Top Broker APIs for Algo Trading in India: My Personal Experiences

Hey there fellow traders! I’ve been knee-deep in the world of algo option trading in India, and I wanted to share my experiences with you. Finding the perfect broker with the right API for this game isn’t easy; it’s a delicate balance between low brokerage fees and a reliable API. Let me break down my journey with four brokers:

1. Finvasia ★★★★½: The Free Wonder

Pros:

• Brokerage: Zero! Yes, you heard it right, trading here won’t cost you a single paisa in brokerage.
• Perfect API: Finvasia’s API stands out with all the important endpoints you need for seamless trading.

Cons:

• Server Downtime: The major drawback here is the occasional server downtime during market hours. It’s frustrating when you’re in the middle of executing a trade, and bam! The server goes down. Not cool, Finvasia, not cool.
• Margin Requirements: Finvasia has 12-17% higher margin requirements compared to Zerodha.

2. Upstox ★★★★½: The Big Name with Revamped API

Pros:

• Brokerage: As a big name top broker, Upstox offers reliability.
• Revamped API (Uplink v2): They’ve improved their API for better reliability.
• Zero Brokerage: Till 31 Aug 2024, all trades done via API are brokerage-free.
• Nearly Perfect API: Important Endpoints: Upstox provides all the important endpoints you need for seamless trading.
• The support I received was truly exceptional, unlike any I’ve ever experienced with a tech company. They were not only willing to go the extra mile but also ready to adjust their underlying algorithms to address a user issue.

Cons:

• Complex WebSocket: The live market data websocket is a bit complicated, requiring encoding and decoding via .proto files. However, if you are using their SDK, no need to worry about this, as it happens automatically.

3. 5Paisa ★★★½: The Moderate Choice

Pros:

• Brokerage: At Rs. 10 per order after a flat fee of approximately Rs. 500, the brokerage is reasonable.
• API: It’s decent, but not mind-blowing, earning a 3 out of 5 rating.

Cons:

• Missing Features: The platform lacks some basic features, making you work harder for your trades.
• Margin Issues: If you deal with hedged positions, be prepared for margin issues when using limit orders.
• No Option Chain Data: A significant drawback is the absence of option chain data via API.
• Unreliable Symbol Token Names: Be cautious as the options symbol token names can be a bit unreliable.
• Margin Requirements: 5 Paisa has 4% higher margin requirements than Zerodha.

4. Kotak Neo ★★: The API Enigma

Pros:

• Intraday Brokerage: It’s free, which is always a plus.

Cons:

• API Documentation: The API documentation leaves a lot to be desired, earning a mere 2 out of 5 from me.
• Limited Data: The real deal-breaker is the lack of option chain data in their API. When you’re trading options, this is a major setback.
• Complex Websockets: Their websockets for order updates and live market data are needlessly complicated. It’s like trying to decipher a secret code just to trade.

Final Thoughts:

After careful consideration, I’ve finally settled on Upstox as my go-to algo trading broker. Its reliability, revamped API, and zero brokerage offer until 31 Aug 2024 make it a strong contender for my trading needs. However, if you’re just starting out in the world of API algo trading, you might want to consider Finvasia. Their robust API, coupled with zero brokerage, provides an excellent platform to learn the ropes. As you gain experience and plan to trade with higher volumes, Upstox is an ideal choice to take your trading to the next level.

In the ever-evolving landscape of algo option trading in India, the right broker and API can be the keys to your success. Your journey might be different from mine, but I hope these insights help you make an informed decision. Let’s continue to learn, adapt, and thrive in this exciting world of algorithmic trading. Until then, may your trades be profitable, and your strategies ever-improving! 📈💰