Investing in top US stocks has become straightforward for individuals in India owing to various brokerage firms and the rise of online investment platforms. Here, we’ll be providing you with a detailed guide on how to invest in shares of leading US-based companies without any hassle.
There are two ways that individuals can consider if they’re looking to park funds in the US equity market. Let’s take a look at them.
Through Domestic Brokers
Individuals can invest directly in stocks, such as Apple, Microsoft and Google by opening an overseas trading account with a brokerage firm based in India. That said, it is crucial for one to note that there might be certain limitations in relation to the services offered by the domestic brokerage firm. For example, there might be restrictions regarding the number of buy or sell orders you can place.
There are various Indian brokerage firms that work with stockbroking companies in the US. These companies act as intermediaries and assist in executing these trades. You can open an overseas trading account with any such domestic brokerage firm to invest in US stocks.
Through Foreign Brokers
Alternatively, individuals residing in India may consider opening a trading account with a foreign stockbroking company that operates in India. Once they open the account successfully, they can invest in shares of the leading companies in the US. That said, before opening such an account, make sure that you’re aware of all the associated costs.
For individuals who are wondering how buy US stocks in India, the process has become less intricate than before. National Stock Exchange Ltd. (NSE) revealed that individuals can trade in shares of certain companies in the US via its subsidiary, NSE IFSC.
Individuals can start investing in US stocks on the NSE IFSC platform by following the steps mentioned below:
Step 1: Open a trading account with a stockbroker registered with NSE IFSC. You can do this conveniently by availing online services offered by the brokerage firm.
Step 2: Complete the KYC process by submitting the necessary documents, for example, your PAN and Aadhaar Card.
Step 3: Once you’ve successfully opened the account, add funds to your account to purchase the stocks you wish to, and add them to your portfolio. Note that the regulations allow you to use the funds for derivative trading or for speculation purposes.
Step 4: You can invest in any of the best US-based companies, such as Microsoft, Amazon or Facebook after opening an account. However, remember that this arrangement allows fractional investing. In other words, you can have fractional ownership of any US stock.
Apart from this, investors may consider the indirect way of investing in US stock investing.
Various mutual funds in India allow individuals to invest in the US equity market indirectly. This is a cost-effective way of investing in shares of Apple, Amazon and Google. This is because investors do not need to open a trading account or pay an amount as a deposit. Individuals can also consider investing in US Exchange Traded Funds (ETFs) via domestic or foreign brokers. Alternatively, they may purchase units of any of the Indian ETFs that track US stock market indices.
Make sure to keep these things in mind before buying US stocks from India:
Now that you know how to invest in US stocks, you can fulfil your dream of owning shares of Apple and Google today. However, before allocating your funds, make sure to consider various essential aspects, which include your investment objective and risk appetite.