Check out: upstox.com/international
When we can expect with in two months , but 1 years back we are talking about this , not even a single thing is not fast in zerodha
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@nithin @siva sir when we can expect in investing in overseas in zerodha , waiting more than one year , other discount broker are already launched when you are speaking , any idea of month , this crisis times is best oppourtunity to invest in overseas , please dont put on hold its already too late
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Boss you trade in US market why cant invest? With same
@Mehdi_Abbas No its different , i am trading with my brother account because he is in USA , for long term investment i cannot do with my brother account , zerodha is trying to offer some thing different like we can see all my holding in console , its easy for me , incase anything happened for me my family can see my investment in the same account , it is easy for me and my family members to track the investment
I already open account in WEBULL for investment , just waiting for zerodha to confirm when they will start , if they are not coming this years i will skip zerodha , and i will start invest in WEBULL, those investment platform WEB version is awesome easy to understand also
@siva i heared zerodha is coming to invest in USA , i heared one year back , are you working on this anything possible this year
Yes, due to regulatory approvals on simplifying remittance charges are delayed due to this corana , hopefully we should do in next 3 to 4 months.
Upstox is allowing stock investment in 60 countries at a reasonable rate. When are you going to start?
You managed to place single order on it? or it is still coming soon?
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@siva Please allow the feed from USA market in kite , after sometimes you allow to trade , I will learn the platform our ETF are available or not we can check , after regulatory framework finish you allow to invest , before Atleast you flash the USA market in kite
Yeah, that is our plan, we allow feeds soon.
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I don’t have account there. It is in their website. When are you bringing that? And is it only US stock or global?
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Yes can check above replies by Nithin himself.
Hai @nithin more then long years you told we are coming to invest in USA market , but other broker are already launched , in Motilal oswal first day there is 10k application hit to open a overseas account the CEO comment ,…
As a client of zerodha you make us disappointed us , you told in cnbc we will flash the live feed usa market after got approval we will allowed to invest , still you are not done anything , upcoming fall in market i will try to invest in ETF in usa market , hoping anymore in USA investing in zerodha i believe waiting its waste of time for me , anyway i will open account in motilal oswal – thanks , if upcoming years you are try to launch i will come back , thanks
i think only zerodha have remittence and rbi approval problem , other broker have no problem
I noticed that the Motilal Oswal offering also uses Stockal as the platform provider
Stockal is also being used as the platform provider by the HDFC offering
As per an Livemint article, Stockal has been able to move the full LRS process online (including submission of A2 form) for ICICI bank holders (up to an amount of 25,000$)
They are quite open about their charges as well (refer to https://stockal.freshdesk.com/support/solutions/articles/43000549931) but one thing that is not mentioned anywhere, is their inward remittance charge for adding funds into the trading account. While checking their webinar (for their HDFC offering), I noticed a slide which mentioned it at 35$ per transaction (plus LRS charges extra). Given that this video was posted back in November 2019, I am not aware if they still continue to charge these fees for inward remittance or not (or if these same rates apply for the Motilal Oswal offering)
LRS charges are not openly shared by most banks but HDFC does list charges for normal foreign remittance here (FEES & CHARGES remiitance, 500Rs + GST for under 500$ and 1000Rs + GST for over 500$). But as RBI classifies foreign investment as a capital account transaction which requires extra paperwork (A2 Form + LRS declaration), LRS charges levied by the banks for such transactions might be higher. On top of this, there is currency markup (around 1.5-2Rs extra per USD, Forex rate example)
So if we take a sample scenario, where I want to add 499$ to my foreign trading account using the above offerings. Let’s suppose currently 1USD is 75INR. So instead of 37425 (75 x 499), I will instead have to give 38173.5 (76.5 x 499, adding 1.5Rs currency markup, so the currency rate is 76.5). The currency markup costs us 748.5Rs. Now, on top of this there LRS charges that the bank will charge on top of this (for simplicity, let’s assume the LRS charges are similar to the normal remittance charges that were mentioned above). This would come out to be around 590Rs (500Rs + 18% GST). Now the 499$ gets credited into the trading account. On this, 35$ will get deducted for the inward remittance charges mentioned above. Leaving me with around 464$. Now, on top of this, if I am not subscribed to any of their yearly plans, then it will cost me around 2.99$ per trade to buy any stock/ETF (even if I subscribe to their highest plan, I will still have to pay 0.01$ per share I buy). All in all, even before starting any trading, we will have already lost nearly 10% of our capital in the form of charges, currency markup, etc.
As the amount of money that needs to be transferred increases, these charges pinch less but those who have higher capital already have access to ways to invest outside India. I think Zerodha is trying to make it easier/cheaper for everyone (irrespective of how much money they have) to invest outside India.
I don’t think Zerodha will face any problems in getting approvals but I think they are trying to solve the problem with reducing all these extra currency conversions and remittance charges. Hopefully, they are able to successfully do that
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@Prayag I Dont think so if zerodha will reduce the transaction charge , any way transferring money to usa with 1 lakhs above its make sense , not for 100 or 200 $ its will give some loss - its not make any sense
@nithin @siva hai i have one dout , if you clear my dout through this thread , for me and other reader also its very helpful i believe
In india our shares are in demat account , even brokers went bust our asset are safe with depositories , this is in india
in usa how its depository working , even when we are investing from india how we can trust the usa brokers , for example TASTY WORKS is charging for investment is 0 , when i am buying shares with tasty works where my shares will be credited , how safe is my stock with usa broker , i really need to know the function of usa market before invest , please reply us , better if i can get a answer from @nithin @siva
I had shared this sometime back, it has your answer
#### Securities Lending
*The structure of our depository system, like our payments system, is a newer and advanced system as compared to the US. This is mainly because India didn’t have a legacy when we went online in the 1990s. We have depositories like NSDL and CDSL where we hold Demat accounts that remain unaffected even if a brokerage firm goes into trouble. In the US all securities are essentially held in book or street name with the respective brokers, what they call a “books and records system”. This means the securities are all held by brokers. This also gives an opportunity for the brokerage firm in the US to be able to lend these securities to people looking to short stocks or borrow for various trading strategies and earn an additional source of income (Unlike India, borrowing stocks to short is extremely popular in the US). The earning potential for these stocks held by the broker is typically based on the number of people wanting to short the stock. For example, early this year when Marijuana stocks were moving wildly, there were periods of time where one could earn as much as 100% or more annualized returns just by lending these stocks. Regulations in the US does mandate the brokerages to share some of the lending fees with the person who owns the stock, but the entire thing is quite opaque to the customer. Most never get to know how much was earned. *
*In India, brokers can’t lend securities as they sit in the clients’ Demat accounts with the depositories. Also, with the new set of regulations that came out on the 1st of Oct 2019, even securities bought by a customer that are unpaid for, cannot be pledged. *
India does have an SLB (Stock Lending and Borrowing) platform where clients can participate directly, and know the exact lending fees being earned. This platform sees very little activity today, but may grow over time.
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