Many of the best stocks in the world, including Facebook, Google, Apple, and General Motors are traded on the US stock market.
By purchasing these stocks, you can diversify your portfolio outside of the Indian stock market and take part in their growth story.
Despite the absence of US stockbrokers in India, numerous Indian platforms let you invest in US stocks from within the country. Groww and Vested are two of the most used platforms among them.
Continue reading to find out more about Groww and Vested’s main distinctions and how you can use these two platforms to invest in US stocks.
A seamless way to invest in stocks and mutual funds is through the investment platform Groww. As compared to your regular Demat account, the onboarding process for investing in US stocks is slightly different. Opening a trading account for international transactions only takes four simple steps.
- Applying to activate your international trading account takes less than five minutes, and there is no fee involved.
- The PAN card and address verification are the only two documents needed to open an account. Before your account is activated, your documents will be verified by ViewTrade Securities (VTS), which is Groww’s US broker-dealer partner.
VTS is a member of the Financial Industry Regulatory Authority, Inc. (FINRA) (CRD# 46987) and is registered as a securities broker-dealer with the Securities and Exchange Commission of the United States (SEC# 8-51605). Regarding clearing and settling securities transactions, VTS also offers brokerage services.
- You must decide which bank account to use for all upcoming USD funding transactions when opening an account. For a simple and entirely online funding process, you can choose from HDFC, ICICI, IDFC, or Kotak Mahindra Bank.
- Your account will be activated a short while after you submit your application, possibly even right away.
Making Dollars Available For International Trade
You must pay in US Dollars if you invest in companies that are listed in Groww. Adding dollars (USD) to your Groww balance is simple if you follow these steps.
- The INR balance and USD balance are the first two sections of your Groww balance. By making a bank transfer to the account of US-based beneficiary Apex Clearing, you can increase your USD balance.VTS, a broker that is SEC-registered and subject to FINRA regulation, has designated Apex Clearing as the custodian for all clearing-related purposes. Your brokerage account will be managed by VTS.
- It will take 2-4 working days for the money to arrive at Apex Clearing in the US after you transfer it from your bank. Apex will then let VTS, their broker-dealer partner, know if the money was received. Your Groww USD balance will then be updated by VTS.
- Your funding can be finished online through net banking if one of the following banks was your onboarding choice: Kotak Mahindra Bank, IDFC First Bank, HDFC Bank, or ICICI Bank.You might need to visit your bank to submit an A2 form for a money transfer if you chose any other bank account.
- Please be aware that the name on your PAN card and bank account must match. Only Indian bank accounts are permitted for money transfers.
From here, purchasing American stocks is straightforward. Groww doesn’t impose account maintenance fees, and all buy and sell orders are carried out without cost.
When investing in US stocks, Groww even allows you to buy or sell fractional shares. As a result, you are not limited to buying shares in whole numbers. A US-listed company may allow you to purchase 1.5 shares or even half a share.
Vested is an investment adviser that is Registered with the US Securities and Exchange Commission. Investors from India can easily purchase US stocks and ETFs through this online platform.
Vested collaborates with DriveWealth, a broker-dealer that is registered with the SEC and a member of SIPC and FINRA. There is no minimum balance requirement, and you can take money out of your account whenever you want. Simply start the withdrawal process by clicking the platform’s “Withdrawal” tab. Your Indian bank account will be wired with the funds.
Starting an investment with Vested is simple. Open an account quickly, then get started investing. Even fewer shares can be purchased for investment.
Three simple steps to follow:
- Sign up for a profile: A valid proof of ID and proof of residence are required. It should be noted that all invoices and statements must date from the previous three months and bear your name. The entire process takes only a few minutes and is paperless.
- Invest in your account: USD must be used when investing in US stocks. Your account must be funded by sending USD via wire transfer to Vested’s US-based partner bank. You must complete an LRS form (also known as the A2 form) and deliver it to your bank to accomplish this. They will walk you through this procedure when you sign up on the platform. Please be aware that there are expenses associated with the fund transfer procedure.
- Begin investing: Vested’s broker partner, DriveWealth, will route the orders to market centers on an agency basis once your investment is in full shares. It will fulfil the order from its account, on a Principal basis, at the National Best Bid or Offer (NBBO) when the investment is fractional shares. DriveWealth cannot raise the price by a margin because of NBBO.
Platforms with strong features that serve various purposes include Groww and Vested.
If you only desire to invest in financial products such as FDs, stocks, bonds, US Stocks, and mutual funds without having to pay ongoing account maintenance and opening fees, Groww is the best platform for you.
Vested can be trusted if you’re looking for a platform that is exclusively focused on US stocks. It can empower you by giving you access to the US equity market with no minimum balance and commission-free investing.