Zerodha has launched US stock and ETF trading in beta on its Kite platform using the GIFT City route. Indian investors can now buy fractional shares of 3,000 global assets, subject to the Reserve Bank of India’s $250,000 annual remittance limit. This integration aims to simplify global portfolio diversification, though users must factor in currency conversion costs and additional regulatory fees.
Zerodha has launched a beta version of its US stock and ETF investing facility on the Kite platform, aiming to make global portfolio diversification easier for Indian retail investors. By routing trades through the India INX at GIFT City, the brokerage allows users to hold both domestic and international assets within their existing Kite interface, removing the need for a separate overseas account.
Accessing Global Assets
The service offers access to around 2,000 US stocks and 1,000 exchange-traded funds. A key feature is the support for fractional shares, which lets investors start with as little as $1. This is designed to help users buy expensive stocks without needing to purchase full shares. However, this platform is strictly for long-term investing. Intraday trading, futures, and options are not available, reflecting the platform’s focus on wealth creation rather than speculative trading.
Regulatory and Cost Considerations
All transactions are conducted under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), which allows Indian residents to remit up to $250,000 per financial year. While the integration offers convenience, investors need to be aware of the total cost of ownership. Zerodha charges a brokerage fee of 0.1% per transaction, with a minimum of $0.01 and a maximum of $10.
Beyond brokerage, investors should monitor other expenses that can impact returns. These include currency conversion spreads when transferring rupees to dollars, goods and services tax (GST), India International Exchange (IFSCA) turnover fees, and US-specific regulatory assessments like SEC and FINRA levies. Additionally, investors should consider tax implications, such as the Tax Collected at Source (TCS) on foreign remittances, which is applicable under current Indian law.
Important Investor Monitorables
The beta phase is currently available only to resident Indian individuals, excluding non-resident Indians and corporate accounts. To get started, users must complete an online activation process linked to their Aadhaar. Since the platform operates in the US market, investors are also exposed to currency risk—if the dollar strengthens against the rupee, it may benefit the investment value, but a weaker dollar relative to the rupee could reduce returns for those looking to repatriate funds. The next major update for users to track will be the full rollout beyond the beta phase and any updates to the fee structure as the platform matures.