Leveraged Trading in Israel: How the ISA Is Protecting Investors

Israelis are living longer, and this has led to some serious changes in the way that we live. Not only will the healthcare system be more strained, but we also need to worry about retirement. No one wants to work until they’re dead, but with a longer lifespan, the funds that a lot of Israelis have for retirement will not be enough.

The pension system of Israel is becoming more like the United States every year, and a study from June 2018 shows that the pension system is largely privatized. Financial market volatility can ruin the pension system, and all it takes is one market crash at the wrong time to cause a shortage in available funds.

Management fees are also eating into the pension system.

It’s an issue facing most country pension systems, and I have chosen to do a lot of the trading on my own to help create my own nest egg. I will gladly pay into the pension system and receive a pension, but I like to also have control over my future.

But, as an investor, you also need to protect yourself.

There are a lot of exciting opportunities, such as initial coin offerings (ICOs) and investing in leveraged assets. The issue is that there are also a lot of scams, so we’ve seen binary options being banned as well as other high-risk or shady trading alternatives.

We need to be smart with our money if we want to retire, and Israel has passed new legislation this year that allows for leveraged trading. You can use a trading app to start investing, but what’s interesting is that leveraged trading wasn’t necessarily illegal prior to the law change. Instead, it was unregulated, so this made it a much riskier option for traders.

Leveraged trading is now available on the TA-35, and this will allow Israelis to enter into a new form of trading.

Remember, long-term trading is what the world’s largest investors, such as Warren Buffett, recommend. But, leveraged trading is a great way to diversify a portfolio and risk less long-term market fluctuations.

Why is this good news for Israel’s traders?

Since the ISA has started to regulate the market, risks are far less when using leveraged trading. Why?  Because the TA-35 is comprised of the 35 largest stocks on the exchange. This means that there’s far less risk of manipulation.

A major issue with leveraged investments is that smaller companies will alter their books and engage in stock market manipulation. But, the largest companies on the TA-35 have much less risk of manipulation or forcing an investor into a negative.

Public protection is great for Israel’s investors, and this is allowing many Israelis to build on their retirement portfolios themselves – not relying only on the pension system for survival.

Of course, you also want to be cautious of trading scams. Read through terms and conditions thoroughly when choosing a broker, visit your national financial regulator to verify a broker’s license and read reviews on brokers. If returns are promised, it’s often a red flag – there is no way to get rich quickly.

About the Author
 Jacob Maslow is passionate about writing. For more than ten years, he's used that passion to transform the web presence of a number of legal and medical professionals in creative, innovative and effective ways that get them noticed in a crowded field. Jacob is originally from Brooklyn. He packed up his five children and made Aliyah in 2014. Jacob's experience and varied interests lend themselves to a diverse palette of topics ranging from technology, marketing, politics, social media, ethics, current affairs, family matters and more. In his spare time, Jacob enjoys being an active member of social media including groups on Facebook and taking in the latest movies. 
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