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 its custodian and core execution layer. The platform is reliable, secure, and proven.
But for Indian investors, whether they are making a first global allocation or managing a family portfolio, 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.
Table of Contents
- 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, the Paasa team can help. Reach out at support@paasa.com.
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 | ❌ | ✅ (Apex plan) |
| Onboarding Support | ❌ | ✅ |
| Remittance Integration | ❌ | ✅ |
| SIPC Insurance | ✅ | ✅ |
Note: With Paasa, your account is opened in your own name, with Interactive Brokers as the custodian. That means 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 | ✅ | ✅ (Apex plan) | |
| UCITS | ✅ | ✅ | |
| AIFs | ❌ | ❌ | |
| Auto-rebalanced UCITS portfolios | ❌ | ✅ (Apex plan) | |
| Interest on uninvested cash | ✅ | ✅ | |
| Withdraw money to US bank account | ✅ | ✅ | |
Note: UCITS portfolios are preferred by many Indian investors for US estate tax protection and global diversification. You can buy UCITS ETFs on both platforms, but auto-rebalanced UCITS portfolios are available only through Paasa.
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 | ❌ | ✅ (Apex plan) | |
| 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 | Benchmarking only (PortfolioAnalyst) | ✅ |
| 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 |
|---|---|---|
| First-time global investors | Higher friction for beginners | Easy onboarding, with no minimum balance |
| 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 | ❌ | ✅ (Apex plan) |
| Expert concierge (FEMA, Tax) | ❌ | ✅ (Apex plan) |
| Customize features on request | ❌ | ✅ |
Conclusion
Both IBKR and Paasa offer access to global markets. But whether you're making your first global allocation or managing a family portfolio, what you're really choosing is the kind of experience you want around that access: 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 support@paasa.com.
About Paasa
Paasa is a global investing platform for Indian investors, from those making their first global allocation to HNIs and family offices. It helps them invest across the US, UK, Europe, and China with tools that simplify LRS, remittance, tax reporting, and cross-border complexity.
