Hi,
I’ve noticed Alpaca brokerage uses net deposit rather than portfolio balance for determining eligibility for elite smart router or alpaca elite status (requiring deposits of 30k or 100k, respectively). This essentially means trading through this brokerage can’t be used as a source of income, as any amount withdrawn from profitable trading is deducted from my net deposit, and puts me at risk of losing my status. That is, I am only able to withdraw from what I’ve put in, rather than from what I’ve made.
I’ve found other brokerages use portfolio balance rather than net deposit in determining similar eligibilities (primary concerns are $0 on ETB shorts and lower margin rate). This net deposit v portfolio balance limitation may cause me to not stick with Alpaca as my primary brokerage, which is a shame as I love this brokerage in every other way!
Thanks,
@Brennan_Frank Good call-out regarding eligibility for Elite Status. The documentation doesn’t tell the whole story. Behind the scenes, there is a “switch” for “Lock Elite Status”. Once an account reaches a specific level, it is locked at that level, independent of future withdrawals. This allows, for example, periodic withdrawals of profits from an account that would (hopefully) exceed the initial deposits.
However, the switch is currently manual. The accounts team generally sets this on for accounts. However, if you notice you have lost your elite status, simply email support@alpaca.markets, and they can restore it.
Currently the “Lock Elite Status” is at Alpaca’s discretion and is why it’s manual and not fully documented. There is still work to be done on how to prevent abuse. For example depositing $100k, getting the free Algo Trader Plus market data subscription, then immediately withdrawing $75k.
We appreciate your business and this shouldn’t be a reason to not stick with Alpaca. Thank you.
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