As a trading enthusiast, you might know that NSE and BSE are the two main stock exchanges of India which allows you to trade on these platforms daily. Likewise, NASDAQ and NYSE are the major stock exchanges of the US.
Did you know that you can even trade on these platforms while sitting in India? Yes, it is possible to trade in US stocks from India. Knowing how to invest in the US stocks from India, will help you to safely invest in the US stock market without any risk. Many platforms like Grow, Angel One, and Appreciate Wealth allow you to trade on the US Market from India.
Investing in US stocks from India provides an opportunity to diversify your portfolio and earn big profits. The US market includes most of the world-class companies including Facebook, Google, Tesla, Apple, and many more. However, investing in the US market might be troublesome due to regulatory and logistic issues.
Let’s have a look at a step-by-step guide to invest in US stocks from India legally and easily.
Step-By-Step Guide To Invest In The US Stocks From India
If you are a trader who wants to get global exposure, then you will be thinking of how to invest in US stocks from India. No worries, follow the steps mentioned below.
Step 1: Open A Trading Account With A Foreign Broker:
It is a direct way to trade in the US stocks. Most US-based brokers let Indian investors open your trading account.
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Steps:
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- Select a US-based brokerage firm or forex broker that allows Indian clients.
- Provide your ID and documents like passport, PAN card, address proof, bank details, etc.
- Transfer funds from your Indian bank account to your US broker account via the Liberalized Remittance Scheme (LRS), which permits you to invest up to $250, 000 per year towards abroad investment purposes.
- Once your account is funded, you can be able to buy US stocks from the online platform or trading app.
Step 2: Invest Through Indian Brokerages With International Ties:
Many Indian brokers collaborate with US brokers and make it easy for Indian investors to buy US stocks. Some brokers like ICICI Direct, Appreciate Wealth, HDFC Securities, and Kotak Securities are some Indian brokers that allow you to trade in US stocks.
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Steps:
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- Several Indian brokers provide a 3-in-1 account that links your savings bank account, trading account, and demat account. After signing up, you are allowed to trade on US stocks through their US brokerage partners.
- You can also buy fractional shares so that you can invest in expensive stocks like Amazon or Google, and no need to buy a full share.
- Compare the fees and commissions charged by your broker for international trade.
Step 3: Exchange-Traded Funds (ETFs) And Mutual Funds:
You are also allowed to invest in US-based ETFs or mutual funds to get into the US market without buying any individual stocks.
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Steps:
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- Many Indian mutual fund providers offer ETFs. ETFs directly track US indices and let you invest in the entire US stock indices instead of choosing individual stocks.
- There are also some International Mutual Funds in India that depend on US markets.
- While investing in the UD stocks you need to stick to the rules and regulations provided by US Markets.
Why To Invest In The US Market?
- It gives global exposure to your portfolio and you can invest in large companies. You can do SIP in US stocks or invest in lump-sum.
- You can get high returns on investments compared to Indian stock markets. You can also get better returns from currency trading.
- Investing in USD will be like hedging your currency against INR. It reduces the risk of a single currency from your portfolio and makes it more diversified.
Conclusion
Nowadays, online platforms have brought many changes in the way of trading. It is also possible to invest in US stocks from India. You can analyze and track your portfolio, alter your trades, etc. You can do it by Direct method, Indirect method, or by investing in mutual funds, currencies, etc.
Have you ever traded in the US market? If so, share your experience.
