if you . reading about investing in american stock market Then there is a good news for you. Now buying shares of Netflix, Apple and Bumble is not as complicated as it was before. As we know, a few days back, NSE International Exchange (NSE IFSC), a wholly owned subsidiary of National Stock Exchange of India Limited (NSE), announced that it will soon be trading in select US Stocks through the NSE IFSC platform. facility will be available. But before you start investing in the US markets, there are several things you should know.
First and foremost, just as an investor gets in touch with a brokerage firm in the case of investing in the Indian markets, an investor looking to invest in the US stock market should get in touch with an international brokerage.
It goes without saying that if one wants to invest in the US stock market then he/she must comply with the law of the land and thus an investor ensures that he/she invests as per the rules and regulations laid down by the Reserve Bank of India. .
Domestic brokerage companies are also tying up with international brokerages to make the process of investing in the US stock market hassle-free.
Here are the steps to invest in US stock market:-
1) Account opening
Just as an investor opens a demat account to invest in the Indian stock market, investing in the US stock market requires one to approach an international brokerage. This can be done by availing the online support services offered by the brokerage. By filling in the basic details like name, age etc., one can start the account opening process, and after verification one can open one’s account.
2) Documentation
To avoid any legal hassle, make sure to verify all your documents on the brokerage platform. Like other formalities, the brokerage firm will ask for address proof, bank statement etc. to open an account.
3) Nidhi
Once you are ready with your account, add funds to invest in stocks as money will be required to invest in the stock market. Fund in this case means dollars, which will be used to buy stocks in the US market.
4) RBI Rules
While investing in the US stock market, one must follow the rules and norms of the apex bank. According to Forex, you have to buy dollars to invest in US stocks, because buying US stocks requires dollars. According to the current rules, an Indian citizen can remit up to $ 2.5 lakh (approximately ₹ 1.82 crore) in a financial year. Also, ensure that the documentation related to the Liberalized Remittance Scheme (LRS) is taken care of.
5.) Forex Rates
Before investing in the US stock market, one should pay attention to exchange rates. It will be in your favor to get a lower rate for this so check with your brokerage. You can also ask your bank to transfer the money directly to your brokerage account.
To ease investing in the US stock market, ICICIDirect, a virtual financial supermarket offering investment, security and loan products, announced that it has partnered with leading global fund managers to offer a curated portfolio of international stocks built on models created by leading global fund managers. Has tied up with Interactive Advisors for For domestic retail investors. Now, ICICIDirect customers will be able to invest in a portfolio made up of US stocks and ETFs managed by Interactive Advisors.
Along with ICICI Direct, Religare Broking also announced its partnership with Vested Finance to give its investors options for investing in the US stock market, and the launch of overseas stock exchanges on its broking platform, where clients trade in international stocks. Also you can diversify your portfolio. This partnership enables investors to invest directly in regularly consumed US stocks 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 seamless and hassle-free manner.
“There is a clear interest and demand for international equities as Indian investors look for avenues to diversify their portfolios and take advantage of the boom in international stock markets. Furthermore, we live in an era where investors are becoming increasingly aware of global brands in exciting fields including new-age businesses, technology and healthcare. With Vest, investors can also view the ready portfolio and research that can help them take an informed decision, Gurpreet Sidana, Chief Operating Officer, Religare Broking Ltd said.
So with this development, now, investors can make the most of this development and earn profit by investing in US stock market.
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