How to Invest in US & Global Stocks: Zerodha vs INDmoney vs Vested vs Interactive Brokers (2026 Guide)
Investing in premier global market leaders—such as Apple, Microsoft, NVIDIA, Alphabet, Amazon, and Berkshire Hathaway—is no longer restricted to Wall Street institutions. Today, retail investors across India and worldwide can own fractional shares of US companies starting with as little as $1. However, navigating cross-border investing requires understanding currency remittance routes, regulatory protections, and statutory tax treaties.
1. The 3 Primary Routes to Invest in US Stocks from India
1. Neo-Banking Cross-Border SuperApps (INDmoney & Vested): Partner with US-registered broker-dealers like DriveWealth LLC. They offer digital bank integrations (Federal Bank, SBM, IndusInd) allowing same-day INR-to-USD transfers with automated tax reporting.
2. Direct Global Brokerages (Interactive Brokers - IBKR): Ideal for high-net-worth individuals and active derivative traders. Provides direct access to 150+ international exchanges across 33 countries with institutional wholesale FX conversion spreads.
3. Domestic Mutual Funds & International ETFs: Investing in Indian mutual funds tracking the S&P 500 or NASDAQ 100 via NSE/BSE (e.g., Motilal Oswal S&P 500 Index Fund, Mirae Asset NYSE FANG+ ETF).
Key Practical Takeaways:
2. Understanding the RBI Liberalised Remittance Scheme (LRS) & 20% TCS
Under the Reserve Bank of India's LRS framework, resident individuals are permitted to remit up to $250,000 USD (approximately ₹2.1 Crore) per financial year for permissible capital account transactions including overseas equity purchases.
Under current statutory guidelines: foreign remittances up to ₹7,00,000 per financial year incur 0% Tax Collected at Source (TCS). Any remittance amount exceeding ₹7,00,000 attracts 20% TCS.
Crucially, TCS is NOT a cost or surcharge—it is an advance income tax payment. You receive credit in your Form 26AS / AIS and can claim a full refund or adjust it against your domestic income tax liability when filing your annual ITR.
Key Practical Takeaways:
3. Taxation on US Stocks: Dividends, Capital Gains & Form W-8BEN
Dividends: Under the US-India Double Taxation Avoidance Agreement (DTAA), dividends paid by US corporations are subject to a flat 25% US withholding tax (instead of standard 30%). Platforms automatically file Form W-8BEN on your behalf. In India, dividends are added to your total income, and you can claim Foreign Tax Credit (FTC) via Form 67 to prevent double taxation.
Capital Gains: The United States does NOT levy any capital gains tax on non-resident foreign investors. Capital gains are taxed solely in India: long-term gains (held >24 months) are taxed at 12.5% without indexation, while short-term gains are taxed at your applicable income tax slab rate.
4. Account Safety: SIPC $500,000 Insurance Protection
All US-licensed broker-dealers (DriveWealth, Charles Schwab, Fidelity, Interactive Brokers) are members of the Securities Investor Protection Corporation (SIPC).
SIPC protects securities and cash in each customer account up to $500,000 (including up to $250,000 for cash claims) if a brokerage firm fails financially. Your shares are legally registered in your beneficial ownership and cannot be liquidated to satisfy broker debt.
Cross-Border Platform Comparison: Fees, Remittance & Safety
| Feature / Metric | INDmoney | Vested Finance | Interactive Brokers | Zerodha (Domestic) |
|---|---|---|---|---|
| Account Opening Fee | ₹0 (Free) | ₹0 (Basic) / ₹2500 | $0 (Free) | ₹0 (Free) |
| Annual AMC | ₹0 / yr (Zero AMC) | ₹0 / yr | $0 / yr (Zero AMC) | ₹300 / yr + GST |
| US Stock Brokerage | $0 Commission | $0 Commission | $0.005/share (min $1) | N/A (Indian Stocks) |
| Fractional Shares | Yes (From $1) | Yes (From $1) | Yes (All US Equities) | No (SEBI Rule) |
| USD Withdrawal Fee | $5 flat | $11 flat ($0 Premium) | 1 Free / month, then $10 | ₹0 (Domestic IMPS) |
| Regulatory Safety | SEC, FINRA, SIPC ($500k) | SEC, FINRA, SIPC ($500k) | SEC, FCA, SIPC ($500k) | SEBI IPF (₹25 Lakhs) |
Common Questions on This Topic
Can I buy fractional shares of Berkshire Hathaway or Apple?
Yes. Through US brokers like INDmoney, Vested, and Interactive Brokers, you can invest as little as $1 or $5 into high-priced shares like Berkshire Hathaway Class A ($600,000+ per share) or Apple.
What is Form W-8BEN and do I have to submit it physically?
Form W-8BEN establishes your status as a non-US resident alien, reducing US dividend withholding tax from 30% to 25%. Platforms like INDmoney, Vested, and IBKR generate and sign this form digitally during account onboarding.
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