Zerodha US stocks Strategy LRS

Why Zerodha does not offer US stocks

From WebNotes, a public knowledge base. Last updated 20 May 2026. Reading time ~4 min.

Zerodha has consistently chosen not to offer direct US stock trading. The Kamath brothers have publicly explained the reasoning, which combines regulatory complexity, operational economics, and strategic focus. This article documents the main reasons.

Regulatory complexity

LRS framework

The Liberalised Remittance Scheme (LRS) limits Indian residents to USD 2.5 lakh per FY for overseas investments. For Zerodha to facilitate US trading:

Must implement LRS-tracking for each client.
Must remit funds via authorised dealers (specific bank coordination).
Must report annually to RBI.
Must handle FEMA compliance.

This adds operational overhead substantially.

US-side compliance

Offering US stocks requires either:

Direct US broker registration (very high regulatory burden, FINRA / SEC oversight).
Partner with a US broker (commission split; less control).
White-label arrangement.

Each has trade-offs; none is simple for an Indian broker.

Tax complexity

US dividend and gain reporting requires:

Form 67 for foreign tax credit.
Treaty (DTAA) understanding.
Withholding tax handling.

For Zerodha to provide automated tax reporting (as it does for Indian trades), the system would need substantial expansion.

Operational economics

Currency conversion friction

Each US trade requires:

INR -> USD conversion.
USD held overseas.
USD -> INR on exit.

Multiple conversion steps; spreads and operational overhead.

Settlement cycle differences

US T+1 (since 2024) is similar to India, but operational links between Indian and US clearing infrastructure are limited.

Custody concerns

US securities held by Indian retail via a broker would need:

US custodian (specific entity).
Indian custody-link arrangements.
Operational reconciliation.

Existing players (Vested, Stockal, INDmoney) have built specific arrangements; Zerodha would need similar.

Strategic focus

Indian product depth

Zerodha has prioritised:

Indian equity broker dominance.
Indian MF distribution via Coin.
Indian-specific Rainmatter-funded ecosystem.

Adding US stocks would dilute focus from these core strengths.

Competition exists

For Indian investors wanting US exposure:

Vested Finance (broker partnership).
Stockal (similar).
INDmoney (US stock integration + other services).
Interactive Brokers (direct international).

Zerodha doesn’t need to enter this market; competition already serves it.

The Indian opportunity is sufficient

The Indian retail brokerage market is large and growing. Zerodha’s 30%+ market share in Indian equity trading provides:

Sufficient revenue base.
Sufficient operational scale.
Sufficient growth opportunity.

US exposure is not a strategic gap that needs filling.

Kamath brothers’ public statements

Nithin and Nikhil Kamath have addressed this question in interviews and Z-Connect posts:

“We could offer it, but the operational complexity outweighs the value for our clients.”
“Other platforms (Vested, INDmoney) do this well; we don’t see a reason to compete.”
“Our focus is Indian markets, where we have deep expertise.”
“International ETFs on NSE provide adequate exposure for most retail clients.”

These statements span 2023-26 and have been consistent.

Indirect US exposure on Zerodha

What Zerodha clients can still access:

Indian-listed international ETFs (Nasdaq 100, MAFANG, S&P 500 trackers).
Indian feeder mutual funds via Coin (US-focused funds).
GIFT City products (limited).

For most retail investors, these meet the US-exposure need without LRS overhead.

Future possibility

The Kamath brothers have said they “haven’t ruled it out” but have no plans. If:

GIFT City framework matures with retail-friendly US access.
Indian-listed international ETF universe expands.
LRS or related regulations simplify substantially.

Then a future re-evaluation is possible. No commitments.

What this means for retail investors

If you want US exposure as a Zerodha client:

Try Indian-listed ETFs first (simpler, no LRS).
Consider Indian feeder MFs if you want SIP / lumpsum on US theme.
Use Vested / INDmoney / Stockal for direct US stock picking if needed.
Maintain separate broker accounts if you want both Indian trading (Zerodha) and US trading.

This dual-broker approach is common among Indian retail with substantial US exposure.

External references

References

Z-Connect, Kamath brothers commentary on US stocks, zerodha.com/z-connect.
RBI, Liberalised Remittance Scheme, rbi.org.in.
SEBI, Overseas investment regulations, sebi.gov.in.
Zerodha, Product line strategy, zerodha.com.

Reviewed and published by

WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 20 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.