Kraken for Israelis: fees, funding and the way back to your bank

Who Kraken is, and why it matters to Israelis

Kraken was founded in the US in 2011 by Payward and is one of the longest-running names in crypto. Israelis have two reasons to know it. The obvious one: it is a large international exchange with a strong security reputation, a professional interface called Kraken Pro, and trading fees far below what an Israeli platform charges. The less obvious one: according to Bitcoin Change, Israel’s only cash-desk network, its machines are connected to the Kraken exchange for their live rate. If you have bought Bitcoin for cash in Tel Aviv or Haifa, you effectively paid the Kraken price plus a 7% fee.

Kraken sits fifth in our ranking with a score of 7.8. It wins on trustworthiness and app quality, and loses on the one thing that changes everything for Israelis: there is no shekel. The whole journey, in and out, runs through dollars, cards or coins.

Is Kraken available in Israel, and is it licensed?

Yes, it is available. Israel does not appear on Kraken’s geographic restrictions list, which names 14 countries and regions and was updated on 30 September 2026. Not being on the list means Israel is not excluded; it does not guarantee every product for every Israeli account. ID verification, payment methods and advanced products can vary by country.

On licensing, Kraken holds no licence from the Capital Market, Insurance and Savings Authority, and neither does any other major international exchange. Secondary sources say the group is registered as an MSB with FinCEN in the US, holds an EU MiCA licence via Ireland and has a UK FCA registration. None of these covers Israel. In practice, if something goes wrong you cannot turn to an Israeli regulator. If you want a local licence, that means Bits of Gold or Bit2C.

How to fund Kraken from Israel

With no shekel deposits, every Israeli user picks one of three routes. The first is a credit card, Apple Pay or Google Pay inside the app. It is the fastest, but the fee depends on the method, and because the charge is not in shekels your card issuer may add a foreign-currency fee. The second is sending coins: if you already hold Bitcoin or USDT in a wallet or on another exchange, you can transfer them straight in.

The third, and the interesting one for larger investors, is a SWIFT transfer in US dollars. Secondary sources say Kraken Pro accounts accept SWIFT deposits, but we have not confirmed that the option is open to every Israeli resident’s account, or at what cost. If you hold a foreign-currency account at your bank, check the deposit section of your Kraken account before sending anything. Your Israeli bank will charge its own SWIFT fee, and a transfer to a foreign provider not licensed in Israel may prompt questions under Directive 411. More in our guide to paying by bank transfer.

Kraken fees: Pro versus instant buy

According to Kraken’s fee schedule, as it was served to our checker, Kraken Pro charges 0.40% on maker orders (orders that rest on the book) and 0.80% on taker orders (orders that fill immediately) at the entry tier, with discounts based on 30-day volume. In the standard app, an instant buy costs 1% and a custom order 1.5%, with a spread on top in both cases. The page came up in another country’s locale, so confirm the numbers from Israel before you rely on them.

The takeaway is simple. If you are willing to use Kraken Pro and place your own orders, you pay a fraction of what an Israeli platform or a cash desk charges. Tap “buy now” in the app and you pay more, though still less than an Israeli broker’s entry tier. The gap narrows once you add your card issuer’s conversion fee and the cost of getting back into shekels.

How to cash out from Kraken to an Israeli bank

This is the part most reviews skip. There is no shekel withdrawal, so there are four practical routes, each with its own cost and level of bank friction.

There is a historical bright spot for the SWIFT route. A 2022 review reported that Bank Hapoalim and the International Bank assessed such transfers case by case and accepted money from Kraken when proof and tax documents were attached. That is old data, and bank policies shift, but it shows the rule: documentation decides. Under the Bank of Israel’s Directive 411, a bank cannot refuse simply because crypto is involved, but above ₪100,000 a year it must look closely at the source of funds. A July 2026 draft proposes a fast track for money from licensed firms, including authorised foreign entities in low-risk jurisdictions, but it is not yet in force.

The Bits of Gold route suits anyone who wants to land in shekels with a document the bank recognises: it lets you sell coins arriving from an external wallet for 1.95% plus VAT. A Bitcoin Change branch avoids the bank altogether, but charges 7% and caps you at ₪10,000 a day, ₪20,000 a week and ₪30,000 a month, and cash deals are limited by law as well. The full walkthrough is in selling crypto and cashing out in Israel.

Kraken OTC: for trades above $50,000

For large amounts Kraken runs an OTC desk. Its OTC page says it handles trades over $50,000, requires a verified Pro account plus AML and KYC checks, and works through a request-for-quote portal and a chat desk. Settlement is in dollars or euros by SWIFT within 24 hours, not in shekels. The service is provided through Payward Oceanic Ltd, and the page notes that availability “varies by jurisdiction”, so we have not confirmed the terms for Israeli residents.

For an Israeli with a large sum, the real question is not where to buy but how the money gets back into the bank. An Israeli desk such as Bits of Gold’s Premium service, from ₪250,000, settles in shekels and also handles tax vouchers. Compare them in our crypto OTC in Israel guide.

Security, app and support

Kraken has a strong security reputation, and its app has the highest rating of any international exchange in Israel’s App Store: 4.79★ from 436 ratings, with Kraken Pro at 4.66★ from 247. Neither app offers Hebrew, and support is in English. As with any exchange, switch on two-factor authentication, don’t leave more on the exchange than you can afford to lose, and for larger holdings consider a wallet of your own.

Verdict

Frequently asked questions

Sources

1. Kraken — geographic restrictions · Updated 30 September 2026
2. Kraken — fee schedule · Checked 5 October 2026
3. Kraken OTC · Checked 5 October 2026
4. Bitcoin Change — FAQ (Kraken rate and fee) · Checked 5 October 2026
5. Bank of Israel — Banking Supervision · Checked October 2026

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