The interest to invest in US stocks has grown over various folds in the last couple of years among Indians. Since the people got to know the Indian markets properly, the need to expand the portfolio lead to the rise in interest of investing in the US markets. So, let’s unfold the benefits of investing in international stock markets like United States. Also, discover the best brokers that let you invest in US stocks from India.
Investing in US Stock Markets from India – Benefits to Know
Investing in US Markets is a great investment idea. It helps the investors diversify their portfolio to a great extent. As many American products are an essential part of the daily usage of an Indian. Hence, it allows the investor to invest in companies which are not easily replaceable and are an integral part of one’s lifestyle.
There are a lot of benefits for Indians by investing in US markets and lucrative returns can be generated over time. As it provides returns, not only with the rise in the stock prices of the companies invested in, but also with the appreciation of the USD currency. The investors get a two-way growth opportunity for their capital.
From many examples of such companies, a few of them which constitute an important part of an Indian individual are:
Google is an American company which is an essential tool for individuals for a person of any age group. Google is an emotion for most people more than a search engine which provides solutions to almost all queries. Out of its subsidiaries, the main revenue model of Google is based on the internet advertising and it is the largest internet giant, and a not so easily replaceable company, is a very good option for investing from a long-term perspective.
Started as an online bookstore, Amazon is one of the largest names in the world e-commerce business and the largest online marketplace with 300 million+ users active worldwide. Indians are dependent on it for even online ordering of their most basic daily needs. It also offers entertainment services based on a subscription model which has a vast subscriber base in India and worldwide. Thus, having a very limited competition and is a very good company from an investment point of view in the long run.
Microsoft is another tech giant based in the US. According to statistics, the operating system developed by the company “Windows” occupies more than 78% of the total computer market. More than consumers, the company also provides operating systems and other software to other companies, creating heavy dependency, hence not easily replacable. Microsoft Excel is one of the most used softwares among the Indians. From small businesses to unicorn companies, excel is the backbone of many because of its efficiency and usability when dealing with large amounts of data. It has limitless capabilities using various available formulas and thus has no alternatives.
Meta is the parent company of the most used social media platforms which include Instagram, Facebook and Whatsapp. Indian population is one of the largest contributors to these apps in the world as an average Indian spends 2.5 hours on social media daily. WhatsApp, which is a subsidiary of Meta, is the basic need of any modern-day smartphone user and is responsible for connecting millions of people around the world.
Process to Invest in US Stocks from India
- Open a Trading Account with a Domestic or
2. Open a Trading Account with an International stock Broker
Now, let’s discover some of the popular stock brokers for investing in the US stock market.
Best Stock Brokers to Invest in US Markets from India
Indians can invest in US markets via both domestic and international brokers. The best stock brokers for investing in US markets from India are:
Founded in 2019, IND Money is an Indian broker and investment advisor registered with SEBI and also allows its users to invest in US Stocks from India. It also allows the users to invest in 5000+ US stocks, US-based mutual funds and Exchange-traded funds or ETFs. It provides a free trading account with industry-leading exchange rates with zero joining fees and brokerage. Its Users can also buy shares fractionally. It is Rated 4.7 stars on google play and 4.4 stars on the apple app store by thousands of users.
Groww is a popular and widely known stock investing platform. It is one of the biggest names in the stock broking firms across the country and is known for its simple yet powerful user interface. It allows investors to open an international trading account with a five-minute application process and the account is activated within less than 24 hours after submitting the application properly. It also allows the users to fund their trading account directly in US dollars hence saving various conversion charges charged by most banks.
Vested is a US Securities and Exchange Commission registered stock broker which is exclusively for investing in the US Markets from India. It helps simplify international investing for Indians and provides the facility of fractional ownership of shares as well. An individual can buy stocks of a particular company in fractions without any restriction of the current share price and has no minimum balance requirement thus making the process convenient.
4. HDFC Securities:
HDFC Securities is a broker which helps investors invest internationally by offering zero account opening fees and low brokerage rates near to one per cent. Like others, It also supports buying and selling of securities in fractions and provides a seamless transfer of funds in US Dollars.
5. Charles Schwab:
Charles Schwab is an international brokerage firm registered in the USA. They offer an account for trading in the US Markets for Indian individuals. One can open an account from India by submitting an application and attaching documents like a passport and bank statement and start investing in the US Markets.
Investing in US Stocks from India – Is it worth it?
Indian investors can diversify their portfolio by investing in the US markets by selecting a broker from the above. Investing in the US companies also provides investor’s capital a global reach. Investors also get benefits like dividend opportunities. When the companies invested announce dividend, the investor also recieves the dividend according to the shares owned. Hence, investing in the US stocks from India is definitely worth it. Do share your opinion on investing abroad as well!