The US stock market is home to some of the worldтАЩs largest and most innovative companies, like Apple, Tesla, and Google. Investing in these global giants offers Indian investors access to high-growth industries and economic trends beyond what is available in domestic markets.
Intrigued about investing in foreign stocks? Keep reading to know more about how to invest in US stocks from India.
How to Invest in US Stocks from India
Indian investors have two primary pathways to invest in US stocks from India:
- Direct Investment in US Stocks
- Indirect Investment in US Stocks through Mutual Funds or ETFs
Let;s discuss each of the methods below.
Direct Investment in US Stocks
Investing in US stocks directly can be done by opening trading accounts with domestic brokers partnered with US brokers or foreign brokers.
1. Opening an Overseas Trading Account with Domestic Brokers
Using a domestic broker with US partnerships is a convenient way to buy US stocks from India. These brokers act as intermediaries, simplifying the investment process while ensuring compliance with regulatory requirements. HereтАЩs a step-by-step guide on how you can participate in direct investments:
- Choose a Domestic Broker: Select a broker offering access to US markets, such as Appreciate, one of the best apps to invest in US stocks from India.
- Complete Know Your Customer (KYC) Documentation: Provide proof of identity, address, income, and PAN card for verification.
- Link Your Bank Account: Connect your Indian bank account for transactions.
- Fund Your Account: Transfer funds under the RBIтАЩs Liberalized Remittance Scheme (LRS) to convert INR to USD.
- Start Trading: Use the broker’s platform to invest in individual stocks or ETFs listed on US exchanges.
Advantages and Disadvantages of Opening a Trading Account with Domestic Brokers
| Advantages | Disadvantages |
| Simplified regulatory compliance. | Limited investment options (specific stocks). |
| Integrated INR to USD currency conversion. | Higher brokerage fees than direct platforms. |
| Educational resources for new investors. | Currency conversion fees can reduce returns. |
Costs to Consider
- Currency Conversion Fees: Typically 3%-5%.
- Brokerage Fees: $5-$15 per trade on average.
- Account Setup Charges: Vary depending on the broker.
For example, Appreciate is widely regarded as the best trading app for investing in the US market from India, offering low transaction fees and seamless account setup.
2. Opening an Overseas Trading Account with Foreign Brokers
If you prefer direct control and a broader range of options, consider opening an account with foreign brokers such as Charles Schwab, Interactive Brokers, or TD Ameritrade. HereтАЩs how you can do this:
- Choose a Broker: Opt for a globally renowned platform that supports Indian investors.
- Submit Documentation: Provide KYC details, including a PAN card and bank account information.
- Fund the Account: Use a wire transfer to convert INR to USD.
- Access US Markets: Trade in stocks, ETFs, and other instruments directly.
Advantages and Disadvantages of Opening an Overseas Trading Account
| Advantages | Disadvantages |
| A broader range of investment options. | High minimum deposits (up to $25,000). |
| Access to advanced trading tools. | Compliance with dual tax regulations (India and US). |
| Lower brokerage fees in some cases. | Hidden fees and currency risks. |
Costs to Consider:
- Wire Transfer Fees: тВ╣500-тВ╣2,000 per transaction.
- Currency Conversion Fees: Similar to domestic brokers, typically 3%-5%.
- Tax Obligations: Earnings are subject to tax laws in both countries.
If youтАЩre looking for simplicity and a guided experience, US stock brokers in India are a good choice, particularly for first-time investors. On the other hand, foreign brokers are better suited for experienced investors who prioritise flexibility and a wider range of stocks.
Indirect Investment in US Stocks through Mutual Funds or ETFs
If managing a trading account feels complex, indirect methods like mutual funds and ETFs can provide accessible alternatives. These options help you gain exposure to US stocks without directly trading on US exchanges.
- Mutual Funds
Professionals who allocate funds across various US stocks or indices manage mutual funds investing in US equities. TheyтАЩre ideal for beginners or investors who prefer a less hands-on approach.
Benefits:
- Ease of Access: No need for an overseas trading account or currency conversion.
- Diversification: Exposure to various sectors and market caps in the US.
- Cost-Effective: Typically requires lower initial investments compared to direct stock purchases.
Examples of Indian Mutual Funds with US Exposure:
- Franklin India Feeder тАУ Franklin US Opportunities Fund: Focuses on growth by investing in US-based companies across multiple sectors.
- ICICI Prudential US Bluechip Equity Fund: Invests in established blue-chip companies in the US.
- DSP US Flexible Equity Fund: Adapts to market conditions and invests across different sectors and market caps.
2. Exchange-traded funds (ETFs)
ETFs are like mutual funds, but they trade similarly to individual stocks on an exchange. TheyтАЩre a flexible, cost-efficient option for gaining exposure to US markets.
Benefits:
- Cost-Efficiency: Lower expense ratios compared to mutual funds.
- Flexibility: Trade ETFs anytime during market hours.
- Transparency: Holdings are publicly available, providing clarity about investments.
Examples of US-Focused ETFs:
- SPDR S&P 500 ETF (SPY): Tracks the S&P 500 Index, offering exposure to 500 of the largest US companies.
- Vanguard Total Stock Market ETF (VTI): Covers the entire US equity market, including small, mid, and large-cap stocks.
- Technology Select Sector SPDR Fund (XLK): Focuses on the tech and telecom sectors within the S&P 500.
For beginners, mutual funds offer professional management and simplicity. In contrast, ETFs provide greater control, lower costs, and flexibility suited for experienced investors. So, evaluate your financial goals, investment horizon, and risk tolerance before choosing the right investment method in US stocks.
Investing via Digital Platforms
Digital platforms have transformed the way Indian investors access global markets, making it easier, more affordable, and more convenient to invest in US stocks. These platforms offer various features that cater specifically to the needs of Indian investors, with a focus on low-cost transactions, real-time market updates, and compliance with Indian regulations.
Among the many digital platforms available, Appreciate is one of the best apps for Indian investors interested in trading US stocks. It simplifies the entire process, offering the following advantages:
- Seamless Account Setup: The Appreciate app provides a quick and hassle-free onboarding process, making it easy for Indian investors to start trading US stocks without any complex paperwork.
- Competitive Pricing: With low transaction costs, the Appreciate app ensures you can trade US stocks affordably, making it accessible for new and experienced investors.
- Advanced Tools and Features: The app offers powerful tools for stock analysis and portfolio tracking, enabling you to easily manage and monitor your investments.
- Dedicated Support: Appreciate provides excellent customer support to help you navigate the platform, ensuring you have all the necessary resources to succeed in your investments.
With its simplicity, competitive pricing, and user-friendly tools, the Appreciate app is an excellent choice for anyone investing in US stocks from India.
Top 25 US Stocks to Invest in
For Indian investors, understanding how to invest in US stocks from India opens doors to industries like technology, healthcare, and renewable energy. This diversification reduces risk and positions your portfolio for potentially higher returns. To help you get started, hereтАЩs a curated list of the top 25 US stocks worth considering.
| Symbol | Name | Price | Change | Change % | Volume | Avg Vol (3M) | Market Cap | P/E Ratio (TTM) | 52 Wk Change % |
| AAPL | Apple Inc. | 239.59 | 2.26 | 0.0095 | 41.321M | 48.361M | 3.622T | 39.34 | 23.87% |
| NVDA | NVIDIA Corporation | 138.63 | 0.38 | 0.0027 | 169.725M | 255.433M | 3.395T | 54.58 | 197.71% |
| AMZN | Amazon.com, Inc. | 210.71 | 2.82 | 0.0136 | 39.164M | 38.199M | 2.216T | 45.02 | 43.46% |
| META | Meta Platforms, Inc. | 592.83 | 18.51 | 0.0322 | 12.335M | 11.908M | 1.497T | 28.02 | 86.25% |
| TSLA | Tesla, Inc. | 357.09 | 11.93 | 0.0346 | 76.291M | 89.124M | 1.146T | 98.1 | 49.59% |
| INTC | Intel Corporation | 23.93 | -0.12 | -0.50% | 144.593M | 77.422M | 103.21B | – | -42.92% |
| SMCI | Super Micro Computer, Inc. | 42 | 9.36 | 0.2868 | 258.546M | 80.162M | 24.594B | 20.9 | 59.72% |
| SOFI | SoFi Technologies, Inc. | 15.91 | -0.5 | -3.05% | 51.371M | 51.305M | 17.265B | 132.58 | 99.12% |
| RIVN | Rivian Automotive, Inc. | 11.87 | -0.36 | -2.94% | 39.618M | 36.253M | 12.115B | – | -31.82% |
| RKLB | Rocket Lab USA, Inc. | 24.16 | -3.12 | -11.46% | 40.931M | 19.059M | 12.075B | – | 442.81% |
| MARA | MARA Holdings, Inc. | 25.63 | -1.79 | -6.53% | 125.346M | 53.752M | 8.249B | 30.88 | 67.74% |
| LCID | Lucid Group, Inc. | 2.13 | -0.05 | -2.29% | 71.276M | 50.516M | 6.415B | – | -49.16% |
| CORZ | Core Scientific, Inc. | 16.06 | -1.82 | -10.18% | 33.613M | 10.959M | 4.485B | – | 366.86% |
| CLSK | CleanSpark, Inc. | 14.52 | 0.17 | 0.0118 | 43.537M | 29.544M | 3.749B | – | 55.96% |
| SOUN | SoundHound AI, Inc. | 8.95 | -0.36 | -3.87% | 50.767M | 28.001M | 3.309B | – | 326.19% |
| PLUG | Plug Power Inc. | 2.3 | 0.06 | 0.0268 | 83.223M | 49.14M | 2.096B | – | -45.75% |
| AMD | Advanced Micro Devices, Inc. | 142.06 | 4.88 | 0.0356 | 32.976M | 34.337M | 230.536B | 124.61 | 20.00% |
| ZS | Zscaler, Inc. | 208.51 | 1.92 | 0.0093 | 5.059M | 1.862M | 31.991B | – | 4.83% |
| ROKU | Roku, Inc. | 77.05 | 8.02 | 0.1162 | 8.206M | 3.795M | 11.188B | – | -26.75% |
| CRDO | Credo Technology Group Holding Ltd | 47.8 | -1.16 | -2.37% | 6.307M | 2.716M | 7.938B | – | 155.61% |
| NVCR | NovoCure Limited | 29.85 | 9.81 | 0.4895 | 12.202M | 1.186M | 3.23B | – | 133.75% |
| TMDX | TransMedics Group, Inc. | 85.14 | -1.57 | -1.81% | 949,557 | 1.651M | 2.857B | 91.55 | 16.28% |
| VIR | Vir Biotechnology, Inc. | 8.15 | 0.19 | 0.0239 | 1.626M | 1.072M | 1.122B | – | -12.27% |
| JANX | Janux Therapeutics, Inc. | 40.18 | -5.03 | -11.13% | 2.662M | 692,417 | 2.109B | – | 331.12% |
| SHIM | Shimmick Corporation | 2.8 | 0.5 | 0.2174 | 1.463M | 66,322 | 94.631M | – | -54.23% |
How Much Can You Invest in US Stocks?
The Reserve Bank of India (RBI) lets Indian residents invest in foreign assets through the LRS. This scheme enables you to send up to $250,000 annually for various purposes, including investing in US stocks.
To invest under the LRS, you need to follow specific steps to ensure compliance with RBI guidelines:
- Remittance Process: You must remit funds through a bank authorised to handle foreign remittances. The remittance should be made in dollars to your overseas trading account or directly to the platform you use to buy US stocks.
- Documentation: Banks or financial institutions require certain documents to process the remittance. These typically include:
- KYC documents: Identity proof, address proof, and PAN card.
- Investment purpose declaration: A statement confirming that your remittance is for investment purposes.
- RBI Reporting: Any remittance under the LRS must be reported to the RBI by the bank. While you donтАЩt need to submit these reports, your transactions must comply with Indian regulations.
However, remember that the annual limit of $250,000 applies to all foreign investments you make in a year, not just US stocks. So, if you invest in real estate or other assets abroad, those investments will count toward this limit.
Charges Involved in US Stock Investments
When you decide to invest in US stocks from India, it’s important to understand the various charges and taxes that can impact your overall returns. Here’s a breakdown of the key costs and taxes involved:
- Tax Collected at Source (TCS)
Under the LRS, a 5% TCS (Tax Collected at Source) is applicable on all remittances above тВ╣7 lakh for foreign investments, including US stocks. This means that for any amount exceeding тВ╣7 lakh that you remit for investing in US stocks, 5% of the excess amount will be collected as tax at the time of remittance.
For example, if you remit тВ╣10 lakh, the TCS will apply to тВ╣3 lakh (тВ╣10 lakh – тВ╣7 lakh). YouтАЩll pay 5% on тВ╣3 lakh, which is тВ╣15,000.
Also, you can claim the TCS as a refund when you file your Income Tax Return (ITR) in India, provided you meet the tax filing requirements.
- Capital Gains and Dividend Taxes
Investing in US stocks also involves understanding the tax implications in both the US and India:
- US Tax on Dividends: Dividends from US stocks are subject to a 25% tax in the US for Indian investors. However, thanks to the Double Tax Avoidance Agreement (DTAA) between India and the US, you can claim a foreign tax credit in India to avoid double taxation. This means you can offset the tax paid in the US against your Indian tax liability on the same dividend income.
- Capital Gains Tax:
- Short-Term Capital Gains: If you sell your US stocks within two years, the gains are considered short-term and are taxed as part of your regular income in India at the applicable income tax slab rate.
- Long-Term Capital Gains: If you hold your US stocks for more than two years, the gains are referred to as long-term and taxed at 20% with the benefit of indexation (which helps reduce the taxable amount by adjusting for inflation).
- Brokerage and Other Fees
When investing in US stocks, youтАЩll incur additional costs such as:
- Brokerage Fees: Brokers charge a fee for buying and selling US stocks. These can be flat fees or a percent of the transaction amount. Be sure to check the fee structure of the broker you’re considering.
- Currency Conversion Fees: When you transfer funds from INR to USD, banks or brokers usually charge a fee for currency conversion. The exchange rate offered can also impact the cost, as thereтАЩs often a margin built into the rate.
- Bank Transfer Fees: Besides currency conversion fees, some banks may charge a fee for processing international transfers. Also, depending on the bank or financial institution, these fees can vary from small amounts to higher charges.
- Account Maintenance Fees: Some brokers may charge an annual fee to maintain your account. While this is typically a small charge, itтАЩs important to be aware of it as it can add up over time.
Reasons to Invest in US Stocks
Here are some key benefits that make the US stock market an attractive option for Indian investors:
Reduced Volatility Compared to Indian Markets
While the Indian stock market can be more sensitive to domestic economic changes and political factors, US markets often respond differently due to their large, diversified nature. This means you can reduce the risk associated with market fluctuations by diversifying your portfolio across both US and Indian stocks, providing a more stable investment environment.
Access to Global Market Leaders
The US is home to some of the world’s most influential mega-cap companies. Investing in US stocks exposes you to companies that lead the global economy, particularly in sectors like technology, healthcare, and energy. Examples include Apple, Amazon, Microsoft, Tesla, and Johnson & Johnson, all of which have strong global footprints and show potential for continued growth.
Participation in Cutting-Edge Innovations
Companies listed on US stock exchanges are at the forefront of developments in artificial intelligence, biotechnology, cloud computing, and renewable energy. By investing in these companies, you can be part of the growth stories of future technologies shaping global industries.
Historical Outperformance of US Stock Indices
Over the last decade, US stock indices like the S&P 500 and NASDAQ have consistently outperformed Indian stock indices in dollar terms. This means investing in US stocks could offer higher returns, especially when considering long-term performance.
Exposure to Mega-Cap Companies in Key Sectors
The US stock market offers investors access to some of the largest companies in the world, particularly in sectors such as:
- Technology: The US leads globally with tech giants like Microsoft, Apple, Google, and Amazon.
- Healthcare: Companies like Pfizer, Johnson & Johnson, and Merck are major players in the healthcare space.
- Energy: US-based companies like ExxonMobil and Chevron dominate the global energy sector.
Opportunity to Invest in Global Brands Early
Many global brands driving the future of technology and innovation are headquartered in the US. By investing in these companies early, you can participate in their growth as they expand into new markets and technologies. This could provide significant returns over the long term as these companies continue to shape the future of industries like electric vehicles, artificial intelligence, and sustainable energy.
Tips for Investing in US Stocks
Some tips for investing in US stocks from India are:
- Choose the Right Broker
Selecting the right broker when investing in US stocks from India is essential. HereтАЩs what to consider:
- Fees: Consider transparent brokerage fees, including account maintenance, trading commissions, and currency conversion costs. Some brokers may have hidden charges, so evaluating the full cost is important.
- Platform Usability: The platform needs to be easy to navigate, with research tools, real-time market data, and seamless transactions. Make sure it supports trading in US stocks and offers international access.
- Regulatory Compliance: Choose a broker that complies with regulatory standards, protecting your investments. Platforms that follow KYC norms and have proper documentation are crucial.
- Access to US Stock Exchanges: Check if the broker provides access to major US exchanges like NASDAQ, NYSE, and others, which give you a broader selection of companies to invest in.
- Start Small and Build Confidence
ItтАЩs a good idea to start small when first investing in US stocks. This approach allows you to:
- Familiarise yourself with the market: By making smaller investments, you can learn how US stock markets work, understand stock movements, and observe how global events impact stock prices.
- Understand Fee Structures: Starting with a smaller investment helps you understand how transaction fees, currency conversion, and other costs affect your returns.
- Gain Experience: You’ll gradually build confidence as you track your investments and learn more about stock performance. This will also help you make more informed decisions as your portfolio grows.
- Understand Taxation Rules
Investing in US stocks comes with specific tax obligations in India and the US. HereтАЩs what you need to know:
- Capital Gains Tax in India: Any gains from the sale of US stocks are subject to Indian capital gains tax, which depends on the holding period (short-term vs. long-term).
- Tax on US Dividends: US companies pay dividends, but these are subject to a 30% withholding tax by the IRS. However, the DTAA between India and the US may help reduce this rate.
- Tax Filings: You may need to file taxes in both countries. Consult a tax advisor to understand how to claim DTAA benefits and avoid double taxation, ensuring you maximise your returns.
- Long-Term Investment Strategy
When investing in US stocks, focusing on a long-term strategy can help you:
- Mitigate High Transaction Costs: Frequent trading can lead to significant transaction fees, which erode profits. Long-term investing reduces the impact of these costs, allowing your investments to grow more efficiently.
- Benefit from Compounding: You take advantage of compounding returns by holding your investments over the long term. This approach can lead to significant wealth accumulation as the value of your investments grows steadily.
- Focus on Growth Stocks: Growth stocks, particularly in sectors like technology and healthcare, offer higher potential returns over the long term. These companies are well-positioned to benefit from innovations and future market trends.
How to Invest in US Stocks on Appreciate
Thanks to platforms like Appreciate, investing in US stocks from India has never been easier. HereтАЩs how you can get started:
1. Create Your Appreciate Account
To begin investing, you must set up an Appreciate platform account. Follow these simple steps:
- Sign Up: Register by providing essential personal details, including your name, email, and phone number.
- Complete KYC: Submit the required KYC documents. These typically include your PAN card and proof of address (Aadhar card or utility bill).
- Verification: Once your documents are verified, your account will be activated, and youтАЩll be ready to start trading.
2. Transfer Money to Your Account
Once your account is set up, the next step is to fund it:
- Link Your Bank Account: Connect your bank account to Appreciate. The platform supports net banking, making it easy to transfer funds directly from your bank account.
- Consider Forex Rates and Fees: Remember that currency conversion fees and foreign exchange rates can impact the total amount available for investment. Appreciate offers competitive forex rates to minimise these costs, ensuring your funds are transferred efficiently.
3. Select the Stock You Want to Invest In
With your account funded, you can now browse and select US stocks to invest in. Appreciate gives you access to a wide variety of stocks from top US companies across various sectors, including:
- Technology (e.g., Apple, Microsoft)
- Healthcare (e.g., Johnson & Johnson, Pfizer)
- Energy (e.g., ExxonMobil, Chevron)
- Consumer Goods (e.g., Amazon, Coca-Cola)
- Research Tools: The platform provides in-depth tools and information, allowing you to evaluate stocks based on their performance history, financial health, and market trends.
4. Execute Your Buy Order
Once youтАЩve selected your stock, itтАЩs time to place an order:
- Choose Your Order Type: You can place a market order, which purchases the stock at the current market price, or a limit order, where you specify the maximum rate you’re willing to pay.
- Transaction Execution: Your order will be executed during US market hours. Appreciate will notify you once your transaction is completed.
5. Monitor and Manage Your Investments
After making your purchase, you can track your portfolio directly from the Appreciate app. The platform provides regular updates on your holdings, market trends, and potential opportunities for further investment.
Why Choose Appreciate for US Stock Investments?
- Regulatory Compliance: Appreciate adheres to all necessary regulations, ensuring your investments are safe and compliant with Indian and US financial authorities.
- Cost Transparency: AppreciateтАЩs platform offers clear fee structures with no hidden charges, making it easier to manage costs while investing.
- Support for All Investors: Whether you’re just starting or have experience, Appreciate caters to beginners and seasoned investors with educational resources, tools, and an easy-to-use interface.
- Global Access: Appreciate provides seamless access to global markets, making it simple for Indian investors to diversify their portfolios internationally.
Final Thoughts
Investing in US stocks provides a powerful opportunity for Indian investors to diversify their portfolios and tap into global growth. By accessing the US stock market through Appreciate, investors can gain exposure to some of the worldтАЩs most innovative and influential companies, spanning technology, healthcare, and energy sectors.
This allows you to benefit from diversified growth avenues, reducing reliance on domestic markets and potentially increasing your returns over the long term. However, aligning your investments with your financial goals and risk tolerance is important while considering factors like taxation and transaction costs.
With Appreciate, you can easily navigate these factors with transparent costs and tools that support informed decision-making. Download the app now!
FAQs About Investing in US Stocks from India
How Much Can I Invest in US Stocks from India?
You can invest up to $250,000 per financial year under the Liberalized Remittance Scheme (LRS). However, the amount can vary depending on individual and regulatory limits.
What documents are required to invest in US stock from India?
You’ll need your PAN card, proof of address, and bank account details. Some platforms may also require a self-attested photograph and proof of income for KYC verification.
Can NRIs Invest in US Stocks?
NRIs can invest in US stocks through platforms supporting international investing, provided they comply with Indian tax laws and the LRS framework.
Is It Legal to Invest in US Stocks from India?
Yes, investing in US stocks is legal for Indian residents and NRIs, as long as it adheres to RBI’s LRS guidelines and other regulatory norms.
What Are the Trading Hours of the US Stock Market?
The US stock market timing starts from 9:30 AM to 4:00 PM (EST), which is 7:00 PM to 1:30 AM (IST), depending on the time of year (with daylight saving time adjustments).
What is the Best Platform in India for Investing in US Stocks?
Platforms like Appreciate and Interactive Brokers are popular choices for investing in US stocks, offering low fees, user-friendly interfaces, and robust research tools.
Can I Invest in Fractional Shares of US Stocks?
Several platforms allow you to invest in fractional shares, allowing you to buy a portion of high-priced stocks like Tesla or Amazon with a smaller investment.
What Is the Minimum Investment Amount for US Stocks?
The minimum investment amount varies by platform, but fractional shares can be as low as $1 or the equivalent of INR.
How Does Currency Fluctuation Affect My US Stock Returns?
Currency fluctuations can impact your returns when converting US stocks’ earnings to INR. A weaker INR can lead to higher returns when repatriating money, while a stronger INR might reduce the value of your investments in rupee terms.
If youтАЩre interested in learning more about stock markets, you can read the following articles:
Best Semiconductor Stocks in India
Best Green Hydrogen Stocks in India
How to Find Multibagger Stocks
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