diff --git a/services/adapters/broker_adapter.py b/services/adapters/broker_adapter.py
index 8641022..85b30b8 100644
--- a/services/adapters/broker_adapter.py
+++ b/services/adapters/broker_adapter.py
@@ -276,6 +276,14 @@ class BrokerDataAdapter(BaseAdapter, ABC):
         """Get account summary (balance, buying power, etc.)."""
         ...
 
+    async def cancel_all_orders(self) -> int:
+        """Cancel all open orders. Returns the number of orders cancelled."""
+        return 0
+
+    async def close_all_positions(self) -> int:
+        """Liquidate all open positions. Returns the number of positions closed."""
+        return 0
+
 
 # --- Concrete Alpaca implementation ---
 
@@ -551,6 +559,50 @@ class AlpacaBrokerAdapter(BrokerDataAdapter):
                     mode=self._mode,
                 )
 
+    async def cancel_all_orders(self) -> int:
+        """Cancel all open orders on Alpaca.
+
+        Uses DELETE /v2/orders which cancels all open orders in bulk.
+        Returns the number of orders that were cancelled.
+        """
+        async with httpx.AsyncClient(timeout=30) as client:
+            try:
+                resp = await client.delete(
+                    f"{self.base_url}/v2/orders",
+                    headers=self._headers(),
+                )
+                resp.raise_for_status()
+                # Alpaca returns a list of cancelled order objects (HTTP 207)
+                data = resp.json()
+                cancelled = len(data) if isinstance(data, list) else 0
+                logger.info("Cancelled %d open orders on Alpaca", cancelled)
+                return cancelled
+            except Exception as e:
+                logger.error("Cancel all orders failed: %s", e)
+                return 0
+
+    async def close_all_positions(self) -> int:
+        """Liquidate all open positions on Alpaca.
+
+        Uses DELETE /v2/positions which closes all positions at market.
+        Returns the number of positions that were closed.
+        """
+        async with httpx.AsyncClient(timeout=30) as client:
+            try:
+                resp = await client.delete(
+                    f"{self.base_url}/v2/positions",
+                    headers=self._headers(),
+                )
+                resp.raise_for_status()
+                # Alpaca returns a list of closed position order objects (HTTP 207)
+                data = resp.json()
+                closed = len(data) if isinstance(data, list) else 0
+                logger.info("Closed %d positions on Alpaca", closed)
+                return closed
+            except Exception as e:
+                logger.error("Close all positions failed: %s", e)
+                return 0
+
     def _parse_order_response(self, data: dict[str, Any]) -> OrderResponse:
         """Parse an Alpaca order response into an OrderResponse."""
         status_map: dict[str, OrderStatus] = {
diff --git a/services/trading/app.py b/services/trading/app.py
index a5044a7..d3417aa 100644
--- a/services/trading/app.py
+++ b/services/trading/app.py
@@ -407,6 +407,9 @@ async def reset_paper_trading(body: CapitalRequest) -> dict[str, Any]:
     """Full paper trading reset: clear all positions, orders, decisions,
     stop levels, and snapshots, then reset capital to the specified amount.
 
+    Also liquidates all positions and cancels all open orders on the
+    broker (Alpaca) so the paper account starts clean.
+
     This is a destructive operation — all trading history is wiped.
     """
     if engine is None:
@@ -420,7 +423,32 @@ async def reset_paper_trading(body: CapitalRequest) -> dict[str, Any]:
     reserve = capital * reserve_pct
     active = capital - reserve
 
-    # Clear trading state in the database
+    # --- Reset broker (Alpaca) state ---
+    broker_result: dict[str, Any] = {"orders_cancelled": 0, "positions_closed": 0}
+    try:
+        from services.adapters.broker_adapter import AlpacaBrokerAdapter
+        from services.shared.config import load_config as _load_config
+
+        broker_cfg = _load_config().broker
+        if broker_cfg.api_key:
+            adapter = AlpacaBrokerAdapter(
+                api_key=broker_cfg.api_key,
+                api_secret=broker_cfg.api_secret or "",
+                base_url=broker_cfg.base_url,
+            )
+            broker_result["orders_cancelled"] = await adapter.cancel_all_orders()
+            broker_result["positions_closed"] = await adapter.close_all_positions()
+            logger.info(
+                "Broker reset: cancelled %d orders, closed %d positions",
+                broker_result["orders_cancelled"],
+                broker_result["positions_closed"],
+            )
+        else:
+            logger.info("No broker API key configured — skipping broker reset")
+    except Exception:
+        logger.exception("Broker reset failed — continuing with DB/engine reset")
+
+    # --- Clear trading state in the database ---
     if engine.pool:
         try:
             async with engine.pool.acquire() as conn:
@@ -438,6 +466,8 @@ async def reset_paper_trading(body: CapitalRequest) -> dict[str, Any]:
                     # Clear orders and their events
                     await conn.execute("DELETE FROM order_events")
                     await conn.execute("DELETE FROM orders")
+                    # Clear synced positions from broker
+                    await conn.execute("DELETE FROM positions")
                     # Re-seed reserve pool ledger
                     await conn.execute(
                         "INSERT INTO reserve_pool_ledger (amount, balance_after, trigger_type, notes) "
@@ -458,12 +488,14 @@ async def reset_paper_trading(body: CapitalRequest) -> dict[str, Any]:
         reserve_pool=reserve,
     )
     engine.circuit_breaker_state = CircuitBreakerState()
+    engine.processed_recommendation_ids.clear()
 
     return {
         "reset": True,
         "initial_capital": capital,
         "active_pool": active,
         "reserve_pool": reserve,
+        "broker": broker_result,
     }