Understanding SEBI's Static IP Requirements: What Algo Traders Need to Know

As algo trading continues to grow in India, regulatory compliance becomes increasingly important. The Securities and Exchange Board of India (SEBI) has introduced new requirements that directly impact how trading platforms and brokers manage order placement. One of the key requirements is that each order must be tagged with the IP address from which it originates.

What's Changing?

SEBI now mandates that brokers tag every order with the originating IP address. This is part of their broader effort to enhance transparency, traceability, and security in the trading ecosystem. For algo traders using platforms like Quantman, this means your broker may require you to provide static IP addresses for compliance.

Quantman's Standard IP Configuration

For most traders, Quantman provides shared platform IP addresses that work seamlessly with broker requirements:

Static IP: 129.212.244.131

These standard IPs are included with your Quantman subscription and are sufficient for brokers who accept platform-level IP tagging.

When Do You Need a Dedicated Static IP?

Some brokers have additional compliance requirements that go beyond SEBI's basic mandate. These brokers require a unique static IP address for each individual client. If your broker has informed you about this requirement, Quantman offers dedicated static IP solutions.

Dedicated Static IP: What You Should Know

Availability and Pricing

Due to the global scarcity of IPv4 addresses, dedicated static IPs come at a premium. Quantman offers this service at cost:

• ₹500 per 30 days (cost-to-cost pricing)
• Available at: quantman.trade/plans?tab=static-ip

Technical Considerations

While dedicated static IPs solve compliance requirements, there are important trade-offs to consider:

Latency Impact: Routing traffic through third-party IP addresses adds network hops, which introduces additional latency. For high-frequency trading strategies where milliseconds matter, this can result in increased slippage and potentially affect your strategy's performance.

Cost vs. Benefit: Before opting for a dedicated static IP, verify with your broker whether it's truly required. If your broker accepts shared platform IPs, you'll get better performance at no additional cost.

Making the Right Choice

Here's a quick decision framework:

1. Check with your broker first - Confirm whether they require per-client static IPs or if platform IPs are acceptable
2. Evaluate your trading style - If you run high-frequency strategies sensitive to latency, factor in the performance impact
3. Consider your budget - While ₹500/month is offered at cost, it's an ongoing expense

Quantman's Commitment

At Quantman, we're committed to helping you navigate regulatory requirements while maintaining optimal trading performance. Our standard platform IPs work for most brokers, and when you need dedicated solutions, we offer them at cost without markup.

Have questions about which option is right for you? Reach out to our support team, and we'll help you determine the best configuration for your broker and trading strategy. Also, watch the video explanation on Static IP for better understanding.