How to Invest in US Stocks From India
Many of the best stocks in the world are traded on the US stock market, including Facebook, Google, Apple, General Motors, etc. By investing in such stocks, you can participate in their growth story while diversifying beyond Indian stocks.
Since there are no US stock brokers in India, there are different Indian platforms that allow you to invest in US stocks from India.
How to Invest in US Stocks From India
You can easily invest in US stocks from India if you're wondering, Can I Invest in the US Stock Market?
Investing in the US stock market from India can be done in two ways:
Direct investment options?
There are two options when it comes to direct investment methods:?
By collaborating with US stockbrokers, many domestic brokers act as intermediaries. With any of these brokers, you can open an international trading account. To open this account, you might need to submit many documents.
You may be limited in the types of investments you can use or the number of trades you can make depending on your brokerage firm.
An international broker with a presence in India is another option for opening an account for international markets. Make sure you understand the costs and terms before opening an account. To purchase US stocks from India, conduct your research before choosing a broker.
Brokerage and exchange rate charges may increase direct investment costs. Before opening an account, make sure you know all the expenses.
Direct investment options?
There are two options when it comes to direct investment methods:?
Many domestic brokers work as intermediaries for your trades by collaborating with US stockbrokers. You can open an international trading account with any one of these brokers. You might need to submit many documents to open this account.
Depending on the brokerage firm, you can be subject to restrictions on the kinds of investments you can utilise or the number of trades you can conduct.
Another choice for setting up a trading account for international markets is an international broker having a presence in India. Be aware of the costs and terms before opening the account. Therefore, conduct your research before selecting the best broker to purchase US stocks from India.
Direct investment costs may be high because of brokerage and exchange rate charges. So, make sure you know all the expenses before opening an account.
Indirect investment options?
Overseas investments can be made through international mutual fund programmes. The majority of these mutual funds track the US market; some track Asian or South American indices.?
ETFs are traded on the stock market throughout trading hours, unlike mutual funds. Consequently, you can buy and sell ETF units on the exchanges while they are open.?
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If you have a Demat account with a brokerage house, you can trade ETFs. There are many ETFs that offer access to NASDAQ and other important international indices. To purchase US ETFs, you can use a domestic or international broker and an Indian ETF of a worldwide index.
A number of start-ups have developed mobile apps to help Indian investors invest in US stocks.?Regulatory restrictions may prevent some apps from allowing intraday trading in the US market outside India. Find out some of the best apps to invest in US stocks from India and proceed accordingly.
How Much Can I Invest in US Stocks?
An Indian Resident could invest up to 250000 dollars (around 1.9 crore rupees) per year without any special permission under the Reserve Bank of India's Liberalized Revenue Scheme (LRS).
After learning how to invest in the US market from India, let's examine some reasons why you may want to consider investing in stocks in the US.
What are the Different Charges Involved While Investing in US Stocks?
Here are the different charges involved you should know while searching for how to buy US stocks from India-
Under the RBI's Liberalized Remittance Scheme (LRS), all remittances above Rs 7 lakh are subject to a 5% TCS (Tax Collected at Source). Amounts above Rs 7 lakh are subject to this, not the total.
Taxpayers can claim the TCS as a refund when filing their income tax returns.
Dividends are taxed at a rate of 25% for Indian citizens in the US. As a result of the Double Tax Avoidance Agreement (DTAA), investors can claim credit for taxes paid abroad so that they don't have to pay taxes twice on the same income.
Your investments in the US are not subject to capital gains tax. In India, capital gains are taxed.
The majority of banks charge foreign exchange conversion fees and transfer fees. A one-time account setup fee may also apply.?
Shares are bought and sold through brokers, who charge a fee.
Foreign exchange rates can affect the cost and number of units allocated at the time of purchase or withdrawal.
Reasons to Invest in US Stocks from India
Here are some reasons why you should consider US Investment in India since we have already answered how to invest in US stock markets from India:
Conclusion
Your portfolio can be further diversified by considering US stock trading from India and investing in foreign markets. Our access to information makes researching and analyzing stocks easier than ever.
It is important to keep in mind, however, that international stock investing has some pros and cons. Therefore, be sure to take all aspects into account and invest according to your financial goals and risk tolerance.??