Banks Profit Heavily From Trading Fees Despite Competition
Translated & summarized from TheMarker by baba
Israeli banks are set to retain 74% of NIS 4.3 billion in trading commission revenue by 2025, despite competition from investment firms offering lower fees. While younger investors opt for apps, banks still manage larger sums, leading to higher costs for less informed investors. Approximately 1.6 million independent trading accounts exist in Israel.
The story in 5 lines · by baba
- Israeli banks will earn 74% of NIS 4.3 billion in trading fees by 2025.
- Investment firms attract half of new clients with lower commission fees.
- 1.6 million independent trading accounts operate in Israel.
- Younger investors are shifting to trading applications.
- Banks retain large sums, leading to higher investor costs.
Despite the entry of investment firms offering significantly lower fees, which has attracted half of new clients, Israeli banks continue to dominate the independent trading market. As of 2025, banks are projected to retain approximately 74% of the NIS 4.3 billion in commission revenue from this sector. While younger investors are increasingly moving to trading apps, larger sums of money remain with traditional banks, leading to higher costs for investors who may be unaware of the alternatives.
There are roughly 1.6 million independent trading accounts in Israel, allowing individuals to buy securities and make various investments. The introduction of investment houses into this space has stimulated the market, but analysis indicates banks are effectively maintaining their market share.
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