Indian investors have been waiting years for this precious moment. Zerodha, the country’s largest stock broking platform, is finally set to enable US stock trading for its users starting next quarter. Founder and CEO Nithin Kamath confirmed the long-awaited feature during a recent ‘Ask Me Anything’ session, marking a significant expansion for the discount broker.
“A lot of people tagged me on social media and asked about the US investing thing. We are working on it, and we should have something in the next quarter,” Kamath revealed, sending waves of excitement through India’s investment community.
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Zerodha US Stock Trading: Quick Overview
| Feature | Details |
|---|---|
| Launch Timeline | Next quarter (Q4 FY25 or Q1 FY26) |
| Framework | GIFT City under IFSCA regulation |
| Initial Markets | US stocks only (expansion possible later) |
| Current Status | Backend and frontend development underway |
| Key Advantage | Regulatory clarity through GIFT City |
| Competing Platforms | INDmoney, Motilal Oswal, Axis Direct, HDFC Securities |
Why This Matters for Indian Investors
For years, Zerodha users have requested access to international markets, particularly US stocks like Apple, Tesla, Amazon, and Microsoft. Until now, Kamath hesitated due to complex remittance regulations and regulatory uncertainties that made overseas investing cumbersome.
The breakthrough came through GIFT City, India’s first International Financial Services Centre, which provides the regulatory clarity Zerodha needed to move forward confidently.
“Investing in foreign stock has been a long-pending thing. We now have the requisite regulatory clarity through GIFT City,” explained Zerodha’s Chief Technology Officer Kailash Nadh. “We are trying to build a simple and seamless experience for users in the backend as well as in the frontend.”
Initially, the overseas investment feature will be limited exclusively to US stocks, though expansion to other markets may follow based on demand and regulatory approvals.
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Understanding the GIFT City Framework
The Gujarat International Finance Tec-City (GIFT City) is India’s first special economic zone specifically designed for global financial services. Located in Gandhinagar, Gujarat, it hosts institutions dealing in finance, insurance, fintech, and capital markets—all regulated by a single unified authority called the International Financial Service Centre Authority (IFSCA).
This streamlined regulatory framework offers several advantages:
Faster Transaction Settlement: Unlike traditional remittance routes that could take days, GIFT City enables quicker resolution of international transactions.
Single Regulator: IFSCA oversight eliminates the confusion of dealing with multiple regulatory bodies.
Tax Benefits: Certain tax advantages are available for transactions routed through GIFT City.
Legal Clarity: Clear guidelines reduce compliance risks for both brokers and investors.
Currently, investors can access US stocks through GIFT City via two primary routes—India INX’s Global Access (a BSE subsidiary) and NSE-IX. Multiple brokerages including INDmoney, Motilal Oswal, Axis Direct, and HDFC Securities already offer US stock trading through these channels.
Zerodha’s entry into this space will bring its trademark simplicity and zero-commission model to international investing, potentially disrupting the market as it did with domestic trading.
Zerodha’s Strategic Pivot Amid Revenue Challenges
The announcement comes at a crucial time for Zerodha. The company recorded a 40% year-on-year drop in brokerage revenue during Q1 FY26, with total revenue falling to ₹8,500 crore and net profit to about ₹4,000 crore in FY25—down from ₹9,994.5 crore and ₹5,493.4 crore respectively in the previous fiscal year.
Several regulatory changes have impacted Zerodha’s bottom line:
- Drop in transaction charges revenue
- Increased Securities Transaction Tax (STT) on futures and options
- Proposals to tighten F&O trading regulations
- ASBA requirements for trading
- Increased Basic Services Demat Account (BSDA) limits
“The time has finally come for business to pivot,” Kamath acknowledged in a recent blog post, signaling that US stock trading represents part of Zerodha’s diversification strategy.
The company has also launched new products including the BSE SENSEX Index Fund and Nifty 50 ETF, expanding beyond pure brokerage into asset management.
Explore more market analysis on TechnoSports’ investment coverage.
What to Expect When Zerodha Launches US Trading
Based on Nadh’s comments about building a “simple and seamless experience,” Zerodha users can likely expect:
Integrated Platform: US stocks accessible directly through existing Zerodha Kite app or web platform
Transparent Pricing: Clear disclosure of currency conversion charges and transaction fees
Educational Resources: Zerodha’s trademark educational content explaining US market mechanics
Simplified Compliance: Streamlined KYC and documentation process through GIFT City framework
Real-Time Data: Live market data and research tools for informed decision-making
The launch will democratize access to global markets for millions of retail investors who trust Zerodha’s platform but previously found international investing too complex or expensive.
The Road Ahead
Zerodha’s move into US stock trading represents more than just product expansion—it signals the maturation of India’s retail investment ecosystem. As regulatory frameworks become clearer and technology bridges geographic barriers, Indian investors gain unprecedented access to global wealth creation opportunities.
With over 7 million active users, Zerodha’s entry could significantly accelerate Indian retail participation in US markets, potentially channeling billions in investment capital overseas while giving domestic investors true portfolio diversification.
The next quarter can’t come soon enough for investors eager to add international stocks to their portfolios through a platform they already know and trust.
Stay updated on Zerodha’s US stock trading launch and other fintech developments at TechnoSports. Follow our investment news section for the latest market updates.
Frequently Asked Questions
Q: Will Zerodha charge brokerage for US stock trading?
While Zerodha hasn’t officially announced its pricing structure for US stock trading yet, the platform is known for its zero-commission model on equity delivery trades in India. However, US stock trading through GIFT City typically involves currency conversion charges, regulatory fees, and potentially small transaction charges to cover operational costs. Given Zerodha’s history of transparent, minimal pricing, investors can expect competitive rates compared to existing platforms. The company will likely detail the complete fee structure closer to launch. Additionally, there may be minimum deposit requirements and annual maintenance charges similar to other brokerages offering international trading.
Q: Can I invest in all US stocks through Zerodha, or are there limitations?
Initially, Zerodha’s US stock trading will likely focus on the most popular and liquid stocks listed on major exchanges like NYSE and NASDAQ. This typically includes large-cap technology companies (Apple, Microsoft, Google), major indices components (S&P 500, NASDAQ 100), and widely-traded stocks. However, there may be restrictions on certain securities like penny stocks, over-the-counter (OTC) stocks, or less liquid securities due to regulatory and risk management considerations. The GIFT City framework and IFSCA regulations also determine which securities are accessible. As the platform matures, Zerodha may expand the universe of available stocks based on user demand and regulatory approvals.
