Investing in Apple, Nvidia, Microsoft and other global companies is becoming more accessible to Indian retail investors. Zerodha, Groww, INDmoney, Angel One and Upstox are building international investing offerings that allow customers to access US-listed stocks through digital platforms.
But the headline brokerage rate may not tell investors which platform is cheapest. Currency conversion, regulatory levies, remittance charges and withdrawal costs can add to the total expense. Investors also need to understand whether they are buying foreign-listed shares through an overseas brokerage arrangement or investing through India's International Financial Services Centre (IFSC) at GIFT City.
Piyush Jhunjhunwala, Founder and CEO, Stockify, said, “For Indian financial participants aiming for diversification through investing abroad, international investing allows for acquisitions of various international firms in sectors like technology, healthcare, consumer goods, etc. However, when one makes a choice on a platform, merely comparing the brokerage fees is not sufficient. The costs associated with investing may vary according to currency conversion, fund transfer charges, taxes imposed by government institutions, etc.”
The real comparison, therefore, is not just about the fee charged on a trade. It is about the cost of buying, holding and eventually selling an overseas investment, along with the route through which the investment is made.
The platforms differ in their brokerage structures, and these differences can matter depending on the size and frequency of an investor's trades.