Introduction
Most Indian investors think their investments are restricted to the Indian stock market. But the truth is, with platforms like Motilal Oswal, you have the power to buy United States (US) stocks, too. Motilal Oswal offers this service in partnership with Stockal.
It is legal to buy the stocks of foreign companies with a registered Motilal Oswal trading account. You can visit the official website to create this after completing the Know Your Customer (KYC) verification process. The stockbroker will open an overseas brokerage account for you in around 1 to 2 days. Once this account is activated successfully, you can transfer funds in USD from your Indian bank account.
What are US stocks?
US stocks refer to shares of companies publicly listed in the US. An Indian investor can participate in the US stock market by buying the stocks of US-based companies. This investment results in geographical diversification of investment portfolios. Moreover, it enables you to leverage the performance of the US economy and global markets.
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An aspect to consider while investing in US stocks is the currency difference. You can see the share price of American companies in US dollars, which is relatively higher compared to Indian listed entities.
Motilal Oswal allows you to start your US stock investment journey with limited or minimal capital through the feature of ‘fractional investing.’ With this, you can buy a fraction of a share instead of the entire share. The feature is beneficial when the US stock’s price is high since you can gain exposure to the stock even by investing small amounts of money.
Benefits of investing in US stocks with Motilal Oswal
You can invest in US stocks through Motilal Oswal, the National Stock Exchange (NSE) International Financial Service Centre (IFSC), mutual funds, or Exchange-Traded Funds (ETFs). Here are some benefits of investing through Motilal Oswal:
● Hassle-free account opening process
You can open an account online using a few simple steps on the official website.
● No minimum investment
You can start investing with as little as $1.
● Fractional investment
You spend a lesser amount of money than the stock’s price and own a fraction of the share of the world’s biggest companies.
● Thematic investment strategies
You get to enjoy returns by following pre-configured portfolios of high-growth stocks and global ETFs.
You can withdraw or transfer your US stock portfolio to another platform. The solutions and step-by-step process are described below.
How do you withdraw the US stock portfolio from Motilal Oswal?
The first solution is to withdraw your holdings. You can do it by clicking on the wallet icon on the top bar or by clicking on the funds option in the profile menu. Next, click ‘Withdraw’ and select the US stocks you intend to sell. You will be shown a maximum withdrawal amount. You can enter a number less than the maximum withdrawal amount or select the entire amount. Within 3 to 4 working days, the funds will be credited to your primary bank account.
How do you transfer your US stock portfolio from Motilal Oswal?
To do this, you must learn about the Automated Customer Account Transfer Service (ACATS). US broker-dealers hold your US stock investments. These firms execute buy/sell transactions on your behalf.
You need to request ACAT to initiate a transfer from Motilal Oswal. But before doing that, remember to download your account statements. Visit the platform to which you wish to switch and create your account. Contact their support team requesting to initiate ACAT. You will need to submit your account statement and other account-related details.
Once your request is accepted, the platform’s support team will send an ACAT form to you. Please fill out and sign this form. It takes around 10 to 14 days for portfolio transfer after the successful submission of the form.
Conclusion
An Indian investor can trade in US stocks using the services of different stock brokers. Motilal Oswal offers some interesting features to make this investment journey smooth and fruitful. You can use the platform for its streamlined services or switch to another stock broker using the solutions provided above.
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