How to Use Zerodha to Invest in US Stocks from India

Imagine watching Apple, Tesla, and Amazon stocks soar, wishing you could invest—from right here in India. For many Indian investors, building a truly global portfolio can feel just out of reach, trapped by confusing regulations and limited domestic offerings. Accessing the US stock market through Indian brokers like Zerodha, however, is now more achievable than ever, yet not without its unique steps and rules.

Whether you’re looking to diversify beyond Indian equities, explore international tech giants, or hedge against local economic shifts, understanding the pathway to US stocks is essential for the modern investor. You’ll discover the essentials of accounts management, partner platform integration, funding procedures, core regulations, and practical tips for compliant investing. While making your first cross-border investment isn’t instant, grasping the process now can set the stage for smarter, safer participation in the world’s largest stock market.

In a world where borders are financial opportunities waiting to be crossed, Zerodha empowers Indian investors not just to watch Wall Street—but to own a piece of it. The real question isn’t if you can invest abroad, but how boldly you’ll redefine your portfolio.

Investing in US stocks via GIFT City

1. Understanding Zerodha's International Investing Options

Overview of Zerodha’s Global Investment Platform

Zerodha, one of India's largest retail stockbrokers, has expanded its services to facilitate access to international equity markets, especially for US stocks. While Indian investors have traditionally faced hurdles when investing abroad, Zerodha’s partnerships are making global markets more accessible than ever.

Through integrated partner platforms like Vested, Zerodha users can buy shares of US-listed giants such as Apple, Tesla, and Amazon directly from their existing accounts. These integrations allow seamless funding and investing, letting Indian residents diversify beyond the National Stock Exchange and Bombay Stock Exchange.

Supported investment instruments include direct equities (for instance, trading NASDAQ-listed shares), ETFs, and select fractional shares. US marketplaces such as the NYSE and NASDAQ are available, significantly expanding options compared to exclusively domestic offerings.

How Zerodha Enables Indian Investors to Access US Stocks

To bridge the regulatory and operational gap, Zerodha partners with specialized fintechs like Vested and Webull for international execution. These platforms handle the US brokerage account setup, which is essential for compliance and smooth transactions.

Regulatory permissions stem from RBI’s Liberalised Remittance Scheme (LRS), permitting individuals to remit up to $250,000 per financial year abroad. This enables cross-border investing with property controls embedded, making it easier for users to fund their foreign accounts in line with Indian laws.

The end-to-end user experience remains straightforward for most retail clients—users initiate remittance via their Indian bank, link accounts with platforms like Vested directly within Zerodha, and manage portfolios online, similar to managing domestic holdings on Kite.

Key Differences Between Domestic and International Investing With Zerodha

While Zerodha’s Kite platform is used for Indian equities and derivatives, international trades leverage partner interfaces like Vested or Webull. These use different onboarding processes and involve distinct compliance steps.

For instance, selling Tesla stock through Zerodha’s global offerings involves US-dollar settlements and potential remittance taxes, unlike domestic trades.

Regulatory Framework and Compliance Considerations

International investing involves strict adherence to RBI and SEBI rules. Indians must use the LRS route, keeping total annual remittances for all overseas portfolios—including stocks—within the $250,000 ceiling. This protects investors from breaching forex regulations.

Investors are obligated to declare global holdings when filing Indian income tax returns. All flows should be reported to the RBI via the Authorized Dealer banks. For example, ICICI and HDFC provide LRS remittance facilities, where users upload invoices for overseas investing.

SEBI also requires that all overseas investments avoid leveraged products (such as options and margin trades), limiting exposure to cash equities and select ETFs. Compliance checks help ensure that Indian investors stay within legal limits, mitigating risks of inadvertent violations or penalties.

2. Setting Up Your Zerodha Account for International Trading

Account Eligibility Criteria for Indian Residents

Before you can access international investment opportunities through Zerodha, it's important to meet certain eligibility criteria. These prerequisites are defined by regulatory norms and Zerodha's policies, primarily targeting Indian residents.

An Indian resident with valid citizenship, residing within the country, qualifies for a Zerodha account. Applicants need to be at least 18 years old and meet standard KYC eligibility—which verifies your identity to protect against fraud. Key exclusions apply: Non-resident Indians (NRIs) and minors/underage individuals can't use this facility, highlighting the importance of residency status. For instance, Ashima, a 30-year-old from Mumbai, with permanent residency and all KYC documents, qualifies; but her cousin, who works in Dubai, does not.

Required Documentation and KYC Procedures

For international investing, documentation must satisfy both routine and higher-security requirements. Investors need to provide a PAN card, proof of address such as Aadhaar or a utility bill, and bank account details. For higher-value transactions—often those exceeding ₹5 lakh—proof of income (like salary slips or income tax returns) becomes essential to establish your financial capacity.

The KYC process is streamlined through platforms like Digilocker. After online submission of relevant documents, identity and address verification are carried out. In practical terms, Sandeep uploaded his PAN and Aadhaar on Zerodha’s portal, then completed a live video KYC step, receiving confirmation within a day.

Steps to Activate International Investing Features

Zerodha makes it possible to access global stocks through GIFT City’s NSE International Exchange using Unsponsored Depository Receipts (UDRs). To initiate this, users must first enable the international investing feature within their Zerodha profile. This involves submitting additional declarations and documentation, such as FATCA declarations for overseas compliance.

Once the required forms are submitted, Zerodha processes the activation, typically providing confirmation by email. For a detailed breakdown, see the official Varsity article on investing in US stocks from India, which outlines recent changes and the unique benefits of UDRs via GIFT City.

Understanding Account Types (Individual, Joint, Corporate)

Zerodha offers various account structures, suitable for investors with differing needs: individual, joint, and corporate accounts. Most retail investors open individual accounts, which require standard KYC documents. However, joint accounts—common for families or business partners—need KYC for every holder, along with a joint declaration form signed by all parties involved.

For corporate entities such as private limited companies or LLPs, documentation extends to board resolutions, GST registrations, and company PAN. For example, Infosys Ltd. would provide its Certificate of Incorporation and board approval, in addition to KYC for authorized signatories. The account type influences not just documentation, but also tax liabilities and trading permissions, making it crucial to select the right structure based on your investment goals.

3. Linking Zerodha with Partner Platforms

3. Linking Zerodha with Partner Platforms

Introduction to Zerodha’s International Partnerships (e.g., Vested, Winvesta)

Zerodha, India’s largest retail stockbroker, has expanded its reach by facilitating access to global markets through strategic partnerships. Two standout collaborators—Vested and Winvesta—enable Indian investors to easily participate in US equities without the complexities of opening an international brokerage account directly.

Vested offers commission-free investing in US stocks and ETFs, while Winvesta provides multi-currency accounts and seamless US stock access. By working with these platforms, Zerodha allows Indian clients to diversify beyond domestic markets. Key benefits include simplified compliance, curated portfolios, and access to features like fractional shares.

How to Link Your Zerodha Account with a US Investing Partner

The process of connecting Zerodha with partners like Vested is straightforward, but requires careful attention to ensure a successful link. Typically, investors begin by signing up on the partner’s website or app—entering basic information and KYC (Know Your Customer) documentation similar to that used on Zerodha.

1. Register on the US investing partner platform, such as Vested or Winvesta.
2. Select ‘Link Broker’ or a similar option and choose Zerodha from the partner list.
3. Authorize access and provide required investment and residency documents for verification.

Most platforms use secure APIs for authentication, and verification takes 1-3 business days. In case of issues, common fixes include double-checking your KYC data, ensuring PAN and Aadhaar details match, or reaching out to the partner’s support team for guidance.

Comparing Partner Platforms for User Experience and Fees

Choosing the right partner impacts both ease of use and total costs. Vested’s app features a beginner-friendly interface with dashboards for tracking US stocks, while Winvesta stands out for its multi-currency wallet, allowing easy conversion between INR and USD for trading.

While Vested focuses on zero commissions for retail investors, Winvesta highlights cross-border payment options alongside investing. As of 2023, some users reported faster account setup with Vested, although both platforms have improved onboarding speed and offer international stock research for decision support.

Ensuring Safe and Secure Data Sharing Across Platforms

Security is paramount when linking financial accounts. Both Zerodha and its US partners use end-to-end encryption and require explicit authorization before accessing account data. Users are typically asked to approve data sharing via OTP or email confirmation each time an integration is set up.

Periodic account audits and prompt alerts help investors monitor activity for unauthorized access. For instance, Vested’s app notifies users after every login from a new device. To bolster safety, investors are encouraged to use strong, unique passwords and enable two-factor authentication wherever offered. Staying vigilant about reviewing connected app permissions ensures data privacy remains intact across linked platforms.

Can I link multiple bank accounts to my Zerodha account?

4. Funding Your Account: Moving Money from India to the US

Overview of RBI’s Liberalised Remittance Scheme (LRS)

Before transferring funds abroad, Indian investors must comply with the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS). This scheme permits resident individuals to remit up to USD 250,000 per financial year for permitted transactions, including international investments such as US stocks or depository receipts.

The LRS covers a range of investment avenues, such as direct stocks, mutual funds, and unsponsored depository receipts available via platforms like NSE International Exchange at GIFT City. For each overseas remittance, investors must submit relevant forms, including Form A2 and a declaration under LRS, alongside their Permanent Account Number (PAN) for taxation compliance.

Step-by-step guide to remitting funds to your US brokerage account

Indian banks support outward remittance through online banking platforms or in-person visits. To initiate a transfer, you log in to your bank’s portal and select an outward remittance option. ICICI Bank, HDFC Bank, and SBI, for example, provide step-by-step modules to fill in beneficiary details, ensuring your US brokerage account receives funds directly.

When sending money, you must complete Form A2 and the LRS declaration for each transaction, and provide your PAN card. Tracking is straightforward—banks like Axis Bank offer live tracking dashboards, while remitters receive email/SMS updates confirming the successful completion and credit of funds to the US account.

Available currency conversion and wire transfer options

Investors can choose between SWIFT wire transfers or online remittance services such as Wise (formerly TransferWise). SWIFT is universally accepted by major brokers like Interactive Brokers and Charles Schwab. In contrast, online services may offer lower forex markup rates but might not always integrate directly with brokerage accounts.

Banks like HDFC and Kotak typically charge INR 500-1000 per wire transaction, with additional foreign exchange conversion margins. To minimize costs, compare forex rates before initiating transfers—Wise often claims spreads as low as 0.5% over interbank rates, while traditional banks can charge up to 2% markup.

Expected timelines, charges, and compliance tips

Remittance speed typically ranges from one to three business days via SWIFT. For instance, a transfer initiated on Monday from SBI is likely to reach a US broker by Wednesday. Service charges include both sender’s bank fees and possible intermediary charges deducted by correspondent banks en route.

Always retain transfer receipts and compliance documents for audit purposes. This helps maintain a clear money trail, crucial during Indian tax filings or if RBI queries arise. For those investing via new avenues like investing in US stocks from India through GIFT City NSE IX, similar LRS rules apply but with potentially streamlined paperwork due to local regulatory oversight.

Send Money from India to USA

5. Selecting and Investing in US Stocks via Zerodha

5. Selecting and Investing in US Stocks via Zerodha

Researching and Screening US Stocks Through Zerodha and Partners

Investing in US equities through Zerodha relies on robust research tools and partner platforms, such as Vested or INDmoney, which offer access to thousands of US-listed stocks and ETFs. Integrated screeners allow investors to filter stocks based on market cap, sector, valuation metrics, and performance indicators. For instance, Vested’s screener enables filtering for technology giants like Apple, Amazon, or Microsoft based on criteria like P/E ratios and average trading volumes.

These platforms also provide in-depth research reports and analytics, including Morningstar ratings, analyst consensus, and recent earnings results. By leveraging such resources, investors can shortlist top-performing stocks aligned with their personal goals. For example, an investor interested in semiconductors might use screener filters to compare NVIDIA and AMD by recent quarterly growth and analyst target prices.

Placing Buy/Sell Orders for US Equities

Partner platforms streamline the process of placing orders on US stocks. Typically, after selecting a stock on the Zerodha-linked partner app (such as INDmoney), investors can choose to buy either whole shares or fractions—a major benefit for high-value stocks like Alphabet, which trades above $100 per share but may be bought with as little as $10 using fractional shares.

Successful orders are confirmed via email and notifications within the platform, with all trade history and status visible on user dashboards. These platforms enforce minimum investment amounts, often as low as $1, making it accessible for retail investors to diversify globally.

Understanding Order Types, Trade Settlement, and Execution

Zerodha’s partner platforms support various order types, including market orders (executed at current prices) and limit orders (executed only at a specified price). For example, a limit order enables an investor to set a buy price for Tesla at $600, ensuring shares are bought only if the price dips to that level.

US stock trades typically follow a T+2 settlement cycle—meaning the transaction is finalized two business days after execution. Investors can monitor trade statuses and manage open or pending orders through comprehensive order tracking tools on the platform, ensuring clarity on trade execution and completion timelines.

Managing Investment Portfolio and Tracking Performance

Effective portfolio management is crucial for long-term investing. Partner dashboards provide real-time portfolio tracking, visualizing gains, losses, and performance against benchmarks like the S&P 500. For example, users can compare their portfolio’s annualized return to the S&P 500’s historical 10-year average of approximately 12%.

Investors are encouraged to review and rebalance their portfolios periodically. Tools such as INDmoney’s automated rebalancing suggestions help maintain diversification, aligning with risk tolerance and objectives—like shifting some gains from surging tech stocks into more stable consumer staples or healthcare stocks if tech allocations grow too large.

Investing in US stocks via GIFT City

6. Managing Taxes and Reporting Requirements

Taxability of US Stocks for Indian Investors (Dividends, Capital Gains)

Investing in US stocks from India introduces unique tax obligations that differ from simply investing on the NSE or BSE. Indian investors must navigate taxation both in the US and at home when it comes to dividends and capital gains.

Dividends paid by US companies such as Apple or Microsoft to Indian residents attract a 25% withholding tax in the US, as per IRS regulations. In India, these dividends must also be declared as 'Income from Other Sources' and taxed at the investor's applicable slab rate. Double taxation becomes a concern—but mechanisms exist for relief.

Capital gains taxation depends on the holding period. For example, selling Tesla shares after holding for less than 24 months triggers short-term capital gains, taxed according to your Indian income slab. Holding beyond 24 months leads to long-term capital gains (LTCG) taxed at 20% with indexation. It's crucial to report these gains when filing your Indian tax return, using Form ITR-2 or ITR-3.

TDS, Double Taxation Avoidance Agreement (DTAA), and Filing Obligations

The risk of double taxation is addressed through the India-US Double Taxation Avoidance Agreement (DTAA). If you receive $200 in dividends from Google and $50 gets withheld as US tax, you can usually claim this $50 as a foreign tax credit while filing Indian taxes.

Reporting foreign assets is mandatory. Under the Foreign Asset Schedule in ITR forms, all overseas holdings—including shares held via platforms like Zerodha—must be disclosed. This requirement aims to ensure global income transparency for residents and includes penalties for non-compliance.

How to Get Tax Statements and Reporting from Zerodha

Platforms like Zerodha, through tie-ups such as with Vested or INDmoney, provide investors access to crucial tax documents. Yearly, you'll receive documents like the US IRS Form 1042-S for dividends. These are typically available in the platform's user dashboard under 'Tax Documents'.

For example, Zerodha provides helpdesk resources to guide investors during tax season. They advise investors to cross-check records from their Statements of Account and use dedicated reporting tools (like Vested's tax center) for generating necessary disclosures. This ensures no dividend or capital gain gets overlooked.

Compliance Tips for Smooth Year-End Reporting

Staying compliant means regular and accurate disclosures. Keep an organized log of your US share purchases, sales, and dividend receipts. For instance, Rathna, a Bengaluru-based investor, maintains a Google Sheet with all transactions, which her CA reviews annually.

Getting a Chartered Accountant's support, especially one familiar with cross-border investments, can minimize reporting errors. Experts recommend reconciling platform-provided statements with broker contract notes to detect discrepancies early. Timely and thorough disclosures will help avoid scrutiny from India's tax authorities as they increasingly use data-sharing agreements to track offshore income.

Corporate tax filing and reporting requirements guide

7. Risks, Limitations, and Best Practices

7. Risks, Limitations, and Best Practices

Currency fluctuation and remittance risks

Investing in US stocks from India means your returns depend not only on market performance, but also on exchange rate movements. Every dollar of gain or loss is converted to rupees, making the USD-INR pair a crucial factor in your overall profit or loss.

For instance, if the Indian rupee weakens from ₹74 to ₹81 per dollar, your US investment returns may increase in rupee terms, even if your stocks remain flat. Conversely, a strengthening INR can erode gains. Currency conversion can also introduce extra costs—many banks add a 1-2% markup over interbank rates, and intermediary services like Wise or traditional banks may charge transfer fees. In 2022, RBI figures showed cross-border remittances from India exceeded $18 billion, with conversion fees being a significant hidden cost for investors.

To manage currency risk, some investors use forex hedging tools or time their remittances strategically. For example, NRIs often spread out remittances when the rupee is on a weaker trend to maximize conversion value. Prudent investors track both market and currency trends to avoid surprises.

Regulatory or market access issues you might face

Accessing US stocks is subject to regulatory frameworks like RBI’s Liberalised Remittance Scheme (LRS). The LRS limit of $250,000 per year per individual dictates how much capital you can move abroad; recent revisions have brought new disclosure requirements and a 5% tax collected at source for over ₹7 lakh remitted in a year.

Operational risks can stem from partner platform outages or regulatory crackdowns. In late 2023, regulators scrutinized several Indian fintechs enabling offshore investing, temporarily suspending account openings for platforms such as Vested and INDMoney. User restrictions—such as limited access for minors or resident status blockades—may also apply depending on your KYC profile or residency.

Common pitfalls to avoid when investing abroad

Lack of awareness about US and Indian taxation is a common misstep. Indian investors are taxed on global income, and double taxation treaties may be relevant but not automatic. Failing to file Form 67, for instance, can result in costly compliance errors or missed foreign tax credits.

It’s essential to be clear about all costs—most US brokers charge $0 per trade, but Indian intermediaries may tack on convenience fees, forex spreads, or account maintenance charges. Not doing enough homework or over-concentrating on stocks like Tesla or Nvidia can expose you to concentration risk. In 2021, many retail investors flocked to FAANG stocks, only to face losses when tech valuations corrected sharply in 2022.

Pro tips for safe and strategic US stock investing with Zerodha

Building a robust US portfolio involves spreading investments across different sectors; consider mixing blue chips like Apple, growth stocks like Nvidia, and defensive plays such as Procter & Gamble. This mitigates risk if, say, tech underperforms but consumer staples hold steady.

Regular monitoring is key—use Zerodha’s portfolio analysis features to review allocations and performance every quarter. Keen investors also stay on top of updates regarding LRS limits, tax rules, and reporting deadlines. Finally, periodic rebalancing—such as trimming gains from outperformers and topping up laggard sectors—helps lock in profits and keeps your risk profile aligned with your goals.

7 Key Risk Management Types and Effective Strategies

Conclusion

Recap of How to Use Zerodha to Invest in US Stocks from India

Investing in US stocks via Zerodha involves a clear, step-by-step process designed for compliance and ease of use. Indian investors start by opening a Zerodha account and then link it to a partnered international investment platform such as Vested. This setup allows for seamless overseas market access.

The journey typically begins with completing KYC formalities and submitting required documentation per RBI and SEBI guidelines. For example, investors must remit funds abroad under the Liberalized Remittance Scheme (LRS), currently capped at $250,000 per year. Following platform policies and regulatory requirements is essential, as breaches can lead to penalties or suspension of trading privileges.

Benefits of International Diversification for Indian Investors

Expanding a portfolio to include US stocks offers Indian investors significant advantages. Global diversification helps reduce risk by spreading investments beyond the local market, thereby mitigating country-specific downturns. For instance, during the 2020 pandemic, the NASDAQ 100 surged over 40%, while many emerging market indices struggled.

International investment also opens doors to ownership of renowned companies like Apple, Amazon, or Tesla—firms driving innovation across global sectors. Access to such growth opportunities can complement India-focused portfolios and boost overall returns, as S&P 500 companies have historically delivered robust, long-term gains.

Key Compliance and Operational Steps to Keep in Mind

Strict adherence to RBI and SEBI regulations is non-negotiable. This includes remitting funds correctly under the LRS and ensuring all foreign investment transactions are documented. Actual scenarios show that improper filings have led to queries from tax authorities or even fund freezes.

Maintaining detailed records, such as outward remittance certificates and investment statements, aids during tax filing seasons. Being diligent with tax returns is critical; in FY22, over 10,000 Indian investors reportedly received income tax notices after failing to disclose foreign holdings as required by law.

Final Advice on Getting Started and Growing Your Global Portfolio

New investors are encouraged to begin with modest exposure—perhaps allocating just 5% of their portfolio to US equities. For instance, someone investing ₹2 lakh might start with $1,000 in ETFs like Vanguard S&P 500, allowing them to gain experience while limiting risk.

When in doubt about international tax implications or optimizing asset allocation, consult certified financial advisors. Staying informed about global market trends—like how the Federal Reserve’s rate hikes impact US stock valuations—can help investors make timely decisions and maximize returns over time.

FAQs

What are the charges and commissions for investing in US stocks via Zerodha?

Understanding the fee structure is essential when investing in US stocks through Zerodha’s partnered platform, Vested. Charges include more than just trade commissions and can affect your returns if not adequately planned for.

The primary costs are a flat platform fee per trade; for example, Vested may charge $0.01 per share with a $1 minimum per trade. Currency conversion costs typically add a margin—usually around 1-1.5%—above the mid-market rate when converting INR to USD. Investors should also factor in remittance charges imposed by Indian banks under the Liberalised Remittance Scheme (LRS); HDFC Bank, for instance, may charge up to ₹500–1000 per outward remittance.

How long does it take to transfer funds from India to a US brokerage account?

Transferring funds under LRS generally takes 1–3 working days for most Indian banks to process and send USD to your US brokerage account. However, occasional delays can occur due to compliance checks or documentation requirements.

For example, ICICI Bank often completes the process in under 48 hours for clients with updated KYC. Peak remittance periods or missing documentation can extend the timeline. Always confirm the status with your relationship manager to avoid surprises.

Can NRIs use Zerodha to invest in the US stock market?

NRIs currently face restrictions using Zerodha’s platform directly for US stock investments. SEBI regulations and international brokerage compliance rules limit direct access for NRIs in certain jurisdictions.

Alternatives include specialized services like Stockal or Interactive Brokers, which cater to NRIs and offer US stock access under regulatory frameworks like NRI Portfolio Investment Schemes (PIS).

What happens if my US stock investment generates dividends?

Dividend income from US stocks is subject to a 25% withholding tax by the US IRS for Indian residents. After this deduction, dividends are transferred to your US account and can be remitted to India as needed.

For example, if you receive $100 in dividends from Apple Inc., $75 is credited to your account post-tax. You must declare this income in your Indian tax returns, and you can typically claim a Double Taxation Avoidance Agreement (DTAA) benefit for the tax already paid in the US.

Is investing in US stocks through Zerodha safe and compliant with Indian law?

Zerodha, via its partner Vested, operates under SEBI-registered, RBI-compliant remittance protocols as required by Indian law. Your funds are transferred through official LRS channels, and investments are held in your name at a registered US brokerage.

All fund transfers are documented to create a transparent trail, and platforms like Vested offer additional safeguards such as SIPC insurance up to $500,000 on US brokerage accounts, providing a similar sense of security as Indian mutual fund investments.

When should I consider rebalancing my US stock portfolio?

Regular portfolio reviews, typically semi-annually or annually, help address asset allocation drift. Significant market movements—like a 15% rally in the Nasdaq—may also prompt a rebalance to bring your allocations back in line with original goals.

Suppose your initial split was 50% US equities and 50% Indian equities, but after a year, the US allocation has increased to 65% due to outperformance. In this scenario, rebalancing by selling some US holdings and adding to your Indian allocation realigns your risk profile and preserves long-term strategy discipline.