Alpaca Trading Review

API-driven and algorithmic traders

FINRA SIPC FinCEN

Founded 2015 · United States · AlpacaDB, Inc.

Why investors choose this broker

Commission-free stocks, ETFs and options for self-directed retail API accounts
Paper trading environment available at no cost
Fractional shares supported
24/5 extended trading hours on 100+ US stocks

Review summary

Alpaca Trading is a US API-first broker offering commission-free stocks, ETFs, options and crypto trading with a paper trading environment and margin accounts.

Pros

Commission-free stocks, ETFs and options for self-directed retail API accounts
Paper trading environment available at no cost
Fractional shares supported
24/5 extended trading hours on 100+ US stocks
Multi-leg options strategies supported
FINRA/SIPC member with up to $500,000 SIPC protection
Margin available at 4x intraday and 2x overnight
Securities lending program with potential income for shareholders

Cons

Platform is primarily API-driven; web and mobile apps are available but offer fewer features than conventional retail brokerage interfaces
Crypto accounts are not protected by FDIC or SIPC
Domestic wire withdrawals cost $25; international wires cost $50
Outbound ACATS transfer costs $100
Not suited for investors who prefer a full-featured retail brokerage app
Commission-free status may not apply to accounts opened through business partners

Company background

Alpaca Trading is operated by AlpacaDB, Inc., founded in 2015 and headquartered in California, USA. The company began as a financial data and machine learning company, then evolved into a brokerage infrastructure and API trading provider. Its securities brokerage subsidiary, Alpaca Securities LLC, is a FINRA and SIPC member. Co-founders Yoshi Yokokawa and Hitoshi Harada built the platform around a developer-first approach, making financial market access programmable for individuals, developers and fintech businesses. The platform serves over 61,000 monthly active developers and has facilitated more than 7 million brokerage account openings across 40+ countries.

Fees and pricing

Alpaca Securities offers commission-free trading for self-directed individual cash brokerage accounts trading US-listed stocks, ETFs and options through an API. Regulatory pass-through fees apply on equity sells (SEC fee and FINRA TAF) and on options contracts (FINRA TAF, ORF and OCC fee). No account opening, maintenance or inactivity fee is listed. Wire withdrawals cost $25 domestic and $50 international. Outbound ACATS transfers are $100. Margin interest is 6.25% annualized by default, or 4.75% for Alpaca Elite 100k accounts. Commission-free status may not apply to accounts opened through business partners or to Elite Smart Router users.

Regulation and safety

Securities brokerage services are provided by Alpaca Securities LLC, a FINRA member and SIPC member and a wholly-owned subsidiary of AlpacaDB, Inc. SIPC protection covers brokerage accounts up to $500,000, including up to $250,000 in cash. Cryptocurrency services are provided by Alpaca Crypto LLC, a FinCEN-registered money services business (NMLS 2160858). Alpaca states that crypto investments are not protected by FDIC or SIPC.

Platform experience

Alpaca is primarily an API-first platform offering a Trading API, Broker API for fintech integrations and a Market Data API, with SDKs for Python, .NET/C#, Go and Node. It also provides a web app, iOS app and Android app for retail users, along with a TradingView integration. A paper trading environment is available at no cost for testing strategies. The platform supports fractional shares, multi-leg options up to Level 3, 24/5 extended trading on selected US stocks, up to 4x intraday and 2x overnight margin, and a securities lending program.

Pros and cons

Alpaca's main advantages are commission-free stock, ETF and options trading, developer-friendly API infrastructure, free paper trading, fractional shares and 24/5 extended trading hours. The main drawbacks are its API-first orientation which may not suit traders who prefer a conventional brokerage interface, wire withdrawal fees, the $100 outbound ACATS fee, and crypto assets falling outside FDIC and SIPC protection.

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Open an account directly with the broker. Confirm current fees and account eligibility on the broker's website before depositing.

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Your capital is at risk. Other fees apply.

Trading fees & commissions

Commission-free trading is available for self-directed retail cash accounts trading US-listed stocks, ETFs and options via API; regulatory pass-through fees apply. Wire withdrawals cost $25 domestic and $50 international; margin interest is 6.25% per year by default.

Fees

Item	Fee
Crypto	Provided by Alpaca Crypto LLC; specific crypto fee schedule separate from securities fee schedule
Margin	Default margin lending rate: 6.25% annualized; Alpaca Elite 100k rate: 4.75% annualized
Account	No account opening or maintenance fee
Deposit	ACH deposit: Free; ACH return (rejected transfer): $25
Options	Commission: Free for self-directed retail API accounts; regulatory pass-through fees apply (TAF $0.00329/contract on sells; ORF $0.02295/contract; OCC $0.025/contract)
Transfers	ACATS outbound: $100; ACATS inbound: Free; DWAC outgoing: $250; DTC outgoing: $50
Inactivity	No inactivity fee listed
Withdrawal	Domestic wire: $25 per transaction; International wire: $50 per transaction; ACH return fee: $25

Trading platform & features

Platforms

Alpaca Trading API
Alpaca Broker API
Web app
iOS app
Android app
TradingView

Regulation and investor protection

Securities brokerage services are provided by Alpaca Securities LLC, a member of FINRA and SIPC and a wholly-owned subsidiary of AlpacaDB, Inc. Cryptocurrency services are provided by Alpaca Crypto LLC, a FinCEN-registered money services business (NMLS 2160858); crypto accounts are not protected by FDIC or SIPC.

Broker FAQs

Is Alpaca Trading safe?

Securities brokerage services are provided by Alpaca Securities LLC, a FINRA member and SIPC member. Client securities accounts are covered by SIPC protection up to $500,000. Crypto assets are not protected by FDIC or SIPC.

Is Alpaca Trading a scam?

No. Alpaca Securities LLC is a FINRA-registered broker-dealer and SIPC member. Alpaca Crypto LLC is a FinCEN-registered money services business (NMLS 2160858).

Is Alpaca Trading regulated and by whom?

Yes. Alpaca Securities LLC is regulated by FINRA and is a SIPC member. Alpaca Crypto LLC is registered with FinCEN as a money services business (NMLS 2160858).

Does Alpaca Trading keep client funds in segregated accounts?

Alpaca Securities LLC is a SIPC member, which means client securities and cash in brokerage accounts are protected up to $500,000, including up to $250,000 in cash, in the event of broker failure.

What happens to my money if Alpaca Trading goes bankrupt?

Brokerage accounts held with Alpaca Securities LLC are covered by SIPC protection up to $500,000. Cryptocurrency held with Alpaca Crypto LLC is not covered by FDIC or SIPC.

What products does Alpaca Trading offer?

Alpaca offers US stocks, ETFs, fractional shares, options (including multi-leg strategies), cryptocurrency, margin trading and a paper trading environment.

Does Alpaca Trading offer ETFs?

Yes. Alpaca offers commission-free trading of US-listed ETFs for self-directed retail API accounts, subject to regulatory pass-through fees on sell transactions.

Does Alpaca Trading offer options?

Yes. Alpaca supports options trading including multi-leg strategies up to Level 3. Commission is free for self-directed retail API accounts, with regulatory pass-through fees applying on each contract.

Does Alpaca Trading offer crypto?

Yes. Cryptocurrency services are offered through Alpaca Crypto LLC, a FinCEN-registered money services business. Crypto holdings are not covered by FDIC or SIPC protection.

Can I buy fractional shares on Alpaca Trading?

Yes. Alpaca supports fractional share trading, allowing users to invest in US-listed stocks and ETFs with smaller amounts of capital.

What does Alpaca Trading charge for stock trades?

Alpaca charges no commission for self-directed retail cash accounts trading US-listed stocks via API. Regulatory pass-through fees, including the SEC fee and FINRA TAF, apply on sell transactions.

What does Alpaca Trading charge for options?

Options are commission-free for self-directed retail API accounts. Regulatory pass-through fees apply per contract: FINRA TAF on sells ($0.00329), ORF on buys and sells ($0.02295) and OCC fee on buys and sells ($0.025).

Is there a withdrawal fee at Alpaca Trading?

Domestic wire withdrawals cost $25 per transaction. International wire withdrawals cost $50 per transaction. ACH deposits and withdrawals are free; a $25 fee applies to rejected (returned) ACH transfers.

Does Alpaca Trading charge an inactivity fee?

No inactivity fee is listed in the Alpaca Brokerage Fee Schedule.

What is Alpaca Trading's margin rate?

The default margin lending interest rate is 6.25% per year, charged on the daily balance. Alpaca Elite 100k accounts receive a reduced rate of 4.75% per year.

Does Alpaca Trading have a demo account?

Yes. Alpaca offers a paper trading environment through AlpacaDB, Inc. at no cost, allowing users to test trading strategies with simulated funds without risking real money.

Does Alpaca Trading have a mobile app?

Yes. Alpaca provides iOS and Android apps for retail users, in addition to its primary web app and API access.

Is Alpaca Trading good for beginners?

Alpaca is primarily designed for developers and algorithmic traders. Beginners with no coding experience may find the API-first interface challenging compared to conventional retail brokerage apps, though the paper trading environment and mobile apps provide accessible entry points.

Is Alpaca Trading good for long-term investing?

Alpaca supports stocks, ETFs, fractional shares and commission-free trading, which are compatible with long-term investing. However, the platform is oriented towards active and algorithmic trading rather than portfolio-building tools or advisory features.

Bottom line

Alpaca Trading suits users who want commission-free API-driven trading of US stocks, ETFs and options, with fractional shares, paper trading, margin access and developer-friendly infrastructure. It may not suit users who prefer a conventional full-service retail brokerage interface, want crypto assets covered by FDIC or SIPC, or wish to avoid wire withdrawal fees.

Alpaca Trading

API-driven and algorithmic traders

Open Account

Your capital is at risk. Other fees apply.