What is the 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. |
| Tax Deduction at Source (TDS) | TDS is deducted by the bank, which charges a fee. | TDS is deducted by Navia at no additional cost. |
| Eligible Segments | Equity Cash | Equity Cash and Derivatives |
| Funds Availability | Funds must be available in advance before placing orders. | a) Can keep the account funded or b) Use stock collateral to buy stocks and pay later. |
| Leverage | No leverage is provided. | Leverage is provided similar to resident accounts. |
| Margin Trading Funding (MTF) | No funding is available. | Funding is available; MTF can be enabled online instantly. |
| Intraday Trading | Strictly not allowed. | Intraday trading and BTST (Buy Today, Sell Tomorrow) are 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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