Invest in US Stocks from India

Important Questions About Investing in US Stocks
 

Who are the US stock brokers?

US stocks services on INDmoney are provided by INDmoney global IFSC (Private) Limited that is a registered member of NSE International Exchange (NSE IX) and regulated by IFSCA in Gift city, India.

Your US Stocks 'Global access' accounts are created with regulated US brokers, such as DriveWealth LLC and Alpaca Securities LLC, which are overseen by the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Your investments are protected by the Securities Investor Protection Corporation (SIPC) for up to $500,000, including $250,000 for cash claims.

Your US stocks 'Direct access' accounts are created with INDmoney global IFSC (Private limited) wherein the securities are held in a Demat account in the International zone, i.e the Gift City. 

Why do I need to convert rupees to dollars to add money to my US stocks a/c?

US stocks can only be bought overseas in dollars. Hence, to facilitate your investments in US stocks, you will need to convert INR to USD and hence remit it to your US stocks wallet. This entire process is paperless and digital. 

Why does my money not get transferred to my US stock account instantly just like I do so for Indian stocks?

Transferring money to your US stocks investment account is very different from transferring to your Indian stocks account. For transfering money to your US stocks wallet, you need to first exchange your Rupees with USD and then undertake the remittance under RBI’s LRS scheme (Liberalized Remittance scheme). This process goes through various compliance checks at your bank account and the money moves via the SWIFT banking network and hence leading to a time lag of anything from 8 hours to 48 hours depending upon the bank you are using.
 

How much money can I transfer to my US stocks account?

You can transfer as little as ₹1,000 and up to ₹2.1 crore (approximately $250,000) per year as per RBI guidelines under the Liberalized Remittance Scheme (LRS).
 

Where are my stocks stored?

If you have a US stocks’ “Direct Access” account created with INDmoney Global (IFSC) Pvt Ltd, your securities are held in your demat account powered by India International Depository IFSC Ltd. in Gift City, India.

If you have a US stocks‘ “Global Access” account created with either DriveWealth LLC or Alpaca Securities LLC, your securities are held with the respective regulated broker. These brokers are regulated by FINRA and SEC and your assets are insured by SIPC up to $500K (approx ₹ 4 Cr). 
 

Why do I need to provide my income documents for transferring my funds?

As per regulatory requirements, all remittances to US brokers must be processed through an RBI-authorized bank. The bank is responsible for conducting various statutory checks in compliance with prescribed guidelines before processing the remittance.

If your relationship with the remitting bank is less than one year, regulations require the bank to obtain either a one-year bank statement or an income tax return acknowledgment from you to complete the necessary statutory checks. This ensures that all regulatory standards are met before your remittance is processed.
 

Why is the withdrawal of my money from my US stocks wallet to my Indian savings account not instant?

Since your money is in an overseas bank in dollars, bringing money back into India involves various statutory steps.

Once you place a withdrawal request, the broker instructs the bank to send your dollars to India via the SWIFT international banking network. Once the money hits the Indian bank, the bank has various statutory checks before they convert the dollars into rupees and credit your bank account. 

While INDmoney has made this process a seamless single-click experience for you, the various steps involved can take 2-5 working days to credit into your bank account.
 

What are the withdrawal charges?

Withdrawal charges are free for investors who have opened a free savings account in Federal Bank on INDmoney. For Federal Bank’s savings account, INDmoney has built rails between the US broker and Federal Bank, enabling you to get withdrawals at Zero Fee.

However, when you are withdrawing to another savings account (any bank other than Federal Bank), the US broker charges a fee of $5. We are actively working to build more rails.
 

Is intraday trading or derivative trading allowed for Indian residents in US stocks?

No, Indian residents are not allowed to do intraday trading or derivative trading in US stocks due to regulatory restrictions.