A majority of US-based online brokers have the capability of allowing you to open a new account on the website or through their mobile application. However, there are a few things you need to consider before opening a brokerage account.
Brokerage Account
A type of investment account that allows you to buy and sell a variety of investments such as Mutual Funds, bonds, stocks and ETFs is known as a brokerage account. Whether you are saving up for a big purchase or setting aside money for the future, you can use your funds whenever and wherever you want.
You can utilise your brokerage account to gain access to a few types of investments like stocks, bonds, etc. Opening a brokerage account is one of the first steps to building your personal investment portfolio. You can take advantage of potential long-term growth as well as at a site for your retirement and other goals. Moreover, you will gain access to investment research tools and strategies.
US brokerage account
Purchasing the shares of Amazon, Apple or Google is almost as similar and easy as buying shares of Indian companies on stock exchanges in India. The only difference between them is that the buying process involves an international brokerage house and as an investor, you will need to adhere to the RBI’s foreign exchange rules.
Indian brokers like Motilal Oswal, HDFC securities and fintech platforms like Stockal provide overall US investing facilities.
The international brokerage platform makes sure that international investing is easy, simple and secure with all the paperwork and authorization from banks being covered under one roof. Be it from getting the RBI clearances to finding the right Bank in the United States and opening an account, International brokerage firms make everything convenient and transparent.
Key steps that you need to follow before you can invest in the US stocks from India are:
- Opening the account
After identifying the best brokerage account in India for buying the United States stocks, online registration for the account is initiated. It is a quick and simple process. All you need to do is enter details such as name, mobile number and email address to start.
- Documentation
You need to submit certain documents in order to establish your identity and provide the address during the process of opening the account. The documentation is the bare minimum and into the combination of the ID proof along with picture and address proof.
- Addition of funds
After your account has been approved, you are permitted to add funds to your brokerage account.
- Forex Formalities
Before you start adding funds and investing abroad, you will have to be careful with the RBI rules on Forex which is what the Liberalised Remittance Scheme or LRS is all about. As a resident of India, you need to buy dollars or any other currency using Indian rupees from an authorised lender that is the bank in India.
- Forex rules
When rupee funds are being transferred from your Indian Bank account to your brokerage account in the US, the foreign exchange rate matters. In order to help you get a favourable exchange rate, Souten International brokerage platforms where you open the account have tie-ups in leading Nationalised banks to get a good low Forex rate.
