Dhan charges explained: US stock brokerage, GIFT City route, FX costs, and TCS

Dhan launched US stock investing via the GIFT City IFSC route in June 2026. The route is LRS-compliant — TCS applies at standard rates and the $250k annual cap applies equally. The actual differences are operational: domestic NEFT/IMPS transfer instead of SWIFT, no A2/15CA/15CB documentation, and a potential Section 10(4D) capital gains exemption (verify with CA). Understanding what the route actually offers, and what the costs are, requires reading past the marketing.

The complete Dhan US stocks fee list

The GIFT City structure: why it matters

Dhan's US stocks product routes through Raise IFSC Pvt. Ltd., Dhan's wholly-owned subsidiary registered and regulated by IFSCA (International Financial Services Centres Authority) within GIFT City, Gujarat.

When you fund your Dhan US stocks account, your money goes to Raise IFSC — a domestic Indian entity operating under a special regulatory framework. The GIFT City route is LRS-compliant:

1. TCS applies at standard rates

TCS applies on the Dhan GIFT City route at the same rates as any LRS investment remittance — 0% on the first ₹10L/year, 20% above that threshold. There is no TCS exemption or advantage on the GIFT City route.

2. LRS $250K annual cap applies equally

The $250,000 annual LRS cap applies to the Dhan GIFT City route in the same way as any LRS investment remittance. Transfers to Raise IFSC count against your annual cap.

3. Operational differences (the actual GIFT City benefits)

• Domestic NEFT/IMPS transfer — no SWIFT, same-day settlement
• No Form A2, 15CA, or 15CB required for the transfer itself
• Simpler transfer documentation vs standard LRS platforms

4. Section 10(4D) capital gains exemption — potential but uncertain

Section 10(4D) of the Income Tax Act provides exemption on income from specified securities in IFSC. If your US stocks held via Raise IFSC qualify — which requires CA-level analysis of the specific structuring — capital gains could potentially be exempt from Indian income tax. Zero LTCG, zero STCG.

This is the most uncertain benefit and should not be assumed without explicit CA verification. The current state of CBDT guidance on this for retail investors accessing US stocks via GIFT City is limited.

Brokerage: 0.25% — higher than Tickertape and Rovia

Dhan charges 0.25% per trade for US stocks. This is the same as Vested Basic and INDmoney, but higher than Rovia, Tickertape, and Vested Premium (all 0.15%).

Since TCS applies equally on both routes, the brokerage difference is the main recurring cost difference. Rovia and Tickertape at 0.15% save ₹2,500/year vs Dhan at ₹25L invested. Dhan's advantage is operational (simpler transfer) and the potential Section 10(4D) capital gains benefit, not brokerage or TCS.

FX costs: verify before investing large amounts

Dhan's US stocks product uses the Raise IFSC / ViewTrade infrastructure for FX conversion when you fund your account. The specific FX markup is not prominently disclosed in Dhan's published fee schedule.

Before transferring ₹5 lakh or more:

1. Check the live exchange rate Dhan offers at the time of transfer against the mid-market rate (xe.com as reference)
2. The difference is the effective FX markup
3. A 1% FX markup on ₹10 lakh = ₹10,000 in FX cost — 4× the brokerage cost at 0.25%

For large investments, FX cost can significantly outweigh brokerage. Verify before you commit.

US stock SIPs: Dhan's differentiated feature

Dhan supports US stock SIPs — recurring investment instructions where a fixed rupee amount flows into a specified US stock or ETF at a set frequency (weekly, monthly, etc.). This is useful for investors running a disciplined dollar-cost averaging strategy into a US index ETF without placing manual orders each time.

Among the GIFT City route platforms, automated US stock SIPs are currently a Dhan differentiator. Tickertape's recurring investing capability is not explicitly confirmed as of mid-2026. Neither Rovia nor Vested currently offer automated US stock SIPs.

Indian equity integration

Dhan is a well-established platform for Indian equity and F&O trading. If you already use Dhan for Nifty options or Indian stocks, your US holdings appear in the same app — one portfolio view, one login, one P&L dashboard across Indian and US investments.

This integration is genuinely useful for investors who actively manage both. It is the same advantage INDmoney offers, and it is meaningful if your workflow involves regularly looking at your full financial picture across markets.

What Dhan does not do for US stocks

• Inbound ACATS transfers: Cannot receive RSU shares from Fidelity, E*TRADE, Schwab, or Morgan Stanley. RSU holders need Rovia.
• Lot-level INR cost basis: No vest-date SBI TT rate tracking per lot.
• Specific-lot identification at sell: No lot selection at sell; defaults to FIFO.
• Schedule FA helper: No automated Schedule FA output.
• Tax-loss harvesting reports: No realized-loss schedule with carry-forward.
• US options or futures: Cash equities and ETFs only.
• London-listed ETFs: No access to LSE-listed securities for US estate tax planning.

Total cost example: ₹25 lakh invested via LRS vs Dhan GIFT City

Scenario: ₹25 lakh invested in US stocks, held 18 months, sold for ₹31 lakh (24% return in INR).

TCS is the same on both routes. The Dhan GIFT City advantage is operational (simpler transfer process) and the potential Section 10(4D) capital gains exemption, which requires CA verification.

Who should use Dhan

Dhan is the right choice if:

• You already use Dhan for Indian equity or F&O and want a unified portfolio view across markets
• You want a simpler domestic transfer process (no SWIFT, no A2/15CA/15CB documentation)
• You want automated US stock SIPs for disciplined recurring investing
• You are exploring the potential Section 10(4D) capital gains exemption with your CA

Dhan is not the right choice if:

• You are primarily focused on TCS or LRS cap savings — these are the same on both routes, and Rovia/Tickertape have lower brokerage
• You have RSU shares to consolidate from an employer broker → Rovia
• You need Schedule FA automation, lot-level tax tooling, or specific-lot sell identification → Rovia
• You are cautious about products with no track record — Dhan's US stocks launched weeks before this article was written

Dhan vs alternatives at a glance

Real-world cost scenarios at different investment levels

Scenario 1: ₹5L invested via Dhan GIFT City (below TCS threshold)

At ₹5L/year, Dhan and INDmoney have similar total costs. The GIFT City advantage (simpler domestic transfer, no SWIFT paperwork) is the practical differentiator at this scale, not cost.

Scenario 2: ₹25L invested — TCS applies identically to LRS

A common misconception is that Dhan's GIFT City route avoids TCS. It does not. Here's the comparison:

The TCS numbers are identical. Rovia saves ₹2,500/year on brokerage vs Dhan and INDmoney at this level. Dhan's competitive advantage at ₹25L is the simpler transfer mechanism and the potential Section 10(4D) capital gains exemption — not TCS or brokerage rate.

Scenario 3: F&O trader on Dhan, adding US stocks

If you already use Dhan for Indian equity or derivatives, adding US stocks via the same app has a real practical benefit:

• One login, one portfolio view across Indian equities, F&O positions, and US stocks
• Unified P&L across Indian and US holdings
• No separate app or documentation for US investing
• Indian NEFT/IMPS transfer to fund US account — no SWIFT wire needed

The additional friction cost of using a separate platform (INDmoney, Rovia, Vested) for US stocks is non-trivial if you're actively managing Indian positions on Dhan. The unified dashboard is worth something even if Rovia's RSU tools or Rovia's lower brokerage are better on paper.

Scenario 4: Active US stock SIP investor, ₹15,000/month

At ₹1.8L/year, all three are essentially equal on cost. Dhan wins on automation — the US stock SIP feature means you set it once and it runs, vs placing manual orders each month on Vested or INDmoney.

Section 10(4D): the capital gains exemption worth understanding

Section 10(4D) of the Income Tax Act exempts "income from transfer of specified securities" held in an IFSC. If structured correctly, this could mean zero STCG and zero LTCG on US stocks held via Raise IFSC Pvt. Ltd. (Dhan's GIFT City entity).

Why this is not a simple claim:

What the law says: Section 10(4D) applies to "income from transfer of securities by a non-resident" in a specified IFSC. The interpretation for Indian residents investing via an IFSC entity is less settled.

CBDT guidance gap: As of mid-2026, there is limited explicit CBDT guidance on whether Indian-resident retail investors using a GIFT City brokerage route to access US equities qualify for Section 10(4D) capital gains exemption.

What you should do: If Dhan's Section 10(4D) potential is the primary reason you're considering their product, speak with a CA who specifically advises on GIFT City structuring before investing. Do not assume the exemption applies based on marketing materials — the tax position needs specific legal and factual analysis for your situation.

If the exemption does apply, the benefit is substantial: ₹6L STCG that would otherwise attract ₹2.04L in tax (at 34%) becomes ₹0. For a large portfolio, this is worth investigating seriously.

Transfer process: NEFT/IMPS vs SWIFT

One concrete operational advantage of Dhan's GIFT City route:

Standard LRS platforms (Vested, Rovia, INDmoney LRS):

• SWIFT wire from your Indian bank to a US correspondent bank
• Form A2 (Purpose Code P0001 for investment)
• Form 15CA/15CB if applicable
• 1–3 business days settlement
• Some banks charge ₹500–1,500 as a SWIFT wire fee

Dhan GIFT City route:

• Domestic NEFT or IMPS from your Indian bank to Raise IFSC Pvt. Ltd.'s INR account (GIFT City, Gujarat)
• No SWIFT, no Form A2, no 15CA/15CB required for the transfer
• Same-day or next-day settlement
• No bank wire fee

For investors who find the LRS documentation process frustrating, or whose banks charge SWIFT wire fees, Dhan's domestic transfer mechanism is a meaningful simplification.

Dhan for RSU holders: the key limitation

If you receive RSUs at a US-listed company (Google, Microsoft, Amazon, Salesforce, etc.), your shares vest at a US employer broker — typically Fidelity NetBenefits, E*TRADE Stock Plan, Morgan Stanley Shareworks, or Schwab Equity Awards.

Dhan does not support inbound ACATS transfers from US employer brokers. This means:

1. You cannot transfer your vested RSU shares to Dhan without selling them first
2. Selling triggers capital gains tax (STCG if <24 months from vest) even if you don't want to realise the gain
3. You lose the lot-level cost basis history from your employer broker
4. You repatriate USD proceeds to India, then re-invest in Dhan — two taxable events

For RSU consolidation, the platforms that support inbound ACATS are: Rovia, Vested, and INDmoney.

If you hold RSUs and want to consolidate onto a single India-friendly platform, Dhan is not the right tool. Dhan is well-suited for investors who are funding US stocks fresh from INR, not for transferring existing employer-held equity.

Dhan vs alternatives: who should use which

Related reading

• Dhan US stocks via GIFT City: what it means and how it differs
• GIFT City vs LRS: the complete guide for Indian investors
• Rovia vs Dhan for US stocks
• Dhan vs Tickertape for US stocks
• INDmoney charges explained
• Vested charges explained
• Best US stock platform for Indian investors 2026

Vested.blog is the editorial publication of Rovia.