Vested vs Interactive Brokers

Vested and Interactive Brokers (IBKR) offer Indian investors two very different ways to access U.S. and global markets like the UK, Europe, and China.

Vested is designed as an alternative investment platform for Indian retail investors. It offers access to U.S. stocks and ETFs, and also branches into Indian bonds and solar portfolios. However, it does not provide exposure to other markets like the UK, Europe, or China, and is primarily built for small to medium size retail investors.

Interactive Brokers, on the other hand, is the infrastructure itself. Trusted by global institutions and funds, it offers access to 150+ markets including the US, UK, Europe, and Asia with direct custody, low costs at scale, and deep product coverage. But it expects you to manage remittance, compliance, and tax reporting on your own.

This comparison breaks down which type of investor each platform is suited for, and why.

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

Infrastructure Overview

Attribute	Vested	IBKR
Account Setup	₹250 (one-time)	Free
Trading infrastructure	Powered by DriveWealth	Industry-leading proprietary platform
Market Access	US stocks & ETFs only	US, Europe, UK, China and more
Custody of assets under client's name	✅	✅
FEMA & LRS Support	Basic	❌
Tax Reporting (India)	Basic	❌
INR-based Returns & Analytics	❌	❌
Human Advisory	✅	✅
Onboarding Support	✅	✅
Remittance Integration	✅	❌
SIPC Insurance	✅	✅

Note: Vested is built for ease of use and small to medium-sized investing, whereas IBKR is designed for scale, cross-border flexibility, and greater control.

Feature Comparison

Attribute		Vested	IBKR
Direct trading		✅	✅
Real-time execution		✅	✅
Product Universe	US Stocks & ETFs	✅	✅
	Other markets (China, UK, Europe, etc)	❌	✅
	Managed Portfolios	✅	✅
	UCITS portfolios	❌	❌
	AIFs	❌	❌
Fractional Shares		✅	✅
Auto-rebalanced UCITS portfolios		❌	❌
Interest on uninvested cash		❌	✅

Note: For casual US investing, both platforms work well. But only IBKR offers access to other markets, advanced instruments, managed portfolios, and up to 3.83% risk-free interest on uninvested cash over $10,000.

FEMA Compliance

Attribute		Vested	IBKR
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.

Note: Vested’s compliance support is generic, best suited for small-ticket flows. For HNIs or family offices wiring larger sums, it lacks the documentation depth structured setups often need.

With IBKR, you're on your own but in control. You negotiate FX, choose your bank or provider, and align transfers with your advisory or compliance team.

Tax Reporting

Attribute		Vested	IBKR
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		❌	❌

Technology Features

Attribute	Vested	IBKR
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	❌	✅
Custom features	❌	❌

Note: Vested is known for ease of use, while IBKR is praised for depth but also criticized for complexity.

Investor Fit

Investor Type	Vested	IBKR
First-time US investor	Easy, guided, low entry barrier	Easy, guided, low entry barrier
SIP-style Retail Investor	Manual SIPs set up are possible; no automation.	Not optimal for tiny flows
HNIs	Requires technical know-how	Powerful but requires technical know-how
Family Offices & Institutional Investors	Not built for complex needs	Scalable with compliance coordination

Client Support

Attribute	Vested	IBKR
Onboarding Support	✅	❌
Dedicated relationship manager	✅	❌
Expert concierge (FEMA, Tax)	❌	❌
Customize features on request	❌	❌

Conclusion

While both Vested and IBKR enable access to US equities, they sit at very different ends of the investor spectrum.

Vested is designed for simplicity. It’s a strong fit for Indian retail investors starting their global journey, offering curated U.S. portfolios and Indian bond exposure. But it remains limited in product universe, scale, and market reach.

IBKR, by contrast, is a platform built for breadth and depth. It gives experienced investors access to 150+ global markets, institutional-grade tools, and flexibility at scale but expects users to self-manage remittance, tax, and compliance.

Choosing between the two depends on your ambition and comfort with complexity. If your investing journey is just beginning, Vested might be the right fit. If you're building a serious cross-border allocation strategy, IBKR opens more doors, provided you're ready to piece together the India-facing layer on your own.

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.

The 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].

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.

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