Last Updated on September 10, 2024

Disclaimer: Nothing in this article should be considered legal, tax, or investment advice. I do not work for or affiliate with any of these platforms or services. Please do your own research before making any financial decisions.

Whether you have international income, maintain savings/investments abroad, receive an occasional gift outside of Israel or are just starting to prepare for Aliyah – saving money on currency exchange can really add up. In this article, we will analyze some of the best options available to Olim and how they compare.

If you are looking to transfer money out of Israel, see our full article “How to transfer your money out of Israel“

Fee Comparison Charts

These charts compare the fees of some of the most popular currency exchange options available using common scenarios. A breakdown of some of the pros and cons of each will follow – fees are only one of the important factors to consider.

Scenario 1: Making one monthly transfer.  The chart below uses a $2,000/month transfer.

Account	IBKR*	Revolut Standard**	Wise	OlehPay	Clearshift	Other local transfer services
Fee	$2 minimum commission	conversion fee on half + 0.5% of transfer amount	Variable ACH and conversion fees	2% Fee	Minimum 180 NIS fee	n/a 10K Minimum
Total Monthly Cost	$2	$15	$16.85	$40	180 NIS (Approx. $50)	n/a

Scenario 2: Making one monthly transfer.  The chart below uses a $10,000/month transfer.

Account	IBKR*	Revolut Metal**	Revolut Premium	Clearshift	Wise	OlehPay
Fee	$2 minimum commission	$16.99/month + 0.3% of transfer amount	$9.99/month + 0.4% of transfer amount	0.5% Fee	Variable ACH and conversion fees	2% Fee
Total Monthly Cost	$2	$46.99	$49.99	$50	$72.60	$200

Scenario 3: Making a single large transfer. The chart below uses a $200,000 transfer.

Account	IBKR*	Wise	Adesco Bridge	IsraTransfer	Clearshift	OlehPay	Revolut
Fee	0.002% Commission	Variable Wire and conversion fees	0.015 ILS * conversion amount	0.5% Fee	0.5% Fee	0.7%	n/a – $100K limit
Total Cost	$4	$735	3,000 ILS Approx. $815	$1,000	$1,000	$1,400	n/a

The Pros and Cons

All these services offer an exchange rate that matches or closely resembles the live market rate and are generally far better options than using your Israeli bank to make the conversion. Looking beyond the exchange rate, here are some of the pros and cons of each. The first section will focus on the international options while the second section will focus specifically on local transfer services.

The information below is based on personal experiences of different individuals and may not reflect your situation. I do not work for any of the services mentioned and do not use any affiliate links on this site – the only goal of this article is to bring transparency to the marketplace and help olim understand many of the options available to them.

International Companies

Interactive Brokers (IBKR)

Pros

• Lowest-cost option in many cases
• No minimum account balance or monthly maintenance fees. Account can be left open unused without incurring any cost.
• Account comes with lots of other features such as access to the global investing markets.
• Open to Israelis with no other residency
• Ability to save in multiple currencies on one platform and receive direct deposits from a US employer.
• Ability to hold funds in an FDIC insured account
• Fund your account with ACH
• Accepts deposits in Shekels. Can also be used to transfer funds out of Israel.
• Funds held in an account “in your name” throughout the process.

Cons

• Can’t be used for currency conversion alone – only offered to individuals who primarily use the platform to invest.
• Many find the application process and getting started to be complex and intimidating
• More involved than using a currency exchange service.
• Only 1 free withdrawal per month (small fee for additional withdrawals)

To register for our full course on using IBKR to exchange currency and invest and gain instant access (for only 139 NIS), click here.

Wise (Formerly TransferWise)

Pros

• Simple and easy to use
• Very high level of price transparency, with easy to use fee/rate calculators on their site.
• Ability to hold multiple currencies on one platform and receive direct deposits from a US employer (if account opened with US address).
• Fund your account with ACH

Cons

• Frequently change their fees

Revolut

Pros

• Lowest-cost option in some cases
• Metal plan includes unlimited currency exchange
• Simple and easy to use with all the functionality of a US bank
• Loaded with additional cash-management features that allow you save and spend in shekels without having to transfer the funds to your Israeli bank account.
• Ability to hold multiple currencies on one platform and receive direct deposits from a US employer.
• Ability to hold funds in an FDIC insured account
• Funds held in an account “in your name” throughout the process.
• Fund your account with ACH

Cons

• Not yet open to Israeli residents (unless you maintain an address outside of Israel). This is obviously a deal breaker for those who have already moved to Israel and don’t maintain an address outside of Israel.
• Monthly cost of $9.99 in order to maintain premium features. 19.99 cancelation fee if you downgrade your account before 12 months.
• Money will be transferred to Israel via international wire. Some banks in Israel will charge a small fee for receiving international wires.
• New $30,000 daily withdrawal limits and $100,000 weekly withdrawal limit.
• Additional fee for transferring the shekels to your Israeli bank.
• Does not accept deposits in Shekels in a cost-effective manner (Not a great option for transferring money out of Israel.)

For our full guide to using Revolut, click here.

Local Transfer Services

If you decide to use a local transfer service, make sure you use company that is licensed by the Israel Securities Authority (רשות שוק ההון). They should be able to provide a copy of their license upon request. Unfortunately, there have been horrific stories in the past and you should take extra care to make sure that you are using a reputable company.

There are many different local transfer services, the following is a sampling of some of the more popular options:

Adesco Bridge

Pros

• Local company
• A growing reputation for speed and efficiency. We have received positive feedback from many readers.
• Offers same-day delivery of funds.
• Many years of experience working with Olim on large currency transfers and banking
• Can also be used to transfer funds out of Israel

Cons

• Higher fees for smaller transfers (see examples above).
• $10,000 minimum
• Funds pass through a 3rd party account (discussed below).

IsraTransfer

Pros

• Local company
• Long track record working with Olim on large currency transfers
• Has NY based bank for easier US based transfers
• Can also be used to transfer funds out of Israel

Cons

• Higher fees for smaller transfers (see examples above)
• $5000 minimum
• Funds pass through a 3rd party account (discussed below).

Clearshift

Pros

• Local company
• Many years of experience working with Olim and businesses on large currency transfers
• Can also be used to transfer funds out of Israel

Cons

• Higher fees for smaller transfers (see examples above)
• Minimum fee of 180 ILS
• Funds pass through a 3rd party account (discussed below)

OlehPay

Pros

• Local company
• Simple and easy to use 
• Funds are held in your name in FDIC insured accounts
• Can also be used to transfer funds out of Israel
• Fund your account with ACH

Cons

• Very high fees compared to other options
• Must be an Israeli citizen to use or prove “association to Israel” to use
• Does not support 3rd party payments

Other Options

Whenever possible, we recommend you avoid services that bury their fees within the exchange rate they give you. Paypal and Xoom by Paypal are examples of services that are known to be one of the most expensive ways to exchange currency once you factor in the exchange rates they give you. A poor exchange rate is really just a % fee in disguise.

Similarly, many Israeli banks will hide their fees within the exchange rate they give you. They may layer additional fees on top of that for receiving the foreign currency and opening a foreign currency account. While some understandably prefer the security of a bank-to-bank transfer (rather than using a 3rd party transfer service) – there are options outlined above – namely Revolut and Interactive Brokers – in which the transaction would in fact be a bank-to-bank transfer where the funds will be held in an account in your name throughout the process.

Another tool many Olim take advantage of is the use of a US fee-free Debit Card for ATM withdrawals in Israel and/or a US “no foreign transaction fee” rewards credit card for purchases in Israel. For a full article on this subject, click here.

Best Choices

Best for regular monthly transfers: Revolut

Revolut’s simplicity, low cost, and global cash management features make it hard to beat for Olim with regular currency exchange needs. Using its global debit card and international payments, some with little to no Israeli based income are using it to bypass much of the Israeli banking system. The hope is that Revolut will soon make its platform available for all Israeli residents and partner with local Israeli banks for cheaper transfers. Click here for tips on how to get started.

Best for a small one-time transfer or payment: Wise

Looking to make a small one-time transfer or payment without the hassle of setting up a complex account or monthly subscription? Registration for Wise generally takes a few minutes. Their fees are relatively low for small transfers and the funds usually arrive within a few days.

Best for transfering a down-payment on a house: Local transfer service

When it comes to transferring large amounts of money all at once, many prefer the support and accountability of a local transfer service.

Best for investing: Interactive Brokers

Open to all Israeli residents, IBKR is one the best options for Olim who invest regularly and convert currency often. Opening an account gives you access to the majority of the world’s currency exchange and equity markets and the ability to transfer to and from banks all over the world – all with extremely low commissions on each trade. For those looking to invest while avoiding higher-fee Israeli brokerages and PFIC’s, IBKR provides an all-in-one solution. Click here for tips on how to get started.

Tips for dealing with your Israeli Bank

In most cases, if you are transferring funds to Israel, those funds will eventually land in your Israeli bank account. If the amount you are transferring is significant, it will most likely be flagged for review by your bank and you will be required to provide an explanation or documentation on the source of funds. Banks in Israel have been especially strict at implementing anti-money laundering procedures since 2014, when Bank Leumi admitted to helping some U.S. account holders criminally evade taxes and paid millions in fines to the IRS.

Documents that are common for the bank to request in the event of a large transfer include:

• A letter from the person transfering the money with a simple explanation on why they are transferring these funds to Israel
• A letter from an accountant or lawyer verifying (including their license number) stating that all taxes have been paid on the funds you are transferring
• A letter of “good standing” (מכתב המלצה) from the bank or brokerage account which you are transferring money out of. Here is a sample template I was sent recently. This document can be especially tough for some as many banks and brokerages refuse to grant such a letter. If your bank or brokerage account refuses to grant a letter of good standing, bring in a copy of all correspondence between you and your bank explaining which documents they can and can’t provide – some bankers will be helpful and understanding in this situation, some unfortunately will not.

Here are some tips for a smoother process in dealing with your Israeli bank: 

• Be confident – Assuming you’re not a terrorist or criminal tax evader, there is nothing wrong with transferring shekels from your brokerage or US bank account to your Israeli bank account. You are not being charged with a crime even if the banker on the phone sounds like he is accusing you of one. In many cases, Israeli bankers will be satisfied with a simple verbal explanation without the need to present any documents.
• Make an appointment at the branch prior to transferring the funds – If you are transferring a large amount, letting your bank know in advance and getting pre-approval is often the best way to go. Be prepared to show where the funds are coming from and why you are transferring them to Israel. Do your best to gather all the documents mentioned above and any other relevant documents prior to your meeting and bring copies with you.
• Avoid “3rd party” accounts – If possible, funds arriving in your Israeli account should come from an account in the same name(s). As mentioned above, there are transfer option in which the funds you are converting from dollars to shekels will always remain within an account in your name. Many report having an easier experience with their Israeli bank when using platforms that ensure the funds never leave an account in their name. This is also generally considered by many to be a safer way of transfering money.
• Avoid using Trust accounts – Trusts are often used by individuals for estate and tax planning purposes. Unfortunately, funds transferred from foreign Trusts tend to trigger additional red flags and banks may request more documentation than normal.

Transferring Money out of Israel

For our full guide on transferring money out of Israel, click here.

Summary

Thanks to major advancements in financial technology,  Olim have more choices than ever when deciding the best way to exchange currency and manage their cross-border finances. Global Fintech companies now offer currency exchange services that are often cheaper and more transparent than traditional currency exchange services and banks. Many Olim have saved thousands of dollars thanks to the increase in competition in the global currency exchange space. If your income or savings remains outside of Israel, having a low-cost currency exchange solution is an essential part of managing your currency exchange rate risk.