Tapping into the trend: ICICI Securities' customers can now invest In US markets

ICICI Securities (I-Sec) on August 17 said it had joined hands with Interactive Brokers LLC, a US-based online brokerage firm, to offer its customers the opportunity to invest in the US markets digitally, tapping the growing interest of Indian investors in the American equities.

"The alliance will enable ICICI Securities’ more than 48 lakh clients to diversify their investments outside of the Indian market and access multi-asset investment opportunities through Interactive Brokers’ trading platform," I-Sec said.

Domestic investors can now trade in the US markets across stocks, ETFs, and fixed income products.

There is no minimum ticket size and US markets even allow for fractional ownership of shares, so even small retail investors can build a portfolio effectively, the media release from the brokerage said.

Read more: Indian brokerages rush to offer overseas trading facilities for investors

The brokerage said its account holders can digitally open the account through its website and choose from the subscription plans available, depending on their trading preference.

As an introductory offer, the company is providing two months of complimentary subscription to its customers, details for which are available on the website, said the media release.

“For over two decades, ICICIdirect.com has been offering Indian investors the opportunity to invest and build their financial assets in a convenient and knowledgeable way. With ever-increasing globalisation, diversification has become an important objective for many investors to spread risks and tap opportunities across geographies and asset classes," said Vijay Chandok, MD & CEO, ICICI Securities.

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"The complete investment journey, right from account opening, broking, portfolio monitoring and statements will be offered seamlessly and digitally. Based on investor demand, the facility could be extended to other markets as well in the future” said Chandok.

Commenting on the alliance, Ankit Shah, Director of Interactive Brokers’ Indian entity, said: “This alliance will provide ICICI Securities’ clients' access to stocks, ETFs, bonds and mutual funds listed in the US. We believe that many Indians have an interest in investing in companies outside of India and in brands that they use every day.”

Data from Google Trends reveals that the search term “FAANG company” has seen a breakout in India from April — the first full month of the nationwide lockdown — to date.

FAANG is an acronym that refers to the stocks of five prominent American technology companies: Facebook, Amazon, Apple, Netflix, and Alphabet (GOOG) (formerly known as Google).

Media reports have been suggesting Indian equity investors, who are known to always keep a close watch on most blue-chip stocks that form a part of the Sensex and Nifty, are increasingly tracking US stocks as well.

“Investors want to invest in new-age technology companies and while India offers such opportunities, there are more opportunities in the international markets,” said Arun Chaudhry, Head, Online Business & Product Development, Motilal Oswal Financial Services.

“Indian investors are now conscious of the fact that diversification of portfolio is important. The newer investors are regular users of companies like Netflix, Amazon and Google, among others, and so know the potential,” he added.