Trading the us stock market from India is very easy
Originally i say How to trade US stock market from India?
There are now many easy ways to invest in India from the US markets. I have been using https://www.winvesta.in/ personally for the last few months and it is quite good. It only took a few minutes to sign up and get a US brokerage account. This is faster than getting a domestic brokerage account!
Being an investment manager in the past, account security was my primary concern. The Winvesta team helped provide me with all the necessary information. This account is with a Finara regulated broker-dealer in the US, and the money is secured by $ 500,000 SIPC insurance.
When you want to invest in America, there are some things to keep in mind (good and bad):
American listed companies have by far the largest total market cap. Many large US firms get their revenue from around the world (about 40% of S&P 500 revenue is from outside the US). So you’re really getting a global performance, and not a domestic one.
A huge universe of stocks is available in the US markets. Some of them are not complying with Indian regulations. Winvesta has left such stocks and ETFs in which such shares have been removed from their selection so that you do not have to worry.
Trading the Us stock market. .Investigations in the US also means that you are investing in USD, so you will get all the upside (or downside) from the appreciation of USD-INR.
Think long term, invest continuously and do not panic over short periods of volatility. Withdrawing money abroad may cost you 2–3% initially, but US markets have increased Indian markets by 10 to 12% annually in terms of INR in the last 10 years.
There is no capital gains tax for foreigners. Dividends are taxed at a flat 25% for Indians, and tax is withheld by the broker, so there is no need to tax in the US. In India, cap gains will be taxed as usual, and dividends will be taxed as ordinary income. You can withhold a dividend tax in the US against your Indian taxes with a foreign tax credit.
To withdraw money to your brokerage account, you may need to visit your bank branch (depending on the bank, ICICI is completely digital). It requires only physical steps. I was to go to IDFC First Branch, but my money was refunded on the same day and I was able to start trading the next day after downloading the Winvesta app.
Hope this was helpful. Times have changed, and investing in America is not just for the rich. In today’s global world, having a global portfolio is both prudent and smart.
There i explain you what you yo do for trading the us stock market
Ones a trading account to invest in international capital markets
To facilitate you doing this, an Indian stockbroker enters into a tie-up with a foreign broking partner who has the license to act as an intermediary and execute trades on your behalf in foreign markets.
The Indian stock broker will act as an intermediary between you and the foreign broking house. The Indian share broker will also help you to open your account and complete the Know Your Customer (KYC) formalities applicable to that country.
All you need to do is fill in an application form and your identity proof such as passport or PAN card and residential address proof such as voter ID card or latest bank details, such as the documents required to open an account.
Once your required details are registered, you will be provided with the bank account details of the foreign broker to which the funds are to be transferred. If you require any form of assistance, you will also receive the contact details of the account executive who takes care of your account.
Fund Transfer – Pay-in / Pay-out Process
As per the remittance norms of the Reserve Bank of India (RBI), an Indian citizen can withdraw a maximum of 2,00,000 USD in a financial year for investment in any of the authorized banks in India in the international capital market.
Foreign brokers only accept money generated from your bank account and will reject any third party fund transfer. In addition, they do not accept bankers’ drafts, checks or cash deposits.
It takes about 24 to 48 hours to send money from your bank account to your trading account with a foreign broker and about 48 to 72 hours from your trading account to your bank account.
Once your account is opened and funds are transferred, you will be provided with a client login ID and password to give you immediate access to the trading platform of foreign brokers to buy and sell shares of listed foreign companies. All deals such as trading, delivery of shares / funds etc. will be done directly with the foreign broker without the involvement of the Indian stockbroker.
Unlike the domestic markets here, where your purchased shares are transferred to your demat account in T + 2 days, when you buy shares in foreign markets the shares remain in a pooled account with the broker’s custodian, but immediately your Start reflecting in the trading account after buying.
Unlike most Indian brokers, margin trading and short selling with a foreign broker will not be allowed. You will only be able to buy shares if you have enough cash in your account and sell the shares only if you already have them.
The trading platform can have access to all your transactions, account history and ledger. You will also receive contract notes for your executed trades in your mailbox.
Brokers in India provide this service
Onl few Indian broking companies like Kotak Securities, ICICI Direct, India Infoline, Reliance Money and Religare are offering these trading services to Indian investors.
As your foreign investments will be made in some foreign currency, your investment profit or loss will also be associated with the movement of that currency. Therefore, if you invest in some shares in USD and appreciate in USD value, it will decrease your profit or reduce your loss. Like suppose you paid Rs. 50 per USD at the time of investment and liquidate your investment when USD appreciates to Rs. 55, you get Rs. 55 per USD.
If you are aware of global dynamics then the transaction process in equity markets in foreign markets is not complicated. Hope this is useful 🙂