How to Invest in Foreign Stock Markets? | Espresso

Investing in Foreign Stock Market from India in 3 Easy Steps

If you are a beginner in stock market investments, you should know that today, investing opportunities aren’t just bound by location or geography. If you, as an investor, are fascinated by the emerging economies of the world, you may wish to invest in foreign stocks. And thankfully, you can do that from your home or office in India.

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Investing in the foreign share market will help you diversify your financial portfolio. This will also spread out your risks and give you exposure to growth along with the world economy. In addition, many financial advisors believe that investing in the foreign stock exchange could be a healthy addition to an investor’s investment portfolio. Hence, why not take this leap?

But we can understand that as a beginner in foreign stock market investments, you may be overwhelmed with options. This blog will talk about three easy ways to invest in foreign stocks. Let’s get started!

3 Easy Steps to Invest in Foreign Stock Markets from India

Here are three easy steps to invest in foreign stock markets from India:

  • Open a trading account with an Indian broker having a partnership with a foreign stockbroker

Several comprehensive Indian brokers have a tie-up with international brokerage firms. So, you need to choose any one of them and open an international trading account with their foreign brokers. It will then be easier for you to invest in foreign stocks with the help of such full-service Indian brokers.

  • Trade directly with the foreign brokers

Secondly, certain foreign brokerage firms will permit you to set up a trading account with them and trade in mutual funds and US stocks. If you wish to trade directly with international brokers, you can also find their offices in India. In addition, some US-based firms have an office in India. So, you can visit them and get your queries related to forex investments cleared.

  • Invest in foreign stocks to apps

In the recent past, there has been a rise in stock market investments in India. Today, Indians are better aware of share market and foreign stock exchange investments. Hence, many start-ups have come up in the country to make it easier for the people in India to invest wisely. Companies like Espresso are helping Indians to invest in foreign stocks from the comfort of their home. So, you can research the options at hand and then choose one that you think will match your investment expectations.

Why Investing in Foreign Stocks is a Plus?

Now that you are aware of trading in foreign stocks, you must also understand why investing in foreign stocks could be a boon for your future financial goals. If you have been asking yourself, ‘aren’t the companies in India enough for stock investments?’, ‘what is the need for investing in alternative stocks?’.

Of course, the Indian business giants are great for investment, but what if you can invest in the stocks of several international multi-billionaire giants like Google, Facebook, Apple, Samsung, Tesla, etc.? Won’t that be an added feather to your investment cap? These companies have highly qualified professionals, loads of cash, and they are surely the biggest innovators in their respective industries.

By investing in foreign stocks, you can choose your favourite companies. Also, you will be able to diversify your portfolio. For instance, if the Indian equity market starts to fall due to some local upheaval, you will be able to mitigate your risks in your portfolio as the local reason will not directly impact the international stock markets.

Conclusion

While deciding on foreign stock investments, you should also know that India is now one of the fastest-growing economies worldwide. Therefore, India has much better potential growth-wise, depending on where you would like to invest your money. But before investing, read about everything related to stock market investments, as it will help you make an informed choice.

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Frequently Asked Questions

Yes, Indians can invest in foreign stocks. Global giants like Apple, Tesla, Microsoft, Google, Amazon, Facebook, etc., are already listed on the foreign stock exchange of the US, and Indians, through the help of licensed international brokers, can legally invest in foreign stocks.

Being an Indian, you can invest in foreign stocks by opening a trading account with an Indian stockbroker that allows investment in the foreign share market or ties up with foreign brokerage firms.

Yes, Indians can buy stocks listed in other countries like South Korea, Japan, Australia, the United States, Europe, and so on. Numerous stocks are listed in other countries’ stock markets like the Tokyo stock exchange, Korea Exchange, Nasdaq, Euronext, etc. Indian investors can buy foreign stocks that are listed in foreign stock exchanges.

A few of India’s top international brokerage firms that permit Indians to set up a trading account and trade in foreign stocks are TD Ameritrade, Charles Schwab International Account, Interactive Brokers, Webull, etc. Additionally, many Indian stockbrokers have a tie-up with foreign stockbrokers to simplify the process of international investments.

The long term capital gains that you earn from selling foreign stocks have a tax rate of 20%, along with surcharge and health and education cess. The short term capital gains tax is applicable as per the tax bracket that you belong to as a taxpayer in India.