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NRI Trading Account

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An NRI Trading Account allows Non-Resident Indians to invest/trade online in Stocks, Stock Derivatives, IPOs, Mutual Funds, and Bonds at Indian stock exchanges i.e. BSE and NSE.

An NRI Trading Account allows Non-Resident Indians (NRIs) to invest/trade online in Stocks, Stock Derivatives, IPOs, Mutual Funds, and Bonds at Indian stock exchanges i.e. BSE and NSE. This account is a must for NRIs looking to invest in the stock market listed companies in India.

In addition to the NRI Trading Account, an NRI also need an NRI Bank Account and NRI Demat Account to invest in Indian Stock Market.

As per the government regulations, NRIs are only permitted to invest/trade in equity and equity derivatives. They are not permitted to trade in Currency and Commodity derivatives. NRIs are also not permitted to do intra-day trading in India.

An NRI Trading Account can be opened with a stock broker like Zerodha, ICICI Direct, and HDFC Securities for online trading. Each trading account has a unique trading ID, which is used for conducting transactions.

The trading account facilitates the online stock market investments. It is in the middle of all the stock market transactions performed between a Bank Account, a Demat Account, Stock Exchange and the NRI investor, as shown in the below diagram.

NRI Order Execution Steps for Equity Trades

NRI Trading Account
  1. Customers place a buy or sell order using the online trading account through the trading software provided by the stock broker.
  2. Stockbroker sends the order to the stock exchange i.e. BSE or NSE.
  3. Once the order is executed, the exchange sends the confirmation to the broker. The broker now notifies the investor.
  4. The broker sends the contract note (an invoice with trade details) to the linked bank where the customer has a bank account.
  5. In case of a buy order, the bank transfers the money to the broker.
  6. In case of a sell order, the broker transfers the money to the bank.
  7. In case of a buy order, shares are deposited to the NRI Demat Account.
  8. In case of a sell order, shares are debited from the demat account and transferred to the buyer.

Note: In Equity Derivatives trading, the broker sends the contract note to the Custodial, who settles the trade on behalf of the customer.

NRI Trading Accounts Types

NRI trading account are classified into 2 types:

  1. NRI 3-in-1 Accounts

    An NRI 3-in-1 account is an integrated account combining of 3 accounts; an NRI Trading Account, an NRI Demat Account, and an NRI Bank Account. Some brokers also call it NRI 4-in-1 account as they open 2 bank accounts; PIS and Non-PIS bank account.

    Read NRI 3-in-1 account and PIS Account to know about it in detail.

    The 3-in-1 account offers the most convenient way to invest in the Indian Stock Market. All the transactions between the 3 accounts are seamless and taken care by the bank offering the 3 in 1 account.

    The 3-in-1 account is offered by the banks in India. This includes ICICI, HDFC, SBI, Axis Bank, Yes Bank, etc.

  2. NRI 2-in-1 Accounts

    An NRI 2-in-1 account combines an NRI Trading Account and an NRI Demat Account. These accounts are mostly offered by brokers who don't have a banking license i.e. Sharekhan, Zerodha. NRIs need to open PIS, NRE & NRO savings bank accounts on their own before opening a 2-in-1 account.

Note; an NRI Trading Account is different from an NRI Demat Account. The trading account is meant for making trades in stock exchanges through a stock broker whereas a demat account is meant to hold securities bought in those trades in electronic form. In India, opening both the accounts is a must for trading in stock exchanges.

Answered on


  1. 1. What is an NRI Trading Account?

    An NRI Trading account is an account opened with a stock broker for trading or investment in Indian Stock Market.

    An individual investor has to go through the stock broker for any transaction in stock exchanges (BSE and NSE). Stock brokers are registered member of the stock exchanges and work as an agent.

    The trading account gives access to online investment in stock exchanges in India. An NRI can invest in various securities like stocks, equity Futures and Options, ETFs, and IPOs through the trading account.

    An NRI trading account is linked with:

    1. An NRI Bank Account (NRE or NRO, PIS or Non-PIS)
    2. An NRI Demat Account (NRE or NRO)

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  2. 2. What are NRI Trading account charges?

    An NRI Trading account has various fees and taxes associated with it. Some key NRI trading account charges are as follows:

    • NRI Trading Account Opening Fee It is a one-time fee paid at the time of opening the account. This fee varies from broker to broker like Zerodha charges Rs 500 whereas ICICI charges Rs 4000 as account opening fee.
    • NRI Brokerages Fees Stockbrokers charge a brokerage fee for every transaction through them. This charge varies from broker to broker i.e. Zerodha charges Rs 200 per order whereas ICICI charges 0.50 % - 1.25% of the trade value as NRI brokerage fees.
    • Trading Tax Following are the tax/fee charged in addition to the brokerage charges:
      • Securities Transaction Tax (STT)
      • Exchange Transaction Charge (Turnover Fee)
      • Goods & Service Tax (GST)
      • SEBI Fees
      • Stamp Duty

    Also, some broker like Finvasia charges fees to use their online trading software.

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  3. 3. What are the documents required to open an NRI trading account?

    To open an NRI Trading account, you would need the following documents:

    • Copy of Passport
    • Copy of Valid Visa
    • Address Proof (Domestic and Foreign)
    • Colour Photographs
    • Copy of PAN Card

    All the documents need to be self-attested and also be attested by any of the following- Indian Embassy/Consulate General / Notary Public / Any Court / Magistrate / Judge / Local Banker of the country where you are currently residing.

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