There are pros and cons of having a U.S. brokerage account while living in Israel.
Pros
- Make reporting to America easier – both on your 1099 and FBAR forms
- Maintain your IRA and 401(k) accounts
- Global diversification of investments, including geographic and currency diversification
- FDIC insurance of $250K per depositor, per insured bank, for each account ownership category for brokered CDs and certain money markets
- SIPC insurance up to $500K, of which up to $250K can be in cash. Some brokerage firms have additional insurance from a prime carrier that protects up to the total net worth of your account in case the company declares bankruptcy.
Cons
- Not good for investing in shekels
- Not good for Israeli day-to-day checking services, including automatic withdrawals
- Cannot hold Israeli pension and Israel tax-free savings accounts (be aware that Israeli tax-free accounts may still be taxable in America)