Tips to Find a Reliable Algo-Trading Broker to Partner with for Your Indian Investments

The mushrooming of algo trading brokers in India has made the lives of investors more easy and difficult. It’s easier now to execute a trade quickly, accurately and in accordance with a set of pre-defined rules. However, the plethora of broker firms offering algorithmic trading solutions makes it harder for investors to partner the right firm. Here are some tips to get you started.

Look Into Technical Expertise

Selecting an algo trading broker in India requires a different approach from selecting a traditional broker firm. Instead of cheap brokerage rates, the focus should be on the company’s technical expertise. Algo-trading relies heavily on technology, whether it is for developing proprietary quantitative trading strategies after extensive back testing, fast-speed execution with ultra-low latency, real time performance analytics or effective risk management. Make sure the firm you are considering has the necessary technical infrastructure to cover all critical areas.

Check Company’s Credentials

It is very important to consider only algo trading brokers in India that are approved by SEBI to carry out quant-based trades. SEBI has a long list of regulations that are to be followed by algo-trading brokers in India to keep this kind of trading safe and risk controlled. For example, any HTF algorithm has to undergo a series of rigorous tests and get approved by stock exchanges before it goes live. At the end of the day, you don’t want flaunt rules and regulations by partnering an unlicensed broker firm.

Identify Focus Area

Algo trading brokers in India caters to particular clientele. For example, if you are a foreign investor looking to gain entry into Indian markets, look for a broker focusing on and providing a complete set of solutions for international investors. If you are an FPI, features you should look for is co-location services, seamless inter-exchange connectivity within India and/or connectivity to international markets and global access to live data feed.

Find a broker who offers these solutions under one roof to obtain maximum gains from your investment.