Zerodha launches US stock trading facility:Selected customers can buy fractional shares without purchasing a whole share

Zerodha has enabled investing in the US stock market on its Kite app for select Indian users. The service is currently being tested. Through it, investors will be able to buy and sell more than 2,000 US stocks and over 1,000 ETFs. 0.1% charge on every trade, capped at $10 Zerodha will charge brokerage of 0.1% of the transaction value on both US stock purchases and sales. For example, if you buy shares worth $20,000, the brokerage would normally amount to $20, but because of the cap, you will have to pay only $10. Platforms such as Groww and INDmoney already offer this facility Before Zerodha, platforms such as Groww and INDmoney have been offering this facility. Groww charges 0.1% brokerage on US stocks, but there is a minimum charge of $1 and no cap on the maximum fee. Like these two platforms, Zerodha will also allow shares to be bought fractionally. Currency conversion will cost between 0.5% and 1.2% When you buy US shares from India, you have to convert your rupees into dollars. This entire process mainly involves three types of charges. The first is the currency conversion fee. Brokers charge between 0.5% and 1.2% more than the actual currency exchange rate. In addition, a separate transfer fee is charged when money is sent from an Indian bank account to a foreign broker’s account. Government taxes such as TCS and GST, along with other minor charges, are also added. For example, if you buy US shares worth ₹1 lakh, around ₹500 to ₹1,200 will be deducted solely as the dollar conversion fee. Transfer fees and taxes will be charged separately on top of this. American Partner’s Name Still Unclear Zerodha has said trading will be conducted through GIFT City, but it has not yet made public the identity of its local broker or technology partner in the US. This Facility Is Only for Ordinary Indian Citizens The facility is currently available only to investors residing in India. NRIs and companies or trusts are not allowed to invest through it. To send money abroad, investors must comply with the Reserve Bank of India’s Liberalised Remittance Scheme (LRS) rules.