Alpaca says it had a landmark year in 2024 as they became a fully self-clearing broker-dealer and launched new features like options trading.
Working with financial institutions, Alpaca said they 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.”
According to Alpaca, these achievements accelerated their product velocity which allowed more partners to utilize Alpaca’s infrastructure and solutions.
This year, Alpaca also launched several new products and features for both our broker and retail clients, celebrated many successes of their Broker API partners, expanded their global presence.
As we saw in Q4 of 2024, the macro environments are always changing.
However, Alpaca said it 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 them further in their company mission of opening financial services to “everyone on the planet.”
As the year ends, Alpaca reflected on and marked the key moments and milestones they had in 2024, while discussing where their focus will be as we approach 2025.
Alpaca had core business updates and released new products that make investing and trading more accessible and efficient for both enterprise and retail clients.
Here are a few notable developments:
- 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.
Alpaca concluded:
“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.”