Table of Contents
- Introduction
- Can Indians Invest in the US Stock Market?
- How to Invest in US Stocks from India
- Best App to Invest in US Stocks from India
- How to Buy US Stocks from India
- Trading in US Stocks from India
- Costs & Charges Involved
- Tax on US Stock Investment for Indian Investors
- Risks of Investing in US Stocks
- Minimum Amount Required to Invest in US Stocks from India
- US Stocks vs Indian Stocks – Which Is Better?
- Common Mistakes to Avoid When Investing in US Stocks
- Conclusion
- FAQs
Introduction
Every day, we all use brands like Google, Amazon, and Apple. When you buy US stocks from India, you really own a part of these big firms. It's a terrific way to generate income that extends beyond your own country.
The US stock market is the biggest in the world. It boasts tech companies worth trillions of dollars and new enterprises that are revolutionising the industry. It has the best liquidity and helps you get a close look at the firms that will influence our future.
Benefits of Global Diversification
- Putting your money into more than one economy lessens the risk of diversification.
- A diverse portfolio helps you handle losses and make more money.
- Things that are worth money and are worth a lot.
- Keeps you from having to deal with changing currencies over time.
Can Indians Invest in the US Stock Market?
You can do that, yes! Indians living in India can send money to foreign nations through the RBI's LRS. This plan is the official way for you to buy US stocks from India without needing to gain approval from the government for each transfer.
Under LRS, any Indian citizen living in India can contribute up to $250,000 (approximately ₹2.1 crore) a year. This includes children with their guardian's approval. This generous amount easily fits the needs of most individual investors.
Is it legal to invest in US Stocks from India?
It is not against the law. The RBI is in charge of the whole process. As long as you stay inside your $250,000 limit and report your foreign assets correctly during tax season, you are completely legal.
How to Invest in US Stocks from India (Step-by-Step Guide)
Step 1: Choose the Right Platform
The first thing you should do is look for the best software to use to buy in US stocks from India. Look for providers like Vested, INDmoney, or Groww that don't charge any fees and make it easy to transmit money that satisfies RBI laws.
Step 2: Complete KYC & Account Setup
Get your PAN card, Aadhaar, and a recent bank statement handy. Everything is set up digitally. You will also sign a W-8BEN form online, which lowers the amount of tax you have to pay on dividends in the US from 30% to 25%.
Step 3: Fund your Account (Currency Conversion Process)
Before you can learn how to buy in US stocks from India, you need to have some money in your pocket. You send Rupees to your bank, which then turns them into Dollars. Always check the FX markup fees with your bank.
Step 4: Start Investing
As soon as the money is in your brokerage account, you're ready to go. Choose the ETFs or companies you like best, type in how much you want to pay, and then click “buy.” You can also acquire small amounts of shares for just a few dollars!
Best App to Invest in US Stocks from India
Key Features to look for
When looking for the best app to buy US stocks from India, look for ones that are easy to use, have minimal LRS financing costs, let you invest in fractions, and make it easy to file your ITR by giving you pre-made tax reports.
Brokerage, Charges & Fee Comparisons
|
Feature |
App A (e.g., INDmoney) |
App B (e.g., Vested) |
|
Account Opening |
Free |
Free |
|
Brokerage |
Zero |
Zero |
|
Withdrawal Fee |
~$5 |
~$11 |
Safety & Regulation Factors
In the US, make sure that the broker you choose is a member of the SIPC and registered with the SEC. You are a member of SIPC, thus your account is safe up to $500,000 if the brokerage company goes out of business.
Popular Investment Apps Overview
The most popular platforms in this region are INDmoney, Vested, and Groww. They work with US brokers to ensure your trades go through safely, and they also deal with the difficult rules and regulations in India behind the scenes.
How to Buy US Stocks from India
Placing Your First Order
If you're having problems figuring out how to buy US stocks from India, don't worry. It's just like buying things online. Pick the stock you want, type in how much you want to spend, and then click “buy.” The shares went straight into your portfolio.
Market Orders vs. Limit Orders
A market order buys the stock right away at the price that is currently available. You can set a strict price limit with a limit order. Your trade will only go through if the stock price drops to that exact amount.
Fractional Shares Explained
Say hi to Rahul. He wants to buy Amazon, but each share costs $200. Because of fractional shares, Rahul can buy a 0.05 share of that share for only $10. It helps people with small finances stay alive!
Buying US ETFs vs Individual Stocks
Choosing individual stocks is risky. For a safer method to invest, choose an ETF like the S&P 500 (ticker: VOO). With just one click, it puts your money into 500 of the top American firms.
Trading in US Stocks from India
Investing vs Trading: What’s the Difference?
You need to keep your investments for years to make real money. On the other hand, trading US stocks from India implies buying and selling stocks every day to take advantage of short-term price movements.
US Market Timings in India
The US stock market opens at 7:00 PM and closes at 1:30 AM IST. It opens at 8:00 PM and closes at 2:30 AM during daylight saving time. It fits perfectly with your free time after dinner!
Day Trading Rules and PDT Rules
If you perform more than three day trades in five days, the US considers you a “Pattern Day Trader” (PDT). To start trading again, you will need to keep at least $25,000 in your account.
Risks of Short-term Trading
If you trade a lot, you might have to pay a lot of fees to convert and withdraw money. Also, short-term capital gains are taxed at the same rate as your regular Indian income tax slab, which can take up to 30% of the money you worked hard to achieve.
Costs & Charges Involved
Brokerage Fees
Most current systems will let you trade without paying a fee. But be careful not to lose any secret subscription plans or modest fees from the SEC when you sell your shares.
Currency Conversion Charges
Every time you move INR to USD, banks charge a forex markup. Most of the time, this cost is between 1% and 2.5%. When you buy US stocks from India, you should worry about this extra cost that you don't know about.
Wire Transfer Fees
Indian banks charge a flat fee of ₹500 to ₹1,500 to send money to another nation. To avoid incurring fees, transfer greater sums all at once instead of tiny amounts every few days.
Tax Collected at Source (TCS)
According to the most recent rules from 2026, you have to pay a 20% TCS if you transmit more than ₹10 lakh for investments in a single financial year. Don't worry; you may easily receive this money back when you file your ITR.
Tax on US Stock Investment for Indian Investors
Capital Gains Tax Rules
Long-Term Capital Gains (LTCG) are stocks from other countries that you have owned for more than 24 months. You have to pay a flat 12.5% tax on them. If you sell it before 24 months, it's Short-Term (STCG), and you pay the same tax rate as you do on your regular income.
Dividend Taxation
For instance, Microsoft pays Priya a $100 dividend. The US takes 25% ($25) as tax. Priya's normal income in India gets the $100 added to it and taxed at her slab rate.
Double Taxation Avoidance Agreement (DTAA)
Priya doesn't have to pay taxes twice because of the DTAA between India and the US. She can use the $25 that was deducted from her US taxes as a direct credit against her final Indian tax payment.
How to report US Stocks in the ITR
You must include your foreign assets on “Schedule FA” (Foreign Assets) of your Income Tax Return. You might get in a lot of trouble under the Black Money Act if you don't do this. So be careful when you file.
Risks of Investing in US Stocks
Currency risk
The value of the US dollar compared to the Indian rupee affects your outcomes. Even if stock prices stay the same, the value of your US portfolio in INR will go down if the Rupee suddenly gets stronger against the Dollar.
Market Volatility
The US stock market is greatly affected by interest rate hikes, inflation numbers, and election cycles. You should be able to handle changes of 10% to 15% in your portfolio over the course of a few weeks.
Regulatory Risks
The government can change the TCS rates or the RBI can change the LRS limits whenever they want, exactly like they did with the Budget 2026 amendments. It's crucial to keep up with the news when you buy US stocks from India.
Geopolitical Factors
Trade disputes, wars around the world, and changes in US policy have a big effect on the attitude of the market. Anything that happens in the world could create quick sell-offs that hurt the tech and multinational companies in your portfolio.
Minimum Amount Required to Invest in US Stocks from India
You don't have to worry about a scary minimum amount to invest in US stocks from India because of fractional shares. You can even start with just $1 (approximately ₹84). But because bank wire costs and FX markups are the same, it makes sense to transmit at least ₹10,000 to ₹50,000 at a time.
US Stocks vs Indian Stocks – Which Is Better?
No one thing is better than another. In a fast-growing economy, Indian corporations are fantastic for aggressive expansion. US equities, on the other hand, give you access to mature global monopolies. A smart investor does both! Use Indian marketplaces to grow your business swiftly, and buy US equities from India to keep your money safe and secure.
Common Mistakes to Avoid When Investing in US Stocks
Don't forget about those hidden charges that come with FX markup. Don't forget to send in Schedule FA with your tax returns. Don't buy penny stocks that are getting a lot of press. Finally, if you don't know what the PDT rule is, don't trade US stocks from India. Your account will be frozen immediately away.
Conclusion
Is investing in US Stocks right for you?
Yes, if you want to own parts of the brands you use every day and keep your portfolio safe from the rupee losing value. Buying US equities from India is a great strategy to build wealth over time.
Final Tips for Beginners
Choose ETFs over individual stocks, start small, and always keep an eye on the exchange rates and the new TCS rules. Are you ready to set up that global portfolio?
FAQs
Q 1 What is the main difference between a Roth IRA and a Traditional IRA?
The main difference between a Roth IRA and a Traditional IRA is when you get the tax benefit. With a Traditional IRA, you usually receive a tax deduction now but pay income tax when you withdraw in retirement. With a Roth IRA, you pay taxes upfront, but qualified withdrawals in retirement are completely tax-free.
Q 2 Which is better in 2026: Roth IRA or Traditional IRA?
Q 3 What are the IRA contribution limits for 2026?
For the 2026 tax year, the IRA contribution limit is $7,500 for individuals under 50. Those aged 50 and older can contribute up to $8,600, which includes a $1,100 catch-up contribution.
Q 4 Are Roth IRA withdrawals tax-free?
Q 5 Do Traditional IRAs have required minimum distributions?
Yes, Traditional IRAs have required minimum distributions (RMDs). If you were born between 1951 and 1959, RMDs begin at age 73. If you were born in 1960 or later, RMDs start at age 75. Roth IRAs do not require RMDs during the account holder’s lifetime.