Interactive Brokers vs Paasa

If you’ve explored global investing, chances are you’ve come across Interactive Brokers (IBKR), one of the most trusted and widely used trading platforms in the world. It powers the execution for some of the largest institutions, hedge funds, and proprietary desks globally.

That’s why Paasa partnered with IBKR as the core execution layer. The platform is reliable, secure, and proven.

But for Indian investors, especially HNIs, family offices, and institutions, IBKR doesn’t solve everything. Things like FEMA compliance, tax reporting under Indian rules, INR-based returns, or remittance coordination often fall outside its scope.

Paasa was built around those needs. While IBKR handles the trades, Paasa handles everything that makes global investing compliant, and visible from an Indian perspective.

This blog walks through how the two platforms work together and where each fits in your global investing journey.

Infrastructure Overview
Feature Comparison
FEMA Compliance
Tax Reporting
Technology Features
Investor Fit
Client Support

Note: If you’ve already set up on IBKR but want help simplifying the India-facing side, Paasa team can help. Reach out at [email protected].

Infrastructure Overview

Attribute	IBKR	Paasa
Account Setup	Free	Free
Best class trading infrastructure	✅	✅
Custody of assets under client's name	✅	✅
FEMA & LRS Support	❌	✅
Tax Reporting (India)	❌	✅
INR-based Returns & Analytics	❌	✅
Human Advisory	❌	✅
Onboarding Support	❌	✅
Remittance Integration	❌	✅
SIPC Insurance	✅	✅

Note: With Paasa, accounts are held under your name at IBKR, ensuring full ownership, SIPC protection, and institutional-grade security.

Feature Comparison

Attribute		IBKR	Paasa
Direct trading		✅	✅
Real-time execution		✅	✅
Brokerage fee		Low	Low
Product Universe	Stocks	✅	✅
	ETFs	✅	✅
	Managed Portfolios	✅	✅
	UCITS portfolios	❌	✅
	AIFs	❌	❌
Auto-rebalanced UCITS portfolios		❌	✅
Interest on uninvested cash		✅	✅

Note: UCITS portfolios are preferred by many Indian investors for US estate tax protection and global diversification, and are available only through Paasa.

Note: Brokerage fees remain the same as IBKR, Paasa does not charge any additional commission on trades executed via IBKR.

FEMA Compliance

Attribute		IBKR	Paasa
Digital remittance under LRS	Self-declaration templates for Indian banks	✅	✅
	Remittance support at low rates	❌	✅
	Bank formalities & Holding Declaration	❌	✅
	Tracking and Confirmation	❌	✅
Compliance queries		❌	✅

Note: FEMA compliance is critical when sending money abroad under LRS. Many Indian investors unknowingly use incorrect purpose codes during remittance which can lead to reporting issues, delays, or tax scrutiny later.

Tax Reporting

Attribute		IBKR	Paasa
Tax Analytics	Dividend Tax Tracking	❌	✅
	Capital Gains Tax Calculation (STCG/LTCG)	❌	✅
	Accumulating ETFs	✅	✅
	Tax Loss Harvesting	❌	✅
	Year-End Tax Statement for Indian Investors	✅	✅
UCITS portfolios for tax savings		❌	✅

Note: Global investing comes with added tax responsibilities for Indian investors, and platforms approach this differently. Paasa includes tools designed to support Indian tax reporting.

Technology Features

Attribute	IBKR	Paasa
Mobile App & Web View	✅	✅
Market and Limit	✅	✅
Stop loss, Trailing stop loss	✅	✅
Withdraw funds to any bank account	✅	✅
Mutual funds tracking	❌	✅
XIRR calculation for position	❌	✅
Benchmarking & Backtesting	❌	✅
INR gain/loss computation (blended FX)	❌	✅
Web dashboard for reporting	✅	✅
Trader Workstation (TWS) for advanced traders	✅	❌

Note: Trader Workstation by IBKR is widely praised by experienced traders who prefer full control, speed, and advanced tools. Paasa is designed for long-term investors who prioritize simplicity, compliance, and guided support.

Investor Fit

Investor Type	IBKR	Paasa
HNIs	Powerful but requires technical know-how	Offers simplicity with control
Family Offices	Offers scale but needs internal support	End-to-end setup including remittance and tax
Institutional Investors	Requires external tech and compliance support	Concierge support for regulatory and operational needs

Client Support

Attribute	IBKR	Paasa
Onboarding Support	Large Scale, less hand holding	High-touch, personalised guidance
Dedicated relationship manager	❌	✅
Expert concierge (FEMA, Tax)	❌	✅
Customize features on request	❌	✅

Conclusion

Both IBKR, and Paasa offer access to global markets. But as an HNI, family office, or institutional investor, what you're really choosing is the kind of experience you want around that access: whether you prefer raw brokerage infrastructure or a complete global investing ecosystem.

The right fit depends on your investing style, comfort with complexity, and long-term priorities.

Note: The Paasa team also has deep expertise in Interactive Brokers. If you're an IBKR user and need support navigating your account from India, feel free to reach out at [email protected].

About Paasa

Paasa is a global investing platform built specifically for Indian HNIs, family offices, and institutional investors, helping them invest across the US, UK, Europe, and China with tools that simplify LRS, remittance, tax reporting, and cross-border complexity.

Disclaimer

This content is for general informational purposes only and should not be taken as financial, legal, or professional advice from Paasa. While we strive for accuracy, the information may change over time. Paasa makes no representations, warranties, or guarantees, whether express or implied, regarding the accuracy, completeness, or reliability of the information provided. The comparison is based on publicly available data and is intended to assist users in making informed decisions. It is not a substitute for professional advice or consultation with financial experts. Please review the terms of use and product availability for your region, or visit the service provider's website for the latest pricing and service information.

Sources

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