Dhan Launches US Stocks, ETFs Investing via GIFT City Route

Why It Matters

The move opens a regulated, low‑cost channel for Indian retail investors to diversify into US equities, accelerating cross‑border capital flows and intensifying competition among fintechs offering global market access.

Key Takeaways

• Dhan offers US stocks/ETFs via GIFT City IFSC route
• Brokerage fixed at 0.25% with no account or custody fees
• SIPs, super orders, and portfolio tools now available for Indian investors
• Partnerships with ViewTrade and GlomoPay enable seamless trading and payments
• Derivatives trading not supported at launch

Pulse Analysis

India’s appetite for US equities has surged as retail investors seek exposure to technology, AI and consumer brands that dominate global markets. The International Financial Services Centres Authority (IFSCA) created the GIFT City IFSC framework to provide a compliant conduit for such cross‑border investments, offering regulatory clarity and tax efficiency under the Double Taxation Avoidance Agreement. By leveraging this infrastructure, Dhan sidesteps the traditional de‑pository and custodial complexities that have historically deterred Indian participation in foreign markets.

Dhan’s offering differentiates itself through a transparent fee model—0.25% brokerage with zero account‑maintenance or custody charges—making it one of the most cost‑effective solutions in the space. Integrated partnerships with ViewTrade and GlomoPay streamline order execution and fund transfers, while features like systematic investment plans (SIPs), super orders, and real‑time portfolio tracking enhance the user experience. The platform also ensures compliance with RBI and FEMA guidelines, routing money through partnered Indian banks and applying appropriate withholding tax on dividends per the DTAA, with capital gains taxed under Indian law.

The launch intensifies competition among fintechs such as SAMCO, which recently secured its own IFSCA broker‑dealer licence. As more players enter the GIFT City ecosystem, Indian investors can expect broader product suites, including eventual derivatives access. This competitive pressure is likely to drive further fee compression and innovation, reinforcing India’s position as a growing hub for global investment services and expanding the capital‑raising options for US‑listed companies seeking Indian capital.