Zerodha launches US stock investing in beta mode: All you need to know

Online stockbroker Zerodha has started rolling out US stock investing in beta mode to select users, allowing eligible Indian investors to trade US-listed stocks and exchange-traded funds (ETFs) through its Kite platform. The facility is being offered through India INX Global Access, a platform owned by BSE and based at GIFT City’s International Financial Services Centre (IFSC). However, Zerodha’s published guide does not identify the underlying US brokerage or technology provider facilitating the service, and its identity could not be independently confirmed from the available official information.

Zerodha has set brokerage at 0.1% of the transaction value, subject to a minimum charge of $0.01 and a maximum of $10 per order. The fee applies to both buy and sell transactions.

For comparison, India's largest online broking firm by active clients Groww also lists brokerage of 0.1% for US stock investments, but with a minimum charge of $1 per executed order. Its published pricing does not specify a maximum brokerage cap.

Zerodha’s $10 cap could make a difference for investors placing larger orders. For instance, a $20,000 transaction would attract brokerage of $10 under Zerodha’s pricing structure, compared with $20 if a flat 0.1% fee applied without a cap. This comparison covers brokerage alone and excludes other applicable charges.

Investors will also need to account for currency conversion costs when calculating the overall expense of investing in US markets. Zerodha’s published guide puts its foreign exchange markup at 0.5% to 1.2% above the Reserve Bank of India’s reference rate. The final cost may vary depending on the applicable markup, bank charges and taxes.

The stated range does not mean that every transaction will necessarily attract a 0.5% markup. Investors should consider both brokerage and currency conversion expenses while assessing the total cost of buying and selling US-listed securities through the platform.