Difference between NRE and NRO Trading Accounts
Understand the key differences between NRE and NRO accounts, including transaction reporting, fund transfer methods, TDS deduction, eligible trading segments, leverage, margin trading funding, and repatriation limits
| Description | NRE | NRO |
| Reporting of Transactions | All equity transactions must be reported to the bank. | Transactions are not reported to the bank. |
| Fund Transfer | PIS account must be funded; fund transfers are handled directly by the bank based on contract notes generated. | Clients can transfer funds online using a payment gateway. |
| Bank Charges | PIS reporting charges are applicable | PIS charges are not applicable |
| Brokerage(View charges) | Higher Brokerage | Lower Brokerage. |
| Tax Deduction at Source (TDS) | TDS is deducted by the bank | TDS is deducted by Navia at no additional cost. |
| Eligible Segments | Equity Cash | Equity Cash and Derivatives |
| Funds Availability | Funds must be available in your Designated PIS Bank A/c | a) Can keep the account funded or b) Use stock collateral to buy stocks and pay later through MTF |
| Leverage | No leverage is provided. | Leverage is provided for trading in Derivatives (F&O) segment |
| Margin Trading Funding (MTF) | No funding is available. | Funding is available through MTF |
| Intraday Trading | Not Allowed | Not Allowed |
| Buy Today Sell Tomorrow (BTST( | Not Allowed | Allowed |
| Repatriation | No limits on repatriating funds. | Funds can be repatriated up to $1 million per year with an auditor’s certificate; Navia provides assistance. |
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