Retail Investors in Israel Surge to 1.6 Million Accounts, Favor Tech and Bank Stocks
Since 2020, Israel has witnessed a dramatic rise in retail trading accounts, with approximately 900,000 new accounts opened, a third of them this year alone. The Tel Aviv Stock Exchange reports that the total number of retail investor accounts has grown 2.5 times since the start of the decade, reaching an estimated 1.6 million. Leading investment houses like Meitav, IBI, and Excellence each add about 30,000 new accounts annually, with Meitav holding the largest share at 132,000 accounts.
Psagot Investments has notably expanded its retail trading platform, Psagot Trade, managing around 47,000 accounts compared to just 5,000 two years ago. This growth followed a change in ownership involving prominent financial figures such as Yoav Kedosh and Uzi Danino. Over half of Psagot’s accounts belong to investors under 35, with women comprising 25% of accounts, a rising trend also seen at other firms.
Average portfolio sizes at Psagot stand at 150,000 shekels, with women holding slightly larger balances than men. Retail investors predominantly invest abroad (about 65%), focusing on major tech giants known as the "Magnificent Seven" (Nvidia, Google, Tesla, Meta, Microsoft, Apple, Amazon) and semiconductor stocks like Intel and Sandisk, which have seen significant gains this year. In the local market, young investors favor shares in defense company Elbit Systems, major banks, Tower Semiconductor, and the Tel Aviv Stock Exchange itself.
Psagot attributes its rapid growth to a strong brand, user-friendly trading platform, and competitive fees, which are lower than most banks and investment houses. The firm plans to introduce AI-driven active investment advice and expand into retirement account products. Additionally, nearly 9% of young investors’ portfolios at Psagot include crypto-tracking indices, reflecting growing acceptance of cryptocurrencies as part of diversified portfolios.
This surge in retail trading reflects a maturing investor base that tends to hold leading stocks long-term rather than engage in day trading. The trend is reshaping Israel’s capital markets, with younger demographics and women increasingly participating and shaping investment patterns.
