Research and analysis desks specializing in the Israeli stock market have been established by the world's major brokerage firms. Worldwide institutional investors have become active players on the TASE, and a growing percentage of the bourse's market capitalization is held by foreign investors. Their proportionate share of daily trading volume is growing even faster. The international interest is enhanced by the fact that international firms wishing to participate in the Israeli market face no regulatory barriers. Also, capital gains are exempt from taxation in Israel, increasing the attractiveness of investment in TASE-listed securities.
Overseas investors trade in Israeli securities through local brokers.
The major international investment houses have good working relationships with TASE-member banks and brokerage firms. Individual investors from abroad can open accounts with Israeli banks or other brokers, giving them direct access to local research and analysis as well as asset-management services. When an overseas investor buys securities through a TASE member firm, the foreign currency is converted to shekels and the bank account is debited. When the investor sells, the proceeds are credited to the bank account in shekels. Investors may hold the proceeds in shekels or re-convert them to foreign currency.