[2024] *How to invest in US stocks from India: Best 5 Free Apps

Guys, do you want to know how to invest in US stocks from India (NASDAQ) or how to buy US stocks from India? We are very excited to elaborate on how can anyone invest in the US stock market sitting in India in just a few simple clicks. 

How to invest in US stocks?

Investing in US stocks is easier in 2 ways. 1) Either opening an overseas Demat/Trading account with Domestic Broker/Foreign Broker directly via Interactive Brokers, INDmoney, etc broker app/website or 2) via ETFs as well as global mutual funds indirectly.

The US stock market is the favorite place to start investing for many smart Indian investors. Because they get more opportunities to start investing with very little capital (as little as $1 or Rs. 50).

Apart from that, the US stock market is the abode of thousands of international growth stocks where the world’s most successful investors like; Warren Buffet, George Soros, Ray Dalio, Cathie Wood, and Tiger Global made their stocks portfolios. 

From the Top 20 Tech stocks to high-growth AI stocks, the US stock market is the home of some best international companies’ stocks like Meta (Previously Facebook), Google, Amazon, Apple, General Motors, Tesla, Netflix, Etc. 

Investing in such companies allows Indian investors to participate in their growth success stories while allowing them to diversify their portfolios beyond the Indian Stock market. 

Acknowledging the opportunity, many Indian online platforms have made it easier for Indian investors to invest in the US stock market as there are no direct US stock brokers present in India. 

How to invest in US stocks from India

Investing in US stocks from India is even easier than you imagine. There’re 2 distinct ways available 

• Directly Invest in any US stocks 
• Indirectly invest in US stocks via ETFs as well as global mutual funds.  

Read About MULN stock Forecast

Both ways are as simple and easy as water. But as financial literacy increases, most beginners as well as veterans prefer the direct ways how to invest in US stocks from India.

The benefits of direct investment are manyfold. In-built stock screeners help investors how to invest in US stocks from India by analyzing and recommending.

Directly Invest in any US stocks

There are 2 ways to invest in US stocks directly from India.

• 1) Open an overseas Demat/Trading account with Domestic Broker
• 2) Open an overseas Demat/Trading account with Foreign Broker

Direct investing means an Indian can buy any US stocks or start SIP (Systematic Investment) in any US stock, buy fractional US shares (in Indian rupees or in $). In this case, the Indian investors needn’t invest in Mutual Funds or ETFs.

Example; If You want to buy Tesla share, you can buy directly from your overseas trading account and sell whenever you want. You can also directly earn dividend if Tesla declares any interim or final dividend.

Open an overseas Demat/Trading account with Domestic Broker

In the era of Investment revolutions, almost 99% of Indian brokers have tie-ups with US stock brokers like Alpaca, DriveWealth, and View Trade Securities. And almost all such Indian brokers are discount brokers. It means users get eligible for FREE trading account opening with zero (0) brokerage. 

However, it’s important to know that investing in US stocks from India has a certain number of restrictions. Some restrictions vary from broker to broker.

So, if you’re wondering how to invest in US stocks from India, some good brokers’ Apps are available for Indian users. 

5 Best Apps to Invest in US stocks from India

• INDmoney
• GROWW
• Vested
• OctaFX
• 5 Paise

These 5 Apps as well as websites give users a seamless experience on how to invest in US stocks from India. And if you want a more filter among these 5 apps, INDmoney is the best App for investing in US stock market, and after INDmoney, you can choose Groww.

On INDmoney, users get free US stocks on investing, tracking and referring. Beginners can learn What are FAANG+ companies ? in INDmoney.

Get FREE US stocks worth Rs. 1000

If you download INDmoney App from our link and while registering insert our code, you will get Top US stocks absolutely FREE of cost and it worths Rs. 1000.

Read INDmoney Reviews

Read Groww Reviews

Besides the above Platforms, Discount brokers like Angel one, Zerodha, Upstox, ICICI securities, Finity, Etc are available but either some of them don’t provide users that window how to invest in US stocks from India or users are not able to find top international stocks like Apple, Google, Meta, Amazon, Etc.

Open an overseas Demat/Trading account with Foreign Broker

Indian investors can also open their overseas demat and trading account with some online foreign brokers. The process is not same here. 

Top 3 Online Foreign Brokers

• Charles Schwab:
  • Opening Trading Account: Users will need to upload some documentations like; Tax ID or social security number, Digital copy of Passport, Digital Copy of Utility bills mentioning proof of residence, User’s employer’s name and mailing address, Etc.
  • Fees and charges: Every time investors buy or sell stocks, they will have to pay a certain amount of broker fees. So, before opening account, it’s important to learn about that.
  • What Charles Schwab provides: 1) Investment products for a well balanced US portfolio 2) Investment Advice to achieve investment goals 3) Trading tools and resources 4) safe and secure international trading account
• Ameritrade:
  • Opening trading account: To open a trading account users should submit Social Security or ITIN number, Foreign Tax ID, or Visa Number and Users’ employers’ name address and phone numbers.
  • Fees and Charges: Trading/Demat account opening charge is zero. But before opening account it’s recommended to learn about all trading brokerage charges.
  • What Ameritrade provides: Investment products like; Stocks, ETFs, Crypto, Future and Option, IPOs, Etc.
• Interactive Brokers:
  • Opening Trading Account: Name, address, Income tax and residential proof, Etc.
  • Fees and Charges: This platform’s vision is to minimize investors’ cost and maximize their returns. Still users should check and learn all about their brokerage commission etc.
  • What Interactive Brokers provide: International stocks, ETFs, mutual funds, currencies, Metal trade, Bonds, Etc.

Apart from these platforms, many more online international brokers are available online on how to invest in US stocks from India or any country. The names of some online international brokers who help investors on how to invest in US stocks from India or any country are

• Etoro
• Trade Station
• IG Group
• Webull
• Saxo Bank
• Robinhood
• Elliot Wave Forecast

Comparing Domestic Brokers (Those who have tie-ups with foreign brokers) and International brokers, How to invest in US stocks from India is easier and beginners friendly with Domestic Brokers.

Most Famous International Stock markets including the US stock market 

• NASDAQ: The full form of NASDAQ is National Association of Securities Dealers Automated Quotations. It is the second largest American Stock exchange by market capitalization of shares traded. 
• NYSE: New York Stock Exchange is the largest of US stock exchanges by market capitalization
• TSX: The Toronto Stock Exchange is the 3rd largest of US stock exchanges by market capitalization
• DJIA: Dow Jones Industrial Average is the second-oldest index in the history of US, comprises over 30 large US companies with a total market cap of $8.2 billion.
• S&P 500: It comprises over 500 largest US/international companies with a high market cap in the US  
• Etc.

How to invest in US stocks via Indirect Investments

Whether it is Indian stock market or US stock market, investment in any stock market involves market risk. Before and after investing any stocks, investors need much analysis, research and knowledge of market ups and down time to time. 

That’s why many conservative investors do not like to invest in stock market directly. But as they are keenly interested in investing, they can choose Mutual Funds and ETFs as their mode of US stock investing. 

There are lots of 5-star Mutual Funds available in the Indian financial market. And these mutual fund AMCs (Asset Management Companies) invest your money in different international stocks including US stocks.

How to invest in US stocks via Mutual Funds?

If you’re going to choose this passive route of investing, you don’t need to open any overseas Demat or Trading account with Domestic or international brokers. 

All that you need to find out is those Mutual Fund AMC that invest in the US market.

But in the case of Mutual Funds investments, users should get their money invested for a minimum of 3 to 5 years for a good return.

Some lucrative and safest Mutual Fund companies that Invest 90% of their total assets in the world’s top companies’ stocks listed outside India

How much can an Indian individual invest in US stocks from India

As per the RBI’s Liberalized Revenue Scheme (LRS) an Indian individual (resident) can invest up to $2500000 (INR 1.99 crore) every year without any special permission 

Taxes Charges and Fees:

• Tax Collected at source: On all the aggregate remittance above Rs. 7,00,000, a 5% of TCS Tax (Tax Collected at source) is levied per year under the RBI’s LRS scheme. The full form of LRS is Liberalized Remittance Scheme. This 5% TCS is applicable to the excess amount above 7 lakhs and not to the total amount. 
• Capital Gain Tax: Holding US stocks for more than 24 months/2 years at a stretch qualifies Indian investors for a long-term capital gain and they are taxed at a 20% LTCG with indexation. And no exemption of Rs. 1,00,000 will be applicable for any foreign stocks.  
• Dividend Tax: Dividend is taxable earning in the US. So, a dividende tax at the rate of 25% is levied on the Indian investors. But they can claim credit paid as taxes abroad under the Double Tax Avoidance Agreement (DTAA), so that they do not have to pay tax for the same income.

Other than these taxes, 3 types of Charges and Fees are charged on Indian investors:

• Bank Charges: If you invest in US stocks from India through Foreign Brokers, Most of the Indian banks will charge a foreign exchange conversion fee and transfer fee and an account set up charge (one-time)
• Brokerage Fees: Most brokers charge a certain amount.
• Foreign Exchange Rate: The cost and the number of stocks, ETFs units allotted is impacted for the foreign exchange rate at the time of buy or sell.

But all these charges will seem more flexible when you invest in US stocks through Indian Brokers, tied-up with foreign brokers. Examples: INDmoney, GROWW, Etc.

Summing Up: How to invest in US stocks sitting in India?

Easiest way: open a US stock account with INDmoney, GROWW, Etc. Indian Brokers, tied-up with foreign brokers or Open an overseas trading account with Foreign brokers like; Elliot Wave Forecast, Etc.

In this 2023, if you are allowing yourself to start investing in US stocks for an investment diversification it’s not bad idea. 

However, it is important to learn that US stock market opens when Indian stock market remains closed. And sometimes US stock market volatility effects Indian market too. 

Not only US stock market but also any stock market in the world has some certain pros and cons their own. But, it is also true that in such volatility and risk many investors got millionaire from stock market investing. 

US stock market has more some unique features and facilities than that of Indian stock market. Users can buy fractional shares of any US stocks, which is not available in Indian stock market.

Practice makes a man perfect. Learning, analyzing, researching are the key for becoming a successful investor. Whether it is US stock market or Indian, you can’t make profit if you do not ensure all aspects as well as choose and invest in right stocks according to your financial goals and risk tolerance. 

Some Pro tips: 

• Don’t invest in stocks, rather invest in business potentiality of a company
• Learn everyday
• Buy stocks in bear market
• Sell stocks in bull market
• Always invest in Dividend Paying Stocks

Happy US stocks investing. How to invest in share market online

Avishek Das

I am a personal finance, stock market update, etc.-related blog post writer. Besides, I am a stock market trader. I invest in IPOs, stocks, Etc. I publish valuable posts and information here.