Best Ways To Invest In US Stocks From India (2024)

You must have heard about NSE and BSE – India’s two most prominent stock exchanges. You can trade Indian stocks on these platforms every day. Similar to NSE and BSE, there are NYSE (New York Stock Exchange) and NASDAQ – US stock exchanges.

Along will asset class diversification, you can also try geographical diversification. And for that, you can consider investing in stocks of foreign countries like the US. The following sections will discuss how to invest in US stocks from India.

Can Indians invest in the US stock market?

Yes, Indians can invest in the US stock market. There is more than one way to buy and hold US stocks in your portfolio. Direct equities, ETFs, and mutual funds are just one of the few popular options.

You can invest in US stocks in two ways from India – indirect and direct.

Direct investment options

There are two options when it comes to direct investment methods:

  • Global trading account with domestic agent

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.

  • Overseas trading account with a foreign broker

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

  • Mutual funds

Through international mutual fund programmes, there are prospects for overseas investments. Some of these mutual funds track various indices for different countries in Asia or South America; most funds track the US market.

  • Exchange-traded funds

Unlike mutual funds, Exchange-Traded Fund (ETF) units are traded on the stock market throughout trading hours. So you can buy and sell ETF units in the exchanges while it is open in the same way that you would buy and sell stocks.

You are eligible to trade ETFs if you have a Demat account with any brokerage house. Many ETFs provide access to NASDAQ and various other important international indices. You can use a domestic or international broker and an Indian ETF of a worldwide index to purchase US ETFs.

  • Investment apps

Several start-ups have released mobile apps to assist Indian investors in making investments in the US stockmarkets.Due to regulatory restrictions, some apps might not allow intraday trading in the US market outside India. So, find out some of the best apps to invest in US stocks from India and choose your option to proceed with the investment.

How can I buy US stocks in NSE India?

Before,there were only two ways to buy US stocks: through international mutual funds that buy stocks from other countries or through a US-registered broker. Investing in top US equities on the NSE IFSC (International Financial Service Centre) Exchange is your third alternative right now.

The NSE IFSC exchange is located in Gujarat’s GIFT City (Gujarat International Finance Tech City), and starting from March 3, 2022, Indian retail investors can trade US stocks there.

Eight US stocks are currently available for purchase on the NSE IFSC Exchange. They are - Microsoft, Netflix, Apple, Amazon, Walmart, Alphabet (Google), Meta Platforms (Facebook) and Tesla. This number will rise to 50 US stocks, which will be gradually added to the market. The exchange's trading hours will be the same as those of the NYSE (New York Stock Exchange). Therefore,the NSE IFSC trading hours are from 2:30 pm to 8 pm IST.

Your domestic Demat account will not work for trading these stocks. You will need to open another special Demat account. Here is how:

  • Open a trading and Demat account with a broker registered with the IFSC. Get in touch with your existing broker affiliated with NSE IFSC to find out if there are any requirements you need to satisfy before you can begin trading US equities on the global exchange.
  • You should transfer funds from your Indian bank account to the broker's IFSC-registered account. Currency conversion is required to invest in NSE IFSC US stocks because deals on the exchange are made in dollars instead of Indian rupees. Once your money has been sent to the account of the IFSC-registered broker, you can begin trading in US stocks listed on the market.

Now that you have gathered knowledge on how to invest in US stocks from India, you can start trading. But you should do your proper research on types of risks and regulations associated with the same before investing.

Best Ways To Invest In US Stocks From India (2024)

FAQs

Best Ways To Invest In US Stocks From India? ›

You can use a domestic or international broker and an Indian ETF of a worldwide index to purchase US ETFs. Several start-ups have released mobile apps to assist Indian investors in making investments in the US stock markets.

Is it good for Indians to invest in US stocks? ›

Indians can take advantage of the US dollar's rising stature by investing in US stocks in India. As its value increases, your US stocks investments do well too. Plus, there's no cap on the amount you can invest, and the taxation policies are crystal clear. So, invest in diversifying your portfolio.

Which app is best to invest in US stocks from India? ›

INDmoney makes it easy for anyone wanting to start investing in US stocks from India. Our zero-cost structure allows you to start trading without any account opening fees or commission on buying and selling. It takes less than 3 minutes to open a US stocks account with INDmoney.

Can I invest in US stocks through Zerodha? ›

At present, Zerodha does not facilitate investments in stocks listed on foreign stock exchanges. Still need help?

Can I invest in S&P 500 from India? ›

Yes – investors from India can invest in the US stock market. If they are interested in diversifying beyond Indian stocks and financial instruments, beyond the Sensex or the Nifty 50, Indian investors can do so by investing in the S&P 500, Dow Jones, Nasdaq or other US listed companies.

Which Indian broker is best for US stocks? ›

The first option for Indian investors to invest in US stocks is by opening an overseas trading account with a domestic broker. Indian investors can open an overseas trading account with a domestic broker like HDFC Securities, ICICI Direct, or Kotak Securities.

How much can Indians invest in US stocks? ›

Investment Cap

Investments in the US stock market are regulated as per RBI's Liberalised Remittance Scheme or LRS. The LRS mandates a yearly investment cap of $250,000 per investor. Your investments have to remain within this stated investment cap.

How can I buy Tesla shares in India? ›

How can I purchase Tesla, Inc. shares in India?
  1. Directly: By opening an international trading account with Angel One. The process would include KYC verification. ...
  2. Indirectly: By investing in mutual funds and Exchange Traded Funds (ETF) that offers exposure in global stocks.

Can I invest in US stocks from India using Robinhood? ›

You can invest in over 5,000 securities with Robinhood Financial, including most U.S. stocks and exchange-traded funds (ETFs) listed on U.S. exchanges. We're also excited to offer options trading and access to over 650 global stocks through American Depositary Receipts (ADRs).

Can I buy US stocks from Groww? ›

Yes, you can buy international (US) stocks on Groww. Log in to your Groww account. Below explore button, click on the US stocks button and start investing as per your choice of stocks.

Can I buy Apple stock in India? ›

Yes, Apple Inc shares can be bought in India by opening an international trading account with Groww.

Can I buy US stocks from Icici direct? ›

Which international exchanges can I invest in? As of now, you can invest in six major global markets: US, UK, Germany, Japan, Singapore & Hong Kong.

Can a NRI buy stocks in Zerodha? ›

NRIs can invest in equity delivery and trade in F&O. However, to trade in F&O, a custodian must be appointed and a Custodian Participant (CP) code is required. Zerodha has partnered with Orbis to provide custodial services. To learn more about Orbis, visit orbisfinancial.in/.

Can I invest in Vanguard from India? ›

Can I buy S&P 500 Vanguard ETF (VOO) shares? Yes, Indian investors can buy S&P 500 Vanguard ETF (VOO) in the US stock market by opening an International Trading Account with Angel One.

Can I invest in S&P 500 from Groww? ›

You can easily invest in Motilal Oswal S&P 500 Index Fund Direct Growth in a hassle-free manner on Groww. The process is extremely simple, quick and completely paperless.

What is equivalent of S&P 500 in India? ›

The S&P BSE 500 is designed to be a broad representation of the Indian market. Consisting of the top 500 constituents in the S&P BSE AllCap, the index covers all major industries in the Indian economy.

How are US stocks taxed in India? ›

Indian investors are subject to a flat tax rate of 25% on earnings from dividends of US stocks, which is comparatively lower than the tax treatment for other foreign investors due to the US-India tax treaty.

Who is the famous Indian investor in USA? ›

Mohnish Pabrai is an Indian-American businessman, investor, and philanthropist. He was born in Bombay (Mumbai), India, on June 12, 1964.

Who is the richest option trader in India? ›

Rakesh Jhunjhunwala

Rakesh, the son of a salaried officer, entered the stock market after graduating as a contractual bookkeeper. After that, he was a stock trader. He amassed over Rs 15,000 crore in assets from a small investment of Rs 5,000. "Rare Enterprises" offers the resources used by Mr. Jhunjhunwala.

What are the disadvantages of investing in US stocks from India? ›

Taxability Risks

If the sector that you are invested in is at the receiving end of certain tax increases, then all companies can suffer and their stocks can tumble. Also, talking about tax, as an Indian investor, you need to keep the types of taxes in mind – capital gains tax and dividend tax.

Is it better to invest in India or USA? ›

Volatility. When compared to Indian markets, the US markets have been less volatile in the long run. Indian equities have shown great volatility, with bigger swings in returns over the years. This is another reason experts recommend diversification when it comes to investing, since risks are spread out and diminished.

Which US stock is best to buy now? ›

Best US Stocks
Stock NameTickerMarket Cap
Microsoft CorporationMSFT1.705 T
Amazon.com Inc.AMZN1.089 T
Tesla, Inc.TSLA642.330 B
Johnson & JohnsonJNJ432.395 B
16 more rows

How much is SpaceX 1 share price? ›

The current price is $0.000017 per SPACEX. The new price represents a new all time high of $0.000017.

What is SpaceX stock price? ›

SpaceX stock price

SpaceX's shares are valued at $56 per share.

Is it worth buying 1 share of Tesla? ›

The difference is that Tesla isn't like most companies, so at its current price, buying one share of Tesla stock may have more reward potential than risk. Yes, the company could lose value, in which case that single share would lead to a small loss.

Why is Fidelity better than Robinhood? ›

Fidelity suits most types of traders since it offers several self-directed and automated account options. However, Robinhood is a better choice for low fees, and it makes more sense for active traders, day traders, options traders, and crypto traders. Is Fidelity or Robinhood better for beginners?

How can I buy Nasdaq stock from India? ›

To buy NASDAQ shares, you need to follow the steps mentioned above. Once you have opened your Vested account, you can place an order to buy the desired NASDAQ shares through your account. Investing in the NASDAQ 100 Index from India can be a good option for individuals looking to diversify their portfolios.

Can I use Robinhood if I'm not a US citizen? ›

Be 18 years or older. Have a valid Social Security Number (not a Taxpayer Identification Number) Have a legal U.S. residential address within the 50 states or Puerto Rico (exceptions may apply for active U.S. military personnel stationed abroad) Be a U.S. citizen, U.S. permanent resident, or have a valid U.S. visa*

How NRI can invest in US stocks? ›

You can invest in the US stock market directly by opening an overseas trading account with a domestic or foreign broker. Be mindful of the charges before you pick the best app to invest in US stocks.

How to buy US stocks internationally? ›

However, to buy individual stocks on a foreign market, you need to open an account with an international broker—one that supports the buying and selling of international stocks. It's wise to understand the fees, available countries, and assets before selecting your international broker.

Can I buy US stocks from Angel Broking? ›

You can now invest in international stocks and ETFs through the Angel One app, via Vested. Vested is a US Securities and Exchange Commission Registered Investment Advisor. Through this online platform, investors from India and NRIs can invest in US stocks and ETFs easily.

Can I buy Amazon shares in India? ›

Directly invest in Amazon stocks

You can invest in Amazon from India by opening a US brokerage account either through technology platforms like Vested that offers this service, or a foreign brokerage that has a direct presence in India.

Can I buy Google stock in India? ›

Through Domestic Brokers

Individuals can invest directly in stocks, such as Apple, Microsoft and Google, by opening an overseas trading account with a brokerage firm based in India.

How do I buy Amazon stock directly? ›

If you're ready to buy Amazon stock, log into your online brokerage account or trading app. Then type in Amazon's ticker symbol (AMZN) and the number of shares you want to buy or the amount of money you want to invest. You may also have to pick what type of order you want to make.

Can I buy US stocks from Axis Direct? ›

Can I legally invest in US markets? Yes. Vested follows the RBI's Liberalized Remittance Scheme (LRS) guidelines.

Does Icici Bank work in USA? ›

The Bank currently has subsidiaries in the United Kingdom and Canada, branches in United States, Singapore, Bahrain, Hong Kong and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Malaysia and Indonesia.

Can I invest in US stocks through Kotak Securities? ›

KSL is providing a complete digital and seamless experience from onboarding to trading. Investing in US equity markets, now, will be at the click of a button.

Which brokerage account is best for NRI? ›

Best Demat accounts for NRIs (Non-Resident Indians) 2022
RankingNRI account provider
1Zerodha
2IIFL
3ProStocks
4Sharekhan by BNP Paribas
1 more row
May 12, 2023

What happens to my stocks if I become NRI? ›

There is no restriction on NRIs investing in Indian mutual fund schemes. Are there any formalities you need to complete on becoming an NRI? As a first step, the investor must get his residency status updated in the KYC (Know Your Customer) records from a 'resident' to a 'non-resident'.

What NRI Cannot invest in? ›

Additionally, NRIs are barred from investing in instruments such as currency derivatives and commodities. Apart from these, NRIs cannot participate in intraday trading in the Indian stock markets, unlike resident Indians. They are only allowed to take the delivery of shares.

Can I buy US ETF from India? ›

Yes, Indians can invest in the US stock market. There is more than one way to buy and hold US stocks in your portfolio. Direct equities, ETFs, and mutual funds are just one of the few popular options. You can invest in US stocks in two ways from India – indirect and direct.

Is Vanguard S&P 500 a safe investment? ›

Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.

Who is the owner of Vanguard India? ›

azim penangwala - Owner - Vanguard Electronics Pvt. Ltd.

How can I buy Vanguard index funds from India? ›

Step 1: Login to the Kuvera app or website and go to US Stocks. Step 2: Link your existing Vested US investing account, or create a new one. Step 3: Complete all the KYC process and fund your US Stock trading account. Step 4: Place buy order for S&P 500 Vanguard ETF and you are done!

Which ETF is best in India? ›

India's Top ETFs to Invest in for 2023
Index ETFsGold ETFsBond ETFs
Motilal Oswal NASDAQ 100 ETFIDBI Gold ETFNippon ETF Long Term Gilt
HDFC Sensex ETFInvesco India Gold ETFSBI-ETF 10Y Gilt
SBI ETF SensexAditya Birla Sun Life Gold ETFLIC MF Government
Edelweiss ETF - NQ30SBI ETF GoldNippon ETF Liquid BeEs
1 more row
May 11, 2023

Which is the best S&P 500 Index Fund in India? ›

Top funds managed
SchemeAnnualised Returns(3Y)Category Returns(3Y)
Motilal Oswal S&P 500 Index Fund Direct Growth13.73%--
Motilal Oswal Midcap 30 Direct Growth40.98%31.4%
Motilal Oswal Flexicap Fund Direct Plan Growth16.77%23.62%

How can I invest in US S&P 500 from India? ›

You can directly open an overseas account with an international brokerage firm who have a presence in India. Some of the foreign brokers operating in India are Ameritrade, Charles Schwab. However, before buying stocks through these firms, you must understand the brokerage fees/structure and other costs.

Can I buy S&P 500 index in India? ›

The introduction of the NFO (new fund offer) allows Indian investors to invest in US stocks in a flexible manner. Even small investors can invest in the top global companies through S&P 500 mutual fund since the minimum investment amount is Rs 500. However, we suggest you evaluate the NFO carefully before investing.

Can Indians invest in S&P index? ›

Yes – investors from India can invest in the US stock market. If they are interested in diversifying beyond Indian stocks and financial instruments, beyond the Sensex or the Nifty 50, Indian investors can do so by investing in the S&P 500, Dow Jones, Nasdaq or other US listed companies.

Is investing in US stocks better than Indian stocks? ›

What is the difference between the Indian stock market and the US stock market in terms of market size? The Us stock market commands a market capitalisation of $40.51 Trillion. The Indian stock market has a market cap of $3.4 Trillion. So, the US market is more than 10 times bigger than its Indian counterpart.

Is it better to invest in US or India? ›

Volatility. When compared to Indian markets, the US markets have been less volatile in the long run. Indian equities have shown great volatility, with bigger swings in returns over the years. This is another reason experts recommend diversification when it comes to investing, since risks are spread out and diminished.

Is investing in US stocks a good idea? ›

Diversify your portfolio with US stocks

If you are looking for a profitable way to diversify your portfolio, investing in US stocks is a great option because it will give you diversification as well as the scope for higher-than-standard returns of Indian stocks.

Is it worth it to invest in US stocks? ›

Diversification. Investing in the US markets helps you diversify your portfolio as the market offers extensive avenues to invest in top sectors of Technology, Finance, Automobile and Gold. Investing a part of your assets in such markets also makes you independent of the Indian stock markets and the Indian economy.

How much tax should I pay for US stocks in India? ›

Indian investors are subject to a flat tax rate of 25% on dividends from US stocks, with the tax withheld by US companies. Reinvested dividends are added to the investor's income and taxed accordingly. Capital gains from selling stocks are taxed as either long-term or short-term gains.

What is nifty equivalent in USA? ›

The Dow Jones Industrial Average.

Which is more profitable US stocks or Indian stocks? ›

With the US stock market, this is done in USD naturally. The USD is the global currency by default and is a stronger currency than the INR. Hence, any investments made with the USD in play will bear higher returns. This spells more profit for the investors who invest in US markets.

Is living in US expensive than India? ›

Cost of living in United States is 236% more expensive than in India.

Why NRI should invest in India? ›

Diversification: NRIs can diversify their investment portfolios outside their home country by investing in Indian mutual funds. By doing so, country specific changes will have less of an influence on their overall portfolio and risks will be spread out.

Are US stocks risky? ›

Over many decades, the investment that has provided the highest average rate of return has been stocks. But there are no guarantees of profits when you buy stock, which makes stock one of the most risky investments.

Is investing $100 in stocks worth it? ›

The main argument advanced by proponents of a 100% equities strategy is simple and straightforward: In the long run, equities outperform bonds and cash; therefore, allocating your entire portfolio to stocks will maximize your returns.

Is $100 dollars good to invest in stocks? ›

Investing just $100 a month over a period of years can be a lucrative strategy to grow your wealth over time. Doing so allows for the benefit of compounding returns, where gains build off of previous gains.

What is the best time to buy US stocks? ›

The opening 9:30 a.m. to 10:30 a.m. Eastern Time (ET) period is often one of the best hours of the day for day trading, offering the biggest moves in the shortest amount of time. A lot of professional day traders stop trading around 11:30 a.m. because that is when volatility and volume tend to taper off.

What is the average return on stocks in USA? ›

Stock Market Rate of Return Historically

Since its founding, the S&P 500 has averaged right around 10% yearly return over time. However, this doesn't mean that each year will match that. Remember, this is 10% yearly over time.

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