Gotrade, a prominent investment application based in Malaysia, has expanded its offerings by launching options trading for users across Southeast Asia, a development made possible through its collaboration with brokerage infrastructure API provider Alpaca.
Historically, investors in Southeast Asia have encountered barriers to global investing, including high transaction fees, substantial balance minimums, and complex regulatory frameworks. Despite these challenges, retail investor participation has seen growth, with projections indicating 5 million investors in Malaysia and 17 million in Indonesia by 2025. Gotrade initially addressed these issues by providing a platform enabling users to invest in fractional shares of US stocks for as little as $1 USD.
With the introduction of options trading, Gotrade aims to offer users access to potential leverage and risk management opportunities. The platform incorporates visuals, tooltips, and in-app guides designed to demystify options trading. Users can execute mobile-first strategies such as long calls and long puts with minimal clicks, with plans to add covered calls and cash-secured puts in the future.
Gotrade utilizes Alpaca’s Broker API to power its new derivatives offering. This partnership ensures a scalable and robust infrastructure for efficient order execution and trade processing. Norman Wanto, CEO of Gotrade, stated that options trading represents a natural progression for their users, noting the intent to democratize a tool previously accessible primarily to institutional and high-net-worth investors. He emphasized that partnering with Alpaca provides the flexibility to innovate and scale rapidly, which is crucial for enhancing user experience in emerging markets like Southeast Asia.
The collaboration between Gotrade and Alpaca deepens with this launch, having initially commenced in 2021 when Gotrade first introduced fractional trading of US stocks. Yoshi Yokokawa, CEO and Co-Founder of Alpaca, commented on Gotrade’s product-focused strategy as a key driver of trust and growth in Southeast Asia, expressing enthusiasm for continuing to provide the necessary infrastructure for rapid product innovation.
Alpaca is a US-headquartered, self-clearing broker-dealer and a global provider of brokerage infrastructure APIs, offering access to stocks, ETFs, options, and fixed income. The company delivers embeddable finance solutions including fully paid securities lending, high-yield cash, 24/5 trading, and Shariah-compliant investing. Alpaca currently supports over 7 million brokerage accounts for hundreds of fintechs and institutions in more than 40 countries, backed by over $170 million in funding.
Gotrade, launched in 2019, is a mobile app-based stock investing platform designed to make investing in fractional shares of U.
S. stocks accessible and straightforward. Instruments on Gotrade are offered through Gotrade Securities Inc., while Gotrade Indonesia’s instruments are provided by PT Valbury Asia Futures, a Bappebti licensed broker-dealer established in 1999.
It is important to note that options trading carries inherent high risk and may not be suitable for all investors, potentially leading to significant losses. Investors should review “Characteristics and Risks of Standardized Options” before engaging in such activities. Fractional share trading also presents unique risks and limitations. Alpaca Securities LLC, a member of FINRA/SIPC, provides securities brokerage services and is a wholly-owned subsidiary of AlpacaDB, Inc., which offers technology and services, including the brokerage infrastructure API.
