Contact UsInvesting in the US stock market is no longer complicated for Indian investors. With digital platforms, fractional shares, and RBI approval under LRS, you can easily invest in global companies from India.
This guide covers everything you need to know – legality, process, charges, timings, limits, taxation, risks, and important tips.
Can I Invest in US Stocks from India?
Yes, Indian residents can legally invest in US stocks.
Under the Liberalised Remittance Scheme (LRS) regulated by the Reserve Bank of India (RBI), individuals can remit up to $250,000 (according to the current rate, ₹90.87, it will be ₹2 crore) per financial year for foreign investments, including:
- US stocks
- ETFs
- Mutual funds
- Bonds
- Real estate abroad
So, investing in US shares from India is completely legal and regulated.
How to Invest in US Stocks from India?
There are three main ways:
- Through Indian Brokers Offering US Investments
Many Indian platforms allow direct investment in US stocks:
- Groww
- INDmoney
- ICICI Direct
- HDFC Securities
They partner with US brokers and handle currency conversion and compliance.
- Open an Account with a US Broker
You can directly open an account with global brokers like:
- Interactive Brokers
- Charles Schwab Corporation
This option usually offers lower brokerage and advanced tools.
- Invest via International Mutual Funds or ETFs
You can invest indirectly in US markets through:
- International mutual funds
- ETFs tracking indices like the S&P 500
- Tech-focused index like the NASDAQ-100
This is ideal for beginners who prefer diversification.
How to Buy US Stocks from India? (Step-by-Step Process)
Here’s the exact process:
Step 1: Choose a Broker
Compare brokerage fees, forex markup, and ease of use.
Step 2: Complete KYC
Submit:
- PAN Card
- Aadhaar
- Bank details
- Address proof
Step 3: Fund Your Account
Transfer INR under LRS. Your broker converts it to USD.
Step 4: Research the Stock
Check:
- Revenue growth
- Profit margins
- Debt levels
- Competitive advantage
You can track major US indices like:
- Dow Jones Industrial Average
- NASDAQ Composite
Step 5: Place the Order
You can:
- Buy full shares
- Buy fractional shares (e.g., 0.2 share of a high-priced stock)
That’s it – you now own a US stock.
US Stock Market Open Time in India
The US markets operate according to Eastern Time (ET).
Regular Market Hours:
- 9:30 AM to 4:00 PM ET
In Indian Standard Time (IST):
- 7:00 PM to 1:30 AM IST (during Daylight Saving Time)
- 8:30 PM to 3:00 AM IST (during Standard Time)
Major US exchanges include:
- New York Stock Exchange
- NASDAQ
How to Trade US Stocks from India?
Investing and trading are different.
Investing:
- Long-term holding
- Focus on growth and compounding
Trading:
- Short-term buying and selling
- Intraday or swing trading
- Requires technical analysis and risk management
To trade US stocks:
- Use a broker offering US trading.
- Understand volatility and global news impact.
- Be aware of overnight market hours (IST timing).
How Much Can I Invest in US Stocks?
Under LRS rules:
- Maximum: $250,000 per financial year
- No minimum limit (many brokers allow fractional shares)
You can start with as little as $1–$10, depending on the platform.
Charges Involved When You Invest in US Stocks from India
Understanding costs is very important.
- Brokerage Fee
Some platforms charge zero commission, others charge per trade.
- Forex Conversion Charges
Usually 0.5%–2% markup on USD conversion.
- Remittance Charges
Bank outward remittance fees may apply.
- US Regulatory Fees
Small SEC/FINRA charges per trade.
- Tax Collected at Source (TCS)
Under Indian tax rules, TCS may apply on foreign remittances beyond certain limits.
Always compare total cost before choosing a platform.
Taxation on US Stocks for Indian Investors
- Dividend Tax
- 25% tax deducted in the US (as per India-US DTAA).
- You can claim foreign tax credit in India.
- Capital Gains Tax in India
- Held < 24 months → Short-term (taxed as per slab)
- Held > 24 months → Long-term (20% with indexation)
Consult a tax advisor for filing correctly.
Reasons to Invest in US Stocks from India
- Global Diversification
Reduce dependence on the Indian economy.
- Hedge Against Rupee Depreciation
USD investments protect currency value.
- Access to Global Leaders
Invest in companies like:
- Apple Inc.
- Microsoft Corporation
- Amazon.com Inc.
- Tesla Inc.
- Exposure to Innovation
AI, cloud, semiconductors, biotech, EV sectors.
Things to Remember Before Investing
- Understand currency risk
- Compare forex charges carefully
- Diversify across sectors
- Avoid investing based on hype
- Consider long-term holding
- Understand tax implications
- Check US market holidays
- Keep track of global news and interest rates
Additional Important Points (Often Missed)
- Fractional investing allows small capital entry.
- US stocks do not have STT like India.
- Estate tax may apply on large US holdings (important for high-net-worth investors).
- Market volatility is higher due to global economic events.
- SIP-style investing can be done in ETFs.
Final Thoughts
Investing in US stocks from India is simple, legal, and accessible in 2026. With proper research, cost comparison, and long-term planning, it can significantly strengthen your portfolio.
If done wisely, US investments can offer diversification, currency protection, and exposure to some of the world’s fastest-growing companies.
Disclaimer
This content is for informational purposes only. Details may change and can vary by location. Please verify information from official sources before making any decisions. The author is not responsible for actions taken based on this content.
