I Live in the U.S. How Can I Trade Stocks in China and India? (2024)

FAQs

I Live in the U.S. How Can I Trade Stocks in China and India? ›

If you are looking to invest in a foreign company listed on a foreign exchange, the first thing to do is to contact your brokerage firm and see whether it provides such a service. If it does, the firm will need to contact a market maker or an affiliate firm located in the country in which you want to buy the shares.

So, you may be wondering if you can get in on that. Luckily: Yes, you can be a non-U.S. resident, living in America or living in your own country, and you can buy and sell U.S. stocks. In fact, trading U.S. stocks is sort of encouraged among international investors.

To have access to the Indian stock market from the US, you will have to either open an account with an international brokerage firm regulated by the U.S. Securities and Exchange Commission (SEC) or open an account with a SEBI-registered Indian stockbroker.

Many leading stock exchanges are based outside of the U.S., offering investors potential to expand and diversify their portfolios with securities in both emerging and well-established markets. Global diversification can help you manage risk and position your portfolio for long-term growth.

Buying stocks directly in a foreign market like India or China is possible, although it might be harder than purchasing domestic shares. Investors can purchase American Depositary Receipts on U.S. exchanges, which are certificates that represent shares in a foreign company. China A-shares are open to foreign investors.

Can I access my account while I travel overseas? You can access your Robinhood account in almost all countries, with the exception of Cuba, Iran, North Korea, Syria, and the Crimea region of Ukraine.

TD Ameritrade restricted countries: Australia, EU countries, Georgia, Japan, New Zealand, Philippines, Russia, South Africa, UK, and many others.

In short, foreign investors do not have to pay capital gains taxes to the US government on sales of American stocks. Instead, they will have to pay capital gains taxes in their home country. Every country has its own capital gains laws, some of which are more favorable to investors than others.

Account Features for U.S. Expatriates

As a U.S. citizen living abroad, you'll enjoy a number of advantages with Schwab, including: Convenient access to your money through U.S. dollar–denominated checks, debit cards, and the Schwab MoneyLink^® Electronic Funds Transfer Service.

Can a US citizen open a demat account in India? ›

Non-resident Indians

Yes, NRIs can also trade in Indian capital markets by opening a Demat Account with a DP or depository participant of their choice.

Repatriation: NRIs can invest in the Indian market on a repatriation basis using their NRE or FCNR account. Investment on repatriation basis means an investment, the sale/ maturity proceeds of which are, net of taxes, eligible to be repatriated out of India.

What you can do. Trade in 25 countries with the flexibility to settle in either U.S. dollars or the local currency. Exchange between 16 different currencies, offering you the potential to capitalize on foreign exchange fluctuations. Trade domestic and international stocks in a single account.

Let us note that Chinese stocks are currently available for NetTradeX accounts. Before making an investment, a demo account can be opened, especially if you are new to this specific market. After having some practice and getting used to the Chinese market you can open a Real account in NetTradeX and start trading.

Investors in the United States can select Hong Kong stocks listed as American depository receipts (ADRs) on their home stock exchanges like the New York Stock Exchange (NYSE) or Nasdaq or from over-the-counter (OTC) exchanges. Some popular Hong Kong ADRs include AIA Group Ltd.

Sign up for a Robinhood brokerage account to buy or sell HKD stock and options commission-free. Other fees may apply. See Robinhood Financial's fee schedule to learn more.

The U.S. trade with China is part of a complex economic relationship. In 1979 the U.S. and China reestablished diplomatic relations and signed a bilateral trade agreement. This gave a start to a rapid growth of trade between the two nations: from $4 billion (exports and imports) that year to over $600 billion in 2017.

HKEX operates securities and derivatives markets that are open and free and welcomes the participation of investors from all over the world. However, overseas investors should comply with regulations governing overseas trading in their own countries or places of residence before trading in Hong Kong.

What is the Chinese version of Robinhood? ›

In China, the Robinhood equivalent is a Hong Kong-based, publicly traded brokerage firm - Futu Holdings Limited (NASDAQ:FUTU). FUTU operates a reliable, commission-free, and user-friendly brokerage platform named Futu NiuNiu (FutuBull).

You can also open an overseas trading account directly with a foreign broker with a presence in India. Some such brokerages are Charles Schwab, Ameritrade, Interactive Brokers, etc.

TD Ameritrade opens accounts to residents of over 100 countries. The few exceptions include the European Union, Canada, and Australia, but “there are lots of buts and ifs on it”. 2. Interactive Brokers opens accounts to residents anywhere.

*$0 commission applies to online U.S. exchange-listed stocks and ETFs. A $6.95 commission applies to online trades of over-the-counter (OTC) stocks which includes stocks not listed on a U.S. exchange.

Foreign stock or securities, if you hold them outside of a financial account, must be reported on Form 8938, provided the value of your specified foreign financial assets is greater than the reporting threshold that applies to you.

As an American living abroad, you may be required to pay a capital gains tax to a foreign government when selling a foreign property. Of course, this could create a risk for double taxation—being taxed twice for the same capital gain, once by the US and again by a foreign government.

If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income.

On the flip side, many U.S. banks, brokers, and 401(k) providers will only work with customers who have U.S. addresses because they want to steer clear of foreign regulatory laws. So many Americans living abroad have found their accounts shut down by brokerages including TD Ameritrade, Vanguard and Fidelity.

Interactive Brokers (IBKR) is hands down our top choice for the Best Online Broker for International Trading.

What happens to my brokerage account if I leave the US? ›

U.S. expat brokerage account restrictions vary between brokerage firms. Some firms let clients keep their existing brokerage account once they have moved overseas but will not permit clients to open a new brokerage account due to residency in a foreign country.

Yes, US-based NRIs are allowed to open demat account in India. An NRI Demat account can be opened by a Non-Resident Indian (NRI), Overseas Citizen of India (OCI) or Person of Indian Origin (PIO) living in any country abroad.

As an NRI, you can continue to invest in the Indian stock market, but your account status has to change. While you can convert your Savings Accounts to a Non-Resident Ordinary (NRO) Savings Account and your Fixed Deposit Accounts to NRO FDs, you won't be able to switch your Demat Account.

An NRI, at any point in time, can hold multiple demat accounts under their name. In fact, if you're a regular investor, you can choose to open all the above three NRI demat accounts - one for repatriable investments, another for non-repatriable investments, and a third for investing in the secondary market.

Volatility. When compared to Indian markets, the US markets have been less volatile in the long run. Indian equities have shown great volatility, with bigger swings in returns over the years. This is another reason experts recommend diversification when it comes to investing, since risks are spread out and diminished.

Calculating retirement corpus

You may use the retirement calculator online to find out how much money would be enough by the time you retire. Corpus needed at the time of retirement: ₹17,92,30,104. The myth that ₹5 crores would suffice for your retirement is nothing short of a myth.

Can foreigners buy Chinese stocks? Foreigners can purchase the common shares of companies domiciled in China through a broker that offers American Depositary Shares (ADS).

Can a US citizen buy international stocks? ›

Access international stocks via American Depository Receipts (ADRs). ADRs are certificates issued by U.S.-based financial institutions that represent a share of a foreign company's stock. They're traded just like domestic stocks on U.S.-based exchanges, meaning you don't need a special brokerage account to access them.

Place online trades for virtually any domestic stocks, international stocks via ADRs¹, or initial public offerings (IPOs)² whenever TD Ameritrade is a member of the selling group and you qualify.

Please note there may be a foreign transaction fee of 1% included in the amount charged to your account.

Recent performance means that Chinese shares are far cheaper than Indian shares relative to their earnings, with a price-to-earnings ratio of 14.5 on the MSCI China index compared with 26 on the MSCI India index, as of the end of 2022.

The Portfolio Investment Scheme (PIS) allows NRIs to invest in the Indian stock market, under repatriation or non-repatriation basis, through a registered broker. PIS-enabled NRI accounts are used for trading and investment in India.

In terms of valuations, Chinese stocks are still not very cheap enough to buy," said Menaka Reddy, associate, Investment Research, Stockal, a fintech enabling Indians to invest in foreign stocks. However, some experts see the fall as a buying opportunity for investors with a long time horizon.

You can also buy A-shares, meaning shares from companies from mainland China listed on the Shanghai and Shenzhen Stock Exchanges. To invest in these companies, you can purchase shares of ADRs through a U.S. broker.

TD Ameritrade mainly targets US investors but also accepts clients from different countries. Clients from Singapore, Malaysia, Thailand, China, Hong Kong, and Taiwan are redirected to other TD Ameritrade websites, while users from Canada will be directed to TD Direct Investing, a different company than TD Ameritrade.

Foreigners Investing in Chinese Stocks

Professional foreign investors however can invest in Chinese companies through ADRs, ETFs, mutual funds, A Shares (through the QFII program), B Shares, H Shares (Hong Kong-listed Chinese stocks), VIEs, and by collaborating with Chinese businesses in mainland China.

Invest in Chinese stocks via a broker that offers access to Hong Kong-listed & Chinese mainland-listed stocks. To get access to the myriad of Chinese companies that don't have ADRs, you'll need to sign up to a broker that provides access to stocks listed in Hong Kong or mainland China exchanges (or both).

What is the difference between red chip and H share? ›

The letter H stands for Hong Kong. Red chip companies are enterprises that are incorporated outside of the Mainland and are controlled by Mainland Government entities. The most important difference between a red chip company and an H-share company is that a red chip company is not Mainland-incorporated.

Some of the risks associated with investing in China include its communist structure, regulatory differences, and insider trading. Investment opportunities in China include U.S. corporations that have a presence in the country, mutual funds, and ETFs.

You can use just a few funds to invest overseas. Each of these funds gives you access to a wide variety of international securities in a single, diversified fund or ETF. View the Vanguard Total International Stock Index Fund , which holds more than 7,700 non-U.S. stocks.

Bloomberg Ticker : SPC500CP

The S&P China 500 comprises 500 of the largest, most liquid Chinese companies while approximating the sector composition of the broader Chinese equity market.

China's Most Expensive Stock Moutai Hits Record High. (Yicai Global) June 23 -- Shares of Chinese liquor distiller Kweichow Moutai, the mainland's most valuable company, jumped to another record high this morning. The stock price [SHA:600519] rose 3 percent to CNY1,482 (USD209.

It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock Exchange. The Shanghai Stock Exchange is the world's 3rd largest stock market by market capitalization. It is also Asia's biggest stock exchange.

Two companies operating in the same sector are popular picks among investors. One of these stocks is China's giant, Alibaba Group Holding Limited, whilst the second one is a U.S. corporation, Amazon.com, Inc., although both of the companies can be called international.

Invest in China as consumer spending rebounds

Asset managers believe that one of the reasons to invest in China now is because the country has witnessed a steady revival in consumer spending in 2023 so far.