If you have been reading about investing in the US stock market then there is a piece of good news for you. Now buying stocks of Netflix, Apple and Bumble is not as intricate as it was earlier. As we know, Just a few days back, NSE International Exchange (NSE IFSC), a wholly owned subsidiary of the National Stock Exchange of India Ltd (NSE) announced that trading in select US Stocks will soon be facilitated through the NSE IFSC platform. But before you start investing in the US markets, there are several things to know.
First and foremost, just like in the case of investing in Indian markets the investor get in touch with the brokerage firm, the investor intending to invest in the US stock market should get in touch with an international brokerage.
This goes without saying that if someone wants to invest in the US stock market they must adhere to law of the land and thus an investor make sure that he/she invest in consonance with rules and regulations set by the Reserve Bank of India.
In a bid to make the process of investing in the US stock market hassle-free, the domestic brokerages are also tying up with the international brokerages.
Here are the steps for investing in the US stock market:-
1) Opening an account
Just like an investor opens a Demat account to invest in the Indian stock market, one needs to get in touch with an international brokerage for investing in the US stock market. One can get this done by availing online assistance services offered by brokerages. By filling basic details like name, age etc, one can initiate the process of opening an account, and after verification one can get his/her account opened.
2) Documentation
To circumvent any legal trouble, just ensure you get your all documents verified on the brokerage platform. Just like other formalities, for opening up an account, brokerage firm will ask for address proof, bank statement etc.
3) Funds
Once you are ready with your account, add funds to invest in stock because funds will be required to invest in the stock market. Funds in this case means dollar, which one will use to buy stocks in the US market.
4) Reserve Bank of India rules
While investing in the US stock market, one must adhere to the rules and norms of the apex bank. As per the foreign exchange, you will have to buy dollars for investing in the US stocks, because one needs to have dollars to buy US stocks. According to the current rules, an Indian citizen can remit up to $2.5 lakh (roughly ₹ 1.82 crores) in a financial year. Also, ensure that documentation concerning Liberalised Remittance Scheme (LRS) has been taken care of.
5.) Foreign exchange rates
Before investing in the US stock market, one must carefully watch out for exchange rates. For this securing a low rate would be in your favour so get in touch with your brokerage. You can also ask your bank to directly transfer money to your brokerage account.
To make investing in the US stock market easier, ICICIdirect, a virtual financial supermarket offering investment, protection, and loan products, announced that it has tied up with Interactive Advisors to offer curated portfolios of international stocks built on models constructed by leading global fund managers, for the domestic retail investors. Now, ICICIdirect customers would be able to invest in portfolios made up of US stocks and ETFs managed by Interactive Advisors.
Along with ICICI direct, to give options to its investors for investing in the US stock market, Religare Broking also announced its partnership with Vested Finance and introduced foreign stock markets on its broking platform wherein clients can diversify their portfolio with international stocks. This partnership will enable investors to directly invest in US stocks that they consume regularly including Apple, Amazon, Netflix, Facebook, etc. Vested Finance is an online investment platform that enables Indian investors to invest in the US stock market in a smooth and hassle-free manner.
“There is a clear interest and demand for international equities as Indian investors looking for avenues to diversify their portfolios and take advantage of the burgeoning international stock markets. Besides, we live in an age where investors are increasingly aware of global brands in exciting sectors including new-age businesses, technology and healthcare. With Vested, investors can also look at ready portfolios and research that can help them make an informed decision, Gurpreet Sidana,” Chief Operating Officer, Religare Broking Ltd. Said.
So with this development, now, investors can make maximum out of this development and garner profit by investing in the US stock market.
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