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INDmoney has recently released a new feature that allows you to invest in the US stock market without paying any remit charges. It’s not just about charges, they’ve made it super easy to fund your US Stocks account as well.
This means the whole process is as simplified as investing in the Indian stock market.
Let’s take a look at how to invest in US stocks via INDmoney.
Step 1: Sign Up for INDmoney
First, you need to create an INDmoney account. Head over to INDmoney.in and create your account. Then complete your KYC and enter your bank details. This should be the bank account you will prefer to set mandates and receive redemption amounts from funds.
Once you finish creating an account, download the INDmoney app. This process we are about to follow will only work if you have the INDmoney app installed on your Android or iOS smartphone.
Step 2: Create your Free IND Super Savings Account
Click on the US stocks icon on your INDmoney app dashboard. On the next screen, you will be promoted to open a 2-in-1 savings account with INDmoney.
This is called the IND Super Savings Account. INDmoney has partnered with SBM bank to allow zero remit transfers. This means you don’t have to pay any fees when you transfer funds from this bank account to your US Stocks (DriveWealth) account with INDmoney.
A feature like this is quite amazing considering how much remit fees and to hassle it saves. You as a user enjoy multiple benefits, such as:
- A much easier outward remittance experience – You don’t have to enter beneficiary details, all our multiple forms, nothing like that.
- Zero fees – you will potentially save thousands, depending on your transfer amount
- Better exchange rate – INDmoney claims to offer the best in market INR to USD exchange rate
The only three documents you need to open your IND Super Savings account are PAN and ITR/Bank statements. It takes about a few hours to get the application processed. You will receive an email from INDmoney once your account is approved and ready for deposits.
Step 3: Transfer Funds to Your INDmoney Savings Account
Before you can transfer funds to your INDmoney US stocks account, you will need to fund your IND Super savings account. This is where SBM bank will act as an intermediary between your bank and INDMoney US stocks account (i.e. DriveWealth).
First, you will need to deposit the exact amount you wish to invest in US Stocks to your INDmoney savings account.
Click on the US stocks icon on your INDmoney mobile app.
Then click on the Manage button. Select Add Money.
On the next screen, you will need to enter the total amount you wish to transfer. Here, you can also see the GST charges you need to pay, the total amount you will receive in USD, the exchange rate and the fee charged by INDmoney.
The good thing is there are no charges to be paid. It’s completely free for you.
Enter the amount you wish to transfer. This should be equivalent to the amount you intend to invest in the US stock market.
Complete the Payment via UPI
This is where INDmoney is far ahead of its competitors. With apps like Vested, you have to follow a lengthy procedure to transfer funds from India to your DriveWealth account in the US.
However, with INDmoney, you have an option to fund your account via UPI. If you’re using the Paytm app, you can use it to transfer funds in one click.
Step 4: Transfer The Funds to Your DriveWealth Account
Once you’re done funding your IND Super Saver account, you can initiate the transfer of your funds to your DriveWealth account linked with your INDmoney profile.
This transfer would take about 1-3 days. It may take more than that, maybe 7 days too. You can always reach the INDmoney support team in case you need any clarification or assistance.
You’ll need to upload your ITR or Bank statement the first time you initiate this transfer. Then after, it’s not needed.
Step 5: Purchase The US Stocks via INDmoney
When the transfer to your DriveWealth account is completed, you will receive an email as well as an IN-app notification from INDmoney.
You can then begin investing in US stocks. You can place a stock purchase order throughout the day – but the markets open at 7 PM IST. This means orders placed before 7 PM in India will be queued and executed about 1-3 minutes after the US stock market opens.
INDmoney has a really nice interface or US stocks section. You can analyze historical charts of the companies, compare multiple companies in the same sector, monitor your gains/losses, XIRR and completed transactions.
You don’t have to purchase 1 unit of the stock like you have to do in India. Well, it’s the same in the US stock market technically, but since INDmoney is using DriveWealth as an intermediary, you can purchase fractional shares of the stock. If you want to buy $100 worth of shares, you can do so and you will be allotted shares equivalent to $100.
Plus, you can also invest in the IPO of US-based companies. Investing in US IPO is an exclusive feature by INDmoney as currently, no other platform is offering it.
Ans you can sell these shares whenever you want and withdraw funds directly into your bank account in India. However, you will have to pay a $20 withdrawal fee.
Congratulations! – You can now periodically invest in the $51.30 trillion valued US stock market.
If you’ve any questions, let me know in the comments below.