Important FAQs on Investing in US Stocks from India
Can you invest in US stocks from India?
There are two ways to invest in US Stocks from India:
Direct Investment - Buy US stocks via a brokerage like Fi (powered by Alpaca).
Open an Overseas Trading Account and complete KYC.
Fund your account via Liberalized Remittance Scheme (LRS) (limit: $250,000/year).
Start investing in 6,000+ US stocks & ETFs, with fractional investing from âš100.
Automate with US Stock SIP for hassle-free investing.
2ď¸âŁ Indirect Investment â Invest via Indian Mutual Funds or ETFs tracking US markets.
Indirect Investments: Invest in Indian mutual funds that allocate assets to international markets or purchase units of ETFs listed on Indian stock exchanges that track international indices.
Is Fi money safe to invest?
Yes, Fi Money is safe to invest in foreign stocks from India. It partners with Alpaca Securities LLC (CRD# 299837, SEC# 8-69928), a US-registered brokerage firm, to access US stock investments. Alpaca complies with US SEC regulations, ensuring investor protection as a regulated entity. Plus, Fi Money works with the Federal Bank for international fund transfers, enabling smooth and hassle-free remittances.
Are US stocks taxable in India?
Yes, you need to pay tax on both capital gains and dividends from US stocks in India.
Taxes on investment gains: You will be taxed in India for this investment gain, but not in the US. The amount of tax depends on the duration of the investment.
Short-term (<24 months): Taxed as per your income tax slab.
Taxes on dividends: Unlike investment gains, dividends will be taxed in the US. Dividends are taxed at 25% in the US before payout. For example, on a $100 dividend, $25 is withheld, and you receive $75.In India, the full $100 is taxed as regular income, but the 25% US tax can be offset under the DTAA as a Foreign Tax Credit.
Are there any fees when I withdraw money from my US Stocks wallet?
There are currently no withdrawal charges when you withdraw money from your US Stocks Wallet to your Federal Bank Savings Account linked to Fi . However, if you choose to withdraw to any other bank account, a fee of $50 per withdrawal will apply.
What amount of stock is tax-free in India?
No, you have to pay taxes in India on the gains you make in the US Stock Market.
How can I buy US stocks in NSE India?
You canât directly invest in individual US stocks on the National Stock Exchange (NSE) of India. However, there is an option through the NSEâs International Financial Services Centre (IFSC) that allows you to invest in select US stocks. Itâs important to note that this offering is limited to around 50 stocks, and there might be liquidity concerns.For broader access, Indian investors can look into mutual funds or ETFs that invest in US equities or track major indices like the S&P 500.
How do you buy and sell US stock in India?
You can buy and sell US stocks in India by opening a brokerage account with a platform like Fi, which allows you to invest in over 6,000 US stocks and ETFsâ.
How many types of US Stocks are available?
US stocks can be categorised into several types based on company size, sector, growth potential, and investment characteristics. Here are the main types:
Based on Market Capitalisation
Large-Cap Stocks â Companies with a market cap above $10 billion (e.g., Apple, Microsoft).
Mid-Cap Stocks â Companies with a market cap between $2 billion and $10 billion (e.g., Zoom, Roku).
Small-Cap Stocks â Companies with a market cap below $2 billion (e.g., Beyond Meat, Redfin).
Based on Growth & Value
Growth Stocks â Companies expected to grow revenue and earnings faster than the market (e.g., Tesla, Amazon).
Value Stocks â Companies trading at a lower price relative to their fundamentals (e.g., Berkshire Hathaway, JPMorgan Chase).
Based on Dividends
Dividend Stocks â Companies that regularly pay dividends (e.g., Coca-Cola, Johnson & Johnson).
Non-Dividend Stocks â Companies that reinvest profits instead of paying dividends (e.g., Netflix, Amazon).
Based on Sector US stocks are categorized into 11 major sectors under the Global Industry Classification Standard (GICS):
Technology (Apple, NVIDIA)
Healthcare (Pfizer, Moderna)
Financials (Goldman Sachs, Visa)
Consumer Discretionary (Nike, Starbucks)
Consumer Staples (Procter & Gamble, Walmart)
Energy (ExxonMobil, Chevron)
Technology (Apple, NVIDIA)
Industrials (Boeing, Caterpillar)
Utilities (Duke Energy, NextEra Energy)
Real Estate (Simon Property Group, American Tower)
Materials (Dow Inc., Freeport-McMoRan)
Communication Services (Meta, Disney)
Based on Investment Type
Common Stocks â Shareholders have voting rights and may receive dividends.
Preferred Stocks â Offer fixed dividends but usually no voting rights.
Based on Listing Location
NYSE Stocks â Listed on the New York Stock Exchange (e.g., Boeing, McDonald's).NASDAQ Stocks â Listed on the NASDAQ exchange, often tech-focused (e.g., Apple, Google).
OTC Stocks â Traded over the counter, often smaller or foreign companies (e.g., Tencent, NestlĂŠ ADR).
Different stocks cater to growth, dividends, stability, or diversification. Fi offers access to 6,000+ US stocks & ETFs, helping Indian investors tap into global markets.
What are the trading hours for India's US stock market?
The US stock market trading hours are from 7 PM to 1:30 AM IST (9:30 AM to 4 PM ET). During daylight savings, this shifts to 8 PM to 2:30 AM IST.On Fi, you can invest in US Stocks from India and place orders anytimeâthey'll be executed when the market opens.
What are the popular indexes in the US Stock Market?
Popular US stock market indexes include the S&P 500, Dow Jones Industrial Average, and NASDAQ Compositeâ.
What is the minimum amount to invest in US stocks?
The minimum amount to invest in US stocks from India can be as little as $1, especially when buying fractional shares through Fi. But, if you want to start an SIP in US Stocks through Fi, then the minimum amount is âš1000.
Do I need a foreign bank account to invest in US Stocks from India?
No, you do not need a foreign bank account to invest in US stocks from India. You can fund your investments through Indian bank accounts such as Federal Bank accounts under the LRS.
Fi partners with the best to securely grow your money
Fi money is not a broker dealer, nor an investment advisor. Trading in US Stocks shall be facilitated through Stock Broker Alpaca LLC, 8-69928.
No information published on the website is intended to be investment advice, portfolio management or as any form of research analysis, directly or indirectly. The users of the website shall be solely responsible for any action taken by them pursuant to the information contained herein, including any investment decision with respect to transaction in securities.
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