Alpaca had a landmark year in 2024 as we became a fully self-clearing broker-dealer and launched new features like options trading. Working with hundreds of global financial institutions, we quickly learned the importance of fully integrating brokerage operations stack (such as execution, clearing, and custody with multiple regulatory approvals) and infrastructure technology with a proprietary codebase. These achievements accelerated our product velocity which allowed more partners to utilize Alpaca’s infrastructure and solutions.
This year, we also launched several new products and features for both our broker and retail clients, celebrated many successes of our Broker API partners, expanded our global presence, and won multiple industry awards. As we saw in Q4 of 2024, the macro environments are always changing. However, we will always deliver what empowers both businesses and individuals to build and achieve their financial goals with trust and credibility.
All these milestones and product deliveries move us further in our company mission of opening financial services to everyone on the planet. As the year ends, we wanted to reflect on and celebrate the key moments and milestones we had in 2024, while discussing where our focus will be as we approach 2025.
New Products and Releases
We had core business updates and released a ton of new products that make investing and trading more accessible and efficient for both enterprise and retail clients. Here's a quick recap:
Self-Clearing at DTCC: Alpaca achieved a major milestone by transitioning to self-clearing at the Depository Trust & Clearing Corporation (DTCC). This strategic move provides us with greater visibility and control over our clearing and settlement operations, enabling us to reduce costs, improve efficiency and security, and offer enhanced services to our customers. By becoming a self-clearing broker-dealer, we've strengthened our infrastructure and gained greater flexibility to innovate and scale our operations.
US Options Trading: We expanded our offerings to include US options trading for both global investors and algo traders, opening up new investment opportunities. This expansion provides access to a diverse range of options contracts, allowing investors to implement sophisticated trading strategies and manage risk effectively. By offering options trading, we cater to the needs of experienced traders seeking greater flexibility and control. Read our latest options trading content.
High Yield Cash API: We introduced our High-Yield Cash API to help investors earn more on their USD balances. This API allows businesses to seamlessly integrate high-yield cash solutions into their platforms, offering their users a competitive return on idle funds. With the HY Cash API, businesses can enhance their offerings and attract new customers with a valuable and secure cash management tool.
IRA Accounts: Retirement savers can now open and manage Individual Retirement Accounts (IRAs) through our Broker API, making tax-advantaged investing easier. This feature provides a seamless and efficient way for users to plan for their future, offering both Traditional and Roth IRA options. By integrating IRA functionality directly into our API, we empower businesses to provide comprehensive retirement planning solutions to their customers.
FIX API: For our institutional and high-frequency traders, we launched a FIX API, providing a dedicated connection for high-speed, reliable order execution and market data. This solution offers direct market access, reduced latency, and increased throughput, empowering sophisticated traders to execute complex strategies with greater efficiency.
Local Currency Trading API Enhancements: Our Local Currency Trading API was upgraded to support stop, stop-limit, and limit orders with extended hours, giving international investors more control and flexibility. This enhancement allows investors to manage risk and capitalize on market opportunities outside of regular trading hours. By offering advanced order types and extended hours, we continue to expand access to global markets for our international users.
Fractional Shares Enhancements: In February, we enhanced our fractional shares trading to support limit orders and extended hours, making it easier for investors to buy and sell smaller portions of high-priced stocks. This enhancement provides greater flexibility and control for investors looking to diversify their portfolios with smaller investments.
Instant Funding for Broker API: We made funding accounts faster and smoother with instant funding capabilities, allowing investors to start trading immediately. This feature eliminates delays and provides a seamless onboarding experience for new users. By removing friction in the funding process, we enable investors to quickly access the markets and seize opportunities.
Alpaca Elite: Alpaca Elite, a new program designed for advanced algorithmic traders, was introduced, offering low-cost trading, white-glove support, and access to cutting-edge tools. This exclusive program caters to the needs of sophisticated traders, providing them with the resources and support necessary to succeed in today's fast-paced markets.
Streamlined Business Account Onboarding: We simplified the business account onboarding process, making it faster and easier for businesses to start trading with Alpaca. This streamlined process reduces paperwork and accelerates the time it takes for businesses to access our platform and services from days to hours. By simplifying onboarding, we empower businesses to focus on their core operations and leverage our technology to achieve their goals.
SOC 2 Type 2 Compliance Renewal: The successful renewal of SOC 2 Type 2 compliance reinforced Alpaca's commitment to data security and the protection of customer information. These audits validate the effectiveness of the security controls and processes in place, ensuring the confidentiality, integrity, and availability of Alpaca's systems.
Multi-Account Support for Paper: As one of the final product updates of the year, we now allow Trading API clients to create up to three paper accounts. With this feature, traders can easily backtest and deploy multiple trading strategies, compare account performance, and identify issues and optimizations in parallel. We also made it easier to trade options, with Delta, Bid and Ask, Implied Volatility, and ITM/OTM contracts being added to our options chains in the Alpaca Dashboard.
Celebrating Our Partners
We're incredibly proud to partner with innovative companies around the globe who are using Alpaca's Broker API to revolutionize the investing landscape. Here are just a few of their success stories:
Sarwa: A leading wealth management platform in the Middle East, Sawra leveraged Alpaca's Broker API to become the first fintech company to offer options trading in the region. By integrating our API, Sarwa expanded its investment offerings, providing users with sophisticated tools and greater access to global markets. This partnership has enabled Sarwa to attract new customers and solidify its position as a pioneer in the Middle Eastern fintech industry.
Thndr: Thndr, a commission-free investment platform based in Egypt, partnered with Alpaca to democratize investing in the MENA region. Using our Broker API, Thndr provides a user-friendly mobile app that makes investing accessible to everyone, regardless of their experience or financial background. This collaboration has empowered a new generation of investors in the MENA region, driving financial inclusion and literacy, with Thndr achieving over 3 million app downloads and facilitating $1.8 billion in trading volume in 2023 alone.
eccuity: A New Zealand-based investment platform, eccuity partnered with Alpaca to simplify complex investment strategies for Kiwi investors. Through our Broker API, eccuity offers innovative tools and educational resources that empower users to make informed investment decisions. This partnership has fostered a thriving investment community in New Zealand, making investing more accessible and understandable.
Elphinstone: Elphinstone, a Pakistani fintech company, partnered with Alpaca to provide Pakistani investors with access to US assets like stocks and ETFs. By integrating with our Broker API, Elphinstone offers a seamless and secure platform for users to diversify their portfolios with international investments. The success of the partnership is clear with 55% of their clients making multiple deposits. This collaboration has opened up new opportunities for Pakistani investors, allowing them to participate in the global economy and achieve their financial goals.
tyba: A Latin American digital investment app, tyba used Alpaca’s Broker API to significantly reduce the cost of investing in US equities, allowing clients to invest for as little as $1 USD. In less than one year, they’ve processed 80,000 orders, helped over 10,000 Colombians and Peruvians start investing, and reached over $7 million USD in AUM. By partnering with Alpaca, tyba serves a broader segment of the population, including those previously excluded from traditional investing.
Expanding Our Global Presence
We partnered with Derayah Financial, a leading Saudi Arabian investment firm, to bring innovative brokerage solutions to the Middle East. This partnership combines Alpaca's key brokerage infrastructure with Derayah's strategic investment, expanding access opportunities for both global and Saudi investors.
Our partnership with Citadel Securities was extended to unlock Japanese investor demand for US stocks and options trading. This collaboration leverages Citadel Securities' expertise in market making and Alpaca's advanced API technology to provide Japanese investors with seamless and efficient access to the US markets.
We continued our partnership with GITEX GLOBAL, the largest tech show in the Middle East and North Africa, to showcase our commitment to the region's growing fintech ecosystem. Our presence at GITEX GLOBAL allowed us to connect with potential partners, customers, and investors, further strengthening our position in the MENA market.
An integration with QuantConnect, a leading algorithmic trading platform, was implemented to empower quantitative traders worldwide. This integration allows QuantConnect users to seamlessly connect to Alpaca's brokerage infrastructure, execute trades, and access real-time market data, facilitating sophisticated trading strategies and research.
Alpaca’s Recognition in the Industry
Industry leaders and experts have recognized Alpaca's commitment to innovation and excellence throughout 2024.
2024 Benzinga Global Fintech Awards: We were honored to receive the "Most Sophisticated Brokerage for Advanced Traders" award from Benzinga. This recognition highlights our dedication to providing cutting-edge technology, robust infrastructure, and comprehensive tools for sophisticated traders and institutional investors. This award is a testament to our ongoing efforts to empower traders with the resources they need to succeed in today's dynamic markets.
Postman API Awards: We were thrilled to be awarded "Best API" by Postman at POST/CON 2024. This award recognizes the quality, usability, and innovation of our Trading API, which enables developers to execute trades algorithmically. This recognition underscores our commitment to providing a developer-friendly experience and empowering our partners to build innovative financial products.
What’s Coming in 2025
In 2025, we will demonstrate further trust and confidence in Alpaca's brokerage infrastructure through key initiatives. This includes enhancing our asset class offerings, displaying financial strength, and accelerating the number of new partnerships globally. Together, these advancements will drive our mission further of opening financial services to everyone on the planet by building the global standard for investing infrastructure.
Alpaca Securities LLC and the entities referenced above are not affiliated and neither are responsible for the liabilities of the other.
Options trading is not suitable for all investors due to its inherent high risk, which can potentially result in significant losses. Please read Characteristics and Risks of Standardized Options before investing in options.
Fractional share trading allows a customer to buy and sell fractional share quantities and dollar amounts of certain securities. Fractional share trading presents unique risks and is subject to particular limitations that you should be aware of before engaging in such activity. See Alpaca Customer Agreement at https://alpaca.markets/disclosures for more details.
The Paper Trading API is offered by AlpacaDB, Inc. and does not require real money or permit a user to transact in real securities in the market. Providing use of the Paper Trading API is not an offer or solicitation to buy or sell securities, securities derivative or futures products of any kind, or any type of trading or investment advice, recommendation or strategy, given or in any manner endorsed by AlpacaDB, Inc. or any AlpacaDB, Inc. affiliate and the information made available through the Paper Trading API is not an offer or solicitation of any kind in any jurisdiction where AlpacaDB, Inc. or any AlpacaDB, Inc. affiliate (collectively, “Alpaca”) is not authorized to do business.
Past hypothetical backtest results do not guarantee future returns, and actual results may vary from the analysis.
High-Yield Cash API is subject to, among other things, the Alpaca’s API terms and conditions. In addition, customer access to the FDIC Bank Sweep is subject to, among other things, the Alpaca Customer Agreement, Alpaca Terms and Conditions, and the Alpaca FDIC Bank Sweep Program Terms and Conditions. Please see alpaca.markets/disclosures for further information and important disclosures.
Alpaca Securities offers a cash management program pursuant to the FDIC Bank Sweep. Customer funds are treated differently and are subject to separate regulatory regimes depending on whether customer funds are held in their brokerage account or within the FDIC Bank Sweep. Specifically, Alpaca Securities is a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per deposit against the failure of an FDIC member bank. Customer funds held in brokerage accounts are SIPC insured, but are not eligible for FDIC insurance coverage. Funds maintained in the FDIC Bank Sweep are intended to be eligible for pass-through FDIC insurance coverage, but are not subject to SIPC coverage. FDIC insurance coverage does not protect against the failure of Alpaca, Alpaca Securities, or any of its or their affiliates and/or malfeasance by any Alpaca or Alpaca Securities employee. Program banks that participate in the FDIC Bank Sweep are not members of SIPC and therefore funds held in the Program are not SIPC protected. Please see alpaca.markets/disclosures for important additional disclosures regarding Alpaca Securities brokerage offering as well as FDIC Bank Sweep terms and conditions.
Alpaca Securities customers that enroll in the FDIC Bank Sweep are potentially eligible for enhanced FDIC pass-through insurance coverage. Neither Alpaca nor Alpaca Securities are FDIC-insured. FDIC pass-through insurance coverage is subject to various conditions. The Program’s enhanced FDIC insurance coverage is limited to the aggregate number of participating program banks, multiplied by the FDIC insurance limit (i.e., $250,000). The total number of program banks is subject to change and Alpaca Securities may not utilize all program banks at all times which will affect the Program’s enhanced FDIC insurance coverage amount. In addition, if a customer has a direct banking relationship with a program bank this may affect the amount of funds that are potentially eligible for FDIC-pass through insurance coverage. There is no guarantee that customer funds will be held in such a manner as to maximize possible FDIC pass-through insurance coverage. Please see alpaca.markets/disclosures for further information and important disclosures.
Extended Hours trading has unique risks and is different than trading in the main trading session, for more information please visit our Alpaca Extended Hours Trading Risk Disclosure.
All investments involve risk, and the past performance of a security, or financial product does not guarantee future results or returns. There is no guarantee that any investment strategy will achieve its objectives. Please note that diversification does not ensure a profit, or protect against loss. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.
Securities brokerage services are provided by Alpaca Securities LLC ("Alpaca Securities"), member FINRA/SIPC, a wholly-owned subsidiary of AlpacaDB, Inc. Technology and services are offered by AlpacaDB, Inc.
This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Alpaca Securities are not registered or licensed, as applicable.
Please note that this article is for general informational purposes only and is believed to be accurate as of the posting date but may be subject to change. The examples above are for illustrative purposes only.
