What currencies are supported for Local Currency Trading API?

Local Currency Trading (LCT) API at launch will accept the following currencies:

  • GBP: British Pound Sterling
  • CHF: Swiss Franc
  • EUR: Euro
  • CAD: Canadian Dollar
  • JPY: Japanese Yen
  • TRY: Turkish Lira
  • MXN: Mexican Peso
  • AUD: Australian Dollar
  • CZK: Czech Koruna
  • SEK: Swedish Krona
  • DKK: Danish Krone
  • SGD: Singapore Dollar
  • HKD: Hong Kong Dollar
  • HUF: Hungarian Forint
  • NZD: New Zealand Dollar
  • NOK: Norwegian Krone
  • PLN: Poland Złoty

What do I need to do to onboard as a LCT partner?

Please reach out to your Alpaca Sales Team Representative and request a Local Currency Trading Sandbox environment. Please specify the currency and account type you will be utilizing so that the most appropriate environment for your needs is established.

How do I create an account under LCT?

There are two ways to create a Local Currency account: Fully Disclosed or Omnibus Non-Disclosed. Both JIT Cash and Fully Funded Variations are possible.

How do I Fund accounts under LCT?

Accounts can be funded for LCT by either:

  • Bank Wire or;
  • Just in Time Cash or;
  • Just In Time

Does Local Currency Trading API support JIT?

Yes, Just in Time (JIT) supports Local Currency Trading. JIT Payments can be made in supported currencies to Alpaca, simplifying your operational requirements.

How does the Journals feature work?

Journaling in LCT is almost exactly the same as our regular Journals API. The main difference is the specification of “TRY” in the new “currency” field.

Example: Journal in Turkish Lira

Here is the request

{
  "to_account": "44394ea3-d5bf-4dc7-a39a-155aedcb1fd8",
  "from_account": "ece23fa8-0319-4ee5-9d54-f0d55841084c",
  "entry_type": "JNLC",
  "amount": "15",
  "currency": "TRY",
  "description": "journaling 10"
}
Request

Response: Journal in Turkish Lira

Here is the Response Body. Note here, the “currency” field denoting Turkish Lira, as shown by the three-letter currency code.

{
    "id": "3b1c71da-f9b4-4b4d-b8ee-96adfc8acb47",
    "entry_type": "JNLC",
    "from_account": "ece23fa8-0319-4ee5-9d54-f0d55841084c",
    "to_account": "44394ea3-d5bf-4dc7-a39a-155aedcb1fd8",
    "symbol": "",
    "qty": null,
    "price": "0",
    "status": "queued",
    "settle_date": null,
    "system_date": null,
    "net_amount": "15",
    "description": "journaling 10",
    "currency": "TRY"
}
Response


Response - SSE for Turkish Lira Journal

Here is what the SSE looks like for this type of action. Notice here, it is the same as any other journal event from an SSE perspective.

data: {
    "at":"2022-08-11T17:06:23.287209Z",
    "entry_type":"JNLC",
    "event_id":10895115,
    "journal_id":"3b1c71da-f9b4-4b4d-b8ee-96adfc8acb47",
    "status_from":"",
    "status_to":"queued"
}

data: {
    "at":"2022-08-11T17:06:47.155302Z",
    "entry_type":"JNLC",
    "event_id":10895118,
    "journal_id":"3b1c71da-f9b4-4b4d-b8ee-96adfc8acb47",
    "status_from":"queued",
    "status_to":"sent_to_clearing"
}

data: {
    "at":"2022-08-11T17:06:50.209109Z",
    "entry_type":"JNLC",
    "event_id":10895119,
    "journal_id":"3b1c71da-f9b4-4b4d-b8ee-96adfc8acb47",
    "status_from":"sent_to_clearing",
    "status_to":"executed"
}

How does corporate action work with LCT?

On the day before the dividend payment is made, Alpaca will use the 23:30 ET exchange rate, which will apply to all payments made the following day related to the local currency. The same logic will apply to other Corporate Actions.

Note: there is no additional markup applied to Dividends or other Corporate Actions.

What is the difference in API?

The main difference between LCT and non-LCT is the usage of a “swap_bps” field that is added to all orders. In this area, the correspondent can specify, at the order level, how much they wish to charge the client from their side. Note that Alpaca has a set swap_bps that is set at the correspondent level, and this cannot be controlled by the correspondent.

How revenues are generated?

Revenues are generated by an FX Fee, or swap fee that is applied to each trade. This is added as basis points or bps for short. Please note, that 100 basis points is equivalent to 1%.  For example - a JPY 10,000 trade with a 50bps fee would pay JPY50 in swap fees.

How fees are booked?

There are two sets of fees that are booked: the first is the correspondent fee which can be adjusted at the order level to meet your product requirements. The second is a fixed Alpaca fee that is charged regardless of what the correspondent fee is.

Who is eligible, and what type of partner setup or status can do LCT?

All partners are eligible to utilize LCT and participate in the revenue-sharing facility offered from the FX markup. At this time, we do not support Crypto for Local Currency Trading.

How currency exchange (FX) works? Who is taking the FX risks?

Conversion from Local Currency to USD is taken by Alpaca, along with the associated FX risk. Whether you are a JIT or Pre-Funded customer, you will be sending funds to one of Alpaca’s Local Currency accounts. From there, it is converted to US Dollars to meet trading obligations with our clearing partners to cover trades. The timing and frequency of FX booking and hedging is determined by Alpaca’s risk and operations team, which will vary subject to market conditions. As long as partners provide the required funds for settlement at the requested time, there is no FX risk for the partner.

To learn more on how to get started with Local Currency Trading, please check out our learn article and documentation here.


The content is for general information only and is believed to be accurate and reliable as of posting date but may be subject to change. Alpaca Securities LLC does not recommend any specific investments or investment strategies. Alpaca Securities LLC does not provide investment, tax, or legal advice.

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 LLC is not registered or licensed, as applicable.