Hello investors, bored of getting low returns in the Indian stock market, and do you want to invest in the US stock market for better returns?
If your answer to any of the above questions is yes, then you are at the right place for your question.
Most of us want to invest in the US stock market but don’t know how to do so. Here in this article, I will guide you through the steps involved in investing in the US stock market.
When we begin to discuss this topic, the first question that comes to our mind is, “Can an Indian invest in the US stock market?”
If the investor wants to diversify beyond the Indian stocks, they are most welcome to invest in the US stock market. This allows the investors to boost their investments in foreign countries and better start the asset from the US.
Now let’s come to the main point of discussion of How to invest in the US stock market from India.
The investment process is quite similar to how we usually invest in the Indian stock market. You need to have a good knowledge of the stocks, and if you don’t have them, you can join a good share market course. This will help you in the long run.
A difference when you buy some international stocks is that you have to work according to foreign exchange rules. There is an international brokerage house and the firm where everything is handled.
Let us discuss the essential steps involved in the How to invest in the US stock market from India.
- Account opening:
International brokerage platforms ensure that complete paperwork authorization is covered under one roof.
First of all, we have to choose the best brokerage account in India. After choosing the account for the US stock exchange, we have to apply for the online registration.
For people’s convenience, the process is kept simple and fast. Some details are required to be filled like the name, mobile number, Email.
Once you are done with these formalities, your account is created, and side by side, the brokerage account is also created.
After your account is created, the next step is the documentation. During the document verification process, you will need to show your identity and address proof. One can provide his Voter ID, PAN card, Driving license, Passport, and photo for the ID proof.
For the address proof, one can show either his mobile phone bill or some credit card statement. A valid Aadhaar card with an address and ID photo issued by the government would be sufficient.
After your documentation part is over, we move on to the next step.
Document verification is complete now. You can add funds to your account once your account is opened and approved.
- Forex formalities:
Once you are ready with the account, you should be careful about the RBI rules on Forex, which is LSR or Liberalised Remittance Scheme is all about.
Different currencies are used in other countries, so as an Indian resident, you need to buy dollars from the Indian rupee. Dollars can be used to purchase shares and everything.
Under the LRS rules, any minor resident of India can transmit or send up to 2.5 lakh US Dollars in each financial year. At an exchange rate of INR 70 per US Dollar. The total amount becomes Rupees 1,75,00,000 or Rupees 1.75 crores. Some formalities or we can say a little paperwork, must complete formalities related to LRS before trading.
- Forex rates:
Foreign exchange rates come to play while transferring the Indian rupee from your Indian bank to the brokerage bank.
You need to choose the account where the bank provides low forex rates. You can contact your bank for more information as some international brokerage platforms have tie-ups with nationalized banks for low forex rates.
Apart from this, you get exposure to different international markets. Investing in the US provides an easy way to invest in other markets as we can invest in big Chinese companies like alibaba.com. Since China is a fast-growing economy, there will be more chances of good returns when investing in those companies.
Now you are ready with your account, and it is up to you whether you want to invest in the Indian market or the US market. You are good to go with any investment of lakhs or just Rupee 100.
You need good knowledge of investment and even if you don’t have that “The Thought Tree” can help you as they are the best in business.
You can do everything while sitting in your office or at home in your comfort, which is the best thing available in any investment type may it be national or international.