’s responsibility to authorize brokers’ operations within the country. The same body is also overseeing the forex trading market, making sure license holders are ensuring fair trading conditions for their customers.
While forex trading used to be a tightly regulated industry, with multiple restrictions severely limiting trades of this type, in 1998, the Bank of Israel introduced the Relaxation of foreign-exchange control and the deregulation of the banking system. According to that piece of legislation, the following forex regulations were introduced:
- Individuals residing in Israel and owning local currencies are allowed to purchase foreign currencies, which can be used for deposits in foreign-currency accounts in banks operating in Israel.
- The restrictions imposed on transactions with derivatives on local and foreign currencies made by Israeli residents have been lifted.
- Israeli residents can transfer foreign currencies from one foreign-currency account to another.
- The restrictions on foreign securities investments made by Israeli companies have been lifted.
- All the restrictions previously applied to investments in foreign securities by mutual (trust) funds have been lifted.
Obtaining a license from the local authority requires meeting specific conditions that are typically related to the company’s financial stability, business plan, security strategies, and regulatory compliance. Once licensed, local brokers are subject to regular audits and checkups, ensuring they are following regulatory guidelines for fair and secure trading.
Even though brokers are required to obtain an ISA license in order to operate in the Israeli forex trading market, local traders can also join foreign brokers regulated in different jurisdictions. That said, it is worth saying that the ISA is regarded as a tier-2 financial market regulator, which means it is one of the strictest and most reliable authorities in the global trading scene.
With the ISA ensuring brokers catering to Israeli traders are compliant with local and global trading regulations, any entities breaching rules and endangering the security of Israeli traders and their funds can face financial penalties imposed by the ISA. The regulatory body is also authorized to revoke the licenses of companies that are no longer capable of offering safe and fair trading services to traders based in Israel.
Israel Securities Authority (ISA) Regulation Info
To be eligible to offer forex trading services to traders based in Israel, brokers are required to meet certain conditions in order to receive the ISA’s permission to operate. For starters, to ensure that they are financially stable and capable of fulfilling trading operations, license applicants must provide documents proving their operational capital. The minimum required for entities to qualify for an ISA license varies between 500,000 ILS and 4 million ILS (around $100,000 and $1 million), depending on the variety of financial services the entity will be offering to its clients. The most basic license that Israeli brokers can obtain will require a minimum starting capital of 800,000 ILS (about $200,000).
During the application review process, the ISA does thorough background checks of entities, assessing their integrity and honesty, and evaluating the competence of employees. License applicants are also asked to submit a business plan or an activity document.
Once entities receive an ISA license for forex trading, they are required to follow a set of regulatory requirements. Some of these include the prohibition of misleading advertising content, the establishment of a uniform fee structure, and regular reports submitted to the Capital Market Authority.
In addition to issuing operational licenses to Israeli forex brokers, the ISA is also responsible for taking regulatory action against entities who have illegally provided financial services, including forex trading to Israeli traders or have breached any license conditions. You can always check the official website of ISA to check the register of active license holders as well as any public notices about entities who had their licenses revoked by ISA.
How Can I Verify ISA Authorization?
Verifying whether you have come across a forex broker licensed by the ISA and following local guidelines for secure and fair trading is extremely easy. Any brokerage company that has been licensed by the ISA and is regulated by the local authority will list the relevant license information on its official website. Take a look at the bottom of the home page of any broker’s website to find out more about the jurisdictions where the company has been licensed and is currently regulated.
To verify whether a trading company has been licensed by the Israeli regulatory body, you can also head to the official website of ISA. Under the category Supervised Entities, you can find registries of licensed companies, with all trading companies operating under ISA licenses listed here. By clicking on every entity’s name, you can see more information about the company’s license and its validity.
Are Traders’ Funds Safe with Forex Brokers in Israel?
If you are worried about the safety of your funds while you trade with an Israeli broker, we can assure you that any brand that has an ISA license is following strict regulatory requirements. That means regulated brokers are obligated to implement a wide range of security measures to ensure the safety of their clients’ funds.
As already mentioned, only entities that have proven to have a certain minimum operating capital can be eligible for a trading license. Since the required minimum can be rather high, this ensures that only financially stable companies can qualify for an operational license. Even after they have obtained ISA’s permission, licensed brokers must go through regular audits to prove they are eligible to maintain their status as licensed trading entities.
You should also know that the ISA requires brokers to keep their customers’ funds segregated. This guarantees that even if the broker goes bankrupt or loses money in any other way, traders’ funds will not be affected as they will be kept in a different bank account.
To combat money laundering activities and other financial crimes, Israeli brokers are required to implement a variety of security tools such as KYC (Know Your Customer) practices. That means Israeli traders will be asked to prove their identity and provide information about their source of funds. That way, brokers are able to verify real accounts and prevent any suspicious activity.
Do Israeli Brokers Provide Negative Balance Protection?
It is worth mentioning that another security measure regulated Israeli brokers are asked to implement includes negative balance protection. As forex trading has the potential to be a risky activity due to leverage, traders, especially those who are inexperienced can suffer huge losses if they cannot assess the risks correctly. This is why negative balance protection is a useful security tool that all regulated Israeli brokers are required to offer to their retail clients.
Since high leverage can easily lead to losses that exceed your available balance, it is common that traders may end up owing the broker money. However, if you have negative balance protection applied to your account, your losses will be limited only to the amount you have deposited into your trading account. That means you will not owe the broker any money, even if the leverage indicated potential losses of bigger amounts.
Do Traders Pay Tax on Forex Trading in Israel?
As forex trading is a regulated activity in Israel, it is also considered a taxable source of income for Israeli traders. According to Israeli tax regulations, the income generated through forex trading falls under the category of capital gains. The rate of said tax may range anywhere between 20% and 50%, depending on the assets that have been traded and their volume.
To be sure they are following local tax requirements, Israeli traders are advised to contact local tax experts. That way, they can be aware of any recent changes in the tax rates and can be sure they have submitted the correct documents to local tax authorities. It is worth noting that individuals who try to avoid taxes linked to their forex trading capital gains may face serious penalties.
How Does the Available Leverage of ISA-Regulated Brokers Compare to the Leverage at Brokers Regulated Offshore?
As we have already shared, the ISA is extremely strict with its license holders, requiring brokers to implement a wide selection of measures that ensure clients’ safety. Leverage limits are also among the license conditions Israeli brokers must meet. The maximum allowed leverage depends on the volatility of the asset, with brokers operating in Israel being allowed to offer a leverage of up to 1:100 on major currency pairs. Meanwhile, assets with a medium risk level may have a leverage of up to 1:40, while exotic pairs may offer a maximum of 1:20 leverage.
While the ISA is stringent about every aspect of trading in the territory of Israel, compared to other jurisdictions, it has been more generous with allowed leverage limits. For instance, brokers in the US are permitted to offer a maximum leverage of 1:50 on major currency pairs. Meanwhile, tier-1 regulators like the FCA, ASIC, CySEC, and most watchdogs across Europe, have introduced maximum leverage of 1:30 on major currency pairs and 1:20 on exotic currency pairs.
In some Asian countries, the leverage can be even lower, with traders being offered maximum leverage of 1:10 or even 1:5 on currency pairs. While a leverage cap of 1:100 is quite high compared to the ratios adopted in other jurisdictions, we should also mention that regulators like the FSA have introduced a leverage limit of up to 1:5,000, with brokers operating in the Seychelles often offering such high ratios.
What Do You Need to Qualify to be Designated as a Professional Trader in Israel?
It should be noted that leverage limits are applied only to retail trading accounts. Meanwhile, investors who enjoy trading higher volumes, do not mind the high risk, and wish to take advantage of higher leverage ratios, can apply for professional trading accounts. Israeli brokers do offer their clients to upgrade to a professional trading status, but they are required to meet several conditions to classify as professional traders.
Just like other regulators, the ISA has introduced similar guidelines for professional trading accounts. Clients who wish to be designated as professional traders will need to prove they are capable of making high-volume transactions, they are well-experienced in this field, and they have the knowledge required to verify they are true professionals. Depending on the broker you have joined or you are planning to join, the steps required to open a professional account may differ. That said, in most cases, you will be asked to provide bank statements, a letter from your current or former employer, or other documents that will verify your professional status.
Most Israeli brokers offering professional trading accounts will request the following:
- The cumulative worth of your portfolio of financial instruments should be equal to or exceed 12 million ILS
- Traders should have made monthly transactions worth at least 10 million ILS in the previous six months
- Traders must have work experience of at least one year in the financial market industry
If you want to be prepared for the application process and speed up the verification, you can reach out to the broker’s support team. By contacting an agent, you can inquire about the documents you will need to submit when applying for a professional trading account.
What Trading Platforms are Available to Israeli Traders?
Trading websites operating under an ISA license will often feature popular trading platforms like MT4 and MT5, offering forex traders smooth and fast operation executions across various devices. Meanwhile, as Israeli traders may also choose to trade with offshore regulated brokers, they may also come across several proprietary platforms as well as the highly advanced cTrader.
MetaTrader 4: This is one of the most popular platforms for forex trading, suitable for both beginners and experienced traders. MT4 offers access to multiple forex quotes, allowing traders to execute several trades simultaneously. Automated trading is also a great feature of MT4 that many traders would appreciate as they decide to trade with any reputable Israeli broker.
MetaTrader 5: This platform is also a great variation, catering to multiple types of traders as it allows trading forex pairs, CFDs, stocks, and futures. Traders will have access to various tools such as algorithmic trading applications that can enable automated trades. Expert Advisors (EA) and trading robots are also some of the instruments that many Israeli traders will have access to while trading on the MT5 platform.
cTrader: This is considered a more advanced forex and CFD platform that many traders would enjoy. With plenty of charting and analytical tools, cTrader is a great platform for a more modern approach to trading. Fast entry and execution are also some of the platform’s features that many Israeli forex traders would appreciate.
Below you can find some useful references with links to organizations that monitor the forex market in Israel.
- Israel Securities Authority (ISA): This is the official forex regulator in Israel, responsible for issuing as well as revoking the licenses of financial service providers operating within the country.
- ISA licensed trading companies list will allow you to verify the license validity of any forex brokers claiming to be authorized by ISA. You can find all entities that have been licensed by the Israeli financial watchdog by checking all companies listed under the Supervised Entities category.
- In this Memorandum of Understanding between ESMA and the Israel Securities Authority traders can find out more about the agreement between ESMA and ISA, providing details on requirements that apply to CCPs established in Israel.
- As part of ISA’s Investor Protection program, the International Organization of Securities Commissions (IOSCO) publishes alerts about unauthorized entities.