How to Buy US Stocks from India?

Indian investors can access the US stock market either directly or indirectly. Direct investment involves purchasing US-listed shares through an eligible domestic or foreign broker.

• You can invest directly through an overseas trading account.
• You can invest indirectly through mutual funds or ETFs.
• Resident individuals can remit up to ₹2.40 crore ($250,000) in a financial year under the Liberalised Remittance Scheme.
• A 20% TCS generally applies to eligible LRS remittances above ₹10 lakh.
• Taxes, brokerage fees, bank charges and currency conversion costs may apply.

• Changes in the rupee-dollar exchange rate can increase or reduce your returns.

  
  
  

You can invest in the US stock market from India in two main ways:

• Direct investment
• Indirect investment

I. Direct investment

Direct investment means purchasing shares of companies listed on US stock exchanges. You can do this through a domestic broker or an eligible foreign broker.

A. Opening an overseas trading account with a domestic broker

Some domestic brokers allow Indian residents to access international markets through arrangements with overseas brokerage firms.

You need to open an overseas trading account with the broker. Once the account is active, you can transfer funds and place orders for eligible US stocks.

The domestic broker or its overseas partner carries out the transaction on your behalf. Charges and available investment options may differ between brokers.

B. Opening an overseas trading account with a foreign broker

You can also open an account directly with a foreign broker that accepts Indian residents.

This may provide direct access to US stock exchanges. However, you should check the broker’s regulatory status, account requirements, available securities and charges before opening the account.

Money sent from India for overseas investments is covered by the Reserve Bank of India’s Liberalised Remittance Scheme. Under this scheme, resident individuals can remit up to ₹2.40 crore ($250,000) in a financial year for permitted transactions.

II. Indirect investment

Indirect investment allows you to gain exposure to the US market without purchasing individual US-listed shares yourself.

You can invest through mutual funds or ETFs that invest in US companies, sectors or market indices.

A. Mutual funds

Mutual funds collect money from several investors and invest it in a portfolio of securities.

Some mutual funds invest in US companies or overseas funds. By investing in such a scheme, you can gain exposure to the US market without opening an overseas trading account.

A professional fund manager selects and manages the investments. However, the scheme may charge management fees and other expenses.

B. Exchange-traded funds

An exchange-traded fund, or ETF, is a fund that trades on a stock exchange like a share.

• An ETF may track:
• A US market index
• A particular industry or sector
• A group of US companies
• A basket of different securities

• ETFs allow you to invest in several companies through a single investment. You can invest in an Indian-listed ETF with US exposure or purchase a US-listed ETF through an overseas trading account.

  
  

C. Online new-age apps

Some online investment platforms allow Indian residents to access US stocks.

Depending on the platform, you may be able to purchase complete shares or fractional shares. Some platforms may also provide automated investment services based on your financial goals and risk tolerance.

Before selecting a platform, check its regulatory status, fees, available securities, fund transfer process and withdrawal conditions.

Additional read: How to invest in stock market 

You may have to pay taxes, bank fees, brokerage charges and foreign exchange costs when investing in US stocks from India.

The exact amount depends on the broker, bank, investment value and type of transaction.

1. TCS

Tax Collected at Source, or TCS, may apply when you send money abroad under the Liberalised Remittance Scheme.

For overseas investments, TCS generally applies at 20% on the portion of eligible LRS remittances that exceeds ₹10 lakh in a financial year.

TCS is not an additional final tax. You can claim credit for the amount when filing your income tax return. You may receive a refund if the TCS collected is higher than your final tax liability.

2. Capital gains tax

Capital gains tax may apply when you sell US shares for a profit.

If you hold the shares for 24 months or less, the profit is generally treated as a short-term capital gain. It is added to your taxable income and taxed according to your applicable income tax slab.

If you hold the shares for more than 24 months, the profit is generally treated as a long-term capital gain. For transfers made on or after 23 July 2024, long-term capital gains are generally taxed at 12.5% without indexation. The current income tax return forms also provide for long-term capital gains taxable at 12.5%.

3. Dividend tax

A US company may pay part of its profits to shareholders as dividends.

Tax may be withheld in the US before the dividend is credited to you. Under the India-US tax treaty, dividends paid to an eligible Indian resident are generally subject to a withholding rate of up to 25%, depending on the applicable conditions.

Dividend income must also be reported in India. However, you may be able to claim credit for eligible tax paid in the US under the Double Taxation Avoidance Agreement.

4. Bank charges

Banks may charge fees when you transfer money from India to an overseas trading account.

These charges may include:

• Foreign exchange conversion charges
• Overseas remittance fees
• Intermediary bank charges
• Account setup fees, where applicable
• The charges vary across banks. Before transferring funds, check the exchange rate and the total cost of the remittance.

5. Brokerage fees

Your broker may charge a fee when you buy or sell US stocks.

The brokerage may be a fixed amount for each transaction or a percentage of the traded value. Some brokers may also charge account maintenance, withdrawal, regulatory or platform fees.

The rupee-dollar exchange rate can also affect your costs and returns. A change in the exchange rate may increase or reduce the value of your investment when converted back into Indian rupees.

Indian investors may consider US stocks to spread their investments across different countries, companies and industries.

Common reasons include:

• Portfolio diversification: US stocks can reduce your dependence on the Indian market alone.
• Access to global companies: The US market includes companies such as Apple, Amazon, Alphabet, Meta, Tesla and General Motors.
• Exposure to different sectors: You can access companies operating in technology, healthcare, automobiles, consumer goods and other industries.
• More investment choices: The US market offers individual stocks, ETFs, index funds and sector-based investments.

• Currency exposure: Your investment is held in US dollars, so changes in the rupee-dollar exchange rate affect its value.

  
  

These factors do not guarantee higher returns. US stocks can fall because of market conditions, business performance, economic developments, interest rate changes or currency movements.

Each investment approach has its own advantages and limitations.

Direct investment

Direct investment gives you greater control over the securities you select.

You can decide:

• Which company to invest in
• How much money to invest
• When to buy or sell
• How to divide your investments

However, you need to research individual companies and understand overseas market conditions. You must also manage tax reporting, remittance rules, currency conversion and brokerage costs.

Indirect investment

Mutual funds and ETFs allow you to invest in a group of securities through one investment.

They provide diversification without requiring you to select individual stocks. Mutual funds are managed by fund managers, while ETFs generally track an index or a fixed basket of securities.

However, mutual funds and ETFs may charge management fees or expense ratios. Their returns may also be affected by currency movements and tracking differences.

Online investment platforms

Online platforms may provide access to US stocks through a website or application.

Before using a platform, check:

• Whether it accepts Indian residents
• Which regulator supervises the broker
• Which stocks and ETFs are available
• What brokerage and currency conversion fees apply

• How fund transfers and withdrawals work

  
  

Your choice should depend on your investment goals, risk tolerance, knowledge and preferred level of involvement.

Investing in US stocks involves currency, tax and regulatory considerations.

You should understand these factors before transferring funds or selecting an investment.

1. Currency exchange

US stock transactions are normally carried out in US dollars. Your Indian rupees must therefore be converted into dollars before you invest.

The exchange rate affects your investment cost and returns. A stronger dollar may increase the rupee value of your investment, while a weaker dollar may reduce it.

Banks and brokers may also charge a currency conversion fee.

2. Tax implications

You may need to report capital gains, dividends, foreign tax paid and foreign assets in your Indian income tax return.

India and the US have a Double Taxation Avoidance Agreement. This may allow you to claim credit for eligible tax already paid in the US.

Tax treatment can depend on your individual circumstances. You may consult a tax professional if you are unsure about the reporting requirements.

3. Regulatory compliance

Your overseas investment and fund transfer must follow Indian and US regulations.

Indian residents generally remit money for overseas investments under the RBI’s Liberalised Remittance Scheme. The permitted limit is up to  ₹2.40 crore ($250,000) for each resident individual in a financial year.

You should also check whether the broker or investment platform is properly regulated before opening an account or transferring funds.

You can invest in US stocks from India directly through an overseas trading account or indirectly through mutual funds and ETFs. Each method has different costs, risks and account requirements. Before investing, check the brokerage fees, bank charges, foreign exchange costs, tax rules and regulatory requirements. You should select an investment method based on your financial goals, market knowledge, risk tolerance and preferred level of involvement.

The INR value is approximate, based on the USD-INR exchange rate on 28 July 2026, and may vary with currency movements.