Zerodha launches US stock investing for Indian clients

Indian discount brokerage Zerodha has launched US stock investing in beta mode on its Kite platform, enabling Indian investors to purchase shares of US-listed companies and exchange-traded funds (ETFs) through their existing accounts. The offering provides access to approximately 2,000 US-listed companies and around 1,000 ETFs.

The service supports fractional investing, allowing users to invest in a portion of a share with amounts starting at $1. Resident Indian individuals can activate the international investing segment directly via Kite without needing to open a separate demat account. Funds can be transferred from linked Indian bank accounts to a dollar-denominated wallet. The platform does not support UPI, debit cards, or credit cards for funding.

Zerodha charges a brokerage fee of 0.1% of the trade value, with a minimum of $0.01 and a maximum of $10 per executed order. An 18% Goods and Services Tax (GST) applies to the brokerage. Additional charges include an IFSCA turnover fee of 0.005% on trade value, along with applicable US regulatory transaction fees on sell orders. Currency conversion involves a bank markup of 0.5%-1.2% over the RBI reference exchange rate.

The service supports delivery-based investing, fractional ownership, and Systematic Investment Plans (SIPs) in eligible US stocks. Intraday and margin trading are not available for international equities, and users cannot apply for US IPOs through the platform. The service is routed through BSE's India INX Global Access at GIFT City, with underlying US securities held via a US brokerage partner.