ACCESSIBILITY TO INVEST DIRECTLY IN THE U.S. STOCK MARKETS
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Whether you are a beginner to start your investment journey or a pro, we help you with a roadmap to your financial security through smart ways of investment. From well-established industries to booming start-ups, experience effortless investing by diversifying your investment portfolio.
Our on-boarding process is seamless with robust digital platform and is as simple as opening an Indian account.
Fueled by Artificial Intelligence, our platform enables automated research functioning, portfolio tracking and personalized stock advice.
To ensure easy compliance and streamline tax procedures, we have digitized the LRS procedures and provided W8-BEN tax forms.
You can build a smart investment portfolio with small amounts of money as we do not have any minimum investment requirements.
You can invest in fractional stocks to create a diversified investment portfolio based on how much you want to invest. Simply, buy ETFs to invest in themes that are leading the world.
We promise you a high level of security by protecting your investments against losses of securities. We ensure end-to-end support inclusive of LRS and Forex support.
Diversifying your investments helps protect them during market volatility. The U.S. Stock Markets help you broaden the horizon, reduce the overall risk and lead to better outcomes in the long run.. The sharp plunge in stock market prices states that putting all your eggs in one basket can be risky. What better than spreading your money around on different investment platforms.
Investing in the U.S. market provides the opportunity to access to new talent pools and enables participation in their global growth stories. Diverse global companies can offer unique advantages in terms of enhanced productivity.
Investing in brands like Apple, Amazon or Google helps you benefit from lucrative investment opportunities. The company you cherish not only helps in making a well-informed decision but also helps you flourish and gain a competitive edge in the market.
Whether it is personal travel or education, there are multiple reasons to think internationally. Investing in the domestic market will not be as efficient as making investments in the US because it saves you against the rising US currency. Overseas Investment is a good way to make steady gains at minimum risk.
Once we've verified your KYC details, you can add funds into your account and
YOU ARE READY TO START YOUR INVESTMENT JOURNEY WITH COMPANIES YOU LIKE
We’ve made investing in global markets (almost) as straightforward as investing locally by giving you access to the right global investing infrastructure that is compliant to regulation in India as well as in the US. Overseas investments were never this simple.
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Instituted by the RBI, the Liberalised Remittance Scheme or LRS is a set of policies that stipulates the maximum amount and purposes of remittance
Under the LRS, an individual can annually invest up to USD $250,000 in any country, without seeking approval from the RBI. To monitor the remittance of individuals, remitters are required to fill out and submit Form A2, which is provided by RBI-appointed Authorized Dealers
The form captures the remittance amount, the purpose and the individual’s PAN number. Once the form is received, the Authorized Dealer will verify the information and process the remittance. The authorized dealer in this case, is the bank which has been chosen for remittance
Any one of the following documents for a combination of Picture id proof + Proof of address
Picture ID proof:
Proof of address:
Else, any one of the below documents would suffice
Picture ID proof of address:
The following documents are needed
Form A2 along with a declaration form: As per FEMA, every time the money is sent abroad, this form is required to declare the sum amount that is to be transferred. Your bank will file this for you within the LRS filings. Stockal fills this for you automatically - all you are required to do is to make sure that the information filled is correct, download the filled-in form, sign and upload it back for your bank to file
Bank KYC documents: PAN card and your address proof.
It takes just 3-4 minutes to fill the account opening form on stockal.com. You will need to upload your address and ID proofs during this process.
It takes 2-3 business days for your account to get approved by our brokerage partner, DriveWealth, in the US. They do the KYC documentation and filing within this time frame.
Presently, you can invest up to USD 250,000 every year in foreign stocks from India. This amount can vary, subject to RBI guidelines. Therefore your investments in US securities are also governed by the same limit
Foreign investments comply with the clearly defined RBI guidelines. The remittance of money for foreign investments falls under the Liberalized Remittance Scheme (LRS).
Under LRS, upto USD $250,000, can be remitted by an individual in a financial year to invest in foreign equities through an authorized dealer (commonly, your bank). As per RBI policy, having a PAN card is mandatory to purchase shares in foreign countries
Disclaimer: This article is for informational purposes only. The contents of this article should not be treated as tax advice. Please consult a qualified tax consultant or expert with your specific taxation situation for appropriate advice
The stocks are owned by You through your account with Stockal and DriveWealth
The books and records are managed by DriveWealth while the stocks are held in custody by ICBC Financial Services, New York.
An Individual cannot remit more than USD 2,50,000 in one financial year under LRS scheme. However, a resident individual investor who is not permanently residing in India after having remitted their entire earnings and salary, wish to further remit other income over and above the limit of USD 2,50,000, may approach RBI with documents through their AD bank for approval.
No, the tax incidence is on the event of transfer of securities by the Client on Stockal platform. The remittance of any funds lying outside India has no connection with the tax incidence.
Just click on the "Add funds" button available in many places on Stockal. Enter the amount you want to send to your brokerage account.
A pre-filled LRS form (more on LRS later) will be presented to you. Verify the information and download the PDF of the form from the website. It's likely that Stockal already has a tie-up with your bank (we have tied-up with most domestic banks to get our clients good forex rates and to help with fund transfers)
Presently the account holders of ICICI, IDFC, and HDFC Banks can complete the LRS process online by signing into our platform and following the steps mentioned for fund transfer.
All you need to do is click the "Withdraw" button on your Portfolio page or inside "My Account"
You will be shown how much money is available for you to withdraw. This is the "cash" in your account - either un-invested money or generated from sales of securities you, previously, owned. You can place a withdrawal request and the money will be wired to your domestic bank account.
It takes 4-5 business days for the money to hit your account. Any request above $10,000 requires an additional email approval.
There is a $35 fee associated with withdrawals charged by the US, bank so the cash balance in your account should be at least $35 at the time of placing the withdrawal request.
Remittances under the facility can be consolidated in respect of close family members subject to the individual family members complying with the terms and conditions of the Scheme
However, clubbing is not permitted by other family members for capital account transactions such as opening a bank account/investment/purchase of property, if they are not the co-owners/co-partners of the investment/property/overseas bank account.
Further, a resident cannot gift to another resident, in foreign currency, for the credit of the latter’s foreign currency account held abroad under LRS
There are no restrictions on the frequency of remittances under LRS. However, the total amount of foreign exchange purchased from or remitted through, all sources in India during a financial year should be within the cumulative limit of USD 2,50,000
Once a remittance is made for an amount up to USD 2,50,000 during the financial year, a resident individual would not be eligible to make any further remittances under this scheme, even if the proceeds of the investments have been brought back into the country
DriveWealth, Stockal's US brokerage partner, works with Citigroup (New York) for the custody of brokerage accounts.
You global investing accounts are held by brokerage and clearing services providers. The custody of your account is managed by some of the largest banks and clearing firms in the world. If Stockal goes down, your account will still be safe and secure with them and you will be able to access it and/or move it to another brokerage firm as you please.
DriveWealth LLC, a member of the Securities Investor Protection Corporation (SIPC), will serve as the custodian for your securities account. In the event that DriveWealth LLC fails and is placed in liquidation under the Securities Investor Protection Act, securities in your brokerage account may be protected up to $500,000. For details, please see www.sipc.org
Currently, Stockal works with HDFC Bank, Axis Bank, Yes Bank, Kotak Bank, IDFC First Bank and RBL Bank. We'll be adding a few more banks at a rapid pace over the next
Stockal has already had discussions with most nationalized banks in India to get low forex rates for its customers, so you don't need to negotiate. That said, if you work with a bank that Stockal doesn't already know, feel free to speak to your bank relationship manager if you are making a large transfer
You can start investing as soon as you have money in your brokerage account.
Once your brokerage account gets approved (you will be notified), fund that account by doing a bank transfer from your domestic account. Stockal works with multiple domestic banks to make the process easy and seamless and also helps you obtain very low forex rates.
You can do all this sitting at home or office. Then it takes 2-3 business days for the transferred money to reflect in your account. You can start investing immediately afterwards
No
Unlike most traditional investing platforms, we place no restrictions on user accounts. There is no account minimum at Stockal. That said, in order to see benefits of investing accrue to you, we recommend that you invest at least INR5,000 or $100 to start off
Yes, tax needs to be paid on Foreign dividend both in US and India
However, an Indian Resident individual can claim Tax credit of taxes paid in US by virtue of Double Taxation Avoidance Agreement (DTAA) entered into between India and US by filing a return of income in India
Maximum credit that can be availed is the amount of tax that should have been paid in India on the transaction if there is no DTAA.
Yes, any cost incurred on account of sale or transfer of asset is allowable as a deduction while computing the Capital Gains
However, it is pertinent to note that AUM charges and annual subscription charges incurred cannot be claimed as deduction as they are related to holding of capital asset and not in relation to transfer of capital asset
World Investing offers nearly 3,400 securities - listed on NASDAQ and NYSE - as of now. These are a mix of stocks and ETFs (Exchange Traded Funds). Almost all the marquee listed companies in the US with USD Billion+ market caps, are available