Zerodha launches US stock trading on Kite platform for Indian investors

Discount brokerage Zerodha has launched beta access for US stock investing on its Kite platform, letting resident Indians trade directly in global equities and funds. The new service lets users invest in up to 2,000 US-listed companies and around 1,000 exchange-traded funds through their current accounts.

How It Works

The facility is routed through BSE-owned India INX Global Access at GIFT City in Gujarat. Any resident Indian with an individual Zerodha account can activate the US stocks segment to search, trade, and track holdings under a special international tab on the app. Fractional investing starts at just $1, letting people buy parts of expensive shares. The platform only supports delivery-based orders, meaning intraday, margin trading, and futures and options are not available.

Fees And Taxes

Zerodha charges a brokerage fee of 0.1% on trade values for both buys and sells, with a minimum of $0.01 and a maximum of $10, plus an extra 18% charge. Capital gains are taxed in India where long-term gains on assets held past 24 months face a 12.5% tax rate, while short-term gains follow the investor's tax slab. Dividends face a 25% tax in the US, though investors might claim a foreign tax credit in India under the Double Taxation Avoidance Agreement to avoid paying tax twice.

Context

The US market is the largest globally with a market value above $80.40 trillion, making up nearly half of the world's total market value. Expanding into foreign equities helps Indian investors spread their financial risk beyond the domestic market while gaining direct exposure to major multinational corporations.