Olim Finance

Wise vs Interactive Brokers for Moving Money from Israel to the US (and back)

review · Money Movement · last updated 2026-07-01

Wise vs Interactive Brokers for moving money: which to use when?

Disclosure: Affiliate links present. We may earn a commission at no cost to you. Not financial advice.

TL;DR

  • Wise for everyday ILS↔USD transfers at the mid-market rate.
  • IBKR (Cash account → withdraw) for large, infrequent withdrawals at the lowest cost.
  • The mistake most olim make is using a regular Israeli bank wire for everything; that costs $25-50 per transfer.

When to use each

Wise — when speed and small amounts matter

  • Sending $100-10,000 to the US in one shot.
  • Receiving a USD paycheck from a US employer.
  • Paying a US-vendor or contractor invoice.
  • Monthly or recurring transfers (rent, family support).

Cost: ~$5-12 per transfer, mid-market FX rate, hours to 1 business day settlement.

IBKR cash withdrawal — when size matters

  • Withdrawing $20k+ from a brokerage account.
  • Moving investment proceeds to an Israeli bank or to Wise.
  • Rebalancing portfolio positions where cost matters more than speed.

Cost: $0 internal, $0 ACH to US bank, $10-20 wire to an Israeli bank (varies).

Pick the lower-fee path

For a transfer of $50,000 USD from IBKR to an Israeli bank:

  • IBKR → Wise → Israeli bank: $0 IBKR-side + $0 ACH/SEPA from Wise + ~0.4% Wise FX = ~$200 total.
  • IBKR → Israeli bank via wire: $10-20 wire IBKR-side + Israeli-bank incoming wire fee of ~$25 + ~1% Israeli bank FX = $50-700 total.

The IBKR → Wise path is unambiguously cheaper. The IBKR direct wire is faster (same day) but more expensive.

For a transfer of $500 USD from an Israeli bank to a US bank:

  • Wise: ~$5 fixed fee + 0.4% FX = ~$7 total.
  • Israeli bank wire: $30-50 wire fee + ~1% FX = $35-55 total.
  • Israeli bank ACH via US partner: slower and rate-dependent.

Always check Wise's calculator first.

The catch with IBKR withdrawals

IBKR's withdrawal system is built around a default withdrawal instruction that points to a US bank. When you open the account from Israel, you set up a US bank (or Wise) as the destination. Each withdrawal uses the default unless you change it.

Common issues:

  • Wrong instructions on file. If you set IBKR to wire to your last US bank and that bank has closed, the withdrawal fails and costs are still charged.
  • Currency mismatch. If your default is in USD but you want it in ILS, you'll need to do a conversion at IBKR (low spread, ~$2/transaction) then wire — or send USD to Wise and convert there.
  • Wire vs ACH cutoff. ACH is free but takes 1-3 business days; wire is $10-20 but settles same day.

The catch with Wise

Wise's deal is mid-market rate — they don't markup FX. They make money on small transfer fees. That makes them cheaper than most banks for small amounts.

For very large amounts ($100k+), Wise tier pricing kicks in and the fee can be 0.3-0.6%. At that point, IBKR's withdrawal pathway (especially if you already have cash at IBKR) can be cheaper.

Also:

  • Wise is not a bank. It's an MSB (money services business) under most regulators. FDIC-equivalent protections are limited.
  • Wise USD account gives you a US routing/account number for receiving ACH. Not all sources accept that.
  • For Israeli readers: Wise supports ILS deposits from Israeli banks via transfer; withdrawals back to Israeli banks can take 1-2 business days.

Practical recommendation

For a typical American in Israel moving $1-50k to US accounts or back:

  1. Open Wise. Verify your identity. Get a USD borderless account (US routing/account).
  2. Open IBKR. Set the default withdrawal instruction to send USD to your Wise USD account.
  3. For daily money movement, use Wise directly.
  4. For brokerage withdrawals, push from IBKR to Wise, then from Wise to the destination.

This keeps everything cheap and gives you the flexibility to convert FX only when you want.

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

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

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