Best Way to Buy US Stocks from India – A Simple Guide
Best Way to Buy US Stocks from India
Investing in US stocks from India is an excellent way to diversify your portfolio and gain exposure to global tech giants like Apple, Amazon, Google, and Tesla. While traditionally investing in foreign stocks was challenging, technological advancements and new investment platforms have made it easier than ever. Here’s the best way to buy US stocks from India efficiently and securely.
Steps to Buy US Stocks from India
- Choose a Suitable Brokerage Platform
- Choose an Indian or international broker that offers access to the US stock market. A popular option is Vested Finance.
- Open an International Trading Account
- Complete the KYC (Know Your Customer) verification with PAN, Aadhaar, and bank details.
- Some brokers may require additional documents for compliance with RBI’s Liberalized Remittance Scheme (LRS).
- Fund Your Account
- Transfers to US brokerage accounts fall under the Liberalized Remittance Scheme (LRS), which allows Indian residents to remit up to $250,000 per year.
- Funds are converted from INR to USD, so keep an eye on forex rates and transaction fees.
- Select US Stocks or ETFs to Invest In
- Invest in individual stocks like Microsoft, Meta, or Netflix.
- Diversify with ETFs (Exchange-Traded Funds) like S&P 500 ETFs for broader market exposure.
- Place Your Order
- Choose between market orders, limit orders, or fractional investing (some brokers allow investing with as little as $1).
- Monitor stock prices and make informed investment decisions.
Investment Options for Buying US Stocks from India
| Investment Option | Description |
| Direct Stock Investment | Buy individual shares of US-listed companies. |
| US ETFs | Invest in index funds tracking the S&P 500, NASDAQ, or sector-based ETFs. |
| Mutual Funds with US Exposure | Some Indian mutual funds invest in US stocks, offering indirect exposure. |
| Fractional Shares | Invest in high-priced stocks with small amounts using fractional investing. |
Tax Implications of Buying US Stocks from India
- Capital Gains Tax: Profits on US stocks are taxable in India.
- Short-term capital gains (less than 24 months): Taxed as per your income tax slab.
- Long-term capital gains (more than 24 months): Taxed at 20% with indexation benefits.
- Dividend Tax: The US deducts 25% TDS on dividends. However, Indian investors can claim tax relief under the Double Taxation Avoidance Agreement (DTAA).
- ITR Reporting: Foreign investments must be disclosed under Schedule FA (Foreign Assets) in your income tax return.
Conclusion
The best way to buy US stocks from India is through trusted brokerage platforms that facilitate seamless international investments. With options like direct stock investments, ETFs, and mutual funds, Indian investors can now participate in the growth of the US stock market with ease.
