With nearly 10 million citizens, a highly advanced economy, an international tech hub and incubator, and a regional financial centre, Israel maintains an excellent Forex trading infrastructure. Israel is also a highly educated country and home to several domestic Forex brokers that rank among the industry leaders in their core categories.
My Forex Brokers Israel review analyzed dozens of Forex brokers and presents the most competitive options catering to popular Israeli Forex trading trends.
Best Forex Brokers in Israel at a Glance
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- Plus500, multi-asset and CFD broker.
- FP Markets, ECN trading with leverage up to 1:500.
- Pepperstone, Great ECN execution on MT4 platform.
- FXTM, Best all-around broker with high floating leverage and fast execution.
Best Israel Brokers Comparison
| | | | | |
Regulators | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, CySEC, FCA, FMA, FSCA, MAS | ASIC, CySEC, FSCA | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | CMA, CySEC, FCA, FSC Mauritius, FSCA |
Year Established | 2006 | 2008 | 2005 | 2010 | 2011 |
Execution Type(s) | Market Maker | Market Maker | ECN/STP | No Dealing Desk, NDD | ECN/STP, Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.9 pips | 1.3 pips | 1.1 pips | 1.1 pips | 0.1 pips |
Average Trading Cost GBP/USD | 1.5 pips | 1.7 pips | 1.4 pips | 1.6 pips | 0.2 pips |
Average Trading Cost Gold | $0.29 | $0.34 | $0.21 | $0.20 | $0.18 |
Trading Platform(s) | Other, MetaTrader 4, MetaTrader 5, Web-based+ | Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, cTrader, Trading View | MetaTrader 4, MetaTrader 5, Proprietary platform |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Get Started Visit Website82% of retail CFD accounts lose money | Visit Website | Visit Website | Visit Website |
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsTraders can use MT4/MT5, the proprietary WebTrader, and the mobile app AvaTradeGO with Trading Central or the specialized Ava Option and Ava Social alternatives. It makes AvaTrade the Forex broker with the most trading platform solutions from my Forex brokers in Israel review. It also features a well-balanced asset selection, including options, ETFs, cryptocurrencies, and reasonable commission-free costs.
Beginners benefit from the spun-out Ava Academy, an industry-leading education service, the MT4 Guardian Angel plugin, and the fee-based Ava Protect insurance policy protecting against losses. A high-paying affiliate program with 145,000 registered partners and $300,000,000+ in commission payouts is also available.
Pros & Cons
- High-quality educational offering via SharpTrader
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
Plus500
In Summary multi-asset and CFD brokerPlus500 is a high-quality manual-only broker founded in Israel, ranking among the cheapest brokers in our Forex brokers in Israel ranking, featuring low-cost, commission-free fees from 0.6 pips or $6.00 per lot. Plus500 offers an ESG score, the data-driven analytical tool +Insights, and quality education from the Plus500 Trading Academy.
Traders get a well-balanced asset selection, including ETFs, cryptos, options, and the web-based, user-friendly Plus500 proprietary trading platform and mobile app. It includes sentiment indicators and real-time email, SMS, and push notifications based on price alerts, percentage-based hourly and daily price changes, and sentiment changes among buyers and sellers.
Pros & Cons
- Broad asset selection in equities and options
- Free and unlimited demo account
- Advanced free-of-charge analytical trading tools
- Global and regulated fintech platform
- Sub-standard trading platform without support for automated or social trading
FP Markets
In Summary ECN trading with leverage up to 1:500The 12-plugin upgrade package, Trading Central, and Autochartist place FP Markets among the brokers on our Forex brokers Israel with the most upgraded MT4/MT5 trading environment. cTrader is also available, and all three trading platforms support algorithmic trading. MAM/PAMM accounts provide traditional account management services for licensed account managers.
FP Markets offers 24/7 multi-lingual customer support, daily market reports via the FP Markets newsletter, and quality education and research for beginners. It is also ideal for copy traders, featuring embedded MT4/MT5/cTrader copy trading services, the well-known Myfxbook Autotrade service, fee-based Signal Start, and the proprietary FP Markets solution.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Pepperstone
In Summary Great ECN execution on MT4 platformPepperstone is the broker within our Forex Brokers Israel ranking with the most advanced trading tool, Capitalise AI, which supports algorithmic trading in a code-free environment. Pepperstone also provides the 28-plugin Smart Trader Tools package for MT4/MT5, plus Autochartist. Deep liquidity, fast order execution, same-day withdrawals, and competitive commission-based fees make it an excellent choice for algorithmic traders and scalpers.
Beginners can benefit from quality education, research, and 24/5 + 18/2 support. Pepperstone connects social traders to TradingView, where 50M+ traders interact and share ideas. Copy traders can diversify via embedded services in MT4, MT5, cTrader, Myfxbook Autotrade, and DupliTrade.
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, and cTrader
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Myfxbook, MetaTrader Signals, and DupliTrade
- Leverage of up to 1:30 and superb trade execution
- Demo accounts have 30-day time limits
FXTM
In Summary Best all-around broker with high floating leverage and fast executionFXTM maintains the cheapest trading fees among all brokers within our Forex brokers Israel list. The FXTM Advantage account offers raw spreads from 0.0 pips for a commission of $0.80 and $4.00 per 1.0 standard round lot for a minimum deposit of only $500. The cutting-edge trading infrastructure features excellent price improvement technology that decreases trading fees by an average of $3.00 per round lot.
FXTM upgrades the MT4/MT5 trading platforms with its Pivot Point Strategy plugin. VPS hosting ensures 24/5 low-latency algorithmic trading, and FXTM has same-day withdrawals.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
What to Look for in a Forex Broker in Israel
My Forex brokers in Israel reviewed and prioritized the criteria below.
All competitive Israeli Forex brokers should provide the following:
- Regulation - A clean regulatory track record spanning 10+ years.
- Low trading fees - Low costs and swap rates, including positive ones.
- Trading platforms - Full support for algorithmic and copy trading.
- Asset diversity - A well-balanced choice of liquid assets.
- Deposits/Withdrawals - No internal transaction fees and low minimum requirements.
Forex Trading Regulations in Israel
The Israel Securities Authority (ISA) regulated the domestic Forex market. It is one of the most competitive tier-2 regulators, granting a maximum Forex leverage of 1:100 with negative balance protection and segregation of client deposits from corporate funds. Israeli Forex traders may also trade with offshore Forex brokers, which we have included in our Forex brokers Israel review.
How Much is Forex Leverage in Israel?
Forex traders must always use proper risk management when trading leveraged accounts. The maximum Forex leverage we found during our Forex Brokers Israel analysis was 1:100 for Forex brokers regulated by the ISA. Israeli-resident Forex traders can trade with higher leverage at offshore Forex brokers, which is 100% legal, and all our Forex brokers offer negative balance protection.
How to Start Forex Trading in Israel
Before opening an account with brokers from our Forex Brokers in Israel list, beginners should consider the tips below.
Tips for starting your Forex trading journey in Israel
- Quality education should always be step number one.
- Respect Forex trading as a highly skilled profession.
- Master trading psychology, which separates 90% of unprofitable traders from profitable ones.
- Understand the relationship between leverage and risk management.
- Leverage magnifies profits and losses.
- Risk management is equally important as trading strategy.
- A suitable trading strategy will reflect your personality.
- Low trading fees determine a competitive trading environment.
- Study proper Take Profit and Stop Loss placement.
What is the Best Trading Platform in Israel
MT4 is the best trading platform in Israel, enabling algorithmic, API, and copy trading. Traders can upgrade it via 25,000+ custom indicators, plugins, and EAs, and most brokers from our Forex brokers Israel review offer it. MT5 and cTrader come in as the second and third-best choices, as they lack the versatility of MT4, but all support algorithmic trading, which accounts for 80% of daily trading volume.
Forex Trading Taxation in Israel
Our Forex brokers Israel list determined a 25% capital gains tax, and Big Four accountancy PricewaterhouseCoopers confirmed it. Israeli Forex traders must consult a legal professional to seek tax advice in Israel to ensure compliance with local rules and regulations. The Forex trading landscape is dynamic, and tax laws may change. Filing Forex taxes in Israel with a professional can optimize the tax rate and ensure Forex traders pay the appropriate taxes.
Pros & Cons of Forex Trading in Israel
Forex traders should carefully consider the pros and cons of Forex trading in Israel before opening and funding a trading account with any of the brokers from our Forex brokers Israel list.
The pros of Forex trading in Israel are:
- Lower capital requirements versus other assets
- Low-latency algorithmic and API trading
- Passive income opportunities
- 24/5 decentralized market
- Copy and social trading.
- PAMM/MAM accounts
- Mobile trading
The cons of Forex trading in Israel are:
- Disconnect between leverage and its relationship to risk management.
- Lack of respect for Forex trading as a high-skilled profession
- Demo trading results in a false sense of accomplishment
- Emotion-based decision-making
- Unrealistic trading expectations
Bottom Line
Israel ranks among the most competitive tier-2 Forex trading jurisdictions and is home to several well-known industry leaders. The high-income economy and educated and tech-savvy population combine for excellent trading conditions many brokers prefer, primarily as average deposits are higher than in most countries.
Algorithmic trading and copy trading rank among the most popular strategies. Israel is also a regional financial centre, and traditional account management services via MAM/PAMM modules are equally widespread. The brokers on our Forex Brokers Israel list provide competitive, trustworthy trading environments and provide cryptocurrency trading via CFDs, which is a popular asset class in Israel.
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