How to Invest in International Stocks: A Guide

From tech giants to global brands, international stocks are now part of everyday portfolio conversations. Investment in international stocks means investing in companies listed outside India, like US stocks. But how do we invest in it?

The access can come through global brokers, Indian platforms, or international ETFs. The real focus, however, should be on understanding what we are exposed to: foreign markets, different rules, currency movement, and global cycles, rather than chasing foreign names blindly.

This blog covers foreign investment routes, platforms, benefits, risks, and practical portfolio choices that help global diversification feel structured, informed, and investable.

How to Invest in International Stocks

We can invest in international stocks either directly through a global brokerage account or Indian brokers that provide access to international markets, or indirectly through international mutual funds and ETFs.

1. Direct Investments: 

We can sign up with international brokers such as Charles Schwab or Interactive Brokers, or domestic ones such as HDFC Securities, Vested Finance, and INDmoney for US stocks from India that offer global access. It requires the funds to go through currency conversion, for example, INR to USD, which involves exchange rate risk and fees. 

However, a few things that need to be considered include higher costs such as brokerage or currency exchange rates, tax complexities, and the need for market research beyond the domestic boundaries.

2. Indirect Investments:

We can also invest in international mutual funds, which are managed in our home country, and buy foreign stocks. These are accessible through regular brokerage.

There are also international ETFs that track foreign indices or sectors, and Fund of Funds (FoFs), which are Indian-based funds that invest in other overseas funds, simplifying rupee-based investment. These are considered easier to manage, have less currency hassle, especially in FoFs, but are subject to RBI caps in India and premiums due to limits.

Another option is investing through GIFT City funds, which offer direct access to the global markets from India, but require higher minimum investment requirements.

Benefits of Investing in International Stocks

1. Bigger Universe of Investment: If we invest internationally, it gives us bigger opportunities, which include stock in our household names, such as Toyota, Nestlé, and Samsung.
2. Sector Diversification: The U.S. market is tilted towards technology, with IT making up 34.4% of the S&P 500 as of 31 December 2025. International diversification also offers exposure to sectors such as industrials and financials, which helps in reducing overdependence on U.S. tech-heavy portfolios.
3. Falling Rupee Backup: As of 19 January 2026, the rupee value per US Dollar is ₹90.86, from around ₹83.10–₹83.33 in January 2024. So, in this case, the value of US stocks increases in INR terms, which helps in protecting wealth even without price gains in the stock itself.

Platforms to Buy International Stocks

Here are some platforms through which Indian investors can purchase international stocks:

• Vested Finance: This is a user-friendly stock broker for investing in US stocks and ETFs, which allows for fractional share purchases.

• Interactive Brokers (IBKR): They offer low-cost access to more than 10,000 US stocks and 170 global markets.
• HDFC Securities: This platform facilitates the opening of US market accounts directly from India.
• IndMoney: This is an Indian app that allows opening a US brokerage account and enables tracking and investment in US stocks and ETFs.
• GIFT City: This allows investing in US stocks through Unsponsored Depository Receipts (UDRs), which reduces currency conversion costs. 

How to Buy US Stocks from India

International stock trading from India can be started by choosing the right route based on control, cost, and comfort. The direct route involves opening an international brokerage account, completing KYC, and transferring funds. Once your money is converted into foreign currency, you can place the trades on international exchanges just like the domestic stocks.

Now, those who prefer a simpler setup can take the indirect route, where investment stake in US and global stocks comes through India-based investment products. These remove the need for foreign transfers, individual stock selection, and overseas tax filings, while still offering participation in global markets.

However, the choice depends on how actively you prefer to manage global investments, handle currency movement, and deal with regulatory and tax requirements.

Risks Involved in Investing in Global Markets

1. Higher transaction costs: The brokerage fees for international stocks are usually higher than domestic rates, and additionally, the local charges, such as taxes, stamp duties, clearing fees, and exchange costs, can differ from one country to another.
2. Currency/exchange rate risk: The changes in foreign currency compared to the home currency also impact the returns. If the foreign currency weakens, investments may lose value, even if the asset price rises.
3. Economic risk: If foreign countries experience high inflation, economic downturns, international market volatility or currency controls, it can limit your ability to transfer capital.
4. Limited information: As different countries operate under their own regulatory frameworks, foreign companies have disclosure rules, reporting timelines, and accounting standards that differ from those of U.S. companies.

Currency Exchange and Taxation on Global Stocks

There are two big forces that shape the outcome: currency movement and Indian tax rules, when we bring foreign investments into the Indian portfolios.

Exchange Rate Movement: According to MUFG’s January 2026 outlook, the dollar weakened through 2025, the USD/INR was roughly ₹89.87 per dollar as of 31 Dec 2025, and is expected to depreciate further against major currencies, including the rupee, over the year, which can influence the INR value of international gains.

This means if the rupee weakens, your foreign stock gains could be worth more in rupee terms when you convert back, and if the rupee strengthens, it can dampen those rupee returns.

Capital Gains Tax: For Indian residents, tax on international investments depends on how long you hold them. The shares held longer than 24 months are treated as long-term and taxed at 12.5 %, without indexation benefits, while gains on shares held for 24 months or less are added to your income and taxed at your normal slab rate. You need to first convert the sale proceeds into rupees using the RBI-specified exchange rate for the relevant month.

Additionally, dividends from overseas equities are included in your taxable income after converting to rupees for the month you received them. And India’s transparency rules require disclosure of all foreign assets and income in your tax return, including details of global stock holdings and earnings.

How to Build an International Stock Portfolio

Step 1 – Start with purpose	Decide whether you want growth, stability, or protection against a weak rupee.
Step 2 – Keep it simple first	You can start with international ETFs or mutual funds, and buy US stocks directly only if you can actively track the companies.
Step 3 – Spread across regions	Invest in the US, Europe, and emerging markets, as it helps to manage your portfolio against risk from one particular country.
Step 4 – Use approved routes	You can invest through Indian platforms that allow overseas investing.
Step 5 – Track costs and taxes	Must consider factors such as currency conversion charges, brokerage fees, and Indian tax rules.

Conclusion

Investing in international stocks allows Indian investors to move beyond domestic limits and take part in global growth stories. With multiple routes now available, from global brokers to India-based platforms and funds, access has become easier than before.

However, success will depend on understanding currency movement, costs, tax rules, and choosing markets. Therefore, a structured approach will help global investing to stay purposeful, balanced, and aligned with long-term financial goals.

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