Opening a US Stock Investment Account

By | May 4, 2024

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

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#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.

In my experience, the US-based broker relies on your local stockbroker and you may receive a call to cross-check your identity.

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