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How To Guide

How To Invest In US Stocks From India

How should you invest in US stocks from India? Get solid answers to your questions and see how you can start investing in global stocks & ETFs that work for you.
November 8, 2024

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Investing in US Stocks can be a good option to grow wealth due to several benefits. You can invest in companies like Apple, Amazon, Facebook,. Tesla & Microsoft from right here in India! But investing in US stocks from India is a road less travelled for most Indian investors. 

If you want to own a piece of Berkshire Hathaway, Samsung or Google but don't know how to get started, this blog is for you. Let us begin by taking a look at why you should invest in US stocks from India before we get into the “how” of it.

Why Invest In US Stocks From India?

Investing in the US market can be a good option for wealth creation since the world's biggest large cap companies are hosted on the S&P 500 exchange. This is why investing in the NYSE and NASDAQ and other US Markets is tempting for many investors. Let’s break it down into 4 main reasons.

  1. The power of USD: The American dollar is one of the strongest currencies in the world economy. Rarely does its value deprecate and if you look at the 10 year comparison between USD Vs INR, this is what you see:

Year

INR ₹

USD $

2010

₹45

$1

2015

₹66

$1

2020

₹73.32*

$1


  1. Global marketplace: Companies from around the globe are listed on the US stock market. So you can buy stocks of not only US companies like Apple, Google, Tesla, etc. but also Alibaba, Vale SA, AstraZeneca, ASML, etc.
  2. Diversification: Buying US stocks allows you to diversify your portfolio based on geography, industry, and magnitude.
  3. Market Cap: The US markets have the largest market capitalization in the world. Here's a table that shows the astronomical difference of market caps between the US and Indian markets:
US Market Cap
Figures for 2019

How To Invest In The US Stock Market From India?

There are five methods that you can use to buy US stocks from India. We’ll let you figure out which one is suitable for you:

1. Through An Indian brokerage

Several domestic brokerages have partnered up with US brokers. With such a domestic brokerage, broadly speaking, you will have to:

  • Complete your KYC (PAN, Residential proof, Bank a/c details, etc.)
  • Open an Overseas Trading Account
  • Transfer funds to the Overseas Trading Account
  • Let the US brokers execute trade on your behalf

2. Through A Foreign Brokerage

A number of foreign brokerages have a direct presence in India. Opening a brokerage account with such establishments can allow you to invest in US stocks. In general, you will have to:

  • Complete your KYC (PAN, Residential proof, Bank a/c statement & details
  • Set up a trading account
  • Invest in US stocks

3. Through Mutual Funds

One way to get some exposure to international markets without having to open a trading account is through International Mutual Funds. This requires a fair bit of research because of the number of options like index funds, feeder funds, fund of funds, and sector/thematic funds.

You can invest in international funds in two ways:

  • Buy mutual funds directly from the fund house (AMC)
  • Use a reliable mutual fund app

4. Through ETFs

Some Indian or International ETFs can give you access to US stocks. For example, there are ETFs that track the S&P 500 index. You can invest in such international ETFs through brokerages. 

5. Through Online Platforms

There are many apps and platforms that can help you invest in US Stocks. At the end of the day, you need to pick one that has a solid track record while being reliable and trustworthy.

US stock Investment Facts
Source: Google

What Should You Remember Before Investing In US Stocks From India?

It is always advisable to invest based on research and not chase overnight success or indulge in get rich quick schemes. So here are a few pointers that can help you invest in US stocks in a better way:

1. Risk Analysis

Identify your risk profile and invest in stocks that can work for you. Do forecast the possible returns or lucrative losses. It is recommended to do your own research and not rely on any sources.

2. The Liberalized Remittance Scheme

In accordance with rules published by the Reserve Bank of India (RBI) under the Liberalized Revenue Scheme (LRS), an Indian resident is allowed to make unrestricted investments of up to $250,000 (about 1.9 crore rupees) annually.

3. Taxation And Transactional Charges

Before investing, keep an eye on brokerage, account charges, and taxation as per both India and the US. International transactions lead to higher charges based on USD. Don't forget that currency conversion charges are applicable while investing abroad.

4. Consult A Wealth Coach

It is advisable to consult a wealth coach before investing. You can speak to our wealth coach at Cube Wealth and get the best financial advice.

US Stock Investment Tips

FAQs around US Stock Investment From India

Q. How can I trade US stocks from India?

Ans. You can trade US stocks from India with a reliable app like Cube Wealth for as low as $1. Cube Wealth lets you buy and sell US stocks like Apple, Amazon, Google, Tesla, Microsoft, Facebook, and more in two ways:

  • On your own (DIY)
  • With advice from RIA, Rick Holbrook

The best part? Cube Wealth is simple & easy to use - no unnecessary jargon, no complicated graphs.

Q. Can I buy Tesla stock in India?

Ans. Yes, you can buy Tesla stock from India with the powerful Cube Wealth app for as little as $1. Cube simplifies the US stock investment journey by helping you open a US brokerage account with DriveWealth, Cube's US brokerage partner.

Moreover, you can buy Tesla stock on your own or with advice from RIA, Rick Holbrook.

Q. Which Is The Best Way To Invest In The US Stock Market From India?

Ans. There are many methods to invest in the US stock market from India, like through an Indian brokerage, a foreign brokerage, mutual funds, etfs, or online platforms like Cube Wealth. Cube Wealth lets you buy and sell US stocks from the comfort of your home, at the touch of your fingertips.

Q. How Much Can Indians Invest In The US Stock Market?

Ans. In accordance with rules published by the Reserve Bank of India (RBI) under the Liberalized Revenue Scheme (LRS), an Indian resident is allowed to make unrestricted investments of up to $250,000 (about 1.9 crore rupees) annually.

Q. What Are The Advantages Of Buying US Stocks As An Indian Investor?

Ans. The US stock market makes up 54% of the global equity market. Investing in the world's largest stock exchange market gives your portfolio diversification, access to global companies, and the potential to earn higher returns.


Related blogs:

  1. How to Buy Apple, Amazon, Google Stock from India?
  2. How To Invest Like A Global Citizen?
  3. Is It Better To Invest In India Or the USA?
  4. Can Indians Invest In NASDAQ?
  5. Tips For Investing in US Equities
Priya Bansal
Curious about personal finance and all things money. Can either find me reading a book or dancing to a tune.

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