Indian citizens have now been provided with the prospect of investing in the US stock market at affordable prices, with platforms also emerging from the Indian market. Let us understand how to invest in US giants like Google, Amazon, Facebook, etc.
Crux of the Matter
Limitations On Investing In US Several limitations exist for Indians desiring to invest in the US stock market. Besides high commission fees, the major limitation occurs in the prices of the stocks, which seem high rates when converting the US Dollar into Indian Rupees.
Emerging Platforms Several platforms for investing in the US market like Stockal and Vested Finance have emerged in India in recent times. Because stocks in dollar prices are expensive, these companies offer investment in Fractals – fractional units of expensive stocks. Indian investor can invest in parts in American stocks. Just as you buy 1/25th of a Bitcoin, you can now buy 1/10th or any fraction of American stocks. Several platforms have also initiated the “zero-commission” trading. These firms levy only 1 time charge while opening the account, and make the rest of the trading free of cost. Indian Platforms Stepping Up Zerodha, India’s largest stock trading firm, recently announced its plan to offer Indian customers the facility to invest in the US stock market. One of the major defining features of Zerodha would be that it will not implement any minimum limit on the investment.
Steps To Invest In Google, Amazon, etc. The emerging platforms have eased up the process of investment and registration. Following are the major steps involved:
Completing KYC (Know Your Customer) requirements to open a trading a/c.
Submit Liberalised Remittance Scheme (LRS is a route that allows Indians to invest up to $250,000 in foreign assets) which is generally available on the Trading platform form to your bank.
After bank approval, transfer funds from your bank a/c to trading a/c.
Use the fund in trading a/c to buy US shares.
Amount after selling shares is credited in your trading a/c – this amount can be transferred to your bank a/c in 2-4 days.
Curiopedia
As of 2019, Zerodha is the largest retail stock broker in India by active client base, and contributes upwards of 2% of daily retail volumes across Indian stock exchanges. In June 2020, Zerodha entered the unicorn club with a self-assessed valuation of about $1 Billion.
Ashton Kutcher is an American actor, producer, and entrepreneur. Although known for his acting career, Kutcher is also a venture capitalist. He is a co-founder of the venture capital firm A-Grade Investments. Kutcher has investments in over 60 companies, the most prominent of which include Skype, Foursquare, Airbnb, Path and Fab.com.
Andy Bechtolsheim is a German electrical engineer, entrepreneur, investor, and self-made billionaire. He later became an investor, providing Sergey Brin and Larry Page with their first round of funding, a $100,000 investment in 1998 before the two had even incorporated their company, Google.
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