Zerodha has launched US stock investing in beta mode on its Kite platform, letting Indian investors access up to 2,000 US-listed companies and about 1,000 exchange-traded funds (ETFs). The service supports fractional investing, enabling users to purchase a portion of a share with investments starting at USD 1.
The launch expands Zerodha's offerings beyond domestic markets as Indian brokerages compete to attract investors seeking exposure to international equities and global technology companies.
US Stock Investing Available Through Kite
Resident Indian individuals can activate the international investing segment through their existing Zerodha accounts without opening a separate demat account. Users can transfer funds from linked Indian bank accounts into a dollar-denominated wallet through net banking at supported banks.
UPI, debit cards, and credit cards are not supported for funding these accounts.
This is done via BSE’s India INX Global Access in GIFT City. The US brokerage firm holds the US securities instead of keeping them in an Indian demat account.
Investors can purchase shares of eligible US companies through fractional share holdings. Investors can invest an exact dollar amount instead of buying a single share.
However, intraday trading and margin trading are unavailable for international equities. Users cannot apply for US initial public offerings through the platform.
Also Read: How Nithin Kamath, the Founder of Zerodha, is Using Technology to Democratize Investing in India
Zerodha Brokerage and GST Charges
The brokerage commission for executing trades is 0.1% of the trade amount, with a minimum of USD 0.01 and a maximum of USD 10. An 18% goods and services tax is charged on the brokerage commission.
Other costs include the IFSCA Turnover Charge of 0.005% of the trade amount and applicable US Regulatory Transaction Fees on sell orders. According to Zerodha’s manual, banks charge a markup of 0.5%- 1.2% for foreign currency conversion.
Competition in US Investing Market Intensifies
Zerodha’s launch follows approvals issued in June by the IFSCA to Zerodha, Groww, Upstox, and Angel One to enable international investments via GIFT City.
In September, Groww announced its US stock trading platform, giving access to more than 10,000 US stocks and ETFs through its collaboration with Alpaca Securities. In the same month, Upstox launched its service, offering investors access to more than 8,000 US-listed stocks and 2,000 ETFs.
This development comes amid growing interest among Indian retail investors in diversifying their portfolios beyond Indian equity markets and gaining exposure to firms in artificial intelligence, cloud computing, and semiconductors.
Zerodha, along with INDmoney and HDFC Securities, is one of the players that help Indian investors trade in US securities.