Interactive Brokers vs Webull — Which is better for Americans in Israel?

review · Brokerage · last updated 2026-07-01

Interactive Brokers vs Webull for an American in Israel

Disclosure: Affiliate links present. We may earn a commission at no cost to you. Not financial advice. Investing involves risk of loss.

TL;DR

For an American citizen living in Israel in 2026, Interactive Brokers (IBKR) is the right primary brokerage. Webull is fine for casual options traders who keep less than $25k in the account, but it has serious limitations for non-resident US persons.

Webull's expat problem

Webull's official policy:

  • Address changes are restricted. Once you move to Israel and try to update your Webull address to a non-US residence, the account gets frozen or restricted.
  • Limited to US persons with a US address. This is the same blunt rule Schwab/Fidelity used to enforce, but those firms have workarounds. Webull doesn't.
  • No international markets. Stocks/ETFs/options only on US exchanges.
  • No futures for non-resident US persons.
  • Margin rates ~9% (vs IBKR 4.12%).

The result: most olim open Webull as a "side" trading account and run into friction within months.

IBKR's expat-friendly setup

  • Dedicated non-resident US person workflow.
  • W-8BEN-Equivalent KYC for US persons abroad.
  • Mailbox accepts US-addressed mail (PO box, mail forwarding).
  • Trading across 150+ markets including Tel Aviv (TASE), London (LSE), Hong Kong (HKEX).
  • Margin rate 4.12% on USD (2026).
  • Cash sweep at 3.12%+ on uninvested USD.

Quick side-by-side

CapabilityIBKRWebull
Open from Israel without US SSNYes (via passport)Restricted
US stocks/ETFsYesYes
OptionsYes (Level 4)Yes
FuturesYesRestricted for non-US residents
International markets150+None
Margin rate4.12%~9%
IRA for non-residentYesRestricted
Joint accountsYesLimited
Customer service from IsraelAverageSlower
App polishFunctional, datedExcellent, modern

When Webull is fine

If you:

  • are still in the US and have not yet moved to Israel, and
  • have a US residential address on file, and
  • want a beautiful app for options trading on US-listed stocks, and
  • don't expect to grow the account beyond $25k quickly,

then Webull is fine for that use case. Many readers open Webull as a "play" account and IBKR as their real portfolio.

When Webull is not fine

If any of the following apply, skip Webull:

  • You've already moved to Israel and need to update your address.
  • You trade futures or international markets.
  • You plan to hold $25k+ in the account.
  • You need an IRA that survives non-resident status.
  • Your plan is to be the household "real" investor for retirement.

For these, IBKR — even with its UX warts — is the more future-proof answer.

Common pattern: dual account

A common pattern:

  • Webull (existing, before aliyah): play money, options for fun.
  • IBKR (new, after aliyah): serious money, retirement, trade execution.

That's fine. Just be aware: if Webull flags your address change, plan to transfer positions out via ACAT (1-3 weeks, free) before you run into a forced liquidation.

Practical: what to do

If you already have a Webull account and you just moved:

  1. Don't update the address yet. Keep it as your last-known US address.
  2. Open IBKR as your new primary.
  3. Over time, transfer what you want from Webull to IBKR via ACAT.
  4. Use Webull for the periodic strategy that fits its UI; use IBKR for everything serious.

This keeps your Webull account non-flagged while you establish your real brokerage on IBKR.

Affiliate disclosure — we may earn a commission if you sign up through the link below. Open IBKR Account →

BUTTON: Learn about Webull's expat policy (consumer page; not an affiliate if they don't have an IL-friendly program)

Next step: if you have a US brokerage open in Israel and need to lock in tax-compliant investing — read our full IBKR guide.