Topic: “How to invest in US stocks from India?”
Some of the best equities in the world, notably Facebook, Google, Apple, General Motors, and others, are traded on the US stock market. Purchasing such Stocks enables you to invest outside of the Indian Stock Market while also participating in their growth story.
Since there are no US investment bankers in India, you can invest in US stocks through various Indian sites.
How may an Indian investor invest in the US stock market?
There are two different options for Indians to invest in the US stock market:
- direct stock investing
- investing indirectly
You can invest in the US stock marketplace by opening an international trading account with a local or foreign broker. Before choosing the finest app to invest in US equities from India, consider the fees.
Opening a Domestic Broker Account for International Trading
Many local brokers have connections to US stockbrokers. They carry out your trades and serve as an intermediary. With any such brokerage, you can set up an international trading account. To open this account, you might need to provide several papers.
But keep in mind that there are certain limitations to this feature. Depending on the brokerage business, you might be subject to limitations on the types of investment vehicles you can use, the number of transactions you can execute, etc.
When brokerage and currency exchange fees are considered, investing can be expensive. Therefore, before opening an account, ensure you know all the expenses.
Opening a Foreign Broker Account for Overseas Trading
Additionally, you can directly open a brokerage account with a global broker having a presence here. Charles Schwab, Ameritrade, Interactive Brokers, and others are a few of these brokerages. When creating the account, make sure you are mindful of the costs.
So, before choosing the finest broker to invest in US equities from India, do your homework thoroughly.
You can invest indirectly in US stocks rather than directly, similar to how you deal with local assets. Here are two alternatives to think about:
In contrast to some brokerage firms that offer direct international investments, you are not required to open an offshore trading account or keep a certain amount.
Mutual Funds are widely available, and many invest in US stocks or other funds.
Exchange-Traded Funds (ETFs)
By investing in ETFs, you can also boost your access to US stocks. ETFs can be used in both direct and indirect ways. You can buy US ETFs directly through a local or international brokerage or an Indian ETF of a global index.
Using new-age apps for investing
Ever since the creation of mobile applications for various services, several start-ups have released apps to aid Indian investors in making stock market investments in the US. Some apps may not permit intraday dealing in the US market from India due to legal limitations.
What Amount Can I Put Into US Stocks?
Following rules published by the Reserve Bank of India in the Liberalized Revenue Scheme (LRS), an Indian citizen was allowed to make public investments of up to $250,000 (about 1.9 crore rupees) annually.