Zerodha US stocks: charges, fees, how it works (2026)

Zerodha launched US stock investing via Kite in September 2026, making it possible for its tens of millions of existing users to buy US stocks without opening a new account, downloading a new app, or completing separate KYC. It uses the GIFT City IFSC route and clears through ViewTrade International IFSC.

This guide covers every cost, how the platform works, what you can buy, how taxes apply, and how it compares to alternatives.

How Zerodha US stocks works

Zerodha's US stock feature is built into Kite — the same platform you use for Indian stocks. Access is available for Indian resident individuals who already have a Zerodha account. No separate onboarding is required beyond enabling the US stocks feature from your account settings.

The regulatory structure: Zerodha holds an IFSCA Global Access Provider (GAP) licence, the framework IFSCA introduced to allow Indian retail brokers to offer US stocks through GIFT City. Your funds are held with ViewTrade International IFSC, an IFSCA-regulated entity in GIFT City.

Transfer mechanism: Domestic NEFT/IMPS from your Indian bank account to a GIFT City entity. No SWIFT, no A2 form, no Form 15CA/15CB documentation. Same-day settlement for inbound transfers during business hours.

Full fee breakdown

Brokerage cost at different trade sizes

Above $10,000 per trade, the brokerage cap kicks in and the effective rate falls further. At $20,000, you pay $11.80 — equivalent to 0.059%.

FX markup: what you actually pay to convert INR to USD

When you transfer INR from your Indian bank account via NEFT/IMPS, Zerodha converts it to USD at a rate approximately 0.5% above the RBI reference rate. On ₹10 lakh (≈$11,765 at ₹85/$), 0.5% markup costs approximately ₹5,000.

This is lower than most Indian LRS platforms (Vested charges approximately 0.9–1.2% above interbank; INDmoney charges approximately 0.6–0.9%) and competitive with other GIFT City entrants.

Comparison at ₹10 lakh transfer

What you can buy

Zerodha's US stock universe covers approximately 2,000 stocks and 1,000 ETFs at launch. This includes:

• All major S&P 500 large-caps (Apple, Microsoft, NVIDIA, Alphabet, Amazon, Meta, Tesla)
• Major US ETFs: SPY, VOO, QQQ, VTI, IVV, SCHB, GLD, SLV
• Large-cap growth and value names
• Major sector ETFs

What is not available at current coverage:

• US small-cap and micro-cap stocks below a certain market cap threshold
• Niche thematic ETFs
• OTC / pink-sheet stocks
• US options and futures (not permitted for Indian residents under LRS regardless of platform)

If you need a specific stock or ETF, search for it in Kite's US segment before assuming it is available.

Fractional shares: Supported from $1. You can buy a partial share of a $500 stock with as little as $1.

TCS and LRS

Zerodha's US stocks use the GIFT City IFSC route, which is LRS-compliant. The TCS position is identical to standard LRS:

• 0% TCS on investment remittances up to ₹10 lakh per financial year
• 20% TCS on the amount above ₹10 lakh per year (creditable when you file your ITR)

The ₹10L threshold applies to the current financial year total across all LRS and GIFT City investment remittances from all platforms combined — not per platform.

$250,000 cap: Your annual LRS limit applies equally to GIFT City route remittances. Zerodha US stock investments count toward your $250,000 ceiling along with any other foreign investment.

Tax treatment: capital gains, Schedule FA, Section 10(4D)

Capital gains (if GIFT City exemption does not apply)

If Section 10(4D) exemption does not apply to your situation:

• Short-term (held ≤24 months): taxed at your income slab rate
• Long-term (held >24 months): taxed at 12.5% under Section 112

Section 10(4D) potential exemption

Since Zerodha uses GIFT City IFSC structure, gains from your US stock investments may qualify for capital gains exemption under Section 10(4D) of the Income Tax Act. This is a significant potential advantage — but the rules are complex and the regulatory guidance is still evolving. Verify with a CA whether your specific situation qualifies before assuming zero tax on gains.

Schedule FA

Investments through Zerodha's GIFT City route are held at an Indian IFSC entity, not a foreign broker. The Schedule FA treatment is uncertain — GIFT City-routed assets may not qualify as "foreign assets" requiring disclosure. Current IFSCA and income tax guidance on this is evolving. Consult a CA before your ITR deadline.

Zerodha vs alternatives: which to choose

Choose Zerodha US stocks if:

• You are already a Zerodha user — same app, no extra KYC, lowest friction
• You want the lowest brokerage of any Indian-facing platform (0.1%, max $10 + GST)
• Your stock picks are within the top 2,000 US stocks/1,000 ETFs
• You're investing ₹50,000+ per trade where 0.1% is meaningfully cheaper than 0.25%

Choose INDmoney over Zerodha if:

• You want a unified Indian + US portfolio view with OTC stock access
• You want ITR-format lot-level tax reports
• You invest in stocks outside Zerodha's current universe

Choose Rovia over Zerodha if:

• You hold RSUs at Fidelity, E*TRADE, Morgan Stanley, or Schwab — Rovia is the only platform with inbound ACATS
• You need specific-lot identification and loss-harvesting schedules for your ITR

Choose IBKR over Zerodha if:

• You deploy ₹25L+ per year — IBKR's near-interbank FX saves ₹10,000–₹30,000 per ₹25L vs Zerodha's 0.5% markup

Related reading

• Zerodha vs INDmoney for US stocks
• Zerodha vs Vested for US stocks
• Zerodha vs Groww for US stocks
• Best US stock platform for Indians 2026
• GIFT City route explained: TCS, Schedule FA, Section 10(4D)

Vested.blog is the editorial publication of Rovia.