After registering with Stockal, which is free, there's a brokerage account that also gets created.
There may be several queries on your mind related to the opening of Stockal account, adding of funds and how exactly the Stockal account will work. Here are a few basic pointers.
How do I register?
The registration process is simple and quick. You just have to provide basic details such as name, email, and mobile number to get going. With this, your Stockal account is opened and the brokerage account gets automatically created. The most important step is to fill the LRS form and upload on the website itself.
How to add or withdraw funds?
Once the brokerage account gets approved, you can add INR funds from your Indian bank account to the brokerage account. Based on the prevailing exchange rate, your Indian rupees get converted to dollars and are held in your brokerage account to be invested in the US stocks. After you sell stocks, the US dollars get converted and transferred to your domestic bank account. It can’t be simpler than this, right?
How much time will it take before I can start investing?
The moment you have dollar-denominated funds in your brokerage account, you can start investing. And, this will happen once your brokerage account gets approval for which you will receive a notification. For the funds transferred in your account, it usually takes up to 3 days and thereafter you can start investing immediately.
How does Stockal account operate?
After registering with Stockal, which is free, there’s a brokerage account that also gets created. The brokerage account is held with DriveWealth, a licensed brokerage firm based in the US and regulated by FINRA, a government-authorised not-for-profit organization that oversees US Broker-dealers. Once you submit the LRS form during the registration process and after approval from the brokerage account, you can transfer funds to the brokerage funds. You are then all set to invest in the US stocks, bonds, ETFs or other asset classes. On selling, you get the funds into your Indian bank account.
What are the documents required to open an account?
The account opening process is simple and requires one to furnish some of the basic documents for address and ID proof.
For ID proof, you may submit any of the following documents:
# Government-issued Photo ID (voter ID, PAN card)
# Valid driver’s licence
# Voter’s registration card and photo
For proof of address, you may submit any of the following documents:
# Utility bill
# Mobile phone bill, bank or credit card statement
Further, any one of the below documents would suffice:
# Valid driver licence with address
# Government-issued Photo ID with address (Aadhaar card, Passport)
Which are the countries from where Stockal can be used? As of now, investors in India and UAE have the privilege to invest through Stockal. Investors in Canada, United States, Qatar and Oman will be able to invest shortly while some other countries on the list are Indonesia, Malaysia and Brazil.
Which all global stock markets are available on Stockal? Currently, one can invest only in the US stock market through the Stockal account. In the near future, multiple other markets such as Germany, Japan, India, UK and Hong Kong will be available for investments. In the long run, investing through Stockal will become ubiquitous, thus cutting across global borders to trade in stocks. The idea is to make you invest without thinking whether a specific stock is listed domestically or internationally. Already, many global giants such as Alibaba and the US-listed ADRs are available on the Stockal platform.
Will my investing account be held in India?
It’s you who own the stocks purchased through your account with Stockal and DriveWealth. While your bank account is in India from where you invest in the US stocks, your investing or the brokerage account is opened and maintained in the US by the US brokerage and clearing services partner DriveWealth – a FINRA-regulated brokerage firm. In turn, Stockal’s US brokerage partner, DriveWealth, works with Electronic Transaction Clearing Inc. (ETC), New York, for the custody of brokerage accounts.