Harel Enters Securities Trading and Applies for Tel Aviv Stock Exchange Membership
Harel Insurance is establishing a new securities trading operation and has applied for Tel Aviv Stock Exchange membership, challenging traditional bank dominance amid a surge in retail investing.
Harel Insurance and Financial Services is entering the independent securities trading arena. The financial group is establishing a new trading operation, aiming to capture market share in a sector that has seen steady growth due to rising interest in the capital market and an influx of new retail investors.
As part of this strategic move, Harel's subsidiary, Harel Securities Trading, has recently applied for membership on the Tel Aviv Stock Exchange. Elad Sims, who has served in recent years as Vice President of Data and Innovation at Harel Finance, will head the new operation as CEO of the trading division.
Expanding Non-Bank Competition
Upon approval, Harel will join 25 banks and other exchange members currently operating in the Israeli capital market. According to stock exchange data, there are over 1.6 million securities trading accounts in Israel, with approximately 200,000 new retail accounts opened in 2025 alone. The sector has experienced significant expansion, fueled by a new generation of investors and strong market yields, which has allowed non-bank financial institutions to gradually chip away at the traditional dominance of commercial banks.
While banks once dominated with 94% of new accounts around 2016, that figure dropped sharply to 53% by 2024, as investment houses captured nearly half of the market. Leading non-bank trading houses such as Meitav, IBI, and Excellence report annual growth of roughly 30,000 trading accounts each. Meitav remains the largest non-bank trading player with 132,000 accounts, followed by Excellence with 100,000, and IBI with 95,000.
"We are thrilled about this new initiative to establish an exchange member, which comes against the backdrop of surging retail investor activity in Israel and globally," said Michael Benveniste, CEO of Harel Finance.
Market Outlook and Exchange Growth
Itay Ben-Zeev, CEO of the Tel Aviv Stock Exchange, welcomed the announcement, noting that the entry of an experienced financial institution like Harel strengthens the local capital market. Increased competition is expected to expand service offerings and simplify retail access to investing, though Israel's growth potential remains vast compared to developed global markets.
