Zerodha US stocks on Kite explained: How to buy shares, add dollars, and withdraw money
To start buying US stocks on Zerodha, investors can search for US-listed companies and ETFs on Kite's International section and place market or limit orders.
Zerodha has introduced a feature for its users to buy US stocks on its platform. The launch is in beta on Kite web for now and will go live soon. So how does it work? The process is straightforward. But a few things need to be understood first. These are the trade timings, as US markets open and close differently from Indian markets, and because you need to buy dollars to buy US stocks. Currently, only netbanking is supported on Zerodha.
You cannot use Unified Payments Interface (UPI), debit cards or credit cards. Further, only specific partner banks are supported: HDFC Bank, ICICI Bank, IDFC FIRST Bank, Axis Bank and Kotak Mahindra Bank. The respective charges apply when you add funds to and withdraw funds from your Global wallet. The Global wallet is a USD wallet linked to your US stocks segment. Money added to the wallet is used to buy US stocks.
The proceeds from selling them are credited back to the wallet. You can withdraw the available balance to your registered bank account whenever required. Buying and selling US stocks requires US dollars and the RBI's Liberalised Remittance Scheme rules need to be adhered to. The first step is adding funds. Click on 'Funds on Kite', then select Global stocks. Complete the transfer using netbanking from your linked bank account.
Timing matters here. Transfers initiated before 2:30 PM IST reach your Global wallet within 2 working days. Transfers initiated after 2:30 PM IST take up to 3 working days. Transaction limits are set by partner banks. They apply across all five supported banks. The minimum amount per transaction across most banks is USD 50 for your first transfer, and USD 100 for subsequent transfers. Bank-wise transaction limits BankMinimum limitMaximum limitHDFC BankUSD 50USD 50,000ICICI BankUSD 50USD 100,000IDFC FIRST BankUSD 50USD 25,000Axis BankUSD 50USD 45,000Kotak Mahindra BankUSD 50USD 50,000 Source: Zerodha What does the currency conversion cost?
When you add funds to your Global wallet, your bank converts your Indian Rupees (INR) into US Dollars (USD). Banks do not use the Reserve Bank of India (RBI) reference exchange rate directly. They apply a small markup over it. Zerodha has negotiated a currency conversion markup of 0.5 to 1.2% above the RBI reference rate. Withdrawing money: mind the 1:30 PM cut-off After a sale, the amount lands back in the Global wallet.
To withdraw it, go to the Global stocks funds section on Console and submit a withdrawal request. Requests submitted before 1:30 PM IST are processed on the same working day. Requests submitted after 1:30 PM IST are processed on the next working day. Once processed, the funds are credited to your registered bank account within one working day. Can funds stay idle in the wallet? Only for a while. You can keep uninvested funds in your Global wallet for up to 180 days.
If no trades occur within this rolling 180-day window, the unused balance is automatically settled back to your bank account. How do you place an order on Kite? Placing an order for US stocks works much like buying Indian equities: Step 1: Click on the search bar in Marketwatch and select International. Step 2: Search for the US company or ETF you want to buy. Step 3: Click on the + icon to add the instrument to your MarketWatch.
Or hover over the instrument and click on B (Buy) or S (Sell) to open the order window. Then choose whether to place your order by quantity or amount. To buy by amount: Click on Switch quantity/amount to switch from quantity to amount. Enter the exact dollar amount you want to invest. Kite automatically calculates the corresponding fraction of units for you. To buy by quantity: Enter the number of shares or fractional units you want to purchase.
The order window displays available and required margins in both US Dollars and Indian Rupees. A toggle switch lets you flip between the dollar view and the rupee value view. Finally, select your order type (Market or Limit) and click on Buy to place your order. Which order types work? US investing through Zerodha is strictly delivery-based. Intraday (MIS) and margin trading options are not available.
Market orders are executed immediately at the best available market price when the US market is open. You can place them by quantity or by amount. Limit orders are executed only at your specified limit price or a better price. Stop-loss (SL) orders are not available as yet. Zerodha will introduce them later via Good Till Triggered (GTT). When do US markets trade in Indian time? You can place orders for US stocks at any time.
But they are executed only when the US market is open. US markets trade during Indian evening hours, so your orders are processed as soon as the US market opens. Timings in India depend on whether the US follows Standard Time or Daylight Saving Time (DST):US Standard Time (November to March): 8:00 PM to 2:30 AM ISTUS Daylight Saving Time (March to November): 7:00 PM to 1:30 AM IST. Check the cut-off times and limits before you transfer.
Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor. Financial Express is not responsible for any decisions made based on this information.
