In today’s interconnected world, investors are no longer limited by geography. The rise of digital trading platforms has made it easier than ever to invest in US stocks from India and gain exposure to some of the world’s most powerful brands like Apple, Microsoft, Google, and Amazon. Whether you want to diversify your portfolio or grow your wealth globally, this guide explains everything you need to know about how to invest in US stock market from India — step by step.
1. Why You Should Consider Investing in US Stocks
The US stock market is home to global leaders in technology, healthcare, finance, and manufacturing. By investing in it, Indian investors can benefit from:
- Global diversification: Reduce dependence on the Indian market.
- Currency advantage: Earn in US dollars, which generally appreciates against the rupee.
- Access to global innovation: Participate in companies shaping the future — from AI to electric vehicles.
- Stable and mature market: The US offers strong regulations and long-term growth potential.
In short, investing in US stocks allows you to participate in global wealth creation — something that was once reserved for institutional investors.
2. Is It Legal for Indians to Invest in US Stocks?
Yes, it is completely legal. The Reserve Bank of India (RBI) allows Indians to invest in foreign markets under the Liberalised Remittance Scheme (LRS).
Under this scheme, Indian residents can remit up to USD 250,000 (around ₹2 crore) per financial year for various purposes, including buying foreign stocks.
So, if you want to invest in US stock market from India, you can do so safely and legally through RBI-approved brokers or platforms.
3. Ways to Invest in the US Stock Market from India
There are two main ways you can start your US investing journey:
A. Through Indian Brokerages with Global Partnerships
Several Indian brokers have tie-ups with US-based brokers. These platforms allow you to open an account using your PAN, Aadhaar, and bank details and start trading directly in US stocks.
Some examples include platforms like Vested, INDmoney, and Groww. They handle the compliance and remittance process for you, making the experience smooth.
B. Through International Brokerage Accounts
Alternatively, you can open an account directly with a US-based brokerage that accepts Indian clients (such as Interactive Brokers). This option often offers access to a larger number of stocks and ETFs, but may involve a more detailed onboarding process.
4. Step-by-Step Guide: How to Invest in US Stocks from India
Here’s how to get started with your first global investment:
- Choose a Reliable Platform:
Select an app or broker that supports Indian users and provides access to the US market. - Open an Account:
Complete the KYC process by submitting your PAN, Aadhaar, and address proof. - Fund Your Account:
Transfer money under the LRS route using your Indian bank. The amount is converted from INR to USD. - Start Investing:
You can buy full shares or fractional shares (even a small portion of high-priced stocks). - Track Performance:
Regularly monitor your portfolio and rebalance when needed to maintain your ideal risk-reward ratio.
This process is entirely online and can be completed within minutes on most US investing apps.
5. What Are Fractional Shares and Why They Matter
Many US companies like Amazon and Google have high stock prices, making it difficult for small investors to buy one full share.
Fractional investing solves this by allowing you to own a fraction of a share — say $10 worth of Tesla instead of buying a full share worth hundreds of dollars.
This flexibility lets you diversify even with smaller amounts, making investing in US stocks from India affordable and beginner-friendly.
6. Understanding the Costs and Fees
Before you start investing, be aware of a few costs involved:
- Currency conversion fees: Banks charge a small percentage when converting INR to USD.
- Brokerage fees: Each platform charges slightly different commissions.
- Tax Collected at Source (TCS): 5% TCS is applicable for remittances above ₹7 lakh per year.
- Withdrawal fees: When you sell and repatriate funds, small charges may apply.
Though these costs exist, they are generally minimal compared to the potential benefits of global diversification.
7. Taxation Rules for Indians Investing in US Stocks
When you invest in US stocks, taxation applies in both countries — but you don’t have to pay twice thanks to the Double Taxation Avoidance Agreement (DTAA).
- Dividends: The US government deducts 25% as withholding tax. You must declare the remaining amount in your Indian tax filing.
- Capital Gains: Gains from selling stocks are taxed in India (short-term or long-term, depending on holding period).
You can claim tax credit for the amount already paid in the US, ensuring you aren’t double-taxed.
8. Benefits of Investing in the US Stock Market
Here’s what makes US investing so attractive for Indian investors:
- Exposure to top global companies like Apple, Meta, Microsoft, and Amazon.
- High liquidity and transparency in the world’s largest stock market.
- Dollar-based returns, offering long-term protection against INR depreciation.
- Access to cutting-edge industries, including AI, clean energy, and biotechnology.
Essentially, you’re not just investing in companies — you’re investing in innovation and global growth.
9. Risks and Things to Keep in Mind
Like all investments, US stocks come with certain risks:
- Currency fluctuation: A weaker USD may reduce your INR returns.
- Market volatility: The US market can also face downturns.
- Regulatory updates: RBI or SEBI policies can influence remittance limits.
To minimize risks, start small, diversify across industries, and hold for the long term.
Conclusion
Knowing how to invest in US stock market from India opens doors to global financial growth. With easy digital onboarding, fractional shares, and RBI-approved remittance routes, investing in US stocks has never been simpler.
Whether you aim for long-term wealth creation or global diversification, the key is to start small, stay consistent, and think long-term. With proper knowledge and the right platform, you can confidently invest in US stocks from India and be part of the world’s most dynamic economy.
FAQs
- Can Indian investors buy US stocks directly?
Yes. You can buy them legally via RBI’s LRS scheme through registered brokers or investment apps. - What is the minimum investment to start?
You can begin with as low as $1 through fractional investing. - Is investing in US stocks profitable?
Yes, over the long term it offers portfolio diversification, dollar-based returns, and access to global leaders.
