If you’re interested in knowing how to invest in US stocks from India but aren’t sure how to get started, this comprehensive guide covers everything you need to know, from investment basics and brokerage fees to taxation, plus recommendations for some of the best US stocks to buy.

Why Invest in U.S. Stocks from India?

• Global Diversification: Spread your risk across markets beyond India.
  
• High Growth Potential: Invest in global leaders like Apple, Amazon and Google.
  
• Currency Advantage: Benefit from the long-term depreciation of INR vs USD, historically translating to 3–5% extra returns.

How to Invest in US Stocks from India

Follow these steps to start investing in US stocks online:

Step 1: Choose a Broker

Select a brokerage platform offering international trading to invest in US stocks from India. Ensure the platform:

• Ensure the platform is regulated for investor protection
  
• Look for the availability of expert guidance
  
• Verify competitive brokerage charges
  
• Prefer platforms with easy account opening procedures
  
• Confirm robust security and regulatory compliance

A trusted platform like 9Point Capital provides all of these features, ensuring a smooth and secure investing experience for Indian investors.

Step 2: Open an Account

Open an international trading account with your chosen broker. You will typically need:

• PAN Card
  
• Aadhaar Card
  
• Bank account details
  
• Proof of address
  
• A completed KYC form
  

Step 3: Fund Your Account

Transfer funds from your Indian bank account to your brokerage account. You can remit funds via the Liberalised Remittance Scheme (LRS), allowing individuals to remit up to $250,000 per financial year.

Step 4: Start Investing

Once your account is funded, you can start investing in US stocks. The process typically involves:

• Searching for the desired stock or exchange-traded funds (ETFs).
  
• Deciding on the investment amount or the number of shares.
  
• Confirming the purchase.
  

Brokerage Charges to Consider

When investing in US stocks from India, brokerage charges typically include:

• Account Maintenance Fees: Some brokers charge a monthly or annual fee.
  
• Transaction Fees: Charged per trade or as a percentage of the traded value.
  
• Currency Conversion Charges: Charged when converting INR to USD.
  

Always review the fee structure clearly before selecting your brokerage platform.

Taxation on US Stocks in India

Taxation is an important aspect to consider when investing in US stocks from India:

Dividends:

• Dividends earned from US stocks are subject to a withholding tax of 25% in the U.S.
  
• In India, dividends received from foreign companies are taxed at your applicable income tax slab rates. You can claim a credit for US withholding taxes paid under the Double Taxation Avoidance Agreement (DTAA).
  

Capital Gains:

• Short-term Capital Gains (holding period less than 24 months): Added to your taxable income in India and taxed according to your income tax slab.
  
• Long-term Capital Gains (holding period more than 24 months): Taxed at 12.5%

Ensure proper documentation and consult a tax advisor for specific guidance on your tax situation.

Best US Stocks to Buy

If you’re wondering which stocks to start with, consider blue-chip companies renowned for their stability and growth potential. Top choices include:

• IBIT (BlackRock iShares Bitcoin Trust): A recently launched spot Bitcoin ETF by BlackRock, IBIT offers exposure to Bitcoin through a traditional brokerage account. It’s ideal for investors seeking cryptocurrency exposure without directly holding digital assets. 
• Apple (AAPL): Known for consistent innovation and strong earnings.
  
• Tesla (TSLA): A leader in the electric vehicle industry.
  
• Amazon (AMZN): E-commerce and cloud computing giant.
  
• Alphabet (GOOGL): Google’s parent company with strong advertising and technology revenue streams.
  
• Microsoft (MSFT): Tech giant with consistent dividend payouts.
  

Invest through Exchange-Traded Funds (ETFs)

Exchange-Traded Funds (ETFs) offer a smart and accessible way to invest in the U.S. market without picking individual stocks. They provide built-in diversification by spreading your investment across a mix of companies, industries, or major market indices like the S&P 500 or NASDAQ.

Here are a few types of ETFs gaining popularity:

• Bitcoin ETFs: These offer a simpler path to invest in digital assets without directly buying cryptocurrency. Notable examples include the iShares Bitcoin Trust ETF (IBIT) and the Grayscale Bitcoin Trust ETF (GBTC).
  
• SPDR S&P 500 ETF Trust (SPY): Tracks the performance of the S&P 500, giving exposure to 500 of the largest U.S. companies.
  
• Invesco QQQ Trust (QQQ): Focuses on the NASDAQ-100 Index, which includes major tech-driven companies.
  
• Vanguard Total Stock Market ETF (VTI): This fund offers a broad investment in the entire U.S. stock market, including small-, mid, and large-cap stocks.
  

ETFs are a flexible and efficient tool to build a well-rounded portfolio with ease.

Things to Keep in Mind

Before investing in US stocks from India, consider:

• Taxation: Understand the tax implications in both the US and India.
  
• Currency Risks: Evaluate how currency fluctuations may affect returns.
  
• Regulatory Compliance: Stay updated with RBI guidelines regarding overseas investments.
  

Conclusion

Investing in US stocks from India can significantly boost your investment portfolio’s potential. You can efficiently diversify and enhance your investment strategy by carefully selecting a brokerage platform, understanding brokerage charges and taxation and identifying the best US stocks or ETFs. Always ensure you remain informed and compliant with regulatory requirements to maximise your returns.

Ready to take your portfolio global?