What Velocity Clearing does

Velocity Clearing is a US-based, self-clearing broker-dealer founded in 2003 and headquartered in Hazlet, New Jersey, offering an integrated stack of execution, clearing, custody, securities lending, financing, and prime brokerage services to institutional and professional trading clients. The company's proprietary technology backbone comprises the VTrader multi-asset trading platform, the VHub order management system (OMS) and API suite, the VFlux corporate actions system, and connectivity into third-party OMS/EMS platforms (Sterling, DAS, Bloomberg EMSX, RealTick, REDI EMS, Takion, Silexx, Flex Trade, Rival Systems). It holds FINRA, SEC, and NFA registrations and is a member/participant of NYSE, NYSE Arca, Nasdaq, CBOE venues (BZX/BYX/EDGA/EDGX), IEX, Members Exchange, Nasdaq PHLX, with clearing memberships at DTCC and OCC.

Velocity's revenue model is diversified across transaction commissions, margin interest income, securities lending fees, and prime brokerage managed-service revenue, with correspondent clearing forming a fourth inflow from US and foreign broker-dealers. Its customer base spans US and foreign broker-dealers (correspondent clearing), hedge funds and mutual funds, proprietary trading groups, family offices, and high-net-worth individuals. The go-to-market combines enterprise field sales for institutional accounts with a product-led self-serve motion via VTrader/VHub for retail and prop traders, supplemented by referral and channel partnerships — including Raymond James (prime brokerage referrals), Goldman Sachs and Pershing (prime broker introductions), and Avenue Securities (LATAM distribution across Mexico, Peru, Colombia, Argentina, and Brazil). Multi-custodial prime brokerage — combining Velocity's own clearing with Goldman Sachs and Pershing — is a distinguishing structural feature versus single-custodian competitors.

Since 2023 the firm has reported 25% revenue CAGR, a 300% rise in assets under custody, and headcount growth to over 250 professionals across five US offices (NYC, Hazlet NJ, Boca Raton FL, Dallas TX, Chicago IL) plus international operations in Mexico. In November 2024, Hanwha Life (South Korea's first life insurer) agreed to acquire a 75% majority stake from Cerberus Capital Management; the deal closed on July 30, 2025, marking the first acquisition of a US securities firm by a Korean insurer, with Velocity's management retaining a minority stake and operational continuity.

Name

Velocity Clearing

Legal name

Velocity Clearing, LLC

Website

https://velocityclearingllc.com

Company type

Private

Founded year

2003

Operating status

Operating

Headcount range

11–50 employees

Short description

Velocity Clearing is a US-based, self-clearing broker-dealer providing execution, clearing, custody, securities lending, financing, and prime brokerage services to broker-dealers, hedge funds, prop traders, family offices, and LATAM institutions, built on a proprietary VTrader/VHub/VHub API technology stack.

Ownership category

akta.pro rank

Product category

Securities Clearing & Broker-Dealer Services

NAICS

Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320)

SIC

Security & Commodity Brokers, Dealers, Exchanges & Services (6200)

akta.pro primary industry

Clearing & Settlement for Equities (Prime Broker Clearing Services) (FSACAFAL)

akta.pro secondary industries

Clearing & Settlement Operations Services (FSAFALAB), Prime Brokerage Clearing (Clearing for Broker-Dealers) (FSABAJAF)

Keywords

• Self-clearing broker-dealer
• Prime brokerage services
• Securities lending financing
• Correspondent clearing services
• Trading technology solutions

Headquarters

HQ city

Hazlet

HQ country

United States

HQ region

North America

Offices9 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Infrastructure, Marketing or Sales

Revenue model

1. Commission per Transaction: Transaction-based commissions on equity trades executed through the platform. Commission rates are negotiable based on volume and client tier.
2. Margin Interest Income: Interest income generated from margin lending to clients who borrow funds to finance their trading positions.
3. Securities Lending Fees: Revenue from securities lending operations, facilitating short sales and providing liquidity to other market participants.
4. Prime Brokerage Services: Multi-custodial prime brokerage services including clearing, custody, financing, and reporting for institutional clients.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels8 records

Core offering

Velocity Clearing is a self-clearing broker-dealer offering integrated execution, clearing, custody, securities lending, financing, and prime brokerage services for equities, ETFs, options, fixed income, and mutual funds. The platform combines proprietary trading technology (VTrader, VHub, VFlux) with API connectivity and is delivered to broker-dealers, hedge funds, prop trading groups, family offices, and HNW individuals via direct sales, correspondent clearing, and referral channels.

Product overview

Velocity Clearing is a technology-driven, self-clearing broker-dealer offering an integrated platform of trading solutions. The core product ecosystem consists of proprietary technology (VTrader trading platform, VHub order management system, VFlux corporate action system, and API Suite) combined with execution, clearing, custody, securities lending, and prime brokerage services. The company serves retail traders, institutional clients, broker-dealers, hedge funds, family offices, and proprietary trading firms with 24x6 global support. Services are delivered through Velocity's own infrastructure as well as introduced relationships with Goldman Sachs, Pershing LLC, and other partners.

Differentiator

Problem solved

Functional benefit

Products and services

• VTrader

Quantifiable outcome

• Exchange connectivity to NYSE, NYSE Arca, Nasdaq, CBOE, IEX, Members Exchange
• +2 more outcomes

Named customers10 records

Segments6 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration12 records

Feature7 records

Partnerships

Six partnerships are on record, tiered core and minor.

• Avenue SecuritiescoreStrategic or Co-development PartnerStrategic alliance for UCITS ETF execution, clearing, and custody services. Avenue Securities serves as the primary distribution partner for Velocity Clearing's services in Latin American markets including Mexico, Peru, Colombia, and Argentina.
• Raymond JamescoreGTM or Marketing PartnerPrime brokerage services referral agreement where Raymond James refers clients requiring prime brokerage capabilities to Velocity Clearing.
• Matrix ApplicationscoreTechnology or IntegrationTechnology solutions provider delivering software and integration services that support Velocity Clearing's trading infrastructure and operational systems.
• PershingminorGTM or Marketing PartnerIntroduced as a prime brokerage partner, providing referral introductions for clients requiring specialized prime brokerage services.
• Goldman SachsminorGTM or Marketing PartnerIntroduced as a prime brokerage partner, providing referral introductions for institutional clients with prime brokerage needs.
• VCT TechnologiescoreTechnology or IntegrationAffiliated technology entity providing proprietary technology development and support for Velocity Clearing's trading platforms and systems.

Scale indicators6 records

Recent moves7 records

Expansion highlights6 records

Broad incumbents

• Charles Schwab: Major U.S. retail and institutional broker-dealer with integrated clearing and broad custody, trading, and wealth services; a broad incumbent competing with Velocity's retail/prop and institutional businesses at significantly larger scale.
• Interactive Brokers: Public, large-cap retail and professional trading platform with integrated self-clearing and global prime brokerage capabilities; competes with Velocity across retail trading, prop traders, and prime brokerage segments.
• Goldman Sachs: Industry-leading prime broker and global investment bank serving institutional clients across custody, financing, securities lending, and execution—an order-of-magnitude larger incumbent partnering with Velocity via introductions while also competing for institutional wallet share.
• StoneX: Diversified financial services firm with global clearing, prime-of-prime, and prime brokerage capabilities post its acquisition activity; a broader incumbent mirroring Velocity's multi-asset, multi-jurisdiction expansion.
• Pershing: BNY Mellon-owned industry-leading correspondent clearing and custody platform. One of Velocity's introducer partners but also a broad incumbent competing in correspondent clearing and custody at significantly greater scale.

Direct peers

• Instinet: Institutional broker and agency execution specialist (Nomura subsidiary) with prime brokerage and trading services—an institutional-side peer to Velocity Clearing's execution and prime brokerage offerings.
• TradeStation: Online broker-dealer focused on active retail and proprietary traders with proprietary trading platform—a closer peer to Velocity's VTrader-led retail/prop trading motion.
• COR Clearing: Self-clearing broker-dealer offering correspondent clearing, custody, and execution services—closely aligned with Velocity's core business model and customer segments.
• Wedbush Securities: Diversified mid-sized broker-dealer with self-clearing and correspondent clearing operations serving institutional and retail clients; comparable to Velocity in scale and product mix including clearing, execution, and prime brokerage-like services.
• Apex Clearing: Self-clearing broker-dealer offering correspondent clearing, custody, and execution services to broker-dealers, RIAs, and retail trading platforms; the most direct comparable in business model and target customer base to Velocity Clearing.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Velocity Clearing