The first time I learnt that Indians could legally invest in US stocks, I assumed the process would be complicated. Surprisingly, it isn't. The part that usually confuses people is all the rules around it.
Indian residents invest in US stocks under the Liberalised Remittance Scheme (LRS), which allows you to remit up to USD 250,000 per financial year for permitted purposes, including overseas investments.
Think of LRS as the legal route your money takes before it reaches the US stock market.
Choose a Platform
This is where most beginners spend all their time.
Everyone asks, "Which app is the best?"
Honestly, there isn't one perfect platform.
Apps like INDmoney, Groww, Vested and Dhan all let Indian investors access US stocks through their partner brokerages. Instead of choosing based on advertisements, compare:
Brokerage
Currency conversion charges
Fund withdrawal fees
Fractional investing
Customer support
The cheapest platform isn't always the one that saves you the most money. Sometimes hidden forex charges make a bigger difference than brokerage.
Complete KYC
Opening a US investing account is quite similar to opening a brokerage account in India.
You'll usually need:
PAN
Aadhaar or another identity proof
Bank account
Address proof
KYC verification
Most platforms complete the process online.
Fund Your Account
Once your account is approved, you'll transfer money from your Indian bank.
The amount is converted from rupees to US dollars before reaching your overseas investment account.
One thing many beginners forget is that exchange rates change every day. So the amount of dollars you receive isn't determined only by the stock price. The INR-USD exchange rate matters too.
Buy US Stocks
Once your funds arrive, you can start investing.
Many platforms even allow fractional investing, which means you don't have to buy an entire share of companies like Apple or Amazon. You can invest with much smaller amounts.
If I were starting today, I wouldn't rush to buy ten different companies on day one. I'd first understand what each business actually does.
Understand Charges
This is the part people often overlook.
Besides the stock price, you may pay:
Brokerage
Currency conversion (forex) charges
Bank remittance fees
Platform fees, if applicable
TCS on LRS remittances above the applicable threshold, which can later be adjusted while filing your income tax return.
A platform advertising "zero brokerage" doesn't always mean your total cost is zero.
Know the Tax Rules
Buying US stocks is easy.
Understanding taxes takes a little more effort.
Capital gains are taxable in India, and US dividends are generally subject to US withholding tax. However, the India-US tax treaty helps reduce double taxation by allowing eligible tax credits. Depending on the route you use, you may also need to disclose foreign assets in your income tax return.
If your investments become significant, speaking with a tax professional is usually worth it.
Monitor Your Investments
One mistake I see quite often is people checking US stock prices every fifteen minutes.
Long-term investing doesn't work like that.
Review your portfolio periodically, follow company earnings and keep an eye on your overall asset allocation instead of reacting to every market headline.
Sometimes doing nothing is a better investment decision than constantly buying and selling.
FAQs
Can Indians legally buy US stocks?
Yes. Resident Indians can invest in US-listed shares under the Liberalised Remittance Scheme (LRS).
How much money do I need to start?
Many platforms offer fractional investing, so you can begin with relatively small amounts instead of buying a full share.
What charges should I expect?
Brokerage, forex conversion, bank remittance fees and, where applicable, TCS on overseas remittances above the prescribed threshold are the main costs.
Must Read: Here’s How Indian and US Stock Markets are Different (and Similar)
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