Zerodha has begun enabling US stock investing in beta mode for select users, allowing eligible Indian investors to access US-listed stocks and exchange-traded funds (ETFs) through its Kite platform.
The facility is routed through BSE-owned India INX Global Access at GIFT City’s International Financial Services Centre (IFSC).
Here are five things investors should know about the offering, based on the information currently available.
The underlying US brokerage partner is not confirmed
Zerodha’s published guide identifies India INX Global Access as the route for investing in US markets. However, it does not name the underlying US brokerage or technology provider. The identity of that partner could not be confirmed from the available official information.
Brokerage is 0.1% of the transaction value
Zerodha lists brokerage at 0.1% of the transaction value, subject to a minimum charge of $0.01 and a maximum of $10 per order. The charge applies to both buy and sell orders.
For comparison, Groww’s published US stocks pricing also lists brokerage at 0.1%, with a minimum charge of $1 per executed order. Its pricing page does not specify a maximum brokerage cap.
The $10 cap limits brokerage on larger orders
Under Zerodha’s published pricing, brokerage is capped at $10 per order. For example, a $20,000 order would attract brokerage of $10, compared with $20 at a flat rate of 0.1% without a cap. This comparison is limited to brokerage and excludes other charges.
Currency conversion costs need to be considered
Zerodha’s published guide states that its foreign exchange markup ranges from 0.5% to 1.2% above the Reserve Bank of India’s reference rate. The final cost may also depend on applicable bank charges and taxes. The published range does not establish that every transaction will attract a flat 0.5% markup.
Investors should compare the total cost of funding and trading, rather than brokerage alone, when evaluating platforms.
The available information does not confirm UCITS ETF access
Zerodha’s public information refers to access to US-listed stocks and ETFs, but does not explicitly confirm whether UCITS ETFs are available. Investors should check the eligible instrument list or seek confirmation from Zerodha before assuming these funds can be traded through the platform.
The offering is intended for eligible resident Indian individual account holders. Zerodha’s published information says NRIs and non-individual accounts are not eligible. Investors should also account for applicable charges and the Liberalised Remittance Scheme (LRS) rules when funding overseas investments.
NOTE TO READERS
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.