Why choose Alpaca Trading
Alpaca Securities LLC is US-based broker providing commission-free API stock trading.
Alpaca Trading provides great API tools for algorithmic trading, zero-commission stock and ETF trading, and great charting tools through a web platform. Users dedicated to learning how to use the API and the programs will find that Alpaca provides a unique service. It is a good choice for beginner investors.
On the other hand, Alpaca Trading relies heavily on its GitHub/Slack/other community forums for user support, as there is only extremely limited customer service. Furthermore, deposit or withdrawal is only possible via bank transfer. Finally, the product selection covers only US stocks, ETFs and crypto.
AwardBroker gave Alpaca Trading a 4.4/5 rating based on analyzing 600+ criteria and testing via opening a live account.
| ✅ Pro | ❌ Cons |
| ❖ Great API trading service ❖ Free stock & ETF trading ❖ Fantastic charting tools | ❖ Limited customer support ❖ Limited deposit and withdrawal options ❖ Only US stocks, ETFs and crypto available |
Alpaca Trading at a glance
| 🗺 Country of regulation | USA |
|---|---|
| 💰 US stock fee | Commission-free stock trading |
| 💰 Inactivity fee charged | No |
| 💰 Withdrawal fee | $0 |
| 💰 Minimum deposit | $0 |
| 🕖 Time to open an account | 1 day |
| 🎮 Demo account provided | Yes |
| 🛍️ Products offered | Stock, ETF, Crypto |
Fees
Score: 4.6/5
Alpaca Trading offers zero-commission stock and ETF trading and low margin rates. Non-trading fees are also competitive as no fee is charged for inactivity or most withdrawals.
| ✅ Pro | ❌ Cons |
| ❖ Commission-free stock and ETF trading ❖ No inactivity fee ❖ No withdrawal fee | None |
We compared Alpaca Trading‘s fees with two similar brokers we selected, moomoo and Webull. These competitors were selected based on objective factors like products offered, client profile, fee structure, etc. See a more detailed comparison of Alpaca Trading alternatives.
Commission-free stock and ETFs
It’s extremely great as Alpaca Trading has commission-free US stock trading.
| Broker | US stock |
|---|---|
| Alpaca Trading | $0.0 |
| moomoo | $0.0 |
| Webull | $0.0 |
Low margin rates
Alpaca Trading USD margin rate fees are lower than the industry average. USD margin rate fees are calculated as follows: Flat Rate of 8.5%
| Broker | USD margin rate |
|---|---|
| Alpaca Trading | 8.5% |
| moomoo | 6.8% |
| Webull | 9.7% |
No inactivity fee, high withdrawal fee
There are no fees for inactivity or account maintenance, and deposits are also free.
ACH withdrawals are free of charge, but wire withdrawals will cost $25 for domestic and $50 for international transfers.
| Broker | Inactivity fee | Withdrawal fee |
|---|---|---|
| Alpaca Trading | $0 | |
| moomoo | $0 | |
| Webull | $0 |
Other commissions and fees
Low spot crypto fees: at Alpaca Trading, crypto trading costs 0.25% of trade value.
| Broker | Mutual fund | US micro e-mini stock index futures |
|---|---|---|
| Alpaca Trading | – | – |
| moomoo | – | – |
| Webull | – | – |
Safety
Alpaca Trading is overseen by top-tier US regulators and comes with strong investor protection, but its lack of a banking license or a public listing means less transparency.
| ✅ Pro | ❌ Cons |
| ❖ Majority of clients belong to a top-tier financial authority ❖ High level of investor protection | ❖ Does not hold a banking license ❖ Not listed on stock exchange ❖ Financial information is not publicly available |
Is Alpaca Trading regulated?
Yes, it is regulated by the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Is Alpaca Trading safe?
To be certain that a brokerage is safe, we highly advise that you check two facts:
- how you are protected if something goes wrong
- the background of the broker.
How you are protected
At Alpaca Trading, all customers are served by Alpaca Securities LLC and covered by the US investor protection scheme, called SIPC.
The SIPC investor protection scheme protects against the loss of cash and securities in case the broker goes bust. The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash. This amount is substantially higher than what most other investor protection schemes provide.
On top of that, Alpaca offers Excess SIPC Insurance coverage, surpassing the standard SIPC coverage threshold.
Alpaca Trading does not provide negative balance protection. If the balance on your account goes into negative, you will not be protected. This is important because Alpaca provides margin trading and if the value of your investments declines too much, your account can be wiped out and you can potentially end up owing more money than you initially invested.
Background
Alpaca Trading was established in 2015. The longer the track record a broker has, the more proof we have that it has successfully survived previous financial crises.
It does not have a banking license and is not publicly listed, meaning less overall transparency about its financials.
Deposit and withdrawal
Score: 1.2/5
Bank transfer deposit/withdrawal is easy and free, but like other US brokers, Alpaca doesn't support multiple currencies or credit/debit card funding, and wire withdrawal is costly. Crypto transfer is available.
| ✅ Pro | ❌ Cons |
| ❖ Free withdrawal ❖ No deposit fee ❖ User-friendly | ❖ Credit/Debit card not available ❖ Only one account base currency ❖ High withdrawal fee for wire transfers |
Account base currencies
At Alpaca Trading, the only available base currency is USD.
| Broker | Number of base currencies |
|---|---|
| Alpaca Trading | 1 |
| moomoo | 1 |
| Webull | 1 |
If you have a personal bank account in a currency other than USD, then you will be charged a conversion fee.
A convenient way to save on currency conversion fees is by opening a multi-currency bank account at a digital bank. These usually offer bank accounts in several currencies with great currency exchange rates, as well as free or cheap international bank transfers. Opening an account only takes a few minutes on your phone.
Deposit fees and options
Alpaca Trading charges no deposit fees.
Like at other US brokers, credit/debit cards and electronic wallets are not accepted.
| Broker | Bank transfer |
|---|---|
| Alpaca Trading | |
| moomoo | |
| Webull |
A bank transfer can take several business days. You can only deposit money from accounts that are in your name.
Alpaca Trading review – Deposit and withdrawal – Deposit
Alpaca Trading withdrawal fees and options
Alpaca Trading charges no fees for ACH withdrawals. If you prefer wire withdrawals, it will cost $25 domestically and $50 internationally.
Similarly to deposits, withdrawal to credit/debit cards and electronic wallets is not supported.
| Broker | Bank transfer |
|---|---|
| Alpaca Trading | |
| moomoo | |
| Webull |
You can only withdraw money to accounts in your name.
How long does it take to withdraw money from Alpaca Trading? We tested the bank transfer withdrawal and it took less than 3 days.
How do you withdraw money from Alpaca Trading?
- Navigate to your Alpaca Homepage.
- Choose the banking icon from the left navigation panel.
- Make sure your bank account is linked; if not, fill in your username and password and allow your bank to authorize Alpaca.
- Choose ‘Transfer Money'.
- In the pop-up box, select ‘Withdrawal'.
- Fill in the amount you would like to withdraw; your total withdrawable balance is shown in the right side of the box.
Crypto transfer is available at Alpaca Markets. This lets you deposit or withdraw cryptocurrencies from/to certain crypto wallets. It is only accessible from 13 US states though.
Account opening
Score: 5/5
Opening an account with Alpaca is quick, and requires no minimum deposit. Integrating your account with third-party softwares can be tricky, but Alpaca offers great guidance.
| ✅ Pro | ❌ Cons |
| ❖ Fast ❖ Fully digital ❖ No minimum deposit | ❖ Bit complex process for integrating third-party tools |
Mobile app
Score: 4.2/5
The mobile platform is even simpler than the web platform. It is similarly easy to use, but likewise has a poor search function and no price alerts. Logging in can also be complicated.
| ✅ Pro | ❌ Cons |
| ❖ User-friendly ❖ Two-step (safer) login ❖ Order confirmation | ❖ Poor search function ❖ No price alerts ❖ No Touch/Face ID login |
Similarly to Alpaca Trading‘s web platform, you can use Alpaca Trading's own mobile trading platform. The app is available for both iOS and Android. In this review, we tested it on iOS.
Overall, the app is designed to be paired with the API. There are emergency buttons, for example to stop all trades, that are helpful for users using codes to execute trades automatically.
Look and feel
The Alpaca Trading mobile trading platform is user-friendly and very simple. You will easily find all features.
Alpaca Trading review – Mobile trading platform
Login and security
Alpaca Trading provides a safer, two-step login for its mobile platform.
Signing in is not easy; the app directs you to the mobile website to fill in your username and password, which is not saved for subsequent logins. However, once you sign in on your device, you remain signed in as long as you don't manually sign out.
You can't log in using biometric authentication. Providing this feature would be more convenient.
Search functions
The search functions are OK.
You can only search by ticker symbol. On the app, it is even harder to tell which stocks are which, because there is less information on each page compared with the web platform.
Alpaca Trading review – Mobile trading platform – Search
Placing orders
You can use the following order types on the mobile trading platform:
- Market
- Limit
- Stop
- Stop limit
There are also order time limits you can use:
- Day
- GTC
- OPG
Alpaca Trading review – Mobile trading platform – Order panel
Alerts and notifications
You cannot set alerts and notifications on the Alpaca Trading mobile platform.
Desktop platform
Score: 3.7/5
Alpaca's web trading platform feels safe, user-friendly, and visually pleasing. However, it does not allow customization, there are no price alerts, and the search function is limited.
| ✅ Pro | ❌ Cons |
| ❖ User-friendly ❖ Two-step (safer) login ❖ Modern design | ❖ Poor search function ❖ Limited customizability (for charts, workspace) ❖ No price alerts |
Product selection
Score: 2.4/5
Alpaca Trading currently only provides access to US stocks, ETFs and crypto. Other asset classes, like options or bonds, as well as international market coverage, are not available.
Unlike its closest competitors, there are only stocks, ETFs and crypto available at Alpaca Trading.
| Broker | Stocks |
|---|---|
| Alpaca Trading | |
| moomoo | |
| Webull |
This selection is average compared to competing brokers.
Stocks and ETFs
You can invest in stocks and ETFs listed on the biggest US markets, like the NYSE or NASDAQ. This selection is similar to Alpaca's main competitors.
| Broker | Stock markets (#) |
|---|---|
| Alpaca Trading | 5 |
| moomoo | 5 |
| Webull | 5 |
You can also trade with fractional shares. Short selling of shares is available as well, as is pre-market and after-market trading.
You can invest in a wide range of cryptos.
FAQ
We recommend Alpaca Trading for traders interested in algorithmic stock trading.
Below you can find links to all aspects of Alpaca Trading in this comprehensive collection.
Lower fees, lower costs?
We detailed this in our Alpaca Trading fees article.
What about the minimum deposit?
Our ultimate guide to the Alpaca Trading minimum deposit is updated regularly.
How to start your Alpaca Trading account?
Look no further than our evaluation of the Alpaca Trading account opening.
How's their trading app?
Here's our expert view after checking the Alpaca Trading trading app.
Is the quality of customer service satisfactory?
All you need to know about the Alpaca Trading customer service.
Legit or scam?
Is Alpaca Trading legit features all the key aspects you need to look at to see if a broker is safe and legit.
Free or premium? Or both?
A glance at actual costs and whether Alpaca Trading is really free.
Is this broker good for beginners?
We checked it in Is Alpaca Trading good for beginners.
Should you buy your silver bullets on Alpaca Trading?
Research for silver bugs in the Silver buy on Alpaca Trading guide
I want to trade options, are they available at Alpaca Trading?
We explored the topic in Can you trade options on Alpaca Trading?
What is the minimum account balance at Alpaca Trading?
Check out the current account balance requirements at Alpaca Trading in our What is the minimum account balance at Alpaca Trading article.
Looking for commission and fees data for Alpaca Trading?
We collected them in Alpaca Trading commission and fees.
How do you withdraw money from Alpaca Trading?
We tested it and collected the options and costs in How to withdraw money on Alpaca Trading.