As algorithmic trading gains traction in India, regulatory oversight has become more stringent to ensure safety and transparency. One critical requirement set by SEBI (Securities and Exchange Board of India) for algo trading is the use of a static IP address. Whether you're a retail trader building automated strategies or a professional using broker APIs, complying with this rule is crucial. This blog explains why SEBI mandates static IPs, explores various methods to obtain one in India, and compares options based on cost and convenience.
Why Does SEBI Require a Static IP?
SEBI's framework for algorithmic trading, especially for API-based order placement, emphasizes auditability, traceability, and control. Here's why static IPs are a core part of this:
- Authentication: A static IP ensures only approved systems interact with broker APIs.
- Security: Helps prevent unauthorized access or spoofed requests.
- Monitoring: Allows brokers and exchanges to track where trades are originating from.
- Compliance: Ensures adherence to SEBI-approved strategies, preventing rogue or unintended behavior.
Static IP Charges in India: An Overview
While dynamic IPs are the norm for most home broadband connections, static IPs are typically offered as part of business broadband plans or as paid add-ons. The cost can vary based on the ISP, plan type, and region.
On average:
Monthly charges: ₹200 to ₹2,000+
One-time setup fee: ₹500 to ₹2,000
GST: Usually extra
Let’s explore the cost comparisons between ISPs next.
ISP Static IP Pricing Comparison
Option 1: Getting a Static IP from Your ISP (Broadband/Fiber)
Using your local broadband or fiber connection to obtain a static IP is the most straightforward and cost-effective option for many algo traders in India.
How to Apply for a Static IP from Your ISP?
1: Check ISP Eligibility
Not all ISPs offer static IPs to residential users. Most provide this feature under their business broadband plans. Reach out to your ISP’s customer support or check their website to confirm availability in your area.2: Upgrade to a Business Plan (if required)
ISPs such as Airtel, Jio, Tata Tele, and ACT generally require users to be on a business plan to enable a static IP. You may need to provide:- Business PAN or GST detail
- Valid address proof
- Signed application forms
3: Request Static IP Allocation
Once you’re on the eligible plan, raise a request for a static IP. The ISP will assign you a fixed IP and may charge a one-time installation and recurring monthly fee.4: Configure Your Router
The ISP technician or your network administrator will configure your router/modem with the static IP details. This setup includes:- Manually entering IP address, gateway, subnet, and DNS
- Enabling port forwarding if needed
- Ensuring security/firewall rules are properly set
5: Share IP with Broker for Whitelisting
After setup, share your static IP with your broker or trading platform. They will whitelist this IP to ensure all API calls are compliant with SEBI regulations.Option 2: Using a VPS or Cloud Server with Static IP
If reliability, 24/7 uptime, or remote access is critical for your algo strategies, hosting them on a cloud-based VPS (Virtual Private Server) is a great choice. Most cloud providers allow you to attach a static (public) IP to your instance.
Cloud Providers Offering Static IPs in India
Steps to Get a Static IP in Cloud
1: Sign Up for a Cloud Account
Create an account with your preferred cloud provider and verify your identity/payment method.2: Launch a Virtual Machine (Droplet/Instance)
Choose a plan based on your strategy requirements (typically 1–2 vCPU with 2–4 GB RAM works for most algo bots).3: Assign a Static IP
During or after VM creation:- AWS → Allocate and associate an Elastic IP
- DigitalOcean → Assign a Floating IP
- Azure → Reserve a Public Static IP
4: Configure Server for Trading
Install required tools like Python, Node.js, brokers’ APIs, SpeedBot, etc. Secure your server using:- SSH key-based login
- Firewalls (like UFW)
- Disable unused ports
5: Whitelist IP with Your Broker
Just like with ISPs, share the static IP with your broker to activate your trading API.Option 3: Hosting on a Dedicated Server with Static IP
For professional traders or institutions running latency-sensitive, high-frequency trading strategies, a dedicated physical server hosted in a reliable Indian data center is ideal.
Indian Data Centers Offering Dedicated Servers
Indian Data Centers Offering Dedicated Servers
You can also get dedicated servers via resellers like:
- HostGator India
- GoDaddy India (Bare Metal)
- DedicatedCore
Steps to Get a Dedicated Server
1: Choose a Hosting Provider
Pick a data center close to your broker's servers for minimum latency. Check if they offer redundant power and 99.99% uptime.2: Select Server Configuration
Based on your algo requirements, choose CPU, RAM, SSD, bandwidth, and operating system. Ensure it includes:- Static public IP
- Full root access
- Remote monitoring tools
3: Set Up and Secure the Server
Once provisioned:- Install trading software or deploy your bot
- Set firewall rules and restrict open ports
- Use TLS/SSL for all data transmission
4: Share Static IP with Your Broker
Provide your static IP to the broker for API access and whitelisting.5:Monitor & Maintain
Regularly update packages, back up configurations, and monitor server uptime and security.SpeedBot: Free, Open-Source Algo Trading Tool
SpeedBot is an algorithmic trading platform designed to simplify and automate trading for investors, brokers, and institutions. It provides an intuitive interface that allows users to create, test, and deploy trading strategies with minimal coding knowledge.
Built with performance and flexibility in mind, SpeedBot offers:
- No-code and low-code strategy builders
- Multi-timeframe analysis and trade execution
- Advanced risk management tools
- Integration with leading brokers and APIs
- Real-time backtesting and paper trading environments
Final Thoughts
If you're serious about algorithmic trading in India, getting a static IP isn’t optional—it’s a regulatory necessity. From local ISPs to cloud servers and dedicated hosting, traders today have several paths to compliance. Choose based on your trading frequency, budget, and technical skill.
Platforms like SpeedBot further simplify the process by offering an open-source and compliant solution tailored for Indian markets. Whether you’re just starting or optimizing your infrastructure, now is the right time to secure your static IP and trade with confidence.