How to choose an algo trading platform in India: a 7-point checklist
Registration, custody, risk controls, security and honest claims: what to check first.
The short answer
Choose an algo trading platform that works through your own SEBI-registered broker (so your money stays in your account), whose strategy providers are registered with SEBI where required, that enforces loss limits and has a kill switch, that has been independently security-tested, and that never promises assured returns. If a platform asks you to transfer money to it, or guarantees profits, walk away.
Key takeaways
- 01Your funds should stay in your own broker account, always.
- 02Check SEBI registration numbers yourself on the SEBI website.
- 03Risk limits and a kill switch should be built in, not optional extras.
- 04Any promise of guaranteed or assured returns is a red flag.
The 7-point checklist
- Broker-based: orders go through your own SEBI-registered broker’s official API.
- Non-custodial: the platform never holds, withdraws or moves your money.
- Registered: strategy providers hold the SEBI registration the rules require, and you can verify it.
- Transparent: each strategy states what it trades, the capital it needs and its risk level.
- Risk controls: capital caps, stop-losses, a maximum daily loss and a kill switch.
- Secure: two-factor login and independent security testing of the platform.
- Honest: no promises of guaranteed returns, and clear disclosures that losses are possible.
Red flags to walk away from
- Requests to transfer money to the platform or a personal account.
- “Assured”, “guaranteed” or “fixed” monthly returns.
- Requests for your trading or bank passwords.
- No registration details, address or grievance contact on the website.
- Pressure tactics: limited-time offers or tips shared in chat groups.
How Quantbee measures up
Quantbee is a brand of Finharbour Fintech Private Limited, a SEBI-registered Research Analyst (INH000029032). Orders go through your own broker, funds stay in your account, and every strategy runs with the limits you set and a one-tap kill switch. Registration does not guarantee performance or returns.
Frequently asked questions
How do I check if a platform is SEBI registered?
Look up the registration number on SEBI’s website under its list of registered intermediaries, and confirm that the name and address match what the platform shows.
Should an algo platform ever hold my money?
No. A retail algo platform should place orders through your own broker. Your funds and holdings should stay in your own trading and demat account.
Is a platform with guaranteed returns safe?
No. No legitimate platform can guarantee returns, and promising assured returns is prohibited. Treat any such promise as a warning sign.