Best Broker To Invest In US Stocks From India
If you have invested only ₹1,00,000 (1 Lakh) in TESLA stock in January 2013, it would have been valued at approximately ₹1,65,60,000 (1.65 Crore) in November 2021.
Other US stocks, like Amazon, Google, Apple, Facebook, General Motors, etc., have also given excellent returns in the past ten years.
But, most retail investors from India don’t know how to invest in overseas stocks. Read this guide to learn how to invest in USA stocks from India.
I have reviewed some of the best brokers that allow buying and selling US stocks from India in this guide. I’ll also tell you some indirect investing methods in the USA stock market.
Best Brokers To Invest in US Stocks From India
There are two methods of investing in the US stock market from India. In the first method, you can open an overseas trading account, and in the second method, you can invest in mutual funds that have global portfolio exposure.
But, in the second method, you don’t have control over your portfolio. So, I have listed the seven best brokers from India to invest in US stocks.
1. IND Money
IND Money offers an inviting gateway for Indian investors to explore US stocks. You can trade in USA stocks by opening an overseas trading account with IND Money.
Its intuitive interface simplifies the investment journey, though it falls short in providing comprehensive stock analysis tools.
However, its minimal fees and user-friendly platform make it an appealing choice for beginners and those seeking hassle-free access to global markets from India.
Pros
- Easy access to US stocks listed on NASDAQ and NYSE.
- The interface of the IND Money mobile app is user-friendly.
- The account opening process is straightforward.
- Zero account opening and annual maintenance charges.
- Low brokerage and no minimum balance maintanance requirement.
Cons
- It is not good for analysis and research.
Brokerage and Charges Details
| Type | Charges |
|---|---|
| Account Opening Charge | ZERO |
| Annual Maintainance Charge | ZERO |
| Brokerage on US Stocks | 0.15% per trade |
| Platform Fee | 0.75% of the deposit amount |
2. Interactive Brokers
Interactive Brokers is a trustworthy broker that allows Indian residents to invest in US stocks.
It offers a great trading platform for every investor from beginner to advanced on mobile, web, and desktop.
It allows investing in mutual funds, ETFs, stocks, futures, and options in the global market at minimal commission and charges.
Pros
- A leading and trustworthy global broker that is listed on Nasdaq.
- It gives access to invest in stocks, derivatives, mutual funds, ETFs, bonds, etc., from a single platform.
- Interactive Brokers pays a 4.83% interest rate on your cash balance.
- There are no minimum account balance maintenance criteria.
Cons
- The account opening process is a little complicated.
Brokerage and Charges Details
| Type | Charges |
|---|---|
| Account Opening Charge | ZERO |
| Annual Maintainance Charge | ZERO |
| Brokerage on US Stocks | $0.0005 to $0.0035 per share |
| Other Fee | $10 to $100 deposit charges |
3. HDFC Securities
HDFC Securities provides an overseas trading account to buy and sell US stocks listed on Nasdaq and NYSE.
If you want to invest directly globally, you can diversify your portfolio by investing in over 4000+ U.S. securities.
HDFC Securities works in collaboration with Stockal Inc. I recommend HDFC Securities because account opening and fund transfer are hassle-free.
Pros
- Hassle-free global trading account opening process.
- You can deposit and withdraw funds via wire transfer.
- Interactive trading platform for beginners.
Cons
- Brokerage is high for trading in the global market.
Brokerage and Charges
| Type | Charges |
|---|---|
| Account Opening Charge | ZERO |
| Annual Maintainance Charge | ZERO |
| Brokerage on US Stocks | $2.99 per share |
4. ICICI Direct
ICICI Direct, a prominent player in India’s financial landscape, facilitates US stock investments for Indian traders.
While providing a user-friendly interface, it lacks the depth of research tools compared to some competitors.
Nevertheless, its reliability, coupled with its familiarity with Indian investors, makes it a viable option for those seeking a familiar platform to enter the US stock market from India.
Pros
- It offers a seamless online account opening process.
- No minimum balance maintenance is required.
- It offers a user-friendly platform for global stock analysis.
Cons
- High brokerage on trading in the global market.
Brokerage and Charges
| Type | Charges |
|---|---|
| Account Opening Charge | ZERO |
| Annual Maintainance Charge | ZERO |
| Brokerage on US Stocks | $2.79 per order |
5. Kotak Securities
Kotak Securities, a trusted name in Indian brokerage, extends its services to US stock investments for Indian traders.
Its strengths lie in a robust research infrastructure, user-friendly interface, competitive brokerage charges, and a wide range of investment products.
You can start your global investment journey with an overseas trading account by Kotak Securities.
Pros
- A popular stock broker in India.
- Fully digital account opening process.
- Hassle-free account funding via net banking.
- No minimum investement criteria.
Cons
- You might face issues with their customer support.
Brokerage and Charges
| Type | Charges |
|---|---|
| Account Opening Charge | ZERO |
| Annual Maintainance Charge | INR 600/year |
| Brokerage on US Stocks | $1.99 per trade |
6. Stockal
Stockal offers Indian investors an avenue to explore US stocks with its innovative platform.
Its standout features include a comprehensive global investment advisory, curated investment opportunities, and a user-friendly interface tailored for Indian investors.
Stockal offers two plans for foreign investments- Global and Global Plus. The yearly charge for Global Plus is INR 9999, in which you’ve to pay 1 cents per order brokerage while trading in US stocks.
The basic plan has no yearly charges, but their brokerage is 5 cents per order. The account opening charges are zero for both plans.
Pros
- No account opening fee.
- No minimum fund maintenance requirement.
- You can buy and sell a stock in global currency.
Cons
- High brokerage for basic plan users.
7. Charles Schwab
Charles Schwab is the USA’s #1 brokerage firm, which allows investing in stocks, mutual funds, ETFs, forex, bonds, etc.
Its extensive range of investment options and excellent customer service are noteworthy. That’s why it won many awards in terms of customer satisfaction.
Opening an overseas trading account with a foreign broker like Charles Schwab may involve more paperwork and verification. However, their customer support will help you with the onboarding process.
Pros
- #1 Ranked stock broker in the USA.
- Zero account opening and annual maintenance fee.
- Zero brokerage for stocks and ETF delivery orders.
Cons
- Account opening involves more paperwork and verification.
- A minimum of $5000 in account maintanance is required.
Conclusion
These are some ways to invest or trade in stocks listed on the Nasdaq and New York Stock Exchange (NYSE). You can also diversify your investment portfolio by choosing a mutual fund that has foreign exposure.
Parag Parikh Flexi Cap Fund is a popular fund that has exposure to global stocks like Microsoft, Alphabet (Google), Amazon, Suzuki Motor Corp (ADR) and Meta Platforms (Facebook).
I hope you found this article helpful. Please check out our homepage for more stock market-related guides.
