• Eligibility and onboarding: Algorithmic trading is accessible to all SEBI-eligible retail investors without requiring specialized coding skills, new bank accounts, or additional KYC. Existing active trading accounts only require a one-time broker approval to activate algorithmic trading and API access.
• Fee and brokerage structures: Beyond standard SEBI margins and potential fintech provider fees, brokers offer options such as zero API brokerage at Kotak Neo and fixed monthly rental plans at Share India. Margin requirements remain identical to manual trading, though automated hedged positions can reduce overall margin needs.
• Strategy back-testing tools: Retail traders can evaluate custom trading rules and historical performance across different market conditions using no-code web platforms like AlgoTest and UTrade.
• Algo transparency models: Trading strategies are categorized into white box models with fully visible logic and black box models where the underlying logic is hidden. Black box strategies can only be distributed by SEBI-registered Research Analysts.