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How you can invest in US Stocks from India

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Created on
March 24, 2023

Summary

What’s Inside

A large number of Indian investors are now eager to invest in US stocks from India. In 2021 alone, Indian investments in US stocks grew by 200%. Since then, the appetite for US stock market investments has remained strong among equity investors back home.

It also helps that the process of investing in the US markets has become extremely easy. In fact, if you’re wondering how you can buy US stocks from India, you can now choose from various direct and indirect channels of investing.

Beyond the Indian Stock Market

Several factors have enabled investors in India to look beyond domestic equity markets. For one thing, technological developments have opened up new avenues and made account opening as well as remittances smoother and quicker. Furthermore, SEC-regulated brokers have also stepped up to make it possible for individuals to buy US stocks from India. They now support fractional investing, which is an excellent opportunity for small investors with low capital.

Under the Liberalized Remittance Scheme (LRS), Indians can send up to $250,000 abroad each year. This has made it easier to remit funds abroad for investment purposes.

5 Ways to Invest in the US Market from India

You can invest either directly with an overseas trading account, or indirectly via mutual funds and ETFs.

1. Direct Investments through a Domestic Broker

Many domestic brokerage firms in India have partnered with US brokers abroad. You can open an overseas trading account with any such domestic broker to buy US stocks from India.

2. Direct Investments through an International Broker

Another way to invest in US stocks from India is to open an overseas account with an international broker directly. Some such brokers include Charles Schwab, Ameritrade, and Interactive Brokers.

3. Direct Investments through NSE IFSC

You can also invest in US stocks from India through the NSE IFSC, which is a wholly-owned subsidiary of the NSE. The platform currently allows you to invest in 25 top US stocks, and you only need a demat account with an IFSCA-licensed broker to start investing.

4. Indirect Investments through ETFs

ETFs or exchange-traded funds are easily traded on exchanges, just like stocks. You can buy US ETFs through a domestic or international broker to invest in US stocks from India. Alternatively, you can also buy Indian ETFs of US stocks to diversify your portfolio and include exposure to American markets.

Upgrade your Portfolio with the Best US Stocks

As you can see, there are many different ways to invest in US stocks from India. You can choose the most convenient option and invest in strong US stocks easily. Fi Money can also help you with this. With the Fi Money app, you can own shares of the top US companies at competitive forex rates and zero brokerage fees. The app also makes investing easy with inbuilt explainers and curated stock collections.

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

Frequently Asked Questions

1. What are the documents required to invest in US stocks?

To invest in US stocks from India, you may choose to open an overseas trading account. For this purpose, your broker may require documents like identity proofs, address proofs, bank statements and a photograph. In addition to this, you will also have to file Form A2 with the remitting bank as a declaration for not exceeding the LRS limit.

2. Can I buy US stocks from the NSE?

Yes, you can buy US stocks from India through the NSE IFSC, which is a subsidiary of the National Stock Exchange (NSE).

3. How to invest in US stock from India?

You can buy US stocks from India if you have an overseas trading account (opened with a domestic or an international broker). Alternatively, you also do this through the NSE IFSC platform

Disclaimer

Investment and securities are subject to market risks. Please read all the related documents carefully before investing. The contents of this article are for informational purposes only, and not to be taken as a recommendation to buy or sell securities, mutual funds, or any other financial products.
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