What is an NRI trading account?
An NRI can trade in stock derivatives like bonds, shares, and other financial instruments through an investment account known as an NRI trading account. Additionally, one may invest in mutual funds listed on the Bombay Stock Exchange and the National Stock Exchange (NSE) (BSE). These accounts serve as NRIs` primary means of conducting investing business in India. An NRI cannot invest in the Indian stock market without a trading account.
If one wishes to invest in the Indian stock market, they must also create an NRI Demat account, which is similar to a trading account. An NRI might also invest in mutual funds, ETFs, and convertible debentures via a Demat account. J K securities provide NRI trading services in Anand.
NRI trading account types
NRI Trading Accounts are classified under two categories:
NRI 3-in-1 Accounts
3 accounts are combined in an NRI 3-in-1 account, namely the NRI Bank Account, NRI Trading Account, and NRI Demat Account. When brokers set up two bank accounts, NRI 3-in-1 accounts are often called NRI 4-in-1 accounts. Due to the combination of the three NRI accounts, transactions are smooth. Banks in India that provide 3-in-1 NRI accounts include ICICI Bank, HDFC Bank, SBI, Axis Bank, Yes Bank, etc.
NRI 2-in-1 Accounts
An NRI 2-in-1 account combines an NRI Demat Account with an NRI Trading Account. NRIs must create a Non-Resident External Account (NRE), a Non-Resident Ordinary Account, and a Portfolio Investment Scheme (PIS) to apply for a 2-in-1 account (NRO). Brokers that do not hold a banking license open NRI 2-in-1 accounts.
Before opening a Demat and trading account, the NRIs should have the following in hand –
Copy of Passport
PAN card of the applicant
NRI bank account (NRE or NRO) of the applicant.
PIS letter of approval issued directly by the Reserve Bank of India to NRI applicants.l Copy of Valid Visa.
Address Proof (Domestic and Foreign)
Each document must have its own attestation and the approval of one of the Indian Embassy or Consulate General, a Notary Public, a court, a magistrate, a judge, or a local banker in the nation where you reside now.
How to open an NRI trading account?
Step 1: Gather all required identification documents. Your PAN card, information on your NRI bank account, and a PIS approval letter are the three items you need most.
Step 2: Make sure that the local Indian Embassy or any appropriate body that has been certified by SEBI`s guidelines verifies all of your paperwork.
Step 3: Visit the NRI trading account section of the IIFL website. Complete all needed fields and submit all required paperwork.
Step 4: After receiving the required paperwork, IIFL will contact you to open your NRI trading cum Demat account as soon as possible.
Some of the well-known stock trading companies are listed below:
JK Securities Private Limited
India Infoline (IIFL)
Among these, JK Securities Private Limited is one of the most trusted service providers for NRI trading accounts. and handling since 1995 and taking care of NRI portfolio and wealth build up in the right direction.
What are the trading account charges for NRI?
An NRI Trading and Demat Account has various fees and taxes. Let us see all the charges in detail.
NRI Trading Account Opening Fee
It is a one-time charge made when the account is opened. As an account opening cost, brokers charge different amounts. For example, Zerodha charges Rs. 500, ICICI charges Rs. 4000, and JK Securities charges Rs. 1480.
NRI Brokerages Fees
Stockbrokers charge brokerage fees for any transaction that goes through them. This cost varies from broker to broker; for example, Zerodha charges Rs 200 per order while ICICI levies NRI brokerage fees ranging from 0.50 percent to 1.25 percent of the deal amount.
The taxes/fees that are added on top of the brokerage fees are as follows:
Securities Transaction Tax (STT)
Exchange Transaction Charge (Turnover Fee)
Goods & Service Tax (GST)
The Indian stock market provides many prospects for wealth multiplication, and switching to a foreign country`s stock market can be time-consuming. Knowing what an NRI trading account now allows you to continue investing wherever in the world.