Hi Nitin, How to Remit money to USA broker?

General
1

Hi Nitin and other members :slight_smile:

I am an Indian citizen and want to remit money to USA broker for just stocks(equity).

I thought that it can be done from LRS.

When I consulted an executive from SBI, he said that - “you cannot remit money in US broker account through LRS , it is for investing in foreign companies directly only”. He said - “for transferring money to the broker form 15ca must be filled.”

According to the revised rules of income tax department, form 15ca is not required for the above case .

Now, I have 2 channels and I want step by step outline in them so that I can remit money legally to trade in US markets ,I want to send the money to the broker:

1)Go to bank,talk to international banking department employees and ask them what ?

2)internet banking channel .

I am beginner in this field and am confused so step by step outline for remittance will be very helpful.

2

Can check these faqs from RBI on LRS. Also who is the broker you want to go through with?

3

I have used ICICI Money2world and HDFC Netbanking for outward remittances. I’m pretty sure you can use any of these. I have a trading account with Webull (US Broker) and they recommend HDFC and Axis bank. It is a pretty straight-forward process with HDFC Netbanking. If you don’t have an account maintained with any of these banks you can still use ICICI Money2 World service. You can simply use netbanking service from nay Indian bank to remit via ICICI Money2world.

Refer: https://www.icicibank.com/Personal-Banking/onlineservice/online-services/FundsTransfer/outward-remittance/online-transfer/index.page

4

can any indian citizen open an account with US broker?
if yes, can we trade in F&O in US broker account?
thank you.

5

Yes, you can open trading account with an US broker but you cannot trade in F&O segment. You can invest in equities. Trade in equities without margin or leverage. You cannot trade in currencies either. Any kind of leverages instrument or derivatives is not allowed for Indian citizens.

2 Likes
6

Can I short US Equity for intraday ? @aravindvlad
And does $25000 PDT Rule for intraday trading apply to indian citizen ?

7

Brokers in US may allow you to use intraday shorting with leverage but it is prohibited for Indians. You can very well use you own funds to short or long intraday with US broker but unless you have huge funds, it is not worth. In my opinion US broker accounts are good for Investment or positional trading. All using own funds.

8

What should I select under “Purpose of Remittance” for sending funds to my WeBull account? And I’m using ICICI Money2world. Also, tell me any other details that I have to fill in there.

9

Bank guys should tell you, I think.

10

what option should i select under purpose of remittance while transferring from hdfc netbanking?