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Indian investors are increasingly looking beyond the local market, and the first destination that comes to mind is US stock market, home to global giants like Apple, Google, Amazon, Tesla and hundreds of innovative companies shaping the future.
Now, investing in US stocks from India is now simple and completely legal. Even though US brokers don’t operate directly in India, several SEBI-regulated Indian platforms allow you to buy US stocks, ETFs and index funds in just a few clicks.
Investors who want global diversification understanding how to invest in US stocks from India has become essential. In this blog we’ll answer most asked question how to invest in US stocks from India and Can I Invest in US Stock Market.
Also Read This: Sovereign Gold Bond Scheme – All Your Questions Answered
How to Invest in US Stock Market from India?
Indian investors have two main ways to invest in US stocks from India. If you are wondering how to invest in foreign stocks from India. Here is your answer:
- Direct investment
- Indirect investment
1. Direct Investment
Direct investment in US stocks means buying stocks that are listed on US stock exchange. For Indian investors, there are two ways to do this:
- Opening an International Trading Account with an Indian Broker
Many domestic brokers in India have partnerships with stockbrokers in US which allows them to act as intermediaries, facilitating your US stock trades. To get started you will need to open an overseas trading account with one of these domestic brokers and this requires submitting certain documents.
However, there may be some limitations which means there are some types of investments you can’t make depending on the specific brokerage firm.
It is important to be aware that investing through this route can be relatively expensive due to brokerage fees and currency conversion charges. So fully understand the associated charges before opening an account.
- Opening an account for international trading with a foreign brokerage
Another way to invest in US stocks is by opening an account with foreign broker with a presence in India. that allows you to trade in US stock market. Foreign brokers like TD Ameritrade, Charles Schwab and Interactive Brokers extend the opportunity for Indian investors.
2. Indirect Investments
If direct investing doesn’t align with your investment preferences or risk tolerance you can explore alternative options like mutual funds, ETFs and user friendly new age mobile apps.
- Mutual Funds
Indian investors who prefer mutual funds can easily get exposure to US equities without investing directly. Several funds focus on US markets, such as HDFC US Equity Fund, Nippon India US Equity Fund and Parag Parikh Flexi Cap Fund etc. There are also global funds that invest outside the US, giving you wider diversification options.
- Exchange-traded funds (ETFs)
Many US-focused ETFs are also listed on Indian exchanges NSE and BSE. These often track major indexes such as S&P 500 or NASDAQ-100, giving you exposure to hundreds of leading US companies in a single investment. ETFs work similarly to mutual funds but trade on the stock exchange like regular shares.
To invest in US-focused ETFs, you need a Demat account with a broker. ETFs usually have lower costs than mutual funds, making them a more affordable way to invest in US stocks.
- Investing in US Stocks through Mobile Apps
These days, many new age mobile apps are available for Indian investors who want to invest in US stocks and ETFs. These apps offer an easy and user friendly way to invest in US stocks and manage your investment portfolio. Some popular options for Indian investors include apps like INDmoney, Webull, Stockal and Vested.
Hope you’ve got a clear answer of can I invest in US stocks from India.
How to Buy US Stocks on NSE IFSC Exchange?
Earlier, there were only two ways to buy US stocks through international mutual funds and by opening an account with US based broker. But now there’s a third option.
You can now invest in top US companies’ stocks on NSE IFSC (International Financial Service Centre) Exchange located in Gujarat’s GIFT City. This opportunity opened up for Indian retail investors on March 3, 2022.
- 8 US stocks are currently available for trade on NSE IFSC Exchange including Microsoft, Netflix, Apple, Amazon, Walmart, Alphabet (Google), Meta Platforms (Facebook) and Tesla, the number of US stocks will increase to 50 and will be added to the market gradually.
- Some of the other stocks in the pipeline to be listed on NSE IFSC platform include Berkshire Hathaway, Mastercard, JP Morgan Chase, Morgan Stanley, Nike, PayPal, PepsiCo, Pfizer, Intel and more. Trading on NSE IFSC follows the timings of the New York Stock Exchange, which means the market is open from 8:00 PM IST to 2:30 AM IST.
- However, your regular Demat account won’t work to trade these stocks for this you need to open Demat account with a broker registered with IFSC, even you can check with your existing broker, if they are affiliated with NSE IFSC and see if you need to meet any specific requirements before trading US stocks on this global exchange.
- After completing the process to trade you will need to transfer funds from your Indian bank account to an IFSC registered broker account and currency conversion is also required because trading on NSE IFSC exchange is done in US dollars, not in Indian rupees. Once your money is in the broker’s IFSC account you are ready to trade your favorite US stocks.
How Much Can I Invest in US Stocks?
There’s no fixed limit on how much you can invest in US stocks, but you must follow RBI rules. Under the Liberalised Remittance Scheme (LRS), an Indian resident can send up to USD 250,000 abroad in a financial year. This limit also covers investing in US stocks, ETFs and other foreign assets.
What Are The Charges and Taxes When Investing in US Stocks
We have already answered how to invest in US stock market from India now it’s time to know about the charges and taxes involved.
- Tax Collected at Source (TCS): As per RBI’s Liberalised Remittance Scheme (LRS), if your total foreign remittance in a financial year crosses ₹7 lakh, banks must deduct 20% TCS on the amount sent abroad. This applies to international investments as well. The tax is collected by your bank at the time you transfer money.
- Capital Gains & Dividend Tax: If you sell US stocks within 24 months, the profit is considered short-term and taxed as per your income tax slab in India. If you hold US stocks for more than 24 months, the gains are taxed at 12.5% without indexation benefits. In US, dividends are taxed 25% for Indian citizens. Dividends from US companies are taxed in the US before you receive them. You may also need to report and pay tax on them in India, but the Double Taxation Avoidance Agreement (DTAA) helps you claim relief.
- Bank Charges: Banks charge fees for sending money abroad, and these charges differ from bank to bank.
- Brokerage Fees: Brokerage costs depend on whether you use an Indian platform or an international broker.
- Foreign Exchange Conversion Fees: Most brokers apply an additional forex conversion fee when converting your money from INR to USD. This fee is usually between 0.5% and 1%, depending on the broker and the amount you convert.
Reasons to Invest in US Stocks from India
Broader global exposure: US markets give you access to industries and companies that don’t exist in India, helping you build a more balanced and globally diversified portfolio.
Invest in world-leading companies: Many of the world’s strongest brands like Apple, Amazon, Tesla, Microsoft are listed only in US. Buying US stocks lets you participate in their long-term growth.
Benefit from dollar appreciation: US dollar has historically strengthened against the Indian rupee. This means your investments may grow not just from stock returns but also from currency gains.
Access to Innovative sectors: US is home to major innovations in AI, cloud computing, biotech and electric vehicles.
Diversification: Major US indices like the S&P 500 have delivered consistent long-term returns, making them attractive for diversification.
Final Words
Investing in US stocks from India has become simple and accessible, giving your portfolio meaningful global diversification. Whether you use direct US stock investing, mutual funds or ETFs, always consider your goals, risk level, taxes and currency costs. With the right approach, US stocks trading from India can open valuable long-term opportunities.
Frequently Asked Questions On Invest in US Market from India
How to invest in US stocks from India?
To invest in US stocks from India, select broker that can offer access to US stock market. Complete your KYC, fund your account using LRS and start investing in companies.
What are required for trading in US market from India?
Trading in the US market from India requires opening an international brokerage account. Once your account gets verified you can trade in stocks, ETFs and other instruments listed on US exchanges.
How to execute intraday trading in US market from India?
Intraday trading in the US market from India is generally restricted on most platforms due to margin trading limitations for international investors. However, some global brokers may offer this under specific account types with higher risk compliance.
How to invest dollars in India?
If you’re an NRI or have earned in foreign currency, you can invest those dollars in India through NRE/NRO accounts or convert them into INR and invest in mutual funds, equities, or FDs.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
