So you all know that we Indians have an option to buy US stocks from India, the moment I heard this news I was on a mission to find a legit app where I could buy some US stocks and see if I can make few dollars ( just to beat the rising inflation in India)
And , my choice of application ended with INDmoney where you can open a account by downloading the app and following the instructions. Since the UI is so user friendly creating an account was so easy.
Once, you create your account by giving your mobile number and PAN card details you will be creating an account with INDmoney and also opening a bank account with SBM Bank India , which act as your local bank to transfer money in dollars.
So , this is basically a 2 in 1 account where you can transfer money in Indian currency and get converted to US $ with less user fees and in a faster way.
You may asked to submit your recent ITR form or 3-6 months bank statement to get verified before you convert your funds to $.
Since the whole application process is paperless, it is very easy to open an account on INDmoney.
Once you get your dollars in your wallet all you need to buy stock and trade, rest all operation is how you buy stocks in India, see the fundamentals and invest.
There will be time difference in the market operation, the markets opens at 7pm IST, so you have to trade accordingly.
Currently there is no fees charged for buying and selling . But withdrawing money from US bank account to your Indian bank account will cost you 5$. You can avoid that if you opt for ACH ( Automated clearing house ) method where you will be charged only 0.25$ per transaction , but this will take 2-3 working days for the money to come to your bank.
Since there is a Double Taxation Avoidance Agreement (DTAA) between India and USA, there is no tax charged on capital gains for US stocks . Any dividend received from your US stocks would be post deduction of dividend tax of 25%. You are eligible to clam this deduction when you file your ITR in India.
There will be 5% TCS deducted if your deposit more than 7 lakhs INR to your US account, according to RBI’s liberalised remittance scheme.
Well US stocks are regulate by SEC, a government body in USA and all the stocks you buy through INDmoney are managed by a US service provider called DriveWealth LLC who is a member of FINRA (Financial Industry Regulatory Authority) and SIPC (Securities Investor Protection Corporation). Drivewealth is licensed to carry digital stock broke raging activity in United Stated.
In case INDmoney shuts shop in India you can access your portfolio through the US partners by directly accessing their platform, since the account was created by partnering with their platform And, DriveWealth also comes under the SIPC which protect the consumer with a heavy insurance scheme if the firm fails financially. So our money is kind of safe.
With INDmoney you can also invest in other financial investments like FD, Mutuals funds and also in Indian share market.
