How to Withdraw or Transfer Your US Stocks portfolio From Groww?

29 May 2024
8 min read
How to Withdraw or Transfer Your US Stocks portfolio From Groww?
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Groww launched US stocks to enable investing in the US market to resident Indians. But due to some factors in the ecosystem that were beyond our control, users wouldn't have the great experience, which they do when they invest in Indian markets.

We understand you may want to continue your US stock investment journey outside of Groww. For this, you can easily and safely migrate your holdings to another platform that provides this service or you can withdraw your holdings and reinvest the capital through some other platform.

This blog can assist you in understanding the two possible solutions that you can opt to depending on the investing goal. We will also focus on how the whole process of migrating your US stocks works and guide you in transferring them to an external platform of your choice, rendering such services. It is important to understand that all your US stocks are held by US broker dealers in the US and Groww only provides a platform for all the transactions.

Solution 1: Withdrawing current holdings

You can easily withdraw all your holdings in one go, here is a step by step process to do this:

  1. Login to https://groww.in/ and open ‘US stocks tab’ where you can see all your holdings.
  2. Sell your holdings by selecting stocks one by one and clicking on the sell button
  3. Once your positions are liquidated, the amount will be reflected in your US$ wallet from where you can initiate a full withdrawal.  
  4. The withdrawal will be completed in 3-4 working days and you will be charged $30 on it by the US broker. The withdrawal charges on Groww still remain to be $9. The balance amount of 21$ will be refunded to your Groww (Indian) bank account within 10 days 

Solution 2: Automated Customer Account Transfer Service (ACATS)

Knowing about the ACATS (Automated Customer Account Transfer Service) is essential while migrating your US stocks. 

Your US stocks are held by US broker dealers in the US, which are firms that buy/sell stock on behalf of its customers.The ACATS system automates the transfer of US stocks belonging to a customer account from one platform to a different platform or bank that allows investing in the US stocks.

ACATS facilitates the transfer of assets like equities, corporate and municipal bonds, UITs (Unit Investment Trusts), options, mutual funds, etc.,Depending on the external broker partner, ACATS usually takes three to fourteen days to process the transfer.

Process Involved in the Transfer of US Stocks:

The process involved in the transfer of US stocks from Groww to an external platform might differ depending upon the platform you choose to migrate to. By following the steps mentioned below, you can initiate the process:

  1. Before requesting for ACAT, download the account statements from this link. (You won't be able to download account statements once the ACAT is completed).
  2. Log on to the platform where you want to transfer your holdings and complete the onboarding process
  3. Contact their support team, ask them to initiate ACAT (Platform: Groww, Broker dealer: Viewtrade securities) and provide them with your account statement. These are the details you may need to share:
  • Contra firm/ delivery firm name- APEX clearing
  • Contra firm/ delivery firm address - 350 N St. Paul Street, Suite 1300,Dallas, TX,75201
  • Contra firm/ delivery firm email -  [email protected]
  • Clearing no./ DTC number- 0158
  • Account number / APEX ID- You can find it in website or you can find it in "Bank & AutoPay" section under the details of your US Stocks linked bank account
  • Phone number - 214-765-1100
  1. If your request is accepted, their support team will give you an ACAT form that you will have to fill and sign. Post this your portfolio will be transferred in around 10-14 days.

Things to Note Before Initiating an ACAT:

  1. You will be charged 75-100$ for the ACAT, make sure that you have enough balance in your wallet. Groww will refund this cost in your indian bank account in 8-9 working days. Please let us know once your transfer is complete to claim a refund.
  2. Your ACAT request will be declined if your residential status has changed, or if you have any pending orders or withdrawals, or if there are discrepancies between the information you provide in the ACAT form and what the other firm has on file.
  3. Kindly do not place any buy or sell orders after initiating the ACAT, they will be rejected and will not be processed.
  4. Kindly make sure that you initiate a “FULL ACAT” request and not a “PARTIAL ACAT”.
  5. All your whole shares will be transferred but fractional parts of shares and ESOPs will not be transferred. Fractional shares will be liquidated and the cash will be transferred to the wallet balance. 

List of available platforms, their offerings and their charges:

Here is an overview detailing the services provided and associated charges across various platforms.

Vested

  • You can access detailed analyst ratings, financial data and earnings reports.
  • You can have  additional 9.5 hours of extended trading hours.
  • You can set up SIPs (Systematic Investment Plans) to continue your investments in US stocks 

The charges include,

  • The basic plan has a one-time fee of INR 250; if you want priority support and additional features, you can opt for the premium plan, which costs INR 375 monthly. 
  • The basic plan incurs a brokerage fee of 0.20% on the trade amount, while the premium plan carries a lower fee of 0.10%. Both plans have a maximum brokerage fee capped at US $20. 
  • Under the basic plan, each withdrawal incurs a $5 fee. However, with the premium plan, your first two withdrawals are free, after which you'll be charged $5 per withdrawal

INDmoney:

  • You can earn up to INR 500 cashback on your first deposit
  • You can set up SIPs (Systematic Investment Plans) for investing in US stocks.

The charges include,

  • A flat brokerage of 0.15% is charged on all US Stocks trade.
  • 5$ is charged for every withdrawal (for a non-federal linked bank account).
  • No annual maintenance charges and no account opening fees.
  • Platform fee of 0.75% of the deposit amount is charged at every deposit 

Stockal:

  • There is no lower cap on how much you can invest
  • Stockal helps you with the LRS procedure and BEN tax form, thereby making compliance easy for you
  • Access to many of the popularly traded stocks

The charges include,

  • Stockal Global is free, and the brokerage fee is 5 cents per share
  • Stockal Global Plus costs you INR 9,999 annually and the brokerage fee is 1 cent per share.

ICICI Direct Global:

  • You must be an existing ICICI Direct customer to apply for ICICI Direct Global.
  • Seamless account opening in just a few clicks and no need for any minimum balance
  • You can invest in small amounts and buy fractional shares
  • You can access various global research reports and make better-informed decisions

The charges include,

  • ICICI Global Classic is priced at zero and charges you US $ 2.75 per trade
  • ICICI Global Select is priced at INR 999 per year and charges you US $ 1.99 per transaction
  • ICICI Global Advantage is priced at INR 9,999 annually and charges no brokerage fees.

You can choose the external platform based on the account opening charges, brokerage fee per trade, annual charges, and additional features.

Please note: Charges and features are as per 17th May 2024 and are subject to change. We take no responsibility or liability for any incorrect information. 

Are There Any Tax Implications Involved during ACAT?

Since you won't be liquidating your shares, no capital gains tax is involved in transferring shares from one broker to another. However, make sure that you download your account statement before requesting for ACAT to avoid any confusion later (link)

Conclusion: 

If you plan on holding your US stocks or continuing to invest in US stocks, there are two possible routes, first is to migrate the portfolio to a different broker and the other solution is to withdraw your entire holdings . Since you read through the blog, you might have understood what an ACAT transfer and withdrawal is and the process to follow. 

When considering a new platform, it's crucial to weigh the support, offerings and charges of different brokers. This will help you make a well-informed decision that aligns with your investment goals.

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