Today's modern investors have plenty of options when it comes to investing. Factors like GDP growth, interest hike, and inflation to digitization — all contribute to it.
But how each investor makes the most of this would affect the returns and prepare their portfolio better during the market downfall. One of the best ways Indian investors can diversify their portfolio today is by investing in US stocks. Moreover, it allows investors to take advantage of rising dollar prices.
But often, investors shy away from this due to fear of high brokerage or commission, international remittance charges, etc.
So, how to invest in US stock market without paying any hefty commission?
Here are some tips to help you learn how to invest in US stock market more conveniently and with better asset allocation.
Any investor willing to learn how to invest in US stock market must know about the NASDAQ and the New York Stock Exchange (NYSE). These are the two most significant exchanges in the US stock market where even Indian investors can put their money.
Exchange-traded funds, or ETFs, are an excellent choice for investors looking for zero-commission investing methods. These funds have a much lower expense ratio and minimum investment requirements.
Although buying or selling stocks on any exchange can incur some charges, it also depends on the frequency and size of the trade. So, if you invest larger amounts and trade less frequently, the commission will be almost negligible.
The next best way to invest in US stocks without paying any commission or brokerage is through Indian mutual funds that invest in these stocks. Plenty of mutual funds schemes are available under different fund houses that offer these facilities today.
Moreover, it frees the funds and the investors from certain tax implications. For instance, ideally, investments in international equity, like the US stock market, should be taxed in both the US and India.
To avoid this double taxation, Indian taxpayers are allotted credits for paying taxes in the US. Moreover, investments in these funds are treated as debt fund investments in India and, thus, taxed according to your income tax slab and not as capital gains.
If you want to find out how to invest in US stock market without any commission, then the best way is to do it via zero-commission brokerage.
On Fi Money, you can invest in leading companies in the US, all while taking advantage of the most favorable foreign exchange rates in the industry. This means that you can become a shareholder in companies such as Apple, Tesla, and Microsoft. Moreover, Fi Money offers a user-friendly interface that simplifies the complicated world of American stocks. If you're a beginner, you can use the in-app resources to help you make informed choices, or check out the expertly curated collections such as All-Time Favourites. On the other hand, experienced investors are able to leverage a vast array of filters such as Stock Price, as well as a broad selection of foreign options. Additionally, Fi Money allows you to immediately purchase US Stocks with no brokerage fees.
Seasoned investors, too, shall benefit from our highly curated collection of all-time favourite US stocks and apply filters to learn more about them. The best part is that all transactions have zero brokerage fees, making it worthwhile for the Indian investor.
Still curious? Learn more about how to get started with investing in US Stocks through this short video: https://www.youtube.com/shorts/VywxVwa-9nM
A zero-commission brokerage allows investors and traders to purchase and sell stocks without charging fees. This will enable investors to invest with zero commission to investors. However, there may be third-party fees included that need to be paid. One instance of this would be an options contract.
Many brokers in India promote commission-free stock trading on the Indian stock exchange. Over time, some new players who let investors dip their toe into the US stock market without paying hefty commissions have also come into the picture. One such example is Fi Money, which offers US stock investing at zero commissions in real-time.
