Why is Zerodha taking so long to offer US investing?

[S.DAS]

@nithin

ed for this business to make sense, both for customer and us. We will start showing market data feed for US stocks on Kite, but trading we will enable only once we have clarity on how remittance will work.

Hey, Thanks for the detailed explanation. I know this is way too early but here are some questions.

So you’re implying that Zerodha is trying to implement a way which will cost us zero to deposit and withdraw funds?

Will we be able to trade the global markets or US only?

Some stocks like amazon cost a lot, will you be providing fractional buying?

[siva]

@S.DAS

So you’re implying that Zerodha is trying to implement a way which will cost us zero to deposit and withdraw funds?

Not exact zero but yes closer to that, much cheaper to current costs.

@S.DAS

Will we be able to trade the global markets or US only?

US listed stocks should cover most known/popular ones also it is better to stick to US for retailers I think, if not one has to take that particular country currency risk also along with market risk, considering the stability and historical trend of USD with rupee. Anyhow there are ETFs listed on US markets which give exposure to any country/region so that should do, I believe.

@S.DAS

Some stocks like amazon cost a lot, will you be providing fractional buying?

We will for popular ones.

[Mehdi_Abbas]

@siva

there are ETFs listed on US markets which give exposure to any country/region so that should do, I believe.

Can you give any link?
To get all information of ETF listed on US markets?

[siva]

@Mehdi_Abbas

Can you give any link?
To get all information of ETF listed on US markets?

Can check here.

[jerry_rk]

hi, nitin . i am ravikiran. i desperately want to trade s&p 500 future and options and eur/usd currency pair. you are also working on f&o segment of USA markets?

[nithin]

Indians aren’t allowed to trade derivatives when you remit money out of the country. Check this

Trading Derivatives in USA from India

I’ve been in touch with many foreign brokers in USA and Singapore and most of them allow me to open an account and trade derivatives (including big name brokers). I know for a fact that you can open an account with them and buy US equity stocks, but I am interested in trading Options, and this line from RBI in their Liberalised Remittance Scheme (LRS) is very confusing: 5. All other transactions which are otherwise not permissible under FEMA and those in the nature of remittance for margins or …

[tcsharish007]

@nithin do you intend to bring support for buying US ETFs as well when you enable investing in US stocks?

[Samsurd]

What about the separate 5% TDS on remittance after 7 lacs? How are you guys planning to work with that? Do you think there are still customers willing after this tax?

[Manu_Manjunath.K.R]

Yes…in US any broker should allow it as rule says fraction buying is possible

[nithin]

@tcsharish007

@nithin do you intend to bring support for buying US ETFs as well when you enable investing in US stocks?

Of course, yes. You should be able to buy all US ETF’s.

[nithin]

@Samsurd

What about the separate 5% TDS on remittance after 7 lacs? How are you guys planning to work with that? Do you think there are still customers willing after this tax?

Ah yeah, I forgot to mention this in the above post. Let me add it.

It is TDS that can be adjusted against other taxes you have to pay. So it isn’t that bad.

Govt explains the rationale behind new TDS-like move on remittances

[Prakhar_Agrawal]

Will SLB will be possible for us stocks since their market is quite mature for this purposes.

[Tanmay_Tillu]

ICICI bank charges ₹1000+GST for 100% remittance to US. The process is immediate and the funds credit within 24 hours. I transferred funds to my Interactive Brokers account recently.

[Prakhar_Agrawal]

@Tanmay_Tillu

transferred funds to my Interactive Brokers account recently.

What’s their charge for remittances outside India and brokerage commission.

[vivek_kumar1]

So any tentative go live date? @nithin

[Tanmay_Tillu]

Interactive Brokers does not charge for any cash deposit. All charges are levied by our Indian banks.

You can view their commission structure via this link- https://www.interactivebrokers.com/en/index.php?f=1590&p=stocks1

[Abhranil_Dutta_majum]

Hi @nithin have a look at this https://ripple.com/customer-case-study/sbi-remit/

Maybe you can do something with crypto? since it’s now unbanned

I use XRP to send payments internationally it literally takes a few seconds to complete and also is easy to use.

[ohm_blitzkrieg_energ]

Sir. We can ask ICICI Bank US & India (any nationalized bank) to make smooth process of A2 form -Online submit, which clears all times of 2 weeks.

For remittance issue, zerodha can itself start remit process, which will scale timely transfer for funds for Zerodha family.

Ex.The skrill.com also taking same 1 - 2 % charges for every transfer, which too cost for customers.

For all the process in order to get smooth, zerodha needs take a step to become US Exchange authorized broker.

[siva]

@ohm_blitzkrieg_energ

zerodha needs take a step to become US Exchange authorized broker.

But still it won’t solve for remittance charges, we are working on finding a solution for it.

[Manjunatha_Reddy]

Crypto is fake currency, don’t compare it with my hard earned money.
They feel they can put some computers to mine currency and become rich?
They may use crypto technology in future for our real hard earned money, but world cannot use the computer mined currency to buy anything of value. It is called Pizza money, thats what you can buy now.