At Alpaca, we strive to make trading more cost-efficient, transparent, and accessible for active traders and algorithm developers. Over the years, we’ve introduced commission-free* API trading, lowered margin rates, and built a developer-first trading platform designed to help empower strategy builders at every level.
Starting October 1, we’re taking another major step forward: zero borrow fees on all ETB (easy-to-borrow) shares for Trading API users.
What’s New
Now when you short ETB securities, there are no associated borrow fees to hold these short positions overnight.
This is in addition to existing benefits
- Lowered margin rates — Keep leverage affordable and accessible for advanced strategies.
- 5,000+ ETB securities — A broad inventory of ETB securities to support shorting needs
- Powerful, API-first infrastructure — Build, automate, and scale, with the freedom to design strategies your way.
Why This Matters
Now, active traders have more flexibility to short without additional expenses eating into returns. This creates a fairer, more competitive environment where strategies are driven by market insight instead of fee structures.
- Cost-Efficient Execution – Removing ETB borrow fees helps reduce friction in active or systematic strategies where even small costs can erode performance at scale.
- Simplified Modeling – With no borrow fees to factor in, backtesting and live trading models become more accurate and easier to implement, improving strategy reliability.
- Expanded Strategy Design – Algorithmic traders can confidently incorporate shorting into their systems without worrying about variable borrow fees disrupting expected returns.
Built for API Traders
Alpaca’s Trading API provides the infrastructure active traders need to turn ideas into execution. With zero ETB borrow fees, your strategies can run with even greater efficiency and flexibility. This is more than just a pricing update—it’s part of our continued commitment to give traders the tools, transparency, and support they need to succeed.
And this is just the beginning. We’ll continue investing in features and offering competitive pricing to help ensure Alpaca remains the most competitive, transparent, and developer-first platform for modern trading.
Get Started
If you already use Alpaca’s Trading API, no action is needed. ETB borrow fees will automatically be removed on October 1.
Not trading with Alpaca yet? Sign up for an account today and explore the benefits of commission-free trading with developer-first tools.
Still have questions? Learn more in our support page for ETB or contact us at [email protected].
*Commission-free trading is available to Alpaca's retail customers. Commission-free trading means that there are no commission charges for Alpaca self-directed individual cash brokerage accounts that trade U.S.-listed securities and options through an API. However, certain arrangements with authorized business partners or the use of the Elite Smart Router as part of the Alpaca Elite offering may preclude commission free trades by Alpaca Securities. Please refer to the Brokerage Fee Schedule for more information. Relevant regulatory fees may apply. Alpaca reserves the right to charge additional fees if it is determined that order flow is non-retail in nature.
Margin trading involves significant risk and is not suitable for all investors. Before considering a margin loan, it is crucial that you carefully consider how borrowing fits with your investment objectives and risk tolerance. When trading on margin, you assume higher market risk, and potential losses can exceed the collateral value in your account. Alpaca may sell any securities in your account, without prior notice, to satisfy a margin call. Alpaca may also change its “house” maintenance margin requirements at any time without advance written notice. You are not entitled to an extension of time on a margin call. Please review the Firm’s Margin Disclosure Statement before investing.
Past hypothetical backtest results do not guarantee future returns, and actual results may vary from the analysis.
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 assure 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.
The content of this article is for general information only and is believed to be accurate as of posting date but may be subject to change. Alpaca does not provide investment, tax, or legal advice. Please consult your own independent advisor as to any investment, tax, or legal statements made herein.
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 is not registered or licensed, as applicable.
Please see the Disclosure Library for additional information and disclosures from Alpaca Securities.
