Opening a US Stock Investment Account

Opening a US Stock Investment Account: Mutual funds handle all the currency-related processes like transfer, Fx conversion and remittance. They eliminate the need for you to worry about fluctuations in exchange rates.

Drawback – You also don’t have the option of selecting stocks as you wish. Additionally, mutual funds charge expense and management fees, which will lower your returns.

List of tie-up brokerage companies that allows US stocks investment

  • 5Paisa & Vested Finance
  • Angel Broking & Vested Finance
  • Geojit Securities & Stockal Inc
  • HDFC Securities & Stockal
  • Kotak Securities & Interactive Brokers LLC
  • ICICI Direct & Interactive Brokers LLC

There are few standalone brokerages (including fintech platforms and apps) that allow investment in US stocks from India like

  • Stockal Inc
  • Groww
  • Vested Finance
  •  Winvesta
  •  INDmoney

Note – You can save account opening time if you already have a demat & trading account with any one of the Indian stockbrokers. 

I already have an existing demat & trading account with 5Paisa. 5Paisa took 1 day to open a US investment account.

The US-based brokerage firm relies on the KYC done by your local broker which reduces account opening time. That is the only benefit I can see when you open a US investment account with tie-up brokers.

But then also you need to upload your KYC documents while account opening. The US investment account opening is simple and the process is similar to opening a demat & trading account in India.

The US account opening process will be more or less the same even if you choose to open a brokerage account with standalone brokers like Groww. But it may take an additional day or two for KYC completion.

You need to

#1. Use your existing 5Paisa ID & password to login into the 5Paisa-Vested Finance platform

#2. Provide basic details – like your mobile number. The rest of the details like name, email ID and DOB (date of birth) will be pulled from the database of your existing broker.

#3. Create risk profile – by selecting risk tolerance, investing experience, net worth and primary source of your income. You will also need to provide marital status and the country where you file tax returns.

#4. Upload KYC documents – Aadhar and PAN card.

#5. Choosing an investment plan – In the beginning, you can pick the basic plan. Later with experience, you can pick a higher plan.

Here you also need to pay the account opening fees at this point. 5paisa-Vested charged Rs. 399 for US stock account opening. But in general, the fees will vary from Rs. 0 to a few hundred rupees depending on your broker.

The account opening charges payment options are  

  • UPI like Google Pay, Phone Pe and Paytm,
  • Cards – credit and debit cards of private and PSU banks
  • Netbanking and Wallets

5Paisa-Vested took 1 day to create my US investment account.

The US investment account opening process may take 1-3 days of time at the broker’s end. The broker may even contact you over the phone or email if any additional information or documents are needed.

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