For decades, the Indian investor’s world was limited to local equities, mutual funds, gold, and real estate. Today, participating in the world’s largest stock market is easier than ever for Indian investors. If you’ve ever wondered how to buy US stocks from India, this guide breaks down the process into simple, actionable steps.

Why Consider Buying US Stocks?

1. Access to Innovation – US markets host global leaders in technology, healthcare, and finance.
2. Diversification – Investing abroad reduces reliance on the Indian economy.
3. Global Returns – The S&P 500 has historically delivered ~10% average annual returns.
4. Currency Hedge – As the rupee weakens over time, your USD assets gain value.

Step 1: Understand the Liberalized Remittance Scheme (LRS)

The RBI allows every resident Indian to remit up to $250,000 per year under LRS for foreign investments, education, or travel. This framework makes it legal and straightforward to transfer funds for buying US stocks.

Step 2: Choose the Right Platform

There are multiple ways to start:

• Global Online Brokers – Direct access to US-listed shares and ETFs.
• Indian Broker Tie-Ups – Simplifies onboarding but may limit choices.
• Mutual Funds & ETFs in India – Indirect option for those preferring simplicity.

Step 3: Complete Documentation and KYC

Typically required documents include:

• PAN card
• Aadhaar/passport
• Bank account details
• Proof of residence

Step 4: Fund Your Account

• Funds are transferred in INR, converted to USD, and credited to your US brokerage account.
• Example: Transferring ₹83,000 at ₹83/USD gives you approximately $1,000 for investment.

Keep in mind:

• Bank remittance fees range between ₹500 and ₹1,000.
• Forex spread charges (0.5%–1%).

Step 5: Start Small and Diversify

As a beginner, it’s best to start with broad-market ETFs like the S&P 500 or NASDAQ 100. Once comfortable, consider gradually allocating to individual US stocks based on your research.

Example: With $1,000, you could invest:

• $500 in an S&P 500 ETF.
• $300 in a technology stock.
• $200 in healthcare.

Step 6: Be Aware of Taxes

• Dividends – Subject to 25% withholding tax in the US.
• Capital Gains – Taxable in India; long-term gains taxed at 20% with indexation.
• DTAA – Prevents double taxation and allows credit for US taxes already paid.

Common Mistakes to Avoid

• Investing all money into a single stock.
• Ignoring transaction costs and forex conversion fees.
• Forgetting to declare foreign assets in ITR.
• Expecting quick returns instead of focusing on long-term wealth creation.

Conclusion

Today, learning how to buy US stocks from India is simpler than ever. With the right platform, clear planning, and smart diversification, you can unlock the potential of US stock investing from India. Begin small, focus on ETFs or blue-chip companies, and always keep taxes in mind to maximize long-term returns.