Are you digging for some useful information on Foreign Stock Brokers in India? Do you wish to invest in international stocks sitting in India?
Have you ever searched Apple or Google on Moneycontrol and got surprised when you did not find them? (in your initial learning phase). And then we realize that they are not listed in India and we can not buy them even if we have a trading and demat account in India.
But these companies are listed in their respective countries and are traded on their stock exchanges. So, can we actually buy stocks of these companies in some way? Let’s See…
How to Invest in Foreign Stocks?
Let’s learn some of the ways through which you can take your initial steps into the international stock market:
1. Open an Overseas Trading Account with a Domestic Stock Broker:
One of the simplest way to invest in international stocks is to open an overseas trading account with a domestic broker having a tie-up with some foreign broker. This will indirectly open an overseas trading account with their partner (i.e. foreign broker) and now using their service, you can trade foreign stocks. Wherein the domestic stock broker plays the role of an intermediary and help in executing your trades.
2. Open an Overseas Trading Account with a Foreign Stock Broker:
Open a Another way is to open an account directly with a foreign broker. They will set up your overseas trading account so that you can trade. Look for a foreign broker having strong presence in India. There are big names like Charles Schwab and Interactive Brokers that allow you to open an overseas trading account directly with them.
Note: We will be discussing only these foreign brokers further in our list.
3. Invest through Startups:
Another option can be investing through new startups like Vested Finance (US SEC registered advisor) and Webull.
Why to Invest in Foreign Stocks?
It’s an important question to answer before moving to the list of foreign stock brokers in India. You get inclined towards the foreign market and wish to invest therein. The reasons could be many like:
- It provides you an opportunity to diversify with Global Investments.
- You can take advantage of bigger opportunities. So, if you feel that foreign companies have an edge over others in terms of resources, technology, government support, etc., you can seize and encash bigger opportunities.
- And of course one of the reasons will be that you can also invest in your favourite companies be it trending names like Facebook, Microsoft, or Amazon.
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Top 5 Foreign Stock Brokers in India
Now, that you are interested in investing in foreign stocks, you must be aware of foreign stock brokers offering services in India.
1. Interactive Brokers
Interactive Brokers is the best and the most popular of the foreign stock brokers when you want to trade internationally. In fact, they have specific accounts for Indians who are residing in India to trade overseas particularly.
Interactive Brokers: Key Features
- Access to 125+ markets in 31 countries and all types of product types.
- You can get low trading costs as much as USD 0.005 per US Equity/ETF.
- Interactive Brokers also gives you free access to tools like TWS, IBKR Mobile, and Client Portal.
- You can also access some FREE news, research, and fundamental data.
- Regulated by top authorities like FCA and SEC, it is safe to use.
- Higher inactivity fee must be kept in mind.
2. charles SCHWAB
Charles Schwab also offers a dedicated account named “Schwab One International” with which you can invest in US markets and get benefits.
Although it requires a minimum of US$25,000 to open but has following benefits:
- You can trade U.S. stocks , options, offshore mutual funds, bonds, and ETFs.
- You will be charged $0 for online equity commissions.
- Professional support and service is provided wherever needed.
- You can manage all your trades and accounts online on Schwab website via client center.
- Detailed research, insights, and commentary from in-house experts.
For clients/customers who want to reach global space for investing, TradeStation has partnered with Interactive Brokers to offer you a global account. It says you get more power when the technology of TradeStation is combined with Interactive Brokers universal account.
TradeStation: Key Features
- You can open a new account at TradeStation or link your existing Interactive Brokers account to TradeStation to get started.
- You can get access to 135 markets and 33 countries across Asia-Pacific, UK, European, and North American markets.
- With a single universal account, you can trade global equities, options, futures, and currencies with low costs.
- Global account supports TWS, IBKR mobile and WebTrader.
- High quality educational resources helps you a lot.
4. Saxo Bank
Founded in1992, Saxo Bank is a leading international stock broker offering a wide product portfolio, great trading platform, and excellent research.
Saxo Bank: Key Features
- You can access 40,000+ instruments across the globe.
- Find an API solution according to your experience and trading style.
- You can use leverage for products such as Futures, Options, and Commodities, and Currencies.
- Support your decisions with news, and reports by Saxo experts.
- Being regulated by top tier authorities and the background of Banking, it is safe to trade. Currently Saxo Bank is serving more than 600,000 clients.
5. TD Ameritrade
A similar product like Interactive Brokers is also offered by TD Ameritrade that opens and holds accounts for Indians having no Social Security Number or US address. You can complete the application online but once you send the appropriate documents, only then the account will be opened.
TD Ameritrade also offers lower costs allowing investors to do globe trading. You can buy stocks in major markets across the world. It’s not a bad idea to put a small proportion of our total assets to other geographies.
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Foreign Stock Brokers in India for International Investing
Before taking the decision to trade in foreign stocks, you must consider some crucial points like:
- Account Opening Fees
- Trading Platforms
- Products and Services Offered
- Higher charges when dealing in foreign currencies,
- On-going currency exchange rates
- Stock Market fluctuations
Ultimately, your profits will depend on these factors, so do consider them before taking your investment steps.
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Obviously, you will have all the benefits of diversification when you back all your determination with deep research. At the end of the day, everything needs to be balanced with your financial goals and risk tolerance. So, think deeply before putting in your hard-earned money in foreign stocks? No doubt, they may earn bigger profits. But, are you ready to bear the risks associated with trading? Have you tried any of the foreign stock brokers in India? Do share your opinions.