How to integrate Alpaca MCP with Vercel AI SDK v6

This guide walks you through connecting Alpaca to Vercel AI SDK v6 using the Composio tool router. By the end, you'll have a working Alpaca agent that can show your current alpaca positions, check latest aapl market price, cancel all open alpaca orders through natural language commands. This guide will help you understand how to give your Vercel AI SDK agent real control over a Alpaca account through Composio's Alpaca MCP server. Before we dive in, let's take a quick look at the key ideas and tools involved.

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Alpaca is a stock and crypto trading platform for commission-free trading, real-time market data, and algorithmic strategies. Use it to build brokerage apps, trading bots, and portfolio workflows with market connectivity.

100 Tools

Introduction

This guide walks you through connecting Alpaca to Vercel AI SDK v6 using the Composio tool router. By the end, you'll have a working Alpaca agent that can show your current alpaca positions, check latest aapl market price, cancel all open alpaca orders through natural language commands.

This guide will help you understand how to give your Vercel AI SDK agent real control over a Alpaca account through Composio's Alpaca MCP server.

Before we dive in, let's take a quick look at the key ideas and tools involved.

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TL;DR

Here's what you'll learn:
  • How to set up and configure a Vercel AI SDK agent with Alpaca integration
  • Using Composio's Tool Router to dynamically load and access Alpaca tools
  • Creating an MCP client connection using HTTP transport
  • Building an interactive CLI chat interface with conversation history management
  • Handling tool calls and results within the Vercel AI SDK framework

What is Vercel AI SDK?

The Vercel AI SDK is a TypeScript library for building AI-powered applications. It provides tools for creating agents that can use external services and maintain conversation state.

Key features include:

  • streamText: Core function for streaming responses with real-time tool support
  • MCP Client: Built-in support for Model Context Protocol via @ai-sdk/mcp
  • Step Counting: Control multi-step tool execution with stopWhen: stepCountIs()
  • OpenAI Provider: Native integration with OpenAI models

What is the Alpaca MCP server, and what's possible with it?

The Alpaca MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Alpaca account. It provides structured and secure access so your agent can perform Alpaca operations on your behalf.

What is the Composio tool router, and how does it fit here?

What is Composio SDK?

Composio's Composio SDK helps agents find the right tools for a task at runtime. You can plug in multiple toolkits (like Gmail, HubSpot, and GitHub), and the agent will identify the relevant app and action to complete multi-step workflows. This can reduce token usage and improve the reliability of tool calls. Read more here: Getting started with Composio SDK

The tool router generates a secure MCP URL that your agents can access to perform actions.

How the Composio SDK works

The Composio SDK follows a three-phase workflow:

  1. Discovery: Searches for tools matching your task and returns relevant toolkits with their details.
  2. Authentication: Checks for active connections. If missing, creates an auth config and returns a connection URL via Auth Link.
  3. Execution: Executes the action using the authenticated connection.

Step-by-step Guide

Step by step09 STEPS
1

Prerequisites

Before you begin, make sure you have:
  • Node.js and npm installed
  • A Composio account with API key
  • An OpenAI API key
2

Getting API Keys for OpenAI and Composio

OpenAI API Key
  • Go to the OpenAI dashboard and create an API key. You'll need credits to use the models, or you can connect to another model provider.
  • Keep the API key safe.
Composio API Key
  • Log in to the Composio dashboard.
  • Navigate to your API settings and generate a new API key.
  • Store this key securely as you'll need it for authentication.
3

Install required dependencies

bash
npm install @ai-sdk/openai @ai-sdk/mcp @composio/core ai dotenv

First, install the necessary packages for your project.

What you're installing:

  • @ai-sdk/openai: Vercel AI SDK's OpenAI provider
  • @ai-sdk/mcp: MCP client for Vercel AI SDK
  • @composio/core: Composio SDK for tool integration
  • ai: Core Vercel AI SDK
  • dotenv: Environment variable management
4

Set up environment variables

bash
OPENAI_API_KEY=your_openai_api_key_here
COMPOSIO_API_KEY=your_composio_api_key_here
COMPOSIO_USER_ID=your_user_id_here

Create a .env file in your project root.

What's needed:

  • OPENAI_API_KEY: Your OpenAI API key for GPT model access
  • COMPOSIO_API_KEY: Your Composio API key for tool access
  • COMPOSIO_USER_ID: A unique identifier for the user session
5

Import required modules and validate environment

typescript
import "dotenv/config";
import { openai } from "@ai-sdk/openai";
import { Composio } from "@composio/core";
import * as readline from "readline";
import { streamText, type ModelMessage, stepCountIs } from "ai";
import { createMCPClient } from "@ai-sdk/mcp";

const composioAPIKey = process.env.COMPOSIO_API_KEY;
const composioUserID = process.env.COMPOSIO_USER_ID;

if (!process.env.OPENAI_API_KEY) throw new Error("OPENAI_API_KEY is not set");
if (!composioAPIKey) throw new Error("COMPOSIO_API_KEY is not set");
if (!composioUserID) throw new Error("COMPOSIO_USER_ID is not set");

const composio = new Composio({
  apiKey: composioAPIKey,
});
What's happening:
  • We're importing all necessary libraries including Vercel AI SDK's OpenAI provider and Composio
  • The dotenv/config import automatically loads environment variables
  • The MCP client import enables connection to Composio's tool server
6

Create Tool Router session and initialize MCP client

typescript
async function main() {
  // Create a tool router session for the user
  const session = await composio.create(composioUserID!, {
    toolkits: ["alpaca"],
  });

  const mcpUrl = session.mcp.url;
What's happening:
  • We're creating a Tool Router session that gives your agent access to Alpaca tools
  • The create method takes the user ID and specifies which toolkits should be available
  • The returned mcp object contains the URL and authentication headers needed to connect to the MCP server
  • This session provides access to all Alpaca-related tools through the MCP protocol
7

Connect to MCP server and retrieve tools

typescript
const mcpClient = await createMCPClient({
  transport: {
    type: "http",
    url: mcpUrl,
    headers: session.mcp.headers, // Authentication headers for the Composio MCP server
  },
});

const tools = await mcpClient.tools();
What's happening:
  • We're creating an MCP client that connects to our Composio Tool Router session via HTTP
  • The mcp.url provides the endpoint, and mcp.headers contains authentication credentials
  • The type: "http" is important - Composio requires HTTP transport
  • tools() retrieves all available Alpaca tools that the agent can use
8

Initialize conversation and CLI interface

typescript
let messages: ModelMessage[] = [];

console.log("Chat started! Type 'exit' or 'quit' to end the conversation.\n");
console.log(
  "Ask any questions related to alpaca, like summarize my last 5 emails, send an email, etc... :)))\n",
);

const rl = readline.createInterface({
  input: process.stdin,
  output: process.stdout,
  prompt: "> ",
});

rl.prompt();
What's happening:
  • We initialize an empty messages array to maintain conversation history
  • A readline interface is created to accept user input from the command line
  • Instructions are displayed to guide the user on how to interact with the agent
9

Handle user input and stream responses with real-time tool feedback

typescript
rl.on("line", async (userInput: string) => {
  const trimmedInput = userInput.trim();

  if (["exit", "quit", "bye"].includes(trimmedInput.toLowerCase())) {
    console.log("\nGoodbye!");
    rl.close();
    process.exit(0);
  }

  if (!trimmedInput) {
    rl.prompt();
    return;
  }

  messages.push({ role: "user", content: trimmedInput });
  console.log("\nAgent is thinking...\n");

  try {
    const stream = streamText({
      model: openai("gpt-5"),
      messages,
      tools,
      toolChoice: "auto",
      stopWhen: stepCountIs(10),
      onStepFinish: (step) => {
        for (const toolCall of step.toolCalls) {
          console.log(`[Using tool: ${toolCall.toolName}]`);
          }
          if (step.toolCalls.length > 0) {
            console.log(""); // Add space after tool calls
          }
        },
      });

      for await (const chunk of stream.textStream) {
        process.stdout.write(chunk);
      }

      console.log("\n\n---\n");

      // Get final result for message history
      const response = await stream.response;
      if (response?.messages?.length) {
        messages.push(...response.messages);
      }
    } catch (error) {
      console.error("\nAn error occurred while talking to the agent:");
      console.error(error);
      console.log(
        "\nYou can try again or restart the app if it keeps happening.\n",
      );
    } finally {
      rl.prompt();
    }
  });

  rl.on("close", async () => {
    await mcpClient.close();
    console.log("\n👋 Session ended.");
    process.exit(0);
  });
}

main().catch((err) => {
  console.error("Fatal error:", err);
  process.exit(1);
});
What's happening:
  • We use streamText instead of generateText to stream responses in real-time
  • toolChoice: "auto" allows the model to decide when to use Alpaca tools
  • stopWhen: stepCountIs(10) allows up to 10 steps for complex multi-tool operations
  • onStepFinish callback displays which tools are being used in real-time
  • We iterate through the text stream to create a typewriter effect as the agent responds
  • The complete response is added to conversation history to maintain context
  • Errors are caught and displayed with helpful retry suggestions

Complete Code

Here's the complete code to get you started with Alpaca and Vercel AI SDK:

typescript
import "dotenv/config";
import { openai } from "@ai-sdk/openai";
import { Composio } from "@composio/core";
import * as readline from "readline";
import { streamText, type ModelMessage, stepCountIs } from "ai";
import { createMCPClient } from "@ai-sdk/mcp";

const composioAPIKey = process.env.COMPOSIO_API_KEY;
const composioUserID = process.env.COMPOSIO_USER_ID;

if (!process.env.OPENAI_API_KEY) throw new Error("OPENAI_API_KEY is not set");
if (!composioAPIKey) throw new Error("COMPOSIO_API_KEY is not set");
if (!composioUserID) throw new Error("COMPOSIO_USER_ID is not set");

const composio = new Composio({
  apiKey: composioAPIKey,
});

async function main() {
  // Create a tool router session for the user
  const session = await composio.create(composioUserID!, {
    toolkits: ["alpaca"],
  });

  const mcpUrl = session.mcp.url;

  const mcpClient = await createMCPClient({
    transport: {
      type: "http",
      url: mcpUrl,
      headers: session.mcp.headers, // Authentication headers for the Composio MCP server
    },
  });

  const tools = await mcpClient.tools();

  let messages: ModelMessage[] = [];

  console.log("Chat started! Type 'exit' or 'quit' to end the conversation.\n");
  console.log(
    "Ask any questions related to alpaca, like summarize my last 5 emails, send an email, etc... :)))\n",
  );

  const rl = readline.createInterface({
    input: process.stdin,
    output: process.stdout,
    prompt: "> ",
  });

  rl.prompt();

  rl.on("line", async (userInput: string) => {
    const trimmedInput = userInput.trim();

    if (["exit", "quit", "bye"].includes(trimmedInput.toLowerCase())) {
      console.log("\nGoodbye!");
      rl.close();
      process.exit(0);
    }

    if (!trimmedInput) {
      rl.prompt();
      return;
    }

    messages.push({ role: "user", content: trimmedInput });
    console.log("\nAgent is thinking...\n");

    try {
      const stream = streamText({
        model: openai("gpt-5"),
        messages,
        tools,
        toolChoice: "auto",
        stopWhen: stepCountIs(10),
        onStepFinish: (step) => {
          for (const toolCall of step.toolCalls) {
            console.log(`[Using tool: ${toolCall.toolName}]`);
          }
          if (step.toolCalls.length > 0) {
            console.log(""); // Add space after tool calls
          }
        },
      });

      for await (const chunk of stream.textStream) {
        process.stdout.write(chunk);
      }

      console.log("\n\n---\n");

      // Get final result for message history
      const response = await stream.response;
      if (response?.messages?.length) {
        messages.push(...response.messages);
      }
    } catch (error) {
      console.error("\nAn error occurred while talking to the agent:");
      console.error(error);
      console.log(
        "\nYou can try again or restart the app if it keeps happening.\n",
      );
    } finally {
      rl.prompt();
    }
  });

  rl.on("close", async () => {
    await mcpClient.close();
    console.log("\n👋 Session ended.");
    process.exit(0);
  });
}

main().catch((err) => {
  console.error("Fatal error:", err);
  process.exit(1);
});

Conclusion

You've successfully built a Alpaca agent using the Vercel AI SDK with streaming capabilities! This implementation provides a powerful foundation for building AI applications with natural language interfaces and real-time feedback.

Key features of this implementation:

  • Real-time streaming responses for a better user experience with typewriter effect
  • Live tool execution feedback showing which tools are being used as the agent works
  • Dynamic tool loading through Composio's Tool Router with secure authentication
  • Multi-step tool execution with configurable step limits (up to 10 steps)
  • Comprehensive error handling for robust agent execution
  • Conversation history maintenance for context-aware responses

You can extend this further by adding custom error handling, implementing specific business logic, or integrating additional Composio toolkits to create multi-app workflows.
TOOLS

Supported Tools

Every Alpaca action and event your agent gets out of the box.

Add Asset to Watchlist

Adds a symbol to an existing watchlist in the authenticated account.

Add Asset to Watchlist by Name

Add an asset to a watchlist by name.

Create Watchlist

Creates a new watchlist for the authenticated account.

Create Watchlist

Create a new watchlist for the authenticated account.

Delete All Open Positions

Liquidates all open positions by closing them at market price.

Delete All Orders for Account

Attempts to cancel all open orders for a specified trading account.

Delete Unsubscribe Account

Delete a rebalancing subscription to unsubscribe an account.

Delete Watchlist By ID

Delete a watchlist by its unique identifier.

Get Account

Retrieves account information for the authenticated Alpaca account.

Get Account Activities

Retrieves account activities for the authenticated Alpaca account.

Get Account Activities V2

Retrieves account activities of one type for the authenticated Alpaca account using the v2 API.

Get Account Activities By Activity Type

Retrieves account activities of a specific type for the authenticated Alpaca account.

Get Account Configurations

Retrieves the current trading account configuration settings for the authenticated Alpaca account.

Get Account Portfolio History

Retrieves the portfolio history statistics for an Alpaca trading account.

Get Account Portfolio History

Retrieves the portfolio history statistics for a trading account.

Get All Account Positions

Bulk fetches all open positions for the authenticated account.

Get All Open Positions

Retrieves all open positions for the authenticated Alpaca trading account.

Get All Orders

Retrieves all orders for an account based on specified filter criteria.

Get Historical Crypto US Bars

Retrieves historical OHLCV (Open, High, Low, Close, Volume) bars for crypto symbols in a specific US location.

Get Crypto Bars for Multiple Symbols

Retrieves OHLCV (Open, High, Low, Close, Volume) bars for multiple crypto symbols.

Get Stock Bars for Multiple Symbols

Retrieves OHLCV (Open, High, Low, Close, Volume) bars for multiple stock symbols.

Get Historical Bars for Stock Symbol

Retrieves historical OHLCV (Open, High, Low, Close, Volume) bars for a single stock symbol.

Get Historical Stock Bars

Retrieves historical OHLCV (Open, High, Low, Close, Volume) bars for a single stock symbol.

Get Calendar

Retrieves market calendar information for trading days from the Alpaca Trading API.

Get Clock

Retrieves the current market clock information from the Alpaca Trading API.

Get Stock Conditions

Retrieves the mapping of condition codes to their names from Alpaca Markets API for the specified type (trade or quote conditions) and tape.

Get Crypto Latest Quotes

Retrieves the latest bid and ask prices for specified crypto symbols at a specific location.

Get Crypto Perp Latest Bars

Retrieves the latest OHLCV (Open, High, Low, Close, Volume) bars for crypto perpetual futures symbols.

Get Crypto Perp Latest Orderbooks

Retrieves the latest bid and ask orderbook data for specified crypto perpetual futures symbols.

Get Crypto Perp Latest Pricing

Retrieves the latest pricing data for specified crypto perpetual futures symbols.

Get Crypto Perp Latest Quotes

Retrieves the latest bid and ask prices for specified crypto perpetual futures symbols for a specific location.

Get Crypto Perp Latest Trades

Retrieves the latest trade data for specified crypto perpetual futures symbols.

Get Crypto Perps Global Latest Bars

Retrieves the latest OHLCV (Open, High, Low, Close, Volume) bars for crypto perpetual futures symbols.

Get Crypto Perps Global Latest Pricing

Returns the latest pricing data for crypto perpetual futures symbols.

Get Crypto Perps Global Latest Quotes

Retrieves the latest bid and ask prices for specified crypto perpetual futures symbols.

Get Crypto Perps Global Latest Trades

Retrieves the latest trade data for specified crypto perpetual futures symbols.

Get Crypto Snapshots

Retrieves snapshots (latest trade, latest quote, minute bar, daily bar, and previous daily bar) for multiple cryptocurrency symbols in a specific location.

Get Crypto US Latest Bars

Retrieves the latest OHLCV (Open, High, Low, Close, Volume) bars for US crypto symbols.

Get Crypto US Latest Orderbooks

Retrieves the latest bid and ask orderbook data for specified crypto symbols in the US market.

Get Crypto US Latest Quotes

Retrieves the latest bid and ask prices for specified crypto symbols in the US location.

Get Crypto US Latest Trades

Retrieves the latest trade data for specified crypto symbols in the US location.

Get Crypto US Historical Quotes

Retrieves historical quote data (bid/ask prices) for specified crypto symbols on US exchanges.

Get Crypto US Snapshots

Retrieves snapshots (latest trade, latest quote, minute bar, daily bar, and previous daily bar) for multiple cryptocurrency symbols in the US market location.

Get Crypto US Trades

Retrieves historical trade data for specified US crypto symbols.

Get Exchanges

Retrieves a list of supported stock exchanges with their short codes and full names from the Alpaca Market Data API.

Get Latest Bar for Stock Symbol

Retrieves the latest OHLCV (Open, High, Low, Close, Volume) bar for a single stock symbol.

Get Latest Bars For Crypto Symbol

Retrieves the latest OHLCV (Open, High, Low, Close, Volume) bar data for a crypto symbol.

Get Latest Bars for Crypto Symbols

Retrieves the latest OHLCV (Open, High, Low, Close, Volume) bars for multiple crypto symbols.

Get Latest Bars for Multiple Stock Symbols

Retrieves the latest OHLCV (Open, High, Low, Close, Volume) bars for multiple stock symbols.

Get Crypto Latest Orderbooks

Retrieves the latest bid and ask orderbook data for specified crypto symbols.

Get Crypto Latest Quote

Retrieves the latest bid and ask prices for a specified crypto symbol.

Get Latest Quote for Stock Symbol

Retrieves the latest NBBO (National Best Bid and Offer) quote for a single stock symbol.

Get Crypto Latest Quotes

Retrieves the latest bid and ask prices for specified crypto symbols.

Get Latest Quotes for Multiple Stock Symbols

Retrieves the latest NBBO (National Best Bid and Offer) quotes for multiple stock symbols.

Get Latest Trade for Stock Symbol

Retrieves the latest trade data for a single stock symbol.

Get Latest Crypto Trades

Retrieves the latest trade data for specified crypto symbols.

Get Latest Trades for Multiple Stock Symbols

Retrieves the latest trade data for multiple stock symbols.

Get Market Calendar

Retrieves market calendar information for a specific exchange from the Alpaca Trading API.

Get Meta Exchanges

Retrieves a list of all US stock exchanges and their identifying information from the Alpaca Market Data API.

Get Most Active Stocks

Retrieves the most active stocks by trading volume or trade count.

Get News

Retrieves news articles for specified crypto symbols from the Alpaca Market Data API.

Get Open Position

Fetches a single open position by symbol or asset ID.

Get Options Historical Bars

Retrieves historical OHLCV (Open, High, Low, Close, Volume) bars for options contracts.

Get Option Chain

Retrieves the option chain for a specific underlying symbol including quotes and greeks for all available strikes and expirations.

Get Option Contract

Get an option contract by its symbol or unique identifier.

Get Option Latest Quotes

Retrieves the latest bid and ask prices for specified option symbols.

Get Options Meta Conditions

Retrieves the mapping of condition codes to their names from Alpaca Markets API for the specified tick type (trade or quote conditions).

Get Option Contracts

Retrieve option contracts from Alpaca Markets API (BETA).

Get Options Latest Trades

Retrieves the latest trade for each requested option contract symbol.

Get Options Meta Conditions Trade

Retrieves the mapping of trade condition codes to their names from Alpaca Markets API.

Get Options Snapshots

Retrieves snapshots (latest trade, latest quote, minute bar, daily bar, and previous daily bar) for multiple option contract symbols.

Get Options Snapshots by Underlying Symbol

Retrieves the option chain snapshot data for a specific underlying symbol.

Get Options Historical Trades

Retrieves historical trade data for option contracts.

Get PDT Status

Retrieves the Pattern Day Trader (PDT) status for a specified Alpaca trading account.

List account positions

Lists all open positions for a specified trading account.

Get Quotes for Multiple Stock Symbols

Retrieves historical quote (bid/ask) data for multiple stock symbols.

Get Quotes for Stock Symbol

Retrieves historical NBBO (National Best Bid and Offer) quotes for a specific stock symbol.

Get Stock Snapshot for Symbol

Retrieves a snapshot (latest trade, latest quote, minute bar, daily bar, and previous daily bar) for a single stock symbol.

Get Crypto Snapshots

Retrieves snapshots (latest trade, latest quote, minute bar, daily bar, and previous daily bar) for multiple cryptocurrency symbols.

Get Stock Snapshots for Multiple Symbols

Retrieves snapshots (latest trade, latest quote, minute bar, daily bar, and previous daily bar) for multiple stock symbols.

Get Specific Announcement

Retrieves a specific corporate action announcement by its unique identifier.

Get Stock Auctions

Retrieves historical auction data for specified stock symbols.

Get Stock Auctions for Symbol

Retrieves historical auction (opening/closing print) data for a single stock symbol.

Get Stocks Meta Conditions Trade

Retrieves the mapping of trade condition codes to their names from Alpaca Markets API.

Get Subscription

Retrieves a rebalancing subscription by its unique ID.

Get Top Movers By Market Type

Retrieves the top market movers (gainers and losers) for a specified market type.

Get Trades for Multiple Crypto Symbols

Retrieves historical trade data for specified crypto symbols.

Get Trades for Multiple Stock Symbols

Retrieves historical trade data for multiple stock symbols.

Get Historical Trades for Stock Symbol

Retrieves historical trade data for a single stock symbol.

Get Watchlist By ID

Retrieves a single watchlist by its unique identifier.

Get Watchlist By Name

Retrieves a specific watchlist by its name.

Get Watchlists

Retrieves all watchlists associated with the authenticated account.

Update Account Configurations

Update the trading account configuration settings for the authenticated account.

Remove Asset From Watchlist

Removes a symbol from an existing watchlist in Alpaca.

Remove Symbol From Watchlist

Tool to remove a symbol from an existing watchlist in Alpaca.

Update Trading Configurations

Updates trading account configurations for an Alpaca trading account.

Update Watchlist By ID

Updates an existing watchlist by its unique identifier.

Update Watchlist By Name

Updates an existing watchlist by its name.

Update Watchlist By Name (v2)

Updates an existing watchlist by its name.

Upload Account CIP Information

Upload CIP (Customer Identification Program) information for an account to complete identity verification.

FAQ

Frequently asked questions

With a standalone Alpaca MCP server, the agents and LLMs can only access a fixed set of Alpaca tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from Alpaca and many other apps based on the task at hand, all through a single MCP endpoint.

Yes, you can. Vercel AI SDK v6 fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right Alpaca tools.

Yes, absolutely. You can configure which Alpaca scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your Alpaca data and credentials are handled as safely as possible.

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