Brokerage for investing in US stocks through Zerodha is 0.10% (minimum $0.01, maximum $10 per order), along with statutory charges including 18% IGST on brokerage, a 0.005% IFSCA turnover fee, and US regulatory fees on sell orders (0.00206% SEC fee and 0.0195% FINRA fee). Zerodha does not levy account opening fees or annual maintenance charges (AMC) for the US stocks segment.
Brokerage and statutory trading charges
Brokerage and regulatory charges for trading eligible US equities and Exchange Traded Funds (ETFs) are structured as follows:
| Charge | Rate | Applicable side |
|---|---|---|
| Brokerage | 0.10% (Minimum $0.01, Maximum $10) | Buy and sell |
| Integrated Goods and Services Tax (IGST) | 18% on brokerage amount | Buy and sell |
| International Financial Services Centres Authority (IFSCA) turnover fee | 0.005% on trade value | Buy and sell |
| Securities and Exchange Commission (SEC) fee | 0.00206% on trade value | Sell only |
| Financial Industry Regulatory Authority (FINRA) fee | 0.0195% multiplied by sell quantity* | Sell only |
*The FINRA Trading Activity Fee (TAF) is paused from 1 October to 31 December.
A minimum charge of 1 cent ($0.01) applies to SEC, FINRA, and IFSCA fees.
Fund transfer and currency conversion charges
When you transfer money from your registered Indian bank account to your USD Global wallet, the following banking costs apply:
- Currency conversion markup: Zerodha has negotiated a preferential markup of 0.5% above the Reserve Bank of India (RBI) reference rate, which is lower than the typical 0.8% to 1% markup charged by most retail banks.
- Bank remittance fee: Your bank may levy an outward wire transfer or remittance processing fee.
- GST on foreign exchange: An 18% Goods and Services Tax (GST) applies to the bank currency conversion fee.
Currently, fund transfers are supported via netbanking across five partner banks: HDFC Bank, ICICI Bank, IDFC FIRST Bank, Axis Bank, and Kotak Mahindra Bank. The minimum transaction amount is USD 50 for your first transfer and USD 100 for all subsequent transfers.
Tax Collected at Source (TCS)
All foreign remittances for US stock investing are processed under the Reserve Bank of India's Liberalised Remittance Scheme (LRS):
- Threshold: TCS applies only after your cumulative LRS remittances across all bank accounts exceed ₹10 lakh in a financial year. Remittances up to ₹10 lakh are exempt from TCS.
- Rate: Once your total remittances exceed ₹10 lakh, your bank collects TCS at 20% on the excess amount remitted for stock investments.
- Tax credit and refund: TCS is not an additional tax or an expense. It functions as an advance tax that you can adjust against your final income tax liability or claim as a refund when filing your Income Tax Return (ITR).
Dividend withholding tax
When a US company distributes dividends:
- A 25% tax is deducted at source in the US under the Double Taxation Avoidance Agreement (DTAA) between India and the US, provided your Form W-8BEN is active.
- You can claim this 25% tax deduction as a Foreign Tax Credit (FTC) in India by filing Form 67 before submitting your ITR, preventing double taxation on the same dividend income.
Buy and sell calculation examples
Example 1: Buying US stocks
Suppose you buy 100 shares of a US stock at $90 per share:
| Component | Calculation | Amount |
|---|---|---|
| Gross trade value | 100 shares × $90 | $9,000.00 |
| Brokerage (0.10%) | 0.10% of $9,000 (subject to the $10 cap) | $9.00 |
| IGST (18%) | 18% of $9.00 | $1.62 |
| IFSCA turnover fee (0.005%) | 0.005% of $9,000 | $0.45 |
| Total charges | $9.00 + $1.62 + $0.45 | $11.07 |
| Net payable amount | $9,000.00 + $11.07 | $9,011.07 |
Example 2: Selling US stocks
Suppose you sell 100 shares of a US stock at $90 per share:
| Component | Calculation | Amount |
|---|---|---|
| Gross trade value | 100 shares × $90 | $9,000.00 |
| Brokerage (0.10%) | 0.10% of $9,000 (subject to the $10 cap) | $9.00 |
| IGST (18%) | 18% of $9.00 | $1.62 |
| IFSCA turnover fee (0.005%) | 0.005% of $9,000 | $0.45 |
| SEC fee (0.00206%) | 0.00206% of $9,000 (rounded to nearest cent) | $0.19 |
| FINRA fee | Paused from 1 October to 31 December | $0.00 |
| Total charges | $9.00 + $1.62 + $0.45 + $0.19 | $11.26 |
| Net receivable amount | $9,000.00 − $11.26 | $8,988.74 |
Things to keep in mind
- Bank remittance charges and GST on foreign currency conversion are collected directly by your bank and cannot be claimed back as tax credits.
- Brokerage charges on US trades are capped at a maximum of $10 per order, regardless of trade volume.
- If you hold uninvested funds in your Global wallet, no custody charges or wallet maintenance fees apply for holding balances up to 180 days.
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For a detailed breakdown of everything from getting started and fund transfers to tax returns and compliance, refer to the
complete guide for US investing in Zerodha.