Ally Invest Review
Ally Invest is a discount broker that comes with several benefits for those who use it. The U.S. stockbroker has been around since 1911. With so many years backing it up, there’s no denying that the company is experienced and offers non-trading fees and low-trading fees, and it is a wonderful option for active investors. Besides, it can also be a great learning experience for anyone who wants to get into trading.
Before creating an account on the platform and starting your trading activities, you need to know how the experience with Ally Invest will look like. That’s exactly why we’re here. In this article, you will learn more about Ally Invest and will be able to discover how good of an option it is when it comes to trading.
Who Is Ally Invest for?
Ally Invest is mostly amazing for active traders, but it can be an attractive option for both experienced traders and beginner ones, particularly when it comes to the $0 trading fees.
The platform is appealing for both experienced stock traders and starter investors thanks to having no costs for eligible U.S. securities and no account minimum. Furthermore, it can be a great option for Forex traders and options traders. It may also be a good alternative for people who are just starting their investment journey thanks to the educational resources available. Not to mention that more tools are added constantly to help these investors start.
Overall, here are the people Ally Invest is best for:
- People who are active traders
- Options traders
- Forex traders
- People who are at the beginning of the trading journey and want to learn more
- Ally Bank clients who want to start investing
So, the platform is great for multiple types of traders, so whether you want to make use of the educational resources or the tools or whether you’re experienced and want to enjoy more advanced options, you can try Ally Invest.
Things We Like
There are many things we like about Ally Invest. First of all, we like the way the platform manages cash. If you have a brokerage account on the platform and you didn’t invest, no interest is gained by the account. However, money is offered instantly between savings and brokerage accounts, which allows many traders to use the interest rates to their advantage. This is possible as long as you have a separate Ally savings account.
Then, we also like the fact that the trading is low-cost and free. Some eligible U.S. stocks have no commission, and the same goes for ETFs and options. Meanwhile, some options trades come with a low fee of $0.50. It is also great how there are 11,200 no-transaction mutual funds on offer.
Another impressive thing is the fact that it has a great platform that offers real-time streaming quotes and fast trading capabilities among other great features. Ally Invest also has a large mutual fund selection.
Things We Don’t Like
While Ally Invest offers a large variety of tradable securities, there are still things that are missing, which we found disappointing. In fact, two of the most common tradable securities are not offered, specifically fractional shares and futures. So, while members can all enjoy Forex, options, and other things, they will have to go look for another platform if they are interested in futures and fractional shares.
Pros / Cons
- No account minimum
- Trading is low-cost and free
- Real-time streaming quotes and fast trading capabilities
- No no-transaction-fee mutual funds
- No branches
- Fractional shares and futures tradable securities are not offered
So far, it’s obvious that Ally Invest has a lot to offer, and it most likely seems like a great option for a lot of people. But while that may be the case, it is still more important than ever to learn everything you can about the platform. So, before using it, check out these details:
Who Is Ally Invest?
Ally Invest is a stockbroker based in the U.S. and has been around for over a century. That is when General Motors Acceptance Corporation was founded, and it is the predecessor of the Ally Invest we know. GMAC was founded in 1911, so Ally Financial Inc. dates back to that year. On top of that, Ally Financial Inc. has a banking subsidiary called Ally Bank, and it is also listed on the New York Stock Exchange.
Ally Invest makes it possible for you to trade without worrying about high fees. This is because there are no costs for stock trading, and there are no base commissions for options trades either. There may only be a $0.50 fee per contract. Also, the platform doesn’t have any annual fees or inactivity fees.
Is Ally Invest Regulated?
Fortunately, in terms of regulation, there is nothing to worry about when it comes to Ally Invest. This is because it is regulated by the Financial Industry Regulatory Authority and the Securities and Exchange Commission. SEC and FINRA are two of the top-tier financial authorities, making Ally Invest a legal and secured platform.
Is Ally Invest Safe?
Ally Invest is generally a very safe broker – firstly because it’s regulated by two top-tier authorities, and secondly, because it has a great history to back it up. Ally Invest is not part of the newer platforms that are sometimes shady and scam their customers. They’ve been around for a long time now and know what they’re doing. Investor protection is also ensured.
But there are some downsides too because while there is some regulation and security going on, there is no investor protection for Forex. Also, there isn’t any protection for the negative balance.
Countries Ally Invest Accepts Clients from
Ally Invest is based in the U.S., and it only accepts clients from the U.S. All 50 states have access to the services, and Puerto Rico and the District of Columbia can also use the platform. However, the company does not accept account openings from people who live abroad. When it comes to U.S. citizens, they also need to live in the U.S. to be able to open a brokerage account. The only exceptions are made when it comes to active military personnel that is out of the country.
Ally has won several awards over the years. In 2021, they won in the top 50 companies for diversity, but they also won an award for the best employers for diversity and the best places to work for LGBTQ equality.
Range of Offerings and Products
The good thing about Ally Invest is that it has quite a wide range of services to offer. Now, of course, there are some limitations compared to larger platforms but overall, it has enough things to offer for certain investors.
Here are the tradable securities available with Ally Invest:
- Mutual funds
- Penny stocks
Sadly, Ally Invest does not offer fractional trades and futures.
Ally Invest comes with a web trading platform and a mobile one.
The web platform has a great search function, and it is very user-friendly. Besides, it has some amazing customizability options, such as for workspace and charts. It has a nice design as well. There are also many order types available. Unfortunately, though, the platform only comes with a one-step authentication when you log in instead of a two-step one.
Just like the web platform, the mobile one is also user-friendly and has a well-developed search function, on top of having a lot of order types. The downside is that it doesn’t have a two-step login option either, and it doesn’t cover bonds and mutual funds. Moreover, there are no price alerts on the mobile platform.
When it comes to opening an account, Ally Invest has different account types available. For instance, it has a custodial account, joint account, managed portfolios, individual account, Coverdell account, and retirement accounts.
In terms of deposit methods, you cannot make deposits using e-wallets or credit and debit cards. Deposits can only be made using bank transfers, which is a disappointment.
Ally Invest has a minimum deposit of $0. Therefore, you can deposit as much as you want without worrying about any limits.
Withdrawals are also made through bank transfer, with e-wallets and credit and debit cards not being available. There is no fee when making withdrawals unless you ask for a check, in which case the fee is $5.
The default platform has no demo account option available.
Ally Invest Promotions
Ally Invest has some nice promotions in place. When an account transfer is done for the first time for $2,500 or more, the platform credits transfer fees that a different brokerage may charge up to the sum of $150. Also, new customers will receive money bonuses when they make deposits higher than $10,000.
Client Support and Education
Educational resources are available for all members of the platform. People have access to things like webinars, tutorials, educational videos, educational articles, and live streams. There are no demo accounts, though.
Ally Invest vs Robinhood
Comparing these two brokers side by side is no easy task. Robinhood is considered a great alternative for Ally Invest and vice versa. Let’s see them side by side.
Is Ally Invest or Robinhood better for beginners?
Ally Invest is better for beginner investors than Robinhood.
Ally Invest offers investors more options and easy access to Education (Stocks), Education (ETFs), Education (Options), Education (Mutual Funds), Education (Bonds), and Education (Retirement).
What about Ally Invest vs Robinhood pricing?
Ally Invest and Robinhood both cost $0 per trade and charge no commission.
For options trading, both Ally Invest and Robinhood charge the same base fee of $0. Each option contract then costs $0.50 at Ally Invest and $0 at Robinhood.
Does Ally Invest or Robinhood offer a wider range of investment options?
Ally Invest offers a more diverse selection of investment options than Robinhood. Ally Invest offers investors access to Stock Trading, OTCBB / Pink Sheets, Options Trading, Mutual Funds, Forex Trading and Advisor Services.
Looking at Mutual Funds, Robinhood trails Ally Invest by 19,024 total mutual funds, with Ally Invest offering 19024 and Robinhood offering 0.
Which trading platform is better: Ally Invest or Robinhood?
To compare the trading platforms of both Ally Invest and Robinhood, we tested each broker’s trading tools, research capabilities, and mobile apps. For trading tools, Ally Invest offers a better experience.
With research, Ally Invest offers superior market research. Finally, we found Robinhood to provide better mobile trading apps.
Does either of the brokers in question offer banking?
Online banking can be a benefit for investors, and some brokerages do provide banking services to customers. Debit Cards are available to clients of Robinhood while Ally Invest offers customers Checking Accounts, Savings Accounts, Debit Cards, and Mortgage Loans.
Overall winner: Ally Invest
Verdict – Overall Rating
If you’re an active trader or someone who wants to learn more about trading, Ally Invest may be the platform for you. They need to make some improvements, though, such as updating their systems and adding more deposit and withdrawal options.
But overall, it is a great and safe service that you can use to test your investing abilities.
All brokers listed on our website are regulated by at least one financial regulator and have never been reported as a scam. Our reviews and overall scores are based on the key areas above, in a combination with our opinion and commentary.
The reviews are shared and discussed with the brokers, but the authors of our website always have the final word. Furthermore, we always strive to keep the information on our website updated and relevant for our readers.
What helps us stand out is that we always test our brokers with an anonymous live account, to ensure we deliver the most accurate information and experience to our readers. Finally, our reviews and evaluation are always independent of any financial compensation we may receive from the brokers.
There is a very high degree of risk involved in trading securities.
With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility that may substantially affect the price or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more at Wikipedia.
All investments involve risks and are not suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. The past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against the loss, in a down market.
There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. More details here.
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