How Can Indians Start Investing In The US Stock Market?
The US stocks market houses some of the biggest stock markets in the world. Indian investors can avail the opportunity to invest in these well-known companies to diversify their portfolios. Platforms like Appreciate allow users to open zero-charge accounts and start trading in US stocks and ETFs. There are two ways in which Indians can invest in US stocks: direct investments and indirect investments.
Direct Investment
Direct investment means that you can invest directly in the US share market from India, either through a domestic broker or an international broker. The charges of both usually differ, and they both come with their own set of advantages.
- Domestic broker
You can open an overseas trading account with the help of a domestic broker in your home country. The domestic broker acts as a link between the investor and the international stock market. Appreciate is an online app which you can use to trade in the US stock market from India.
- International broker
Instead of a domestic broker, you can open your trading account directly with an international brokerage firm which has an international presence. An international broker can provide you with greater accessibility to the US investing market.
Indirect Investment
Apart from the above stated options, there are some indirect ways that Indian investors can opt for if they wish to diversify their portfolio and explore different risk profiles. Following are some of these indirect routes.
- Mutual funds
You don’t need to open an overseas trading account to start your US stock investing through mutual funds. In mutual funds, money is pooled from multiple investors, and a professional portfolio manager invests this money on behalf of the investors in different companies, based on their expertise. This is a low-risk option to invest in US stocks.
- Exchange-traded funds (ETF)
Another option to invest in US stocks is through ETFs or exchange-traded funds, which are traded on US stock exchanges. US stocks app like Appreciate have educational resources which help investors to learn about EFTs and get AI generated recommendations for the best stock trading options.
- Online applications
With the advent of new-age online applications, information on stocks and routes to trading has become more accessible than ever. One can buy and sell stocks in the international stock exchange just by sitting at home and using online brokerage services. You can get global access and pro trading tools on Appreciate and start trading in US stocks.
The US stock market is an attractive opportunity for Indians due to its higher returns and relative stability. However, one should do their research and acquire knowledge about taxation policies before starting international stock trading. There may be charges to consider and risks to be evaluated before going international. Both direct and indirect investment options can be considered depending on your investment goals, risk tolerance and portfolio preferences.