Upstox NRI Trading Account is one of the developments in the Indian stock market space most NRI traders are curious about. Upstox, being one of the most popular discount brokers in the country, garners the interest of many people that want to trade in it.
And these people are not just limited to the ones who reside in India but also outside.
Let’s have a quick look at the Upstox NRI Trading account and its related information points so that you are completely equipped about this broker and its offerings towards NRI traders.
Upstox NRI Trading Account Review
Not just anyone can open an Upstox NRI Trading Account. To get such an account, one person needs to qualify as an NRI with the guidelines set by the Government of India.
It is important to note that Non-Resident Indians include Indian citizens who live outside of India, Persons of Indian Origin, and Overseas Citizens of India.
To be an NRI, you will need to have stayed in India for less than 182 days in the previous financial year. These are some of the eligibility criteria that you need to be aware of and of course, take care of in case you are interested in such an account.
Upstox NRI Trading Account Uses
With an Upstox NRI Trading Account, you can trade in the equities as well as equity traded funds (ETFs) in India. Further, an NRI also has the power to trade in the Futures and Options segments.
Upstox gives the same benefits to an NRI as it does to the resident Indians. As Upstox is a discount broker, NRIs can enjoy low brokerage rates through it.
The brokerage fee is as low as 0.1% if the transaction value. A maximum brokerage fee of ₹200 can be applied (of course, it is expensive than what a normal Indian resident trader has to pay). Therefore, if 0.1% of the transaction turns out to be more than ₹200, you will still have to pay ₹200 only.
Apart from that, there might be a few NRI Share Trading tax charges you will be required to pay on your trades.
For more information, you can check this Upstox Brokerage Calculator to figure out charges and taxes you are supposed to pay on your trades.
This discount broker offers you two types of demat accounts with the first being the PINS Account. PINS here implies Portfolio Investment NRI Scheme. The other type of account is the non PINS account.
1. PINS Account
The PINS account allows an NRI to trade in shares as well as equities in India. It can be linked to two types of bank accounts- NRE account and NRO account.
By opening an NRE PINS Account, you can repatriate the funds in the account to the country of your residence. However, the NRO PINS account will hold your money on a non-repatriable basis.
2. Non PINS Account
With a Non PINS account, you can invest in mutual funds as well as Initial Public Offerings (IPOs). This account can also be linked to NRE account and NRO account.
The rules for NRE Non-PINS account and NRO non PINS account are the same as those for the PINS accounts. However, the added benefit of a Non PINS account is that you can also trade in derivates with it.
However, if you want to trade in derivatives with a Non PINS account, you will have to provide a Custodian Participant (CP) code.
To open an Upstox NRI Trading account, you can follow the below steps:
The first step involves selecting a brokerage firm that is approved by the RBI (Upstox in this case).
You will have to fill an NRI form for Upstox account opening. This can be done online through Upstox’s Online NRI Registration Portal. You can Upstox form the form through their website. You will have to fill it personally.
Once you have filled the form, you should attach a recent passport size photograph with it. Also, submit a proof of address along with the form.
In case of online Aadhar based verifications, all you have to do is upload the scanned copies and then enter the details of your Aadhar card. I suggest this method due to its ease of use.
Once this is done, you will need to sign an agreement with Upstox. This agreement will contain all the responsibilities you have as a trader. This will also state the responsibilities of Upstox’s part. I suggest you read this document carefully.
Once the document processing is done, you will be provided with the DEMAT account number. This is similar to the bank account number we get when we open a bank account.
You now know how easy it is to open an Upstox NRI Trading Account and enter the Indian market. If you still have any queries, feel free to contact us and we will help you out with the same.
By the way, in case you are looking to get started with stock market investments or trading, let us assist you in taking the next steps ahead.
Just fill in a few basic details to get started:
More on Upstox
If you wish to learn more about Upstox, here are a few references for you: