US stocks have become an increasingly popular investment choice for Indian investors seeking global diversification and long-term growth. If you’ve been wondering how to buy US stocks from India, this guide will walk you through the entire process. Thanks to global brokerages and fintech apps, accessing US markets has never been easier. This guide walks you through the process, costs, taxes, risks, and strategies to help you invest confidently.
Why Buy US Stocks?
Understanding why you want to buy US stocks from India is the first step:
- Global exposure – Companies like Apple, Microsoft, and Tesla lead globally.
- Portfolio diversification – Reduces reliance on Indian equities.
- Dollar hedge – Protects wealth against rupee depreciation.
- Long-term growth – US indices like S&P 500 historically deliver consistent returns.
Investing in US stocks allows Indian investors to participate in global wealth creation, gaining exposure to some of the most innovative and valuable companies worldwide.
Methods to Buy US Stocks
Several routes exist for Indian investors:
- International Brokerage Accounts
- Open an account with brokers like Interactive Brokers or Charles Schwab.
- Buy individual US shares directly.
- Fintech Platforms with US Access
- Apps like Vested, Groww, and INDmoney simplify US stock investing, offering features like fractional shares and curated portfolios for easy access.
- Offer fractional investing and curated portfolios.
- Mutual Funds with US Exposure
- Feeder funds or global funds offered by Indian AMCs.
- Less control, but easier for beginners.
- Exchange-Traded Funds (ETFs)
- Track indices such as S&P 500 or NASDAQ 100.
- Provide diversification with a single investment.
Step-by-Step Guide to Buying US Stocks
If you’re wondering “how to buy US stocks from India?”, here’s a practical process:
1. Choose a Broker or App
Pick a platform that suits your needs: fintech apps for simplicity or international brokers for advanced tools and greater flexibility..
2. Complete KYC Verification
Submit PAN, Aadhaar, and proof of address. Most apps verify accounts online within 24–48 hours.
3. Fund Your Account
Transfer INR to USD under RBI’s Liberalized Remittance Scheme (LRS), with an annual cap of $250,000.
4. Research and Select Stocks
Use available tools to analyze companies or ETFs. Beginners may prefer diversified ETFs like S&P 500.
5. Place Orders
Decide between market orders (buy instantly at current price) or limit orders (buy at a set price).
6. Monitor Portfolio and Rebalance
Track performance regularly. Rebalance to maintain desired allocation.
Costs Associated
When planning to buy US stocks from India, factor in:
- Brokerage fees – These are usually charged per trade or as a percentage of the transaction amount. Make sure to compare fees before choosing a platform.
- Currency conversion charges – Banks typically charge a spread of 0.5–2% when converting INR to USD for your investment.
- Remittance charges – Usually ₹500–₹1,000 per transfer.
- Annual account maintenance fees – Some brokers apply yearly fees.
Tax Implications
Taxes are an essential consideration when buying US stocks:
- Dividends – US dividends are taxed at 25% at the source. In India, they are also taxable, but the Double Taxation Avoidance Agreement (DTAA) allows you to claim a credit for the tax already paid in the US, reducing the risk of double taxation.
- Capital Gains – Not taxed in the US, but STCG and LTCG apply in India.
- Disclosure – Foreign assets must be reported in your Indian ITR.
Being aware of taxes avoids penalties and surprises.
Risks to Consider
Buying US stocks also carries risks:
- Currency fluctuations – Rupee-dollar rates affect returns.
- Market volatility – US monetary policy, global crises can impact performance.
- Regulatory limits – LRS restricts annual remittance to $250,000.
- Overconcentration – Avoid putting too much of your portfolio into US stocks, as this can create an unbalanced allocation and expose you to unnecessary risk.
Strategies for Success
- Start Small – Use fractional shares or ETFs to test the waters.
- Diversify – By buying US stocks from India, you can diversify your portfolio globally and build long-term wealth.
- Dollar-Cost Averaging – Invest regularly instead of trying to time the market.
- Stay Informed – Monitor US market updates and earnings reports.
- Think Long-Term – Focus on 3–5 year horizon to benefit from growth.
Final Thoughts
Learning how to buy US stocks from India empowers you to tap into global markets, diversify your investments, and build wealth for the long term. Choosing the right platform, starting small, diversifying, and staying compliant with tax and regulatory rules are key to success. With discipline and a long-term approach, Indian investors can leverage US equities for wealth creation and portfolio diversification.
FAQs
- Do I need a US account to buy US stocks?
No, funds are remitted from your Indian bank to the broker. - Can I invest with small amounts?
Yes, fractional shares allow starting with as little as $1. - Are US stock gains taxed in India?
Yes, dividends and capital gains must be reported and taxed as per Indian laws. - Is buying US stocks risky?
Like any investment, US stocks carry risks, particularly due to currency fluctuations and market volatility. However, diversification and a long-term approach can help mitigate these risks.
