Why Choose Paasa Over Interactive Brokers in India?

Interactive Brokers (IBKR) is one of the most trusted brokerage infrastructures in the world and is present in over 170 countries. It is built for institutional users and advanced traders, and operates on a do-it-yourself model but offers no India-specific support.

Paasa is built for Indian investors, HNIs, and family offices and uses IBKR as the underlying execution layer. Same custody under your name, same SIPC protection, same access to global markets.

What Paasa adds on top is the India-facing layer and dedicated support that IBKR does not offer.

This blog walks through every advantage Paasa offers on top of IBKR.

Note: Paasa is integrated with IBKR at an API level. Your assets sit at IBKR under your name and PAN, with full SIPC protection.

Table of contents

• India-specific tax reporting
• FEMA and LRS support
• Preferential FX rates
• Dedicated human advisory
• Simpler interface built for long-term investors
• Access to 10+ global exchanges
• Joint accounts
• RSU diversification infrastructure
• Managed strategies
• Which one is right for you?
• About Paasa

What Paasa and IBKR share

Since Paasa is built on top of IBKR, your account sits on the same underlying infrastructure. That means everything IBKR does well at the execution layer, you get with Paasa too.

• Custody under your name and PAN: Your cash and holdings are held with IBKR under your own name, not pooled under Paasa's name.
• SIPC insurance up to $500,000: Your assets are SIPC insured up to $500,000 total, including $250,000 for cash held for trading purposes.
• Direct trading and real-time execution: Market and limit orders, stop loss, trailing stop loss, and real-time order execution across all supported exchanges.
• Low brokerage fees: Competitive, institutional-grade execution pricing.
• Access to stocks, ETFs, and UCITS funds: The same core product universe across US, UK, Swiss, and European exchanges.
• Interest on uninvested cash: Idle cash in your account earns interest automatically.
• Withdraw to any bank account in your name: Including US bank accounts and international banks, in the currency of your choice.
• Free account setup: No setup or account-opening charges on either platform.

Here is a quick overview of the similarities and differences

India-specific tax reporting

IBKR gives you a consolidated account statement structured around the US calendar year.

For an Indian investor, this means handing your CA a document that needs to be re-mapped to Indian tax rules before it is usable.

Here is what Paasa does on top:

• Statement aligned to the Indian financial year (April–March), and the calendar year where needed (e.g., for Schedule FA disclosures)
• All INR values pre-calculated using the applicable RBI/SBI TT buying rate for the relevant date
• Capital gains pre-classified as STCG (≤24 months, slab rate) or LTCG (>24 months, 12.5% flat) under the Income Tax Act 2025
• Dividend income tagged separately as "Income from Other Sources" with TDS already accounted for
• Tax loss harvesting flagged at the position level
• Schedule FA-ready disclosure values in INR

For more information, see our guides on Schedule FA and capital gains tax on foreign stocks and ETFs.

FEMA and LRS support

Foreign remittances under LRS need the right paperwork (Form A2, 15CA, 15CB where applicable), the right purpose code, and the right declarations to your bank.

The bank assumes you know what you are doing, and a wrong purpose code can trigger scrutiny or delays months later.

Here is what Paasa provides:

• Pre-filled LRS forms (A2, 15CA/CB) generated for each remittance
• Seamless LRS compliant remittances from the app
• Real-time tracking and confirmation once funds land in your brokerage account
• A team that answers FEMA queries directly

Note: Wrong purpose codes during remittance are one of the most common reasons Indian investors face reporting issues, delays, or tax scrutiny later. Paasa eliminates this.

Preferential FX rates

Your Indian bank converts INR to USD at retail rates, with a spread baked in that directly eats into the capital you actually deploy.

Paasa offers institutional INR-USD conversion rates negotiated through its banking relationships. Tighter spreads mean more of your capital reaches your portfolio, which becomes especially material at HNI ticket sizes.

However you can still remit the money yourself if your bank RM offers you a lower spread.

Dedicated human advisory

IBKR is built at scale, which means support is large-volume and ticket-based. There is no relationship manager, no India-specific advisory, and no one to walk you through your first remittance or your first tax-year-end.

Here is what Paasa does on top:

• Dedicated relationship manager assigned to your account
• Support for FEMA and tax queries
• High-touch onboarding (we can walk you through KYC, your first remittance, and your first trade)
• WhatsApp support line for quick queries
• Features customisable on request for HNIs and family offices

Simpler interface built for long-term investors

IBKR's flagship product is Trader Workstation (TWS), a professional terminal built for active traders, options writers, and prop desks.

For an Indian investor, that is far more complexity than needed. Paasa offers a clean mobile app and web dashboard, designed around long-term portfolio building rather than active trading. All standard order types are still available, including market, limit, stop loss, and trailing stop loss.

Note: If you are an active trader who lives inside TWS, IBKR direct may suit you better. Paasa is built for the investor who wants global exposure without learning a trading terminal.

Access to 10+ global exchanges

Both platforms give you access to multiple exchanges. The advantage with Paasa is access bundled with India-facing compliance and a single INR-funded account that handles all denominated currencies inside the same wallet.

For more on UCITS, see our guide on how to buy UCITS ETFs from India.

Joint accounts

IBKR offers joint accounts globally, but the India-facing complexity (how gains are split between holders, who reports what in Schedule FA, how dividends are attributed) is left to you.

Paasa supports joint account opening, with gain attribution between joint holders pre-calculated under Indian rules, Schedule FA disclosure values generated for each holder separately, and a single point of contact for both holders' tax queries.

For more information on joint accounts, read our guide on how joint global brokerage accounts are taxed.

RSU diversification infrastructure

Indian tech employees often hold a large chunk of net worth in vested RSUs sitting in Morgan Stanley, Fidelity, or E*Trade accounts. Moving that to IBKR for diversification means navigating ACATS transfers, FEMA declarations, and dividend continuity yourself.

Paasa runs direct RSU transfer workflows from Morgan Stanley, Fidelity, E*Trade, and more brokers with in-kind transfer coordination handled end-to-end and FEMA-compliant declaration of inbound RSUs.

Managed strategies

IBKR has managed portfolios in some markets, but no India-facing managed strategy with FEMA and tax support bundled in.

Paasa's Apex plan ($50k minimum) includes managed portfolio strategies covering global diversification, RSU diversification, and UCITS-based portfolios.

All compliance, tax reporting, and FEMA support is included in the plan fee, and strategies are built and managed by Paasa's investment team.

So which one is right for you?

Choose IBKR if you are an active trader who wants direct TWS access, you are comfortable handling FEMA, LRS, and Indian tax reporting yourself, and you do not need India-side advisory.

Choose Paasa if you want IBKR's underlying infrastructure plus a team that handles FEMA, LRS, India tax reporting, FX optimisation, and advisory for you.

Both platforms can also coexist. If you are already on IBKR but want to migrate or need help with the India-facing side, the Paasa team has deep IBKR expertise and can support you. Call us or reach out at support@paasa.com.

About Paasa

Paasa is a global investing platform built specifically for Indian investors and powered by IBKR. It takes the institutional-grade engine of Interactive Brokers and wraps it in a user-friendly, locally compliant experience.

Here is why Indian investors prefer Paasa:

• India-specific tax and FEMA support: Investing globally requires navigating the RBI's Liberalised Remittance Scheme (LRS) and complex Indian tax laws. Paasa provides end-to-end support, including ready-to-use tax calculation documents you can hand to your CA at the end of the financial year.
• Pre-negotiated FX rates: Currency conversion eats into your returns if not managed properly. Paasa ensures you get institutional foreign exchange rates, maximising the capital you actually deploy into the market.
• Dedicated advisory and support: Unlike standard global brokers where you are left to figure things out alone, Paasa offers dedicated relationship managers and advisory services tailored to the needs of Indian HNIs and NRIs.
• Simplified interface: You do not need to learn how to navigate a professional trading terminal. Paasa's app makes building a global portfolio as intuitive as buying a domestic mutual fund.