Everyone wants to invest in America’s stock market, especially we Indians are excited about investing US stock market.
Because Almost all the big companies in the world are listed on the US market, even the four companies of the 1 trillion Market Valuation Club, (Apple, Microsoft, Amazon & Google) are also US-based companies.
But most of the people didn’t know how to invest in the US stock market? So today’s we discuss two ways that you can invest in the American stock market.
How To Invest In American Stock Market?
There are two ways to invest in US Stock Market-
1. By opening a trading account in Indian Brokerage Firm with a tie-up from Foreign Brokerage Firm.
2. By opening a trading account in a Direct Foreign Brokerage Firm.
lets discus this two ways one by one.
By opening a trading account in Indian Brokerage Firm with a tie-up from Foreign Brokerage Firm.
In India, there is many stock broket that tie up Foreign Brokerage Firms. you cant invest in the US market simply by opening a account whit this broker. this type of account called Overseas account.
ICICI Direct, HDFC Securities, Kotak Securities, Reliance Money, etc., are some names that can provide this type of account.
requvierd step to follow this proses –
- First, you open a trading account in the Firm with a Foreign tie-up.
- submit all required documents for KYC.
- After the account is open, you will have to transfer funds and then fill A-2 Form. Through A2 Form, you will be able to receive foreign exchange in your account.
- after tranfering youer funfd you are abel to tred in US stock
Note: Margin Trading and Short Selling are not allowed for Indian Investors.
By Opening Trading Account In Foreign Brokerage Firm-
You can invest by opening a trading account in Direct Foreign Brokerage. Many foreign brokerage Firms like- Interactive Brokers, TD Ameritrade, Charles Schwab International Account, etc. are allow Indians to open a trading account.
Currently, an individual person can only invest $ 2,50,000 in the US stock market, i.e., around Rs 1.7 crore.
Advantages To Investing In The US Stock Market
- The US market offers the opportunity of investing in big global companies like Apple, Amazon, Facebook, etc.
- In long-term investments, US markets are low volatile compared to the Indian stock market.
- The value of the rupee is declining, so we need to invest in the dollar.
Do you know: 60% of Americans are invest in the stock market. But in India, only 4% to 5% of the people invest in the stock market.