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Static IP for Algo Trading in India: What, Why & How (2025 Guide)”

  • Writer: ALGOME TECH
    ALGOME TECH
  • May 12
  • 5 min read

Updated: Aug 20

Algo trading rules are changing in India — and yes, static IPs are now mandatory. But here's the good news: for 99% of retail traders, this is a simple, one-time setup that brings you closer to professional-grade infrastructure without the complexity.


As per SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/13 dated Feb 4, 2025, this isn’t just a restriction — it’s an upgrade to help algo traders move closer to institutional-grade infrastructure. Let’s break it down.


Digital header banner showing secure static IP concept for algorithmic trading compliance in India


1. Why Is This Happening?


Retail algo trading has exploded in India. As of 2025, 30%+ of NSE's daily volumes now come from API-driven strategies.


To ensure fair access and security, SEBI and NSE have rolled out new infrastructure rules. One of the first? A static IP requirement — announced via NSE circular on May 5, 2025, effective August 1, 2025.


This change isn't meant to slow you down. It's to help serious traders like you build more stable and compliant systems.






2. What Is a Static IP for Algo Trading?


A static IP is simply a fixed internet address. Unlike dynamic IPs that change when your router resets, a static IP stays locked in — and that makes a big difference.


Why regulators prefer it:

✅ Only authorized systems can access your trading API

✅ Brokers can trace and audit your activity cleanly

✅ Reduces misuse (like signal reselling or unregistered PMS setups)

It’s a small tweak that adds a lot of structure.



3. Static IP vs Dynamic IP: What’s the Difference?


Static IP

Dynamic IP

Fixed IP address – remains constant over time

Changing IP address – assigned dynamically and may vary with each connection

Essential for API whitelisting – ensures authorized broker access

Not suitable for API whitelisting – IP changes can disrupt broker connections

Provides consistent connectivity – crucial for uninterrupted trading operations

Potential for connection issues – IP changes may lead to session interruptions

Facilitates compliance – aligns with SEBI/NSE regulations for algo trading

May not meet compliance requirements – dynamic nature can hinder regulatory adherence

Ideal for algorithmic trading setups – supports stable and secure environments

Common in general internet usage – suitable for everyday browsing and non-critical tasks



4. Do You Need to Register Your Strategy?


No — unless you're running a system that sends more than 10 orders per second (HFT level), you don’t need to register your strategy with the exchange.


If you’re a retail trader using TradingView, Amibroker, or Python APIs:

✅ All you need to do is get your static IP whitelisted by your broker.

That’s it. No strategy paperwork. No approval cycles.



5. Who Needs a Static IP?


✅ You do need a static IP if:

  • You use APIs to place trades (via Python, Amibroker, TradingView webhook, etc.)

  • You host your algo on a VPS or cloud server

  • You offer algo tools/services to others

  • You run automated bots that don’t use broker’s front-end

❌ You don’t need a static IP if:

  • You trade only manually using your broker’s web or mobile platform

  • You use charting tools without API execution


Pro tip:

Even if your automation is simple, having a static IP ensures you’re ready for future compliance updates.


6. How to Get a Static IP (Without Overthinking It)


Pick the option that suits your setup best:

Method

Providers

Estimated Cost (2025)

Static IP from ISP

Airtel, ACT, Jio, BSNL

₹200 – ₹500/mo

VPS with Static IP

Contabo, Hostinger, DigitalOcean

₹400 – ₹1,000/mo

Cloud Static IP

AWS, Google Cloud, Azure

₹600 – ₹1,500/mo


💡 Many brokers will support IP whitelisting from cloud servers — so you don’t always need to run it at home.



7. Does IPv6 Work?


While IPv6 IPs are cheaper and sometimes default on platforms like AWS Lightsail, most brokers have not explicitly confirmed IPv6 support.


To stay compliant and ensure order connectivity, we strongly recommend IPv4 static IPs until brokers publish updated compatibility.


✅ Stick to IPv4 unless you're fully sure your broker allows IPv6.



8. What If You’re an Algo Vendor?


Running a strategy marketplace or offering algos to clients?


Here’s what you need to plan for:

  • Every client must operate under a dedicated static IP

  • Shared setups may get flagged by brokers

  • Compliance is moving toward greater transparency per account


That said, this is also a reminder for retail traders — when you build and run your own automation setup, you enjoy full control, clean traceability, and freedom from third-party dependency. It’s a more secure and scalable way to grow.



9. 🔐 Security Benefits of Static IP


Static IPs aren’t just for compliance — they strengthen the overall security framework of your algo setup.


Here's why many brokers and regulators recommend them:

  • ✅ Prevent unauthorized API access

  • ✅ Eliminate misuse from shared devices or scripts

  • ✅ Ensure audit-traceable activity for each account

  • ✅ Reduce accidental order duplication via multiple IPs

  • ✅ Broker-side restrictions become more reliable and enforceable


This makes your algo environment cleaner, faster, and harder to tamper with — a major upgrade even for solo retail traders.



10. What Comes Next?


The static IP rule may just be the phase one. In the coming months, we may expect:

  • IP–API key pairing at the broker level

  • Optional (or mandatory) tagging of strategy categories

  • Stronger restrictions on shared algo distribution

Getting compliant now means fewer disruptions later.



11. What Should You Know Now?


For Retail Traders:

  • Can use ISP, VPS, or cloud services to set up a static IP

  • Share the static IP with your broker for whitelisting

  • No need to register your strategy unless it sends over 10 orders per second


For Algo Vendors / Marketplace Operators:

  • Each client setup should run on a distinct static IP

  • Avoid using the same IP across multiple accounts — brokers may flag this

  • Align infrastructure to support clearer traceability per user


There’s no immediate disruption expected for most users. The original deadline has already been extended once. Given the scale and rollout complexity in India, timelines may shift again.




12. Bonus Tips for Algo Traders

  • 🛠 Use a VPS provider with guaranteed static IP (like Contabo or Hostinger)

  • 💾 Back up your IP and configuration details before broker submission

  • 🔁 Recheck IP after server reboot (especially if using cloud/VPS)

  • ⚠️ Avoid VPNs or proxies during API use — can cause IP mismatch

  • ⏰ Test the entire flow before market hours or live execution

  • 🧪 Use your broker's sandbox if available to test before production



Takeaway for Traders


Static IP compliance isn’t a roadblock:

  • It’s a quick, one-time setup for most traders

  • It gives you more consistent execution and long-term stability

  • It helps you stay aligned with how algo infrastructure is evolving


This shift is also a push toward independence:

  • Build your own strategies

  • Automate with full control

  • Reduce reliance on marketplace or vendor systems



Need help? Reach out if you're planning to automate your strategy — it's smart to start right.



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