India’s largest retail stockbroker, Zerodha, is preparing to unlock direct access to US equities for its user base, with CEO Nithin Kamath confirming a rollout in the next quarter. This long-anticipated move leverages the regulatory advantages of the GIFT City International Financial Services Centre (IFSC)—a game changer for Indian retail investors eyeing overseas markets and for Zerodha’s own future as it faces margin pressure at home.
The New Offering: Global Markets, Local Simplicity
Zerodha’s new product will allow Indian users to buy and sell US-listed stocks seamlessly through its revamped app and website, using account structures that route trades via the GIFT City hub. Unlike previous regulatory bottlenecks with RBI’s Liberalised Remittance Scheme, the GIFT City IFSC framework sidesteps much of the friction, bringing clarity and speeding up offshore transactions for Indian retail investors. CTO Kailash Nadh has indicated the new backend will focus on a streamlined, transparent experience—removing traditional hurdles of global investing for Indian users.
The specifics—such as detailed fee structures, custody arrangements, and initial list of US stocks—are yet to be disclosed, but the banking is clear: Zerodha will likely require partnerships with US-based brokerages for execution and custody, following the INDMoney-Alpaca or 5Paisa-Vested models.
Read this: Nithin Kamath Listened to NRIs — Zerodha Now Lets NRIs Invest in India with Ease
Why This Matters: Strategic, Competitive, and Regulatory Context
Zerodha’s timing is deliberate. For the first time in over a decade, it posted a double-digit fall in both revenues and profits in FY25, as new regulations, especially F&O trading curbs, squeezed margins and user activity. With India’s affluent and globally connected middle class eyeing the US market for growth and diversification, expanding offshore is not just a user demand—it’s a strategic hedge against domestic saturation.
Already, competitors have rushed to offer similar products, but the GIFT City route—bypassing some tax and remittance limits typical under the LRS—positions Zerodha as a major player in the next wave of global equity democratization in India. However, practical investor questions remain: how will Zerodha handle remittance costs, 20% TCS on foreign investments above ₹7 lakh, and the nuances of tax compliance for Indian users?
What It Means for Startups, Founders, and the Investor Community
For India-based startup founders and employees with US financial exposure (options, investments, fundraising, IPO aspirations), Zerodha’s move promises familiar, domestic-broker access to the world’s largest markets. Early-stage investors and wealth-tech founders will also watch this closely—it signals that scale incumbents are now in the cross-border game, so next-gen investment apps must differentiate on cost, UX, and value-added services.
For general Indian investors, this development brings easier global access, but the real cost of going global (regulatory limits, FX, TCS, taxation) must be assessed seriously. As wealth migrates across borders, familiarity breeds activity—but only transparency will breed trust.
The Road Ahead: Scaling Global, Managing Change
The details of Zerodha’s offering—on-boarding timelines, withdrawal/remittance logistics, initial U.S. partner, and exact roll-out date—will be announced soon. What’s clear: in India’s rapidly evolving investment landscape, access is globalizing, but prudent advice, fair pricing, and regulatory education will be what truly differentiates the next wave of brokers in the new “borderless” bull run.
