To provide you with a secure investing experience, Harvest partners with Alpaca Securities LLC (“Alpaca”). While you use the Harvest app to manage your portfolio, Alpaca works behind the scenes as our qualified custodian and clearing broker.
What is a Custodian?
In the financial world, a custodian is a specialized financial institution that holds customers' securities for safekeeping.
Harvest App LLC acts as your Investment Advisor: We design your portfolios and tell the system what to buy/sell based on your goals.
Alpaca acts as the Vault: They physically hold your stocks and cash, execute the trades we request, and provide the official record of your holdings.
Why Harvest Partners with Alpaca
Alpaca is a modern, technology-first broker-dealer that allows us to offer features like fractional shares (investing with as little as $1) and automated rebalancing.
1. Regulation and Oversight
Alpaca Securities LLC is:
A registered broker-dealer with the SEC.
A member of FINRA (Financial Industry Regulatory Authority).
A member of the SIPC (Securities Investor Protection Corporation).
2. Asset Protection (SIPC)
Because Alpaca is a member of SIPC, your account is protected for up to $500,000 (including $250,000 for claims for cash) in the unlikely event that the broker-dealer fails.
Note: SIPC protection does not protect against a decline in the market value of your securities. It protects the custody of the assets themselves.
How This Affects You
Bank Statements: When you fund your account via ACH, you may see "ALPACASECURITIES" or similar on your bank statement. This is normal, as the funds are being moved directly to your brokerage account.
Tax Reporting: At the end of the year, your Form 1099 (used for tax filing) will be generated by Alpaca, as they are the official record-keeper for your transactions.
Security: Your assets are held in a brokerage account in your name, separate from Harvest’s corporate funds.