Invest in US Stocks

US Stock Exchanges, such as NASDAQ and New York Stock Exchange (NYSE), are home to some of the best-performing securities. These include Meta, Tesla, Apple, Amazon, Google, etc. Different Indian platforms allow you to invest in US stocks as there are no stockbrokers for US securities.

Here are some of the benefits of US stock trading: 

• Portfolio Diversification: By investing in US stocks, you not only get exposure to US companies but can also buy stocks of top companies from various countries

• Opportunity to Invest in High-Potential Companies: US stocks allow you to invest in innovative companies across industries having a high potential for growth

• Higher Returns: Historically, the US stock markets have experienced lesser volatility compared to Indian markets and have given much higher returns

• Gains from US Dollar’s Appreciation: In addition to capital gains, you also stand to earn from currency gains by investing in US-based securities

• Fractional Share Investing: When investing in US stock exchanges, it is not necessary to invest in a complete share as you can also invest in a fractional share

Fractional investing enables you to invest in the priciest shares and Exchange-Traded Funds (ETFs) for as little as US$1. As their name suggests, you can invest in a portion of a whole share with fractional investing. 

 

This allows new investors with smaller portfolios to diversify them and invest in companies that may be out of reach. You can buy fraction shares in the following ways:

1. Stock Splits 

A company boosts the share count of its shareholders by splitting its stock. For instance, in a 3:2 split, you can receive 22-and-a-half shares if you own 15 shares.

2. Dividend Reinvestment Plan (DRIP)

A DRIP allows you to invest the dividend from a stock to purchase new shares, resulting in you owning fractional shares. 

3. Mergers and Acquisitions

In case of a merger or acquisition, companies use a ratio to exchange or combine stocks. You can end up with fractional shares in such cases. 

 

Check the following table to learn about the trading time in the two primary stock market exchanges in the USA, NASDAQ and NYSE:

1. Regular Trading Hours

These hours witness the most active trading in the US markets. Stock prices keep updating during these hours based on the buying and selling activities. 

2. Pre- and After-hour Trading 

These hours allow investors to trade before and after the regular trading hours, offering flexibility and enabling you to react to the real-time developments.

Investing in US stocks involves various charges, such as brokerage fees, Forex charges, and so on. It is crucial to know about these charges as they impact your overall earnings.

Disclaimer: The charges can vary at the discretion of the brokerage firm and the bank.

There is no citizenship requirement for investment in US Stocks. Hence, Indian citizens can also invest in US stocks. However, non-US citizens need to fulfil certain additional requirements under the Patriot Act of 2001. 

One crucial element that you cannot overlook when investing in US stocks is taxation. Indian investors are subject to both the US and Indian tax laws.

 

The US tax laws levy taxes on the dividend income earned by Indian investors. Additionally, the investment may also be subject to capital gains taxation in India. However, the Double Taxation Avoidance Agreement (DTAA) protects investors from double taxation as you can claim a Foreign Tax Credit in India.  

 

Indian equities are also a great option to invest in, as many of them offer high returns while avoiding paying Forex charges. On Bajaj Markets paltform, you can easily compare and invest in various equity-based mutual funds in India.

International investment is not supervised by any regulatory body in India. Thus, any claim or dispute relating to such investment or enforcement of any agreement/contract /claim will not be under laws and regulations of the recognised stock exchanges and investor protection under Indian Securities Law. The account opening process will be carried out on Vested platform and Bajaj Financial Securities Limited will not have any role in it.”

 

Bajaj Finserv Direct Limited is only acting as lead referral of Bajaj Financial Securities Limited for US investments. Bajaj Financial Securities Limited has tied up with Vested Inc for US investment.”