Top list of Forex and CFD brokers in Israel

The history of Israel is definitely not an ordinary one – the country come a long way to become the democratic Jewish nation-state, as it defines itself today. The richness and depth of the country’s history are also mirrored in its diverse culture, architecture, and world heritage sights. After all, Israel is home to some of the oldest and major religious groups that coexist together on a little over 20 770 square kilometers of Israel’s total territory.

Ancient history aside, Israel has managed to achieve what many other countries across the world can only dream about. First proclaimed in 1948, the state of Israel has soon become one of the strongest economies in the region, and an important player in the international economic arena.

With a population of over 9.3 million people, the national economy is both well-developed and diverse, and, thus, can offer a lot to those interested in Forex trading. Israel is duly recognized as the most advanced economy in the region of the Middle East and Western Asia. Although not particularly rich in natural resources, the country has managed to achieve rapid and sustainable growth by investing in the science and technology sector.

On top of being the home to some of the world’s most cutting-edge technological advancements, Israel has successfully witnessed the emergence of various other sectors of the national economy. Among those are agriculture, the industrial sector, and tourism, especially the religious one. Every year, the country receives thousands upon thousands of pilgrims from all over the world, and of different confessions. Finally, the Israeli start-up environment has long become very attractive – so much so that the country has been named as a country with the second-largest number of start-ups, succeeded only by the United States.

In this guide, we will take a closer look at the local FX market, the regulatory mechanisms in place, an overview of the best Forex brokers in Israel, and more.

List of the best Forex brokers in Israel

As the country’s economy expands, citizens of Israel have more money to invest and actively trade in the financial markets. And Forex and CFD (Contracts for Difference) trading is becoming increasingly popular in the country. However, it should be mentioned that finding the best broker is difficult as you have to compare trading conditions of so many brokers with one another. To make this task easy for you, we have created a top brokers list that accept traders from Israel.

Forex trading regulation in Israel

Established in 1968, the Israel Securities Authority (ISA) is the main body responsible for overseeing the functioning of the local FX market. The body’s main goal is reinforcing investor protection, and it does so by adopting various laws, regulations, and guidelines based on the US securities laws. ISA is responsible for issuing license for Forex and CFD brokers that operate within the country. However, it is perfectly legal for the residents of Israel to open trading accounts with internationally regulated brokers.

Minimum capital requirement

Many regulatory bodies demand their licensees to possess a certain amount of operational funds in place. This is done to ensure that the broker is not operating on the verge of bankruptcy, and, by doing that, putting the hard-earned funds of their traders at risk. However, Israel takes it one step further by having different requirements for the minimum operating capital for different types of licenses available.

In order to obtain a basic license, the broker will have to demonstrate the possession of 800 000 ILS or an equivalent of 200 000 USD. The consequent, “fuller” license will have the broker demonstrate the possession of 1 500 000 ILS (around 380 000 USD), as well as have an existing partnership with the liquidity providers in order to protect itself from the market fluctuations. Finally, the highest license that the broker can get amounts to 4 000 000 ILS, or 1 million USD in reserves.

Limits on leverage in Israel

Regulating any Forex market does not revolve solely around the need to reduce the potential for the broker’s wrongdoing against their respective traders. More often than not, the significant losses during the trading sessions are caused by the trader’s lack of experience and understanding of the certain tools.

Among those is the controversial and widely debated leverage, that can both boost one’s profits or result in devastating losses. Like many other countries in the world, Israel limits the potential damage that the usage of high leverage can cause by putting a cap on it.

Even the best Israeli Forex brokers will offer you a maximum of 100:1, and that will only be available for the low-risk assets. Assets regarded as the medium-risk ones will have a leverage of 40:1, while the high-risk assets will only be able to get 10:1.

Israeli currency in Forex

The national currency of Israel is the Israeli shekel (ILS), which has only been introduced in 1986 and was introduced to Forex trading in 2008. Although popular among the Israeli FX traders, the ILS is regarded as both a young and somewhat exotic currency to trade. If you are only just getting into the field of Forex trading, we recommend that you first try trading other, more popular pairs, such as the EUR/USD, or GBP/USD. ILS coupled with US Dollar has a good liquidity, however, not good enough to use one-minute charts for scalping. In addition, there are high spreads and many beginner traders avoid exotic pairs.

Popular trading platforms in Israel

Many brokers that operate in Israel have custom-made platforms, while many others offer third party software. The most popular platforms in Israel, as well as around the globe, are: MetaTrader 4 (MT4)., MetaTrader 5 (MT5), cTrader, and TradingView. TradingView was created for analyzing charts, and very recently added trading feature in its offerings. MT4 and cTrader are for trading Forex, while the MT5 is a multi-asset platform. All the platforms mentioned are professional and enable traders to conduct a comprehensive analysis. Trading platforms help traders to social trade, copy trade, conduct analysis, develop strategies and more. It’s best to try them all and choose the one that best fits your requirements.

Summary

Overall, we can say that Forex trading is legal and well-regulated in Israel. However, local regulator is not as experienced as international ones. Which is why we recommend considering global brokers that have great trading conditions and good reputation among traders. Our top list consists of super popular brokers, such as: XM, AvaTrade, Plus500, and others.

FAQs on top list of Forex and CFD brokers in Israel