How to Invest in US Stocks from India

Investing in US stocks from India allows investors to participate in the growth of some of the world's most recognised companies (Apple, Microsoft, Amazon, Meta, etc). 

Ask ten Indian investors whether they own any US stocks, and most will say “not yet, but I want.” Ask why they haven't started, and the answer is usually the same: it sounds complicated. But not anymore! 

Today, investing in the US market for Indian residents has become legal and easier than ever through the RBI's Liberalised Remittance Scheme (LRS) and GIFT City. 

An all-India portfolio is a bet on one economy. That's not wrong, but it does mean your savings rise and fall with a single market and a single currency. Adding US stocks is one of the simplest ways to spread that risk, and it also gives you a stake in companies you can't buy on Dalal Street.

In this blog, we will cover everything you need to know about 3 ways to invest in US stocks from India, the rules, and the costs involved. 

How to Invest in the US Stock Market from India?

There are two distinct ways of investing in the US stock market from India:

• Direct investment in stocks and ETFs via IFSCA (Gift City) regulated brokers 
• Indirect investment in stocks via mutual funds or ETFs.

Direct Investments

You can invest in the US stock market directly by opening an overseas trading account with a domestic or foreign broker. Be mindful of the charges before you pick the best app to invest in US stocks.

• GIFT City-based broker apps (like Groww)

GIFT City (Gujarat International Finance Tec-City) is India's international financial services centre. The IFSCA, its regulator, has approved several Indian brokers, including Groww, to let users buy US stocks and ETFs through GIFT City. The framework behind this, called Global Access Provider (GAP) registration, was introduced in August 2025 to create a regulated channel with simpler fund repatriation. 

In short, you can now buy US stocks from an app you are already using for Indian investments, rather than opening an account with an unfamiliar foreign broker.

How it works? 

The investor needs to complete a short onboarding inside the app, add funds through an LRS remittance, and then buy and sell US-listed stocks and ETFs. Behind the scenes, the platform connects to a US brokerage partner. 

• Direct foreign brokerage account

Another option is to open an account directly with a foreign brokerage firm that allows Indian residents to open demat accounts. 

Through this route, investors gain access to a range of US-listed stocks, ETFs and other eligible securities, depending on the broker's product offering and the rules applicable.

However, not all foreign brokers support the same. For those who do, opening and maintaining an overseas brokerage account involve additional steps. Investors may need to arrange outward remittances through an authorised dealer bank, complete foreign tax documentation, understand the broker's funding and withdrawal procedures, and maintain records for Indian tax reporting.

Indirect Investments

Like domestic investments, you can take an indirect position in US stocks without investing in them directly. Here are two options to consider:

• Indian ETFs and fund-of-funds (FoFs) 

Several Indian asset management companies offer ETFs that invest in US markets, either directly or through a fund-of-funds structure that buys units of overseas funds. For instance, Mirae Asset S&P 500 Top 50 ETF, Motilal Oswal Nasdaq Q50 ETF, Mirae Asset NYSE FANG+ ETF, and so on. 

The investor can simply invest in rupees through their usual mutual fund platform/app, and the units will be allocated as the applicable NAV. Through this route, investors get US market exposure without LRS paperwork, TCS or a foreign brokerage account.  

One important thing to remember is that regulators cap overseas investments by the fund industry, and some fund houses have paused or limited fresh inflows at times (for instance, the Motilal Oswal S&P 500 Index Fund). Check if your chosen fund is accepting new investments.  

How Much Can I Invest in US Stocks?

The Reserve Bank of India (RBI) released guidelines under the Liberalized Revenue Scheme (LRS) that permitted an Indian Resident to invest up to 250000 dollars (around 1.9 crore rupees) per year without any special permissions.

Now that we know how to invest in the US market from India, let’s look at some reasons why you should consider investing in stocks in the US and the charges involved.

What are the Different Charges Involved While Investing in US Stocks?

Here are the different charges involved you should know while searching for how to buy US stocks from India-

Brokerage

Brokerage is the fee charged by a platform or broker for executing your buy or sell orders. It may be calculated as a percentage of the transaction value, a fixed amount per order, or according to another pricing structure. 

The exact fee depends on the provider and the account you use. For example, Groww's brokerage for US stocks is 0.1% of the executed order value or $1 per executed order, whichever is higher. Also, there’s zero account opening and maintenance charges for the US stocks. 

Currency Conversion Charges

This is usually the biggest hidden cost. You need dollars to buy US stocks, and whoever converts (i.e., bank) your rupees adds a markup over the mid-market exchange rate.

Indian banks typically charge about a 0.5%-1.5% (plus 18% GST) forex markup to convert INR to USD and USD back to INR.   

A 1% forex markup on a ₹10 lakh round-trip investment costs you ₹20,000. A 3% markup on the same amount would cost about three times that. Rates vary a lot by bank and platform, so compare the all-in rate and the fee.

Bank & Remittance (Wire Transfer) Charges 

When you send money from India to fund overseas investments, your bank charges for processing the outward remittance. Depending on the transfer method and banks involved, other intermediary or transfer fees may also apply.

The Reserve Bank of India's Liberalised Remittance Scheme (LRS) Master Direction sets out the regulatory framework for permitted remittances; however, it does not prescribe one universal bank transfer fee for every investment remittance. Charges depend on the service provider and its applicable tariff. 

Check your own bank's current outward-remittance schedule before transferring funds. 

Tax Collected at Source (TCS) 

TCS applies when you remit money abroad under the RBI's LRS. It is different from brokerage or a bank's service fee and is applicable as follows: 

• For US stock investments, TCS is nil up to ₹10 lakh and 20% on the amount above ₹10 lakh in a financial year. 
• If you remit ₹12 lakh, only the ₹2 lakh above the threshold attracts TCS, which is ₹40,000. 
• The threshold applies to aggregate eligible LRS remittances, not separately to each transfer.
• TCS can be claimed back through your income tax return.

US Regulatory and Transaction Fees

Buying or selling US stocks may involve regulatory and transaction-related charges in addition to brokerage, such as SEC, FINRA, CAT, IGST, and IFSCA turnover fees. Which charges apply depends on the security, transaction and broker's arrangements.

GST on Applicable Service Charges

GST may apply to taxable services provided by your broker, depending on the transaction and applicable tax rules. 

Do not assume that the GST treatment of every service or charge is identical. Check the provider's fee schedule and transaction statement.

Withdrawal and Repatriation Charges

When you sell US stocks and transfer the proceeds back to your Indian bank account, you may incur withdrawal, currency conversion and bank transfer charges. The exact cost depends on the investment platform, the account structure and the banks involved.

Reasons to Invest in US Stocks from India

Since we have already answered how to invest in US stock market from India, here are some reasons you should consider US Investment in India:

• Historically, the US Stock Market indices have been less volatile than the Indian stock market indices.
• Most mega global corporations are headquartered in the US, which offers you a more diversified investment avenue.
• The US Stock Market has outperformed the Indian Stock Market over the last decade in pure dollar terms.
• With the US being at the centre of global innovation, you can invest in a promising company during its initial stages.

Things to Remember Before Investing in US Stocks from India

• Open an overseas trading account if you have the time and expertise to analyze the US market and economy and make informed decisions.
  
  
• International investing attracts more charges as compared to domestic investments. Look for the account charges, brokerage, currency conversion charges, etc. Hence, ensure that you understand all charges well.
  
  
• Investing is more cost-efficient than trading in the US market. This is because high charges can eat away at the marginal profits that traders usually make. Long-term investing allows you to earn reasonable returns post-charges, too.
  
  
• Consider applicable taxes as per the US and Indian taxation laws.
  
  
• Start small and increase your investment as you gain an understanding of the US markets.

Summing Up

By allowing yourself to consider starting US stock trading from India and investing in foreign markets, you can introduce an additional element of diversification to your portfolio. With information at our fingertips, researching and analyzing stocks is simpler than before.

However, it is important to remember that international stock investing has certain pros and cons. Hence, ensure that you consider all aspects and invest according to your financial goals and risk tolerance.

Happy Investing!