A resident Indian can own US shares directly by sending money abroad under RBI’s Liberalised Remittance Scheme (LRS), up to USD 250,000 in a financial year. You can also get US market exposure in rupees through Indian international mutual funds and ETFs, which do not use your LRS limit.
Diving Finance is not a SEBI-registered investment adviser, and neither Diving Finance nor the author holds positions in any security, fund or platform discussed here. This article is for education only and is not investment, tax or legal advice. Brokerage, forex and remittance charges change. Confirm live rates on each platform’s official page and with your bank before you remit.
Key Highlights
- LRS lets a resident individual remit up to USD 250,000 per financial year (April to March), per RBI’s LRS FAQ.
- TCS on LRS: nil up to Rs 10 lakh a year in aggregate; above that, 20% for purposes such as investment. For education or medical treatment, the rate above Rs 10 lakh is 2%, as amended by the Finance Act, 2026, section 85(e), with effect from 1 April 2026.
- There are four routes: an Indian app that uses GIFT City, a global broker account, Indian international funds, and GIFT City (IFSC) funds.
- US stock brokerage on official pages, read 11 November 2026: Zerodha 0.10% (max $10 per order); Groww 0.1% or $1, whichever is higher; Upstox 0.1% with a $1 minimum.
- Forex mark-up often costs more than brokerage. Zerodha lists a negotiated 0.4% to 1.4% over the RBI reference rate; Groww’s help page says banks may mark up 1 to 1.5%.
- LRS money cannot be sent for overseas margin, and unused foreign exchange must come back within 180 days unless reinvested.
- Gains, dividends and yearly foreign asset disclosure all carry tax duties. Plan them with a chartered accountant.
Four ways to invest in US stocks from India
Table A shows how money moves. Last checked: 11 November 2026.
| Route | Money | LRS | TCS |
|---|---|---|---|
| 1. Indian app | Rupees converted to USD via partner bank | Yes | Above Rs 10 lakh a year |
| 2. Global broker | Bank wire to an overseas broker | Yes | Above Rs 10 lakh a year |
| 3. Indian funds | Rupees to an Indian AMC | No | No |
| 4. GIFT funds | USD to a fund in GIFT City IFSC | Yes | Above Rs 10 lakh a year |
Table B shows what it costs to start and what you hold. Last checked: 11 November 2026.
| Route | Start with | Main costs | You own |
|---|---|---|---|
| 1. Indian app | Fractional shares from $1 on some apps | Brokerage, FX mark‑up, US fees | US shares, as beneficial owner |
| 2. Global broker | Set by the broker | Brokerage, wire fees, FX | US shares in an overseas account |
| 3. Indian funds | Small rupee SIPs where open | Expense ratio | Units of an Indian scheme |
| 4. GIFT funds | Set by each fund, in USD | Fund fees, FX | Units of an IFSC fund |
Route 1: US stocks through an Indian app
Zerodha says it routes US investments through BSE’s India INX Global Access at GIFT City IFSC, and holds the shares through its US broker partner, ViewTrade. Groww and Upstox name Alpaca Securities as their US broker partner on their own pages.
US shares do not sit in your demat account. The US partner holds them and records you as the beneficial owner.
How it works, step by step
- Turn on the US stocks segment inside your existing app. Zerodha asks that your Aadhaar is linked to your mobile number.
- Add money from your Indian bank account. On Zerodha this is net banking through five partner banks only. UPI, debit cards and credit cards are not supported.
- Your bank converts rupees to dollars under LRS and credits a USD wallet.
- Buy by amount or quantity. Fractional units are offered, so a high share price is not a barrier.
- Sale proceeds land in the USD wallet first, and you can then withdraw them to your Indian bank.
Zerodha’s minimum transfer is USD 50 the first time and USD 100 after that. Upstox lists a minimum deposit of USD 100.
Zerodha, Groww and Upstox charges compared
Brokerage only, from each platform’s official page. Last checked: 11 November 2026.
| Platform | Brokerage per order | Account and AMC |
|---|---|---|
| Zerodha | 0.10%, min $0.01, max $10 | No opening fee or AMC |
| Groww | 0.1% or $1, whichever is higher | $0 opening, $0 AMC |
| Upstox | 0.1%, min $1 | $0 opening and AMC |
Upstox’s page says brokerage is free for the first 30 days after you enable global investing. All three list 18% GST on brokerage and pass on US regulatory fees, mostly on sells. Zerodha and Upstox also list an IFSCA turnover fee of 0.005% of trade value. Zerodha notes that the FINRA trading activity fee is paused from 1 October to 31 December 2026.
These charges are as listed on each platform at the time of writing. Check current charges on the platform before you trade.
A worked example using Zerodha’s published rates: a $1,000 buy costs $1.00 in brokerage, $0.18 GST and $0.05 IFSCA fee, so $1.23 before forex and bank costs.
For domestic brokerage, AMC and DP charges, see our Zerodha vs Groww charges comparison.
What these apps do not allow
Zerodha’s support pages say its US facility is delivery only. Intraday, margin trading (MTF), US IPO applications and securities lending are not supported. Only resident individual accounts can turn it on. NRIs, joint accounts, HUFs, companies, LLPs and partnership firms cannot.
This fits RBI’s LRS rules, which do not allow remittances for margins or margin calls to overseas exchanges. Zerodha describes its service as a beta on Kite web.
Route 2: A global broker account
You can also open an account directly with a broker regulated abroad. These brokers are regulated abroad, not by SEBI or IFSCA, so check how complaints are handled before you open one.
The money still goes out under LRS. You wire funds from your Indian bank, file Form A2 declaring the purpose, and quote your PAN. The broker usually asks you to submit Form W-8BEN, which confirms you are not a US tax resident.
Add the bank’s wire fee and forex mark-up before you compare brokerage.
Route 3: International mutual funds, FoFs and ETFs in India
This is the rupee route. You invest with an Indian AMC in an international fund, a fund of funds or an Indian-listed international ETF. Because you do not send money abroad yourself, it does not use your LRS limit and no TCS is collected from you.
The catch is an industry cap. SEBI’s Master Circular for Mutual Funds dated 20 March 2026 limits overseas investment to US$7 billion for the industry and US$1 billion per mutual fund. Overseas ETFs have a separate cap of US$1 billion for the industry and US$300 million per fund house.
When a fund house nears its cap, schemes may pause lump sums or SIPs. Some Indian-listed international ETFs can then trade above their NAV, because fresh units cannot be created easily. Check the scheme’s latest notice and compare the market price with NAV before you buy. Our guide on mutual fund NAV explains the basics, and more explainers sit in our mutual fund section.
Route 4: GIFT City (IFSC)
Global Access platforms
This is the plumbing behind Route 1. Indian brokers route your orders through an IFSC entity that connects to a US broker. Zerodha uses BSE’s India INX Global Access. Upstox’s page says its service is regulated via IFSCA in GIFT City.
IFSC funds in USD
Some fund managers run US dollar funds from GIFT City. You remit dollars under LRS and buy units of the IFSC fund. Minimum investments are set by each fund in US dollars, so read the offer document before you plan the amount.
RBI’s circular of 10 July 2024 (A.P. (DIR Series) Circular No. 15) widened LRS remittances to IFSCs, so residents can use them for permitted LRS purposes.
KYC and documents you need
| Item | Why you need it |
|---|---|
| PAN | Mandatory for every LRS transaction (RBI) |
| Aadhaar linked to mobile | Needed to turn on app routes such as Zerodha’s |
| Bank with net banking | To fund the remittance |
| Form A2 | Declares the purpose of the remittance to the bank |
| Form W‑8BEN | Confirms you are not a US tax resident |
For capital account remittances, RBI’s FAQ refers to a condition that you should have held the bank account for at least one year. App routes handle this through their partner banks, so ask your bank if your account is new. Our KYC explainer covers the Indian side of KYC.
LRS limit: USD 250,000 per financial year
RBI’s LRS FAQ (updated 6 April 2023) sets out these rules:
- All resident individuals, including minors, may remit up to USD 250,000 each financial year, April to March.
- The limit covers permitted current and capital account purposes combined, and you must quote your PAN.
- For a minor, the natural guardian countersigns the declaration.
- LRS is not open to corporates, partnership firms, HUFs or trusts.
- Family members can club limits for an investment only if they are co-owners of it.
- There is no limit on how often you remit. Once the yearly total reaches USD 250,000, money that comes back does not reset it.
- Income from investments can be kept and reinvested. Unspent or unused foreign exchange, unless reinvested, must be brought back within 180 days.
TCS on LRS remittances in FY 2026-27
Tax collected at source (TCS) is collected by your bank when you remit. The rates below are for LRS remittances where the amount, or the aggregate for the year, exceeds Rs 10 lakh. For education or medical treatment, section 394 of the 2025 Act, table serial 7, clause (a), as amended by the Finance Act, 2026, section 85(e), with effect from 1 April 2026, collects TCS at 2%. Other LRS purposes, including portfolio investment, stay at 20%.
| Purpose | Up to Rs 10 lakh | Above Rs 10 lakh |
|---|---|---|
| Investment and other purposes | Nil | 20% |
| Education or medical treatment | Nil | 2% |
Worked example (illustrative): you remit Rs 15,00,000 for investment in FY 2026-27, and banks apply the rate to the amount above the threshold. TCS = 20% of Rs 5,00,000 = Rs 1,00,000, collected at remittance.
TCS is not an extra tax. It is credited to your PAN, shows up in your tax statements, and is adjusted against your tax liability when you file. Zerodha’s support page says you can adjust it against advance tax or claim a refund in your return.
The real cost: forex mark-up and other charges
| Cost | Who charges it | Notes |
|---|---|---|
| Brokerage | Platform | See the Route 1 table |
| FX mark‑up | Your bank | Over the RBI reference or live rate |
| GST on conversion | Your bank | Slab based on amount |
| Bank remittance fee | Your bank | Varies by bank |
| US fees on sells | US regulators | SEC, FINRA, CAT fees |
| IFSCA fee | Passed on by app | 0.005% of trade value |
Zerodha’s support pages say it has negotiated a mark-up of 0.4% to 1.4% over the RBI reference rate. Groww’s help page says Groww charges nothing to add dollars, while banks may typically mark up live forex rates by 1 to 1.5%. Upstox’s page lists $0 deposit and withdrawal fees but no bank mark-up, so ask your bank.
Worked example (illustrative): converting Rs 5,00,000 at a 1% mark-up costs about Rs 5,000 before brokerage. Under rule 32(2)(b) of the CGST Rules, 2017, the taxable value for a conversion between Rs 1 lakh and Rs 10 lakh is Rs 1,000 plus 0.5% of the amount above Rs 1 lakh, which is Rs 3,000. GST at 18% of that is Rs 540. Zerodha’s fund-transfer page uses the same working and shows Rs 540 on Rs 5 lakh.
Remember the round trip. If you bring the money back to rupees later, a conversion spread applies again on the way home.
Tax at a glance
US shares carry Indian tax on gains, US withholding on dividends, and a yearly duty to report foreign assets in your income tax return. Platform pages say dividend withholding is usually 25% under the India and US tax treaty with a valid W-8BEN, against 30% without it. Plan the details with a chartered accountant before you file. See our guide to tax on US stocks in India.
Which route suits whom
These are fit checks, not recommendations.
An Indian app may suit someone who already uses that broker, wants to pick individual US shares or ETFs in small amounts, and is comfortable with LRS paperwork and a USD wallet.
A global broker account may suit someone who wants a wider product range and is willing to manage a separate overseas account, bank wires and its grievance process.
Indian international funds may suit someone who wants index or theme exposure in rupees, prefers SIPs, and does not want to use the LRS limit or deal with TCS. The trade-off is that a scheme may pause inflows.
GIFT City funds may suit someone with a larger dollar ticket who wants a fund rather than single stocks.
If you plan to send more than Rs 10 lakh in a year, budget for the TCS cash flow until it is adjusted in your return. For a wider list of brokers, see our top stock brokers in India roundup. Terms like LRS and NAV are explained in our glossary, and more basics sit in the share market section.
Expert take: Ashutosh Joshi
“Brokerage is the smallest number on this page. Forex mark-up, the TCS cash flow above Rs 10 lakh and yearly foreign asset disclosure decide your real cost and effort. Before you turn on any app, write down how much you will send this year and how you will track it against your LRS limit. Then pick the route whose paperwork you will actually keep up with every year, not the one with the loudest advert.”
Frequently asked questions
Can a resident Indian legally buy US stocks?
Yes. RBI’s Liberalised Remittance Scheme lets a resident individual remit up to USD 250,000 each financial year for permitted investments, including overseas shares. You can also get US exposure in rupees through Indian international mutual funds and ETFs, which do not use your LRS limit.
What is the minimum amount to start?
Groww and Upstox offer fractional US shares from $1, and Zerodha also offers fractional units. Funding minimums apply: Zerodha asks for USD 50 on the first transfer and USD 100 later, and Upstox lists a USD 100 minimum deposit. Indian international funds allow rupee SIPs when the scheme is open. Check each platform’s live terms.
Is TCS charged when I send money for US stocks?
Only once your total LRS remittances in a financial year cross Rs 10 lakh. For investment, the rate on the amount above that is 20%. TCS is not an extra tax. It is credited to your PAN and adjusted in your income tax return.
Do I need a separate demat account?
Not on app routes that sit inside an existing Indian broking account. US shares are not credited to an Indian demat account. A US broker partner holds them and records you as the beneficial owner. A global broker route needs a separate overseas account.
Can I trade US options or use margin from India?
RBI’s LRS FAQ says remittances for margins or margin calls to overseas exchanges are not permitted. Zerodha’s support pages say its US facility is delivery only, with no intraday, MTF or US IPO applications. Confirm each platform’s rules before you assume any product is allowed.
What does it cost to convert rupees to dollars?
Banks add a forex mark-up over the reference or live rate. Zerodha lists a negotiated 0.4% to 1.4% over the RBI reference rate. Groww’s help page says banks may mark up 1 to 1.5%. On Rs 5 lakh, a 1% mark-up costs about Rs 5,000 before brokerage and bank GST.
Do Indian international mutual funds use my LRS limit?
No. You invest in rupees with an Indian AMC, so there is no LRS remittance by you and no TCS. The fund uses SEBI’s industry limit for overseas investment, which is why some schemes pause fresh money at times.
What should I know about tax before I start?
Gains, dividends and yearly foreign asset disclosure each have separate rules. US dividends usually face withholding before they reach you, and foreign holdings must be reported in your return. Speak to a chartered accountant before you invest and before you file. See our guide to tax on US stocks in India.
Sources
All pages read on 11 November 2026, between about 8:55 PM and 9:00 PM IST, except the Finance Act, 2026 official eGazette, which was opened on 12 November 2026, at about 1:20 PM IST (Asia/Calcutta).
- RBI, Liberalised Remittance Scheme FAQ (updated 6 April 2023): https://www.rbi.org.in/Scripts/FAQView.aspx?Id=115
- RBI, Remittances to IFSCs under LRS, A.P. (DIR Series) Circular No. 15, 10 July 2024: https://rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=12699
- Finance Act, 2026 (No. 4 of 2026), official eGazette, Presidential assent 30 March 2026, section 85(e) (TCS on LRS education or medical treatment, Income-tax Act, 2025, section 394 table, serial 7, clause (a), with effect from 1 April 2026): https://egazette.gov.in/WriteReadData/2026/271439.pdf
- PIB, Union Budget 2026-27 release on the Income Tax Act, 2025 and TCS, 1 February 2026: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2221416
- SEBI, Master Circular for Mutual Funds, 20 March 2026: https://www.sebi.gov.in/sebi_data/attachdocs/mar-2026/1774024028162.pdf
- Zerodha charges: https://zerodha.com/charges/
- Zerodha support, charges for US investing: https://support.zerodha.com/category/trading-and-markets/general-kite/global-investing/articles/charges-for-us-investing
- Zerodha support, adding and withdrawing funds: https://support.zerodha.com/category/trading-and-markets/general-kite/global-investing/articles/add-or-withdraw-funds-from-global-wallet
- Zerodha support, US investing guide: https://support.zerodha.com/category/trading-and-markets/general-kite/global-investing/articles/global-investing-guide
- Groww US stocks pricing: https://groww.in/pricing/us-stocks
- Groww help, adding money to USD balance: https://groww.in/help/us-stocks/funding-usd-balance/is-the-method-to-add-money-in-usd-balance-similar-to-that-in-inr-balance–19
- Upstox US stocks page: https://upstox.com/us-stocks/
Diving Finance is not a SEBI-registered investment adviser, and neither Diving Finance nor the author holds positions in any security, fund or platform discussed here. This article is for education only and is not investment, tax or legal advice. Brokerage, forex and remittance charges change. Confirm live rates on each platform’s official page and with your bank before you remit. This page carries no affiliate or referral links.
