Crypto Trading: A Comprehensive Guide for Brokers and Developers

Introduction to Crypto Trading with Alpaca

Alpaca provides a robust platform for cryptocurrency trading, available 24/7. Whether you're a developer integrating crypto trading into your application or a broker enabling users to trade digital assets, this guide covers everything you need to know.

Key Features:

24/7 crypto trading availability
Sandbox environment for testing
Support for over 20 cryptocurrencies
Fractional trading capabilities

👉 Start exploring crypto trading opportunities today

Enabling Crypto Trading for Accounts

To activate crypto trading, users must sign crypto agreements. These agreements can be submitted through Alpaca's API:

For New Users:

{
 "agreements": [
 {
 "agreement": "crypto_agreement",
 "signed_at": "2023-01-01T18:09:33Z"
 }
 ]
}

For Existing Users:

{
 "agreements": [
 {
 "agreement": "crypto_agreement",
 "signed_at": "2023-01-01T18:13:44Z",
 "ip_address": "185.13.21.99"
 }
 ]
}

Once submitted, agreements cannot be modified. Check the account's crypto_status to verify trading readiness.

Supported Cryptocurrencies and Trading Pairs

Alpaca supports trading for over 20 cryptocurrencies. Tradable assets can be identified via the Assets API with:

class = crypto
tradable = true

Example asset response:

{
 "id": "64bbff51-59d6-4b3c-9351-13ad85e3c752",
 "class": "crypto",
 "exchange": "CRXL",
 "symbol": "BTC/USD",
 "name": "Bitcoin",
 "status": "active",
 "tradable": true,
 "marginable": false,
 "shortable": false,
 "easy_to_borrow": false,
 "fractionable": true
}

Order Requirements and Specifications

Minimum Order Sizes:

USD pairs: 1/USD asset price
BTC, ETH, USDT pairs: 0.000000002
Maximum decimal places: 9 (0.000000001)

Supported Order Types:

Market orders
Limit orders
Stop limit orders

Supported Time-in-Force:

Good Till Cancelled (GTC)
Immediate or Cancel (IOC)

Important Trading Considerations

Non-USD Crypto Trading: Fees are collected in the quote currency (BTC, USDC, USDT)
Non-marginable Assets: Cannot use leverage for crypto purchases
Non-shortable Assets: Short selling is not supported
Order Limits: Maximum $200,000 notional value per order

👉 Learn more about advanced crypto trading strategies

Required Disclosures for Brokers

Onboarding Disclosure:

"I have read, understood, and agree to be bound by Alpaca Crypto LLC and [your legal entity] account terms... [full text]"

Order Entry Disclosures:

Buy orders: "You are directing and authorizing Alpaca Securities LLC to transfer funds..."
Sell orders: "You are directing and authorizing Alpaca Crypto LLC to transfer settled funds..."
Exchange orders: "You are directing and authorizing Alpaca Crypto LLC to exchange..."

Commission Structure for Brokers

Brokers can charge commissions on crypto orders by including:

Notional commission type only
Amount specified in quote currency
Requires pre-configuration with Alpaca

Example: For BTC/USD trades, commission is in USD and prorated across partial fills.

Crypto Data Providers

Alpaca sources crypto data from multiple exchanges:

Exchange	Exchange Code
Coinbase	CBSE
Alpaca Crypto Exchange	CRXL
Falcon X	FLCX

Price validation uses weighted averages from Coinbase, FalconX, and StillmanDigital.

FAQ Section

How do I enable crypto trading for my users?

Enable through the Accounts API by submitting the crypto agreement and verifying the crypto_status becomes ACTIVE.

What cryptocurrencies does Alpaca support?

Alpaca supports over 20 cryptocurrencies including BTC, ETH, and stablecoins like USDC and USDT.

Are there any trading limits?

Yes, orders cannot exceed $200,000 in notional value and must comply with price band validations.

Can users trade crypto with leverage?

No, cryptocurrencies are non-marginable and cannot be traded with leverage.

How are commissions handled for crypto trades?

Brokers can charge notional commissions in the quote currency, which must be configured with Alpaca beforehand.

What order types are supported for crypto trading?

Market, limit, and stop limit orders with GTC or IOC time-in-force options.

Conclusion

Alpaca's crypto trading platform offers comprehensive tools for brokers and developers. By understanding the agreement requirements, order specifications, and disclosure obligations, you can effectively integrate cryptocurrency trading into your services while maintaining compliance with all regulations.

Remember to thoroughly test in the sandbox environment before going live, and ensure all users complete the required agreements and acknowledge the necessary disclosures.