Zerodha users can now buy US stocks on Kite without opening a separate account
Investors can buy up to 2,000 US-listed stocks and around 1,000 ETFs without opening a separate demat account.
Zerodha account holders can now start buying US stocks on the Kite platform. Zerodha has launched US stock trading in beta mode on Kite. Indian investors can buy shares of US-listed businesses and exchange-traded funds (ETFs) using their existing accounts. US investing is in beta on Kite Web for now and is set to go live soon. As a resident Indian, you can invest in up to 2,000 US-listed stocks and around 1,000 ETFs through Zerodha's Global Stocks segment.
You do not need to open a separate account. US investing through Zerodha is strictly delivery-based. Intraday (MIS) and margin trading options are not available. Stop-loss (SL) orders will be introduced soon via Good Till Triggered (GTT). Same-day buy and sell trades are permitted. Before you begin, know the steps. As an Indian investor in US stocks, you should understand the full process. It runs from activating the segment and transferring funds to tax rules, compliance obligations and Income Tax Return (ITR) filing.
India and the United States have a Double Taxation Avoidance Agreement (DTAA), which ensures that the same income is not taxed twice. Under this agreement, capital gains from US stocks are taxable only in India for resident Indian investors. You do not pay capital gains tax in the US. However, they are executed only when the US market is open. Because US markets trade during Indian evening hours, your orders are processed as soon as the US market opens.
Market timings in India vary depending on whether the US observes 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 You can invest if you are a resident Indian with an individual account. Joint accounts and non-individual entities are not supported for now. These include Hindu Undivided Families (HUFs), companies, Limited Liability Partnerships (LLPs) and partnership firms.
Non-Resident Indians (NRIs) are not eligible either. How do you turn on US investing? Visit account.zerodha.com and click Enable US investing. You do not need a separate demat account or any physical paperwork. You can also activate the segment through Kite: Log in to Kite. Click International from the Marketwatch, Holdings or Funds page. Click Enable now. Click Enable US investing. Once you submit the request, the process takes up to 48 working hours.
You will get an email confirmation at your registered email address when the segment is ready. Zerodha routes these investments through BSE's India INX Global Access at GIFT City IFSC. If it is not, complete your re-KYC through account.zerodha.com first. Unlike the Futures and Options (F&O) segment, activating US stocks does not need income proof. Once the segment is active, you can invest in: Up to 2,000 of the largest US-listed companies by market capitalisationAround 1,000 ETFs with Assets Under Management (AUM) above $250 million Fractional investing: buy part of a share A high share price need not hold you back.
Why? You do not have to buy a full share. With fractional investing, you can buy a portion of an eligible stock or ETF using exact dollar amounts. Say a stock costs $300 and you want to invest $75. You buy exactly 0.25 shares. Your profits, losses, and dividends scale with the fraction you own. How to add money to your Global wallet First, transfer money from your registered Indian bank account to your Global wallet.
This is a USD wallet linked to your US stocks segment. Money in the wallet is used to buy US stocks. Proceeds from selling them come back to the wallet. You can withdraw the available balance to your registered bank account whenever you need to. To add funds: Go to Funds on Kite. Select Global stocks. Complete the transfer using netbanking from your linked bank account. US investing is still in beta, so check your Kite app for access before you plan your first trade.
Tax and compliance rules matter as much as the buy button, so read them before you invest. Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investment in foreign securities involves significant risks, including currency fluctuations, different financial reporting standards, and varying regulatory environments.
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.
