Zerodha’s leadership confirm that the company is in the final stages of launching direct US stock trading for its 1.6 crore users.
The feature, which has been a “long-pending” request, is expected to go live in the first half of 2026, following a strategic pivot to use the GIFT City (NSE-IX) route for international investments.
Strategic Shift: The GIFT City Route
Unlike traditional methods that require opening a separate account with a US-based broker (like Interactive Brokers or DriveWealth), Zerodha is leveraging the NSE-IX (International Exchange) in GIFT City, Gujarat.
- Regulatory Clarity: CEO Nithin Kamath and CTO Kailash Nadh have noted that the GIFT City framework provides the “requisite regulatory clarity” that was missing in previous years.
- Unified Interface: The goal is to integrate US trading seamlessly into the Kite app, allowing users to buy and sell global stocks using their existing demat infrastructure.
- Depository Receipts (DRs): Initially, users will trade in Unsponsored Depository Receipts (UDRs). These are receipts of US stocks (like NVIDIA, Apple, and Google) that are held by a custodian in the US and traded on the GIFT City exchange in India.
Key Features & Benefits
| Feature | Implementation |
| Fractional Investing | Users can buy as little as 1/25th or 1/100th of a share, making high-priced stocks like Amazon or Booking.com accessible. |
| LRS Integration | Investments will fall under the RBI’s Liberalised Remittance Scheme (LRS), which allows Indians to send up to $250,000 annually abroad. |
| Tax Simplification | Capital gains on US stocks held for more than 24 months will be taxed at 12.5% (effective April 1, 2025). Dividends remain subject to a 25% US withholding tax, which can be offset in India via the DTAA. |
| Settlement | Likely to follow a T+3 settlement cycle initially, compared to the T+1 or T+0 cycles becoming standard in Indian domestic markets. |
The “Why Now?” Factor
The rush to launch international investing comes as Zerodha faces a 40% year-on-year drop in domestic broking revenue in Q1 FY26.
- Revenue Diversification: Regulatory tightenings on F&O (Futures and Options) trading and a hike in Securities Transaction Tax (STT) have forced Zerodha to look for “non-core” revenue streams.
- Competitive Pressure: Rivals like INDmoney, Groww, and Stockal already offer US investing. By integrating it into the Kite ecosystem, Zerodha aims to prevent “user churn” to these other platforms.
Current Status: Beta Testing
As of March 2026, the feature is reportedly in internal beta testing. The backend is being refined to handle real-time currency conversion and the “Kite-like” simple UI that Zerodha is known for.
“A lot of people tagged me on social media… we are working on it and should have something in the next quarter. It is a product launch.” — Nithin Kamath
