India to US Stocks: The Cheapest Broker for Indian Investors (2026)

The answer is Interactive Brokers (IBKR). Not because of trade commission (all three main options are now commission-free on US stocks) but because of FX cost:

• IBKR: 0.08% FX spread (~₹800 on ₹10 lakh). The conversion from INR to USD happens inside IBKR's own platform at interbank rates. All LRS-compliant.
• Zerodha (via Vested): ~0.5% FX (~₹5,000 on ₹10 lakh). LRS transfer goes through a bank partner at standard bank rates.
• Groww: ~0.5-0.6% FX (~₹5,000-6,000 on ₹10 lakh). Same bank LRS route.

That's ₹4,200-5,200 more in FX costs per ₹10 lakh invested at Zerodha or Groww vs IBKR — before accounting for compounding. Over 10 years of ₹10 lakh/year investments, at 10% annual returns, the FX cost difference compounds to ₹80,000-1,20,000 in foregone wealth.

The Liberalised Remittance Scheme (LRS) allows Indian residents to remit up to USD 250,000 per financial year for overseas investment, education, travel, and maintenance. Key rules:

• No per-transaction cap — you can send the full $250k in one transfer or spread it across the year.
• PAN card is mandatory for all LRS remittances.
• The remitting bank reports LRS transactions to RBI.
• Investment income and capital gains on LRS investments must be declared in India in your ITR (Schedule FA / Schedule FSI).
• TCS of 20% applies on LRS amounts above ₹7 lakh per year — collected at source by your bank. Fully refundable in your next ITR as advance tax credit.

IBKR India (Interactive Brokers India Pvt. Ltd.) is SEBI-registered and serves Indian residents directly. You can also open a standard IBKR international account for the US market specifically. The process:

1. Go to interactivebrokers.com and start the account application.
2. Select 'Individual' account type and 'India' as country of residence.
3. Complete identity verification: PAN card + Aadhaar + bank statement.
4. Fund the account via LRS: instruct your bank to make an LRS transfer to IBKR's designated INR→USD account.
5. Inside IBKR, your LRS funds arrive as USD. You can then buy US stocks, ETFs, or other assets directly.
6. The INR→USD conversion happens at IBKR's FX rate (0.08% spread), not the bank's rate (0.5-1%).

IBKR onboarding takes 1-2 weeks for international accounts vs same-day for Zerodha/Groww. That's the tradeoff — speed vs cost.

Let's make this concrete on a ₹10 lakh ($12,000 at ₹84/USD) investment in US stocks:

• FX cost at Zerodha/Groww (0.5%): ₹5,000. Via bank LRS at 0.5% margin above mid-market.
• FX cost at IBKR (0.08%): ₹800. Via IBKR's internal FX desk at interbank rates.
• Savings at IBKR: ₹4,200 per ₹10 lakh invested.
• Trading commission: Both 0 (Zerodha/Vested charges zero on US stocks; IBKR Lite charges zero on US stocks).
• Annual custody fee: Both 0.
• TCS: Same on both — 20% above ₹7 lakh, via your bank, refundable. Not platform-specific.

Zerodha's advantage is familiarity and a simpler platform for Indian retail investors. Groww's advantage is the best consumer UX of any Indian app. IBKR's advantage is FX cost — which is the only factor that materially differs between the three.

• Capital gains: US stocks held <24 months taxed at your Indian income tax slab. Held ≥24 months: 12.5% LTCG with no indexation (from FY2024-25 budget).
• Dividends: Taxed as income at your Indian slab rate. US may withhold 25% at source (India-US DTAA reduces this to 25% for most investors — limited relief available under treaty).
• Schedule FA filing: Foreign assets must be disclosed in Schedule FA of your ITR annually, even if no income was earned.
• FEMA: No FEMA violation if within $250k LRS limit and invested in permitted instruments (listed stocks, ETFs — not private equity or certain structured products).

None of these tax obligations are platform-specific — they apply regardless of whether you use IBKR, Zerodha, or Groww. Consult a CA familiar with LRS and foreign asset reporting for your specific situation.