Indian investors can now do global hunting for investing in equity shares by choosing among the blue chips such as Microsoft, IBM, Wal-Mart, Coca Cola and Google.
India’s number one online trading site, ICICIDirect.com has launched its overseas trading facility for Indian investors to invest upto $2 lakhs in a financial year in Equities, Exchange Traded Funds, Stock Options, Index Options.
ICICI has launched the service in partnership with Penson Financial Services which is USA’s fourth largest broker having $6.8 billion in assets. The portal will provide option to invest in US stock exchanges such as NYSE, NASDAQ and American Stock Exchange.
For registering for this service, a one time fees of Rs. 99 is to be paid and money is remitted to USA through ICICI Bank. The facility is only available to resident individuals and not available to corporate, partnership firms, HUF, Trusts, and NRIs.
ADAG’s Reliance Money was the first company to launch overseas trading facility in partnership with CMC Markets but that was only for derivatives segment.
Thus, ICICI Web Trade has become the first to offer ‘delivery-based’ overseas trading service. Though in derivative segment, trading in futures is not allowed, RBI prohibits investing overseas for use in margin trading.
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Reader Comments
the ICICIDirect.com has to be one of the most expensive ways to buy american securities at 75bps. Which means a USD 20,000 transaction will cost USD 150 with ICICI or USD 9.99 with Etrade.
And i find the following hard to believe, they are the 4 largest.
ICICI has launched the service in partnership with Penson Financial Services which is USA’s fourth largest broker having $6.8 billion in assets.
i stand corrected, they are 4th. But i guess it depends on what metric. For them it’s the broker dealer as opposed to retail clients or retail money. in any event 75bps is criminal for brokerage.