GUIDES
GuidesUS StocksA Guide: Things to know about US Stock Market: Step into the International Share Market 
LAST EDITED BY PRANAV KARNAD ON APRIL 28, 2025.
Investing is crucial for a secure financial future. You can choose from various financial products, such as stocks, bonds, fixed deposits, mutual funds, cash, and other assets. A diverse portfolio is essential, including US stocks to reduce risk.
The US stock market is where the action is, and more Indians than ever are getting a piece of the pie.
If you're wondering how to invest in US stocks from India, you're not alone. The global financial playground is becoming increasingly accessible, and for good reason.
By investing in US stocks, you're not just diversifying your portfolio but buying into innovation and growth stories.
Plus, the US market has historically delivered solid returns. The S&P 500 has averaged about 10% annual returns over the long term. That's nothing to sneeze at!
Investing in US stocks offers access to global giants, diverse sectors, innovation, and historical market performance for potential growth. Here’s how to invest in them-
First things first, understand the regulations governing investments in foreign markets from India. The regulatory authorities, including SEBI, have specific guidelines for investing in foreign stocks.
There are a few ways to invest in the US stock market from India-
a. Direct Investing: If you're an Indian resident, you can invest in US stocks directly through a brokerage account that offers international trading services. Some Indian brokers offer access to international markets. You'll need to follow the necessary paperwork and compliance requirements.
b. Mutual Funds and ETFs: You can invest in Indian mutual funds or ETFs that provide exposure to international markets, including the US. These funds typically invest in US-listed stocks, providing you with diversification.
Invest in US stocks through an international brokerage account for Indian investors. Popular platforms are Interactive Brokers, TD Ameritrade, and Charles Schwab. Ensure the platform is reputable, user-friendly, and offers reasonable fees. Comply with Indian and investment country regulations by providing identification and relevant documents.
Transfer funds from your Indian bank account to your international brokerage account. Check the currency conversion rates and any associated fees. Many platforms offer options for currency conversion.
Conduct thorough research on the US stocks you want to invest in. Look into their financials, market trends, and industry performance. If you're using mutual funds or ETFs, research the funds' performance, expense ratios, and holdings.
Additionally, it's important to consider policy differences like Liberalised Remittance Schemes, Dividend Tax and other charges in accordance with your investment goals.
Fund your account, buy stocks or units of mutual funds/ETFs. Regularly review investments, track performance, and consider rebalancing your portfolio to align with risk tolerance and goals. Stay informed on US financial news, market trends, and economic indicators that impact investments to make informed decisions.
Let's break down the US stock market into digestible pieces, shall we?
The US markets run from 9:30 AM to 4:00 PM Eastern Time, which means 7:00 PM to 1:30 AM for us in India.
Remember that US markets take breaks, too. They're closed on weekends and American holidays (which are not always same as the Indian Market).
When you invest in US stocks, you're betting on companies and taking a position on currencies. It's like watching two shows simultaneously!
Let's understand this better, shall we? Say you invest ₹10,000 in Amazon shares. If Amazon's stock price stays the same, but the dollar strengthens against the rupee by 5%, your investment just grew by 5% in rupee terms without the stock price moving at all.
However, a sinking dollar can trim your profits or even turn gains into losses when converted back to rupees. Many new international investors overlook this invisible factor.
When you sell US stocks at a profit:
There's some good news on the dividend front. While US companies automatically withhold 25% of dividends as tax, the India-US tax treaty reduces this to 15% for Indians.
Don't worry, you're not being double-taxed. You can claim this withheld amount as a foreign tax credit when filing your Indian returns.
Here's everything you need to know about tax implications on US Stocks in India.
You must report your foreign assets in Schedule FA of your Indian tax return. This includes your US brokerage account and all investments made through it.
It isn't optional! Failing to disclose foreign investments can trigger penalties under the Black Money Act.
The US market can be volatile. The 2008 financial crisis and the 2020 pandemic crash remind us that no market is immune to downturns.
Diversification and a long-term outlook are your best defences against market turbulence.
As mentioned earlier, exchange rate fluctuations can significantly impact your returns. A 5% gain in your US stocks could be wiped out by a 5% depreciation in the dollar against the rupee.
US politics, trade policies, and international relations can impact stock performance. Stay informed about significant developments that could affect your investments.
In conclusion, investing in the US stock market from India provides a gateway to international opportunities. While options like direct investing or mutual funds offer diverse routes, understanding regulations, conducting thorough research, and managing risks are vital.
Fi enables you to invest in top US companies — at industry-best forex rates. So you can own shares in Apple, Tesla, Microsoft, and so on! With an intuitive user interface, Fi simplifies the world of US Stocks alongside their FINRA-regulated broker partner, Alpaca Securities. Besides in-app explainers, novice investors can use Curated Collections (like All-Time Favourites) to make decisions. Seasoned investors can dive deeper, apply many filters (like Stock Price) & pick from a wide range of international options. What's more, on Fi, there are zero withdrawal charges for US Stocks.
Indian residents can legally purchase and invest in US stocks as long as they follow the regulations set by Indian authorities and adhere to foreign exchange and securities market rules.
US stocks offer long-term capital growth and the chance to invest in global companies, benefiting from international growth trends.
Yes, investing in US stocks is regulated by various regulatory bodies, including the U.S. SEC.
When investing in US stocks from India, you might have tax obligations in both countries. The US may levy withholding taxes on dividends and gains, and India could tax your income.
To invest in US stocks via the Liberalized Remittance Scheme (LRS), follow these steps:
