Alpaca vs Interactive Brokers
By Jay Rocco, Chief Editor, FullStack Alpha. Updated . Prices checked on each vendor's own site.
Quick answer
Pick Alpaca for automated trading plus backtesting. Pick Interactive Brokers for portfolio tracking plus global markets.
Key differences
- Broader feature set: Alpaca (8 vs 7 core capabilities)
- Backtesting: Alpaca (Only Alpaca has it)
- Automated trading: Alpaca (Only Alpaca has it)
- Mobile app: Interactive Brokers (Only Interactive Brokers has it)
Pick Alpaca if
- You want trades placed automatically
- You test strategies before risking money
- Developers building trading bots
- Commission-free API trading
Pick Interactive Brokers if
- You want all your holdings in one view
- You invest outside the US
- Global multi-asset investing
- Active traders needing low costs
Side by side
| Feature | Alpaca | Interactive Brokers |
|---|---|---|
| Starting price | Free, paid from $99/mo | Free plan |
| Free plan | Yes | Yes |
| Backtesting | Yes | No |
| Automated trading | Yes | No |
| Broker connection | Yes | Yes |
| Paper trading | Yes | Yes |
| Options analytics | Yes | Yes |
| Portfolio tracking | No | Yes |
| Crypto | Yes | No |
| Global markets | No | Yes |
| API access | Yes | Yes |
| MCP / AI connector | Yes | Yes |
| Mobile app | No | Yes |
Plans
Alpaca
- Basic data: Free
- Algo Trader Plus: $99/mo
Interactive Brokers
- IBKR Lite: $0 commissions on US stocks and ETFs
- IBKR Pro: $0.005 per share on US stocks and ETFs
Questions people ask
What is the main difference between Alpaca and Interactive Brokers?
Pick Alpaca for automated trading plus backtesting. Pick Interactive Brokers for portfolio tracking plus global markets.
Which is cheaper, Alpaca or Interactive Brokers?
Their entry prices are hard to compare because one does not publish a monthly price. Alpaca: Free, paid from $99/mo. Interactive Brokers: Free plan.
Do Alpaca or Interactive Brokers have a free plan?
Both have a free plan.
Which is better for beginners?
Both target advanced users. Start with whichever has the free plan or trial so you can test before you pay.
Which has better AI features?
Alpaca goes deeper on AI with 3 AI features (automated trading, MCP / AI connector, backtesting).
Can I connect Alpaca or Interactive Brokers to ChatGPT or Claude?
Alpaca and Interactive Brokers offer an MCP server or official AI connector.
Is Alpaca or Interactive Brokers better for active trading?
They are about even on active-trading features (alerts, scanning, signals and charts).
Should I use both Alpaca and Interactive Brokers?
It can make sense. They overlap on only 5 core features, so one can fill gaps the other leaves.