Q - How does Alpaca make money?
Alpaca will start offering Premium Plan subscriptions, where premium users will have access to various perks, such as higher quality live data feed and more computing resources. The pricing and exact features have not yet been determined. Please stay tuned for updates.
Additionally, Alpaca makes money in many of the same ways as traditional online brokerages. These include:
- Alpaca will receive accruing interest from customers’ uninvested cash balances.
- Alpaca will also receive remuneration for providing trade volume in certain markets. This is called PFOF (payment for order flow) and will be fully disclosed under SEC Rule 606. This helps us offset the expense that occurs when clearing and executing our customers’ trades. If you want to learn more about PFOF, please visit the investopedia site. For SEC Rule 606, please visit the SEC site.
*It is important to note that our customers are not charged.