US Stock Investing for Indians: As Zerodha and the Largest Broker Open Access, the Costs, Rules, Risks and Rewards
- October 29, 2026
- Posted by: Chaitanya Auti
- Category: News
In October 2026 Zerodha began a phased beta of US stock investing on Kite, with about 2,000 US stocks and about 1,000 ETFs, fractional buying from $1 and brokerage of 0.1% per order capped at $10, while the largest Indian broker by active clients opened US access to all its users.
Quick Answer
US stock investing for Indians means buying American shares and ETFs through an Indian broker, using the Liberalised Remittance Scheme (LRS) to send money abroad. Zerodha routes orders through India INX Global Access at GIFT City, and holdings sit with a US brokerage partner and not in an Indian demat account. A trade costs brokerage of 0.1% plus a forex markup that I estimate at 0.5% to 1.2% each way, so a round trip on $1,000 could cost about $12 to $26. This article is educational and not a recommendation to buy any stock.
Interest in US stock investing is rising because the Nifty is down about 13% since January while the S&P 500 is up more than 12%, and foreign portfolio investors have pulled a record $32.5 billion from Indian equities this year, per NSDL data. This article explains how the new access works, what it costs, the rules to know, and the risks and rewards.
Three flags. The figures come from secondary reports, not from the brokers’ own pages, so check the current terms before acting. I did not verify the LRS and tax collected at source (TCS) thresholds against the RBI or the tax rules. The cost illustration is my own calculation and not a broker quote. It is educational and not advice.
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How US Stock Investing Through Indian Brokers Works
| US stock investing: item | Zerodha (beta on Kite) |
|---|---|
| Rollout | Phased, with users joining a queue through an Enable US stocks option |
| Routing | India INX Global Access, the BSE-promoted exchange at GIFT City IFSC |
| Where holdings sit | With a US brokerage partner, not in an Indian demat account |
| Universe | About 2,000 US stocks and about 1,000 ETFs |
| Buying options | Fractional shares from $1, SIPs and delivery-based investing |
| Not offered | Intraday, margin trading and US IPOs |
| Eligible users | Resident individuals; NRIs and non-individuals are excluded |
In US stock investing through GIFT City, your rupees are converted to dollars under the LRS, the order is placed on a US exchange through the partner, and the shares are held abroad in your name. That differs from buying an Indian-listed fund that tracks US stocks, which stays inside the Indian system.
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Which Brokers Offer US Stock Investing Now
| US stock investing: broker | Status (as reported 28 to 29 Oct 2026) | Universe and cost |
|---|---|---|
| The largest broker by active clients (about 29% of roughly 46 million active clients) | Open to all users after a phased rollout earlier in October | Over 10,000 US stocks and ETFs through an IFSC subsidiary; fractional; brokerage 0.1% |
| Zerodha (about 15% of active clients) | Beta, rolling out in phases | About 2,000 stocks and about 1,000 ETFs; brokerage 0.1% capped at $10 |
| Angel One (about 6.7 million active clients) | Phased, with wider access by mid-November | Brokerage waived until December 2026 |
| Upstox | Live | Over 8,000 stocks and over 2,000 ETFs |
I do not name the largest broker because I could not confirm its terms on its own page, and its numbers here are from a trade report. Early demand, per that broker’s co-founder, has centred on Nvidia, SpaceX, Apple, Alphabet, Amazon, Micron and Meta, which shows how concentrated US stock investing interest already is.
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What US Stock Investing Costs: A Worked Illustration
| US stock investing: cost item | Assumption on $1,000 | Amount each way |
|---|---|---|
| Brokerage (0.1%) | Below the $10 cap | About $1 |
| Forex markup (0.5% to 1.2% over the RBI reference rate) | Depends on the broker and day | About $5 to $12 |
| Total per trade | Brokerage plus markup | About $6 to $13 |
| Round trip (buy and sell) | Two trades | About $12 to $26, or 1.2% to 2.6% |
This illustration is mine, built from the reported brokerage and markup ranges. It leaves out TCS, bank charges, custody or platform fees and taxes, and the markup may apply on conversion both ways. The point is that US stock investing has a visible cost drag, so a small gain can vanish after a round trip.
A fractional buy of $1 or $10 can look attractive, but fixed charges on small orders weigh more. On a $10 order the 0.1% brokerage is one cent, yet a bank charge or a minimum fee, if any, would matter far more, so check the schedule before you start.
Rules for US Stock Investing: LRS, TCS and Taxes
| US stock investing: rule | What the reports say | Status |
|---|---|---|
| LRS limit | $250,000 per resident individual per financial year | Not verified against the RBI |
| TCS on remittance | May apply above a threshold set by the tax rules | Threshold not verified |
| Dividends | US withholding applies, with treaty credit possible in India | Check with a tax adviser |
| Capital gains | Treated differently from Indian-listed equity | Check current holding-period rules |
| Foreign asset reporting | Required in the income tax return, with penalties for missing it | Check current rules |
These items matter as much as the brokerage. In US stock investing you are an owner of foreign assets, so reporting duties apply even for small holdings. Tax treatment differs from Indian equity, and I have not confirmed the thresholds, so speak to a chartered accountant before you invest.
Break-even is a useful way to see the cost. If a round trip costs 1.2% to 2.6% in my illustration, a US stock must rise by at least that much before the investor is ahead, before any tax. A long holding period spreads the cost over more years, while frequent trading multiplies it, which is why the unavailable intraday option may suit most investors.
Compare this with buying Indian-listed funds that track US indices. Those stay inside the Indian system, with no LRS use and no foreign asset reporting, but they carry their own expense ratios and limits. For US stock investing in individual shares, the direct route gives more choice, and also more paperwork.
A Checklist Before You Begin
- Read the terms. Confirm the brokerage, the forex markup, any account or custody fee, and whether your broker is live or still in a phased queue.
- Check your LRS use. Add up what you have already remitted abroad this financial year, including travel, education and gifts, since the cap covers all of it.
- Plan the tax side. Ask a chartered accountant how dividends, capital gains and foreign asset reporting will apply to you.
- Start small. Use fractional buying and SIPs to test the process, the timing and the costs before committing a larger amount.
- Set a limit. Decide how much of your portfolio can sit in foreign assets and in any single stock, and keep to it.
Rewards of US Stock Investing
- Diversification. US stock investing gives exposure to companies and sectors that are thin on Indian exchanges, such as large AI and semiconductor firms.
- Currency effect. If the rupee weakens against the dollar, dollar assets gain in rupee terms, though the effect can also reverse.
- Recent returns. The S&P 500 is up more than 12% this year while the Nifty is down about 13%, though recent returns do not predict future ones.
- Small entry size. Fractional buying from $1 lets a beginner start with a small amount, and SIPs spread the entry over time.
Risks of US Stock Investing
- Currency risk. A stronger rupee cuts your rupee return, and forex spreads apply both on entry and exit.
- Concentration. Early interest centres on a few technology names, and US stock investing in a handful of stocks can lose heavily in one correction.
- Valuations. After a strong year, US share prices may already reflect optimism, so a fall in earnings expectations can hit prices hard.
- Custody and access. Shares sit with an overseas partner, not in an Indian demat, so you rely on the broker and the partner for records and recovery.
- Timing and rules. US markets trade at night in India, and the regulator could tighten limits on LRS or outward investment.
Conclusion: Weigh the Costs Before US Stock Investing
US stock investing is now easier for Indians, but easier access does not make it lower-cost, safer or tax-free. Compare broker terms, count the forex cost, understand the LRS and tax duties, and size the amount to your own risk limits and goals.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
What is US stock investing through an Indian broker?
Ans. It means buying US shares and ETFs through an Indian broker using the LRS. Zerodha routes orders via India INX Global Access at GIFT City, and the holdings sit with a US brokerage partner, not in an Indian demat account.
How much does US stock investing cost on Zerodha?
Ans. Reports give brokerage of 0.1% per order capped at $10, plus a forex markup of 0.5% to 1.2% over the RBI reference rate. My estimate for a $1,000 round trip is about $12 to $26, excluding taxes.
Can NRIs use the new US stock investing facility?
Ans. Not on Zerodha’s beta. It is for resident individuals only, and NRIs and non-individual accounts are excluded. Other brokers may differ, so check their terms.
What is the LRS limit for US stock investing?
Ans. Reports say $250,000 per resident individual per financial year. I did not verify this or the TCS thresholds against the RBI or tax rules, so confirm them before you send money abroad.
Can I trade intraday or use margin in US stock investing on Zerodha?
Ans. No. Zerodha’s beta excludes intraday, margin trading and US IPOs, and supports delivery-based buying, fractional shares from $1 and SIPs. Other brokers may differ.
What are the main risks of US stock investing?
Ans. Currency moves, forex spreads, overseas custody, night-time trading hours, concentration in a few technology stocks, high valuations and possible regulatory tightening. Foreign asset reporting also carries penalties if missed.
Is this US stock investing article a recommendation?
Ans. No. It explains how access works and what it costs. Investing abroad carries risk, so check the current terms and tax rules and consider a SEBI-registered adviser.
Is this article investment advice?
Ans. No. It is educational and not a recommendation to buy or sell. Please check the figures against company filings and your own risk profile before you act on anything you read here.