From Apple To Amazon: The Ultimate Guide To Investing In US Stocks From India

Last Updated:June 10, 2025, 15:29 IST

Investing in these global giants allows you to diversify your portfolio and participate in their growth; Here’s how to invest in US stocks

Want To Invest In US Stocks? The US stock market hosts some of the world’s most renowned companies—think Apple, Google, Facebook, and General Motors. Investing in these global giants allows you to diversify your portfolio and participate in their growth journey beyond the Indian stock market.

Given that there are no US stock brokers based in India, several Indian platforms have emerged to help investors participate in US equities.

Two Main Ways to Invest in US Stocks from India

Indian investors can explore two primary avenues for investing in the US stock market:

1. Direct Investment – Buying shares of US companies directly.
2. Indirect Investment – Gaining exposure through mutual funds or exchange-traded funds (ETFs).

Direct Investment: Opening A Trading Account

With a Domestic Broker

Many Indian brokers have partnerships with US brokers, enabling you to invest in US stocks through an overseas trading account. You’ll need to provide documentation to open the account, but do note that certain restrictions may apply, such as limits on investment products or trading frequency.

Additionally, be aware of the charges involved—brokerage fees and currency conversion costs can be significant.

With a Foreign Broker

You can also open an overseas trading account directly with a US-based broker that operates in India, such as Charles Schwab, Ameritrade, or Interactive Brokers. These brokers typically offer a wider range of investment options. Make sure you understand the fee structure and trading conditions before committing.

Indirect Investment: Mutual Funds and ETFs

Mutual Funds

Investors can indirectly gain exposure to US markets by investing in mutual funds that hold US stocks. This method doesn’t require setting up a foreign trading account or meeting high minimum deposit requirements.

Exchange-Traded Funds (ETFs)

You can also consider investing in ETFs that track US stock indices. Some ETFs are directly listed in the US and can be purchased via a foreign broker, while others are Indian ETFs designed to replicate international indices.

New-Age Apps for US Stock Investing

Emerging fintech apps have simplified the process of investing in US stocks for Indian investors. However, these apps may not support intraday trading due to regulatory constraints.

How Much Can Indians Invest in US Stocks?

The Reserve Bank of India (RBI) permits Indian residents to invest up to $250,000 (about Rs 1.9 crore) annually under the Liberalized Remittance Scheme (LRS) without special permissions.

Charges Involved in Investing in US Stocks

Before investing in US markets, it’s essential to understand the associated costs:

• Tax Collected at Source (TCS): 5% TCS is applicable on remittances exceeding Rs 7 lakh per year under LRS. The TCS can be claimed as a refund while filing income tax returns.
• Capital Gains & Dividend Tax: US dividends are taxed at 25% for Indian investors. Due to the Double Tax Avoidance Agreement (DTAA), you can claim credit for taxes paid abroad. While there’s no US capital gains tax, Indian tax laws apply on capital gains from US stocks.
• Bank Charges: Banks typically levy foreign exchange conversion and transfer fees, along with possible account setup charges.
• Brokerage Fees: Brokerages charge commissions on stock purchases and sales.
• Foreign Exchange Rate: Currency fluctuations can impact the cost of investment and the value of your holdings.

Why Invest in US Stocks?

Adding US stocks to your portfolio offers diversification and access to some of the world’s most dynamic companies. Thanks to new tools and resources, researching and investing in global markets is easier than ever.

However, investors must carefully consider the risks and costs associated with international investing. Make sure your decisions align with your financial goals and risk appetite.

Investing in the US stock market from India opens new doors for diversification and potential growth. By understanding the process, charges, and best practices, Indian investors can take advantage of opportunities in global markets while managing risks effectively.

Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More

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