Why a static IP matters for API trading
SEBI's February 2025 framework for retail algorithmic trading asks brokers to accept API orders only from IP addresses the client has registered with them. A home broadband connection usually changes its public IP; a cloud function or a shared NAT gateway sends traffic from addresses you do not control. A VPS with its own public IPv4 gives you one fixed address to register with the broker.
On BookMyHost every server includes one public IPv4 address placed directly on the server's network interface: no NAT and no shared gateway, so outbound API calls leave from that address. It stays the same through power off, power on, reboot and resize until you delete the server. Check your broker's own developer documentation for how to register it.
Latency: what matters and what does not
Broker API servers and the exchanges are in Mumbai. From the Noida region typical round trips to Mumbai are ~25 ms; a Mumbai region is coming at the same rate card, and a snapshot will move a server there without a rebuild.
For retail strategies on broker APIs, broker-side order handling and exchange matching dominate the total time, and a home connection adds its own delay and outages on top. A VPS removes the home connection from the path. Sub-millisecond colocation is an exchange product for members, not something any VPS provides.
What to look for in an algo trading VPS
- A static public IPv4 on the server itself, for broker whitelisting.
- Reserved CPU and RAM: every server here is a dedicated VM whose vCPU and RAM are never overcommitted, so backtests and live strategies get the resources the plan states.
- DDoS protection on expiry and event days: every IP sits behind Cloudflare Magic Transit at no extra cost; see DDoS protection.
- A snapshot before every strategy change, so a bad deploy rolls back in minutes; one is included per server.
- Rupee billing with a GST tax invoice, payable by UPI. Prices are shown before GST.
- Linux for Python or Node bots, or Windows Server 2022 for desktop trading software.
Setting up a strategy server
- Create an account and complete eKYC
Verify once with Aadhaar/DigiLocker or an ID document, as CERT-In requires.
- Deploy an algo trading VPS
Pick a plan on the algo trading page or a custom size on the builder. The Ubuntu image has Python and Node ready.
- Register the IP with your broker
Copy the server's public IPv4 from the panel and add it in your broker's API settings.
- Run the strategy as a service
Use systemd, pm2 or a scheduled job so the strategy restarts on reboot and runs through market hours without an open terminal.
- Snapshot, then go live
Take the included snapshot before switching to live orders, and again before each change.
Billing for a trading server
Test a strategy on hourly billing, per started hour with a minimum of 1 hour. Once it runs live, a monthly plan is 30% below the hourly list and a 12-month term 44% below it. Prices are in rupees and shown before GST; 18% GST is added at checkout on a GST tax invoice.