Zerodha has rolled out US stock investing in beta on its Kite platform, granting Indian investors access to roughly 2,000 US-listed corporations and about 1,000 exchange-traded funds (ETFs). The feature facilitates fractional investing, allowing participants to acquire fractions of a share with starting amounts as low as USD 1.
This rollout broadens Zerodha’s portfolio past domestic markets as local brokerage firms race to draw in clients looking for international equity exposure and access to global tech enterprises.
US Stock Investing Available Through Kite
Resident Indian clients are able to enable the international investing feature using their current Zerodha profiles, eliminating the need to set up a distinct demat account. Customers can move money from connected Indian bank accounts into a US dollar wallet via net banking utilizing participating banks.
Funding these accounts via UPI, debit cards, and credit cards is not permitted.
The process is facilitated through BSE’s India INX Global Access located in GIFT City. The US securities are held by the US brokerage firm rather than being stored within an Indian demat account.
Participants have the ability to buy shares in qualified American companies through fractional ownership, meaning they can commit a precise dollar sum rather than purchasing a whole share.
At the same time, intraday trading and margin trading are unsupported for global equities. Platform users are also unable to submit applications for US initial public offerings.
Also Read: How Nithin Kamath, the Founder of Zerodha, is Using Technology to Democratize Investing in India
Zerodha Brokerage and GST Charges
The commission fee for processing trades sits at 0.1% of the transaction value, subject to a floor of USD 0.01 and a ceiling of USD 10. Additionally, an 18% goods and services tax applies to the brokerage commission.
Additional expenses consist of the IFSCA Turnover Charge set at 0.005% of the transaction value, alongside relevant US Regulatory Transaction Fees applied to sell orders. Bank fees for foreign currency conversion range from a 0.5% to 1.2% markup, as outlined in Zerodha’s manual.
Competition in US Investing Market Intensifies
Zerodha’s introduction arrives after the IFSCA granted approvals in June to Zerodha, Groww, Upstox, and Angel One to facilitate global investments through GIFT City.
Groww unveiled its American stock trading platform in September, providing entry to upwards of 10,000 US equities and ETFs through a partnership with Alpaca Securities. During that same month, Upstox introduced its own offering, giving users entry to over 8,000 US-listed equities and 2,000 ETFs.
The rollout coincides with rising demand among Indian retail investors to spread out their holdings beyond domestic equities and secure exposure to sectors like artificial intelligence, cloud computing, and semiconductors.
Zerodha stands alongside INDmoney and HDFC Securities as one of the providers assisting Indian participants in trading US securities.
