How to invest in US stocks from India?


What is a stock?

In general, the ownership certificates of any corporation are referred to as stocks. On the other hand, a share alludes to a certain company’s stock certificate. You become a shareholder if you possess shares of a specific corporation.

How to invest in US stocks from India?

Well, there are two different ways one can do this:

Direct investment in stocks: By opening an international trading account with a domestic or foreign broker, you can invest directly in the US stock market. Before choosing the finest app to invest in US equities from India, consider the charges.

Opening with a domestic broker: Many local brokers have connections to US stockbrokers. They carry out your trades and serve as an intermediary. With any such broker, you can set up an international trading account. To open this account, you might need to provide a number of papers. When brokerage and currency conversion fees are taken into account, investing can be expensive. Therefore, before opening an account, make sure you are aware of all the expenses.

Opening with an international broker: Additionally, you can directly open an account with a foreign broker having a presence in India. Charles Schwab, Ameritrade, Interactive Brokers, and others are a few of these brokerages. Before opening the account, make sure you are aware of the costs. So, before choosing the best broker to invest in US stocks from India, do your research thoroughly.

Indirect investments in stock via mutual funds or ETFs: if you do not want to invest directly in the US stock market you can also do so by investing indirectly in various ways:

Mutual funds: In contrast to some stockbrokers who offer direct international investments, you are not required to open an offshore trading account or maintain a minimum amount. Mutual Funds are widely available and many of them invest in US stocks or other Mutual funds.

Exchange-traded funds or ETFs: By investing in ETFs, you can also increase your exposure to US stocks. ETFs can be used in both direct and indirect ways. You can buy US ETFs directly from a domestic or foreign broker, or you can buy an Indian ETF of a global index.

Investment via apps: Since the development of mobile apps for various services, several start-ups have released apps to aid Indian investors in making stock market investments in the US. Some of these apps may not permit intraday trading in the US market from India due to legal limitations.

Conclusion: there are various ways one can invest in overseas markets and earn more than what they would usually earn investing in their own country because of the currency, but that also means having to invest more money. You can invest directly or indirectly depending upon your knowledge of the overseas stock market and other factors. Starting with an indirect type of investment like in mutual funds seems like the safer way but that changes from individual to individual.