Investing in the Australian Stock Market (ASX) from India is possible through international brokers and platforms. Here’s a step-by-step guide:
How to Invest in Australian Stock Market from India
Table of Contents
1. Understand the Requirements
Requirement
Details
Demat and Trading Account
Open a foreign trading account with an international broker offering ASX access.
Tax Identification Number (PAN)
Required to complete Know Your Customer (KYC) verification in India.
Bank Account
Maintain an Indian bank account for transferring funds internationally.
Foreign Exchange Rules
Follow RBI’s Liberalized Remittance Scheme (LRS) for remittance limits.
Tax Compliance
Be aware of Australian and Indian tax obligations, including Double Taxation Agreements (DTAA).
2. Choose an International Broker
Broker Name
Features
Fees
Interactive Brokers
Access to ASX stocks, low fees, advanced trading tools.
Low trading fees per trade.
Saxo Bank
Comprehensive global access, research tools, and platform support.
Monthly account maintenance fees.
Stake
Commission-free trading, user-friendly app, and ASX support.
No brokerage fees; FX fees apply.
eToro
Easy-to-use platform for stocks, ETFs, and social trading.
Spreads and withdrawal fees.
CMC Markets
Offers ASX trading with multiple research tools.
Competitive trading fees.
3. Open a Trading Account
Step
Details
1. Select a Broker
Choose an international broker with access to the Australian Stock Exchange.
2. Register Online
Fill out the online application form with personal and financial details.
3. Submit KYC Documents
Upload ID proof, address proof, and PAN card for verification.
4. Fund Your Account
Transfer funds via wire transfer under LRS from your Indian bank account.
5. Activate Account
Once approved, start trading ASX stocks.
4. Research and Select Stocks
Stock Type
Examples
Risk Level
Blue-Chip Stocks
BHP Group, Commonwealth Bank, CSL Limited.
Low to Medium
Growth Stocks
Afterpay, Xero, WiseTech Global.
Medium to High
Dividend Stocks
Telstra, Wesfarmers, Woodside Energy.
Low to Medium
ETFs
Vanguard Australian Shares Index ETF (VAS).
Low
REITs (Real Estate)
Goodman Group, Stockland Corporation.
Medium
5. Manage Currency Exchange and Transfers
Aspect
Details
Currency Exchange
Indian Rupee (INR) must be converted to Australian Dollars (AUD) for trading.
Foreign Exchange Fees
Banks and brokers charge FX fees for currency conversion.
Liberalized Remittance Scheme (LRS)
Annual remittance limit of USD 250,000 for investing abroad.
6. Understand Taxation Rules
Country
Tax Rules
Australia
– Capital Gains Tax (CGT): Payable on profits from stock sales.
– Dividend Tax: Taxed but may be reduced using franking credits for foreign investors.
India
– Foreign Income Tax: Declare overseas investments in Indian Income Tax Returns (ITR).
– Double Tax Avoidance Agreement (DTAA): Prevents double taxation between India and Australia.
7. Monitor Your Portfolio
Aspect
Details
Performance Tracking
Use broker tools or third-party apps to track stock performance.
Market Trends
Follow economic updates, interest rates, and ASX market news.
Rebalance Investments
Adjust portfolio as per risk appetite and market conditions.
8. How to Invest in Australian Stock Market from IndiaFAQs
Can Indians directly invest in Australian stocks? Yes, through international brokers offering ASX access.
What is the minimum amount required to invest? It depends on the broker, but most allow trading with as little as AUD 500–1,000.
Are dividends from Australian stocks taxed? Yes, but franking credits may reduce tax obligations.
Do I need RBI approval to invest in Australia? No, investments are allowed under the LRS up to USD 250,000 annually without special approvals.
Can I repatriate my profits to India? Yes, profits can be transferred back to India after paying applicable taxes.
By following these steps, Indian investors can effectively access and trade in the Australian stock market to diversify their portfolios and achieve global exposure.
