With zero commissions on most trades, no required account minimums, and an optional managed portfolio, it’s no wonder Ally Invest is one of the most popular online stock brokers.
Whether you’re new to investing or have some experience placing trades, Ally Invest might be a good fit for you. In this Ally Invest review, we’ll take an in-depth look at this service to help you decide if it’s the right stock broker for you.
Ally Invest Review
Product Name: Ally Invest
Product Description: Ally Invest is a popular online stock broker that lets you trade stocks, ETFs, and options without paying a dime in commissions. You'll also find low prices on mutual fund trades, as well as a Cash Enhanced Managed Portfolio if you don't want to DIY.
- Commissions & Fees
- Account Options
- Investment Options
- Tools & Resources
- Website/App/Ease of Use
- Customer Service
When it comes to Commissions & Fees, Ally Invest is hard to beat. You’ll pay zero commissions on U.S. exchange-listed stocks, options, and ETFs. Options contracts cost a low 50 cents, and mutual funds transactions are only $9.95. Plus, the Managed Portfolio option is free of advisory fees. There are plenty of Account Options to be found at Ally Invest — from taxable accounts to IRAs, to trusts and Coverdell accounts. You can also open a checking or savings account at Ally Bank. However, there are no options for solo 401(k)s or 529s. As for Investment Options, you’ll find the usual offerings: stocks, penny stocks, options, ETFs, mutual funds, etc. However, unlike some other brokers, Ally Invest doesn’t offer a selection of fee-free mutual funds. There are plenty of Tools & Resources to use, from probability calculators to tax-planning guides. Ally Invest also scores high for its Website/App/Ease of Use, with an intuitive website and easy-to-use mobile apps. We also appreciate Ally Invest’s 24/7 Customer Service via phone or live chat.
Ally Invest Features
|Commissions & Fees||$0|
|Options Trades||$0 + $0.50|
|Mutual Fund Trades||$9.95|
|Types of Investments||Stocks, Penny Stocks, Options, ETFs, Mutual Funds, Bonds, FOREX, Futures|
|Types of Accounts||Taxable, Joint, Custodial, Trusts, Limited Partnerships, Partnerships, Non-Profit, |
Retirement Accounts (Roth IRA, Traditional IRA, Rollover IRA, SEP IRA, SIMPLE IRA, 401(k), Solo 401(k), Annuities)
College (529, Coverdell)
|Managed Portfolio Option||Cash Enhanced Managed Portfolio|
|Banking Services||Checking, Savings, CDs, Money Market|
|App Availability||iOS, Android, mobile optimized website.|
|Customer Service||Phone: 24/7; Live Chat: 24/7; Email|
|FINRA CRD#||CRD#: 136131|
|SEC Registration Number||SEC#: 8-66982|
|Current Promotions||Ally Invest Promotion - Up to $3,500 Cash Bonus|
- Cash Enhanced Managed Portfolio.
For investors who don’t want to DIY, Ally Invest offers a Cash Enhanced Managed Portfolio that is essentially a robo-advisor. (See more details, below.)
- Dividend Reinvestments. Ally Invest offers free automatic dividend reinvestments (DRIPs) with the ability to purchase fractional shares. Investors can apply automatic DRIPs to all — or select — stocks in their portfolios.
- Cash Sweep. Ally Invest gives its account holders the option of placing their uninvested money into an FDIC-insured sweep account where they can earn interest.
- Free Tools. Ally Invest offers several useful free tools for helping you make the most of your investments. You’ll find a probability calculator that can help you determine whether you’ll hit your goals, as well as the Maxit Tax Manager, which will come in handy when dealing with the tax implications of investing.
- Account Records. Ally Invest maintains records for account holders, including trade confirmation reports, monthly or quarterly account statements, and tax documents such as 1099 forms. Account records are stored online and can be downloaded into a .pdf format, Quicken, or Excel.
- Ally Invest and CoolTrade Partnership. Ally Invest recently partnered with CoolTrade™ to offer Ally Invest customers access to automated stock trading. This capability is available in the Ally Invest trading platform and gives Ally Invest clients the ability to make fully automated stock trades. There’s a monthly subscription for this service, which is aimed at professional level traders.
What Is Ally Invest?
Ally Invest is an online stock broker owned by Ally Financial. The service was created in 2016 when Ally Financial purchased a popular investing platform called TradeKing and rebranded it as Ally Invest. Over the years, Ally has improved and expanded on TradeKing’s award-winning features.
Ally Invest’s “sibling” company is Ally Bank, an online-only bank that offers great interest-paying accounts. Because Ally doesn’t operate any brick-and-mortar banking offices, the company can afford to pay higher APYs than its more-traditional counterparts. At Ally Bank, you’ll find savings and money market accounts, certificates of deposit (CDs), and even interest-paying checking accounts. Thanks to Ally Financial’s banking wing, you can pair your Ally Bank account with your Ally Invest account for a one-stop-shop for your financial needs.
You can find out more information in our Ally Bank review here.
How to Get Started with Ally Invest
It’s easy to get started with Ally Invest. Opening an Ally Invest account takes about 15 minutes.
Like all brokerages and other financial institutions, Ally Invest requires new account holders to enter the standard personal information such as name, address, SSN, employer information, trading experience, financial information, etc.
Funding Your Ally Invest Account. You can transfer money into your Ally Invest account when you open your account. If you have an Ally Bank account, you can fund your Ally Invest account instantly.
Transferring Money. Ally Invest allows investors to link a bank account to their Ally Invest account to transfer money via ACH transactions. It’s important to note that ACH deposits are subject to a trading hold of five business days and cannot be withdrawn for 10 business days.
This hold policy might make you miss out on a hot idea if you aren’t prepared. You can link only one bank account to your Ally Invest account, so it’s recommended to do some planning before you open your account.
How Does Ally Invest Work?
The Ally Invest platform is both intuitive and robust. Ally Invest’s trading interface allows investors to perform multiple transactions from the same page, meaning you can set up covered calls, puts, spreads, straddles, and other trading options from the same screen. That’s likely more advanced than the needs of the average investor, but technical traders will find these features useful.
The Ally Invest platform features online equity, options, and fixed-income trading tools including real-time portfolio information, advanced order entry, customized charting and alerts, free research and integrated news, stock, option and mutual fund screeners, volatility charts, a pricing probability calculator, enhanced option chains, and interactive educational information.
Ally Invest also has an extensive selection of tutorials and videos to help you if you ever get stuck. Ally Invest’s Learning Center offers tutorials on a number of investing topics. The Learning Center utilizes a variety of different media, including articles, blogs, free live webcasts and webinars, podcasts, video tutorials, calculators, tools, e-books, newsletters, and links to external resources.
Just about any kind of information an investor could need can be found inside the Learning Center or through one of its external sources. The learning center is accessible to everyone, regardless of whether or not you have an Ally Invest brokerage account.
Ally Invest offers a variety of investment options to meet most individual investor’s needs, including:
- mutual funds
- exchange-traded funds (EFTs)
- U.S. Treasury and Agency Issues
- FOREX (foreign currencies)
- Ally Invest also features a no-fee IRA
Ally Invest Cash Enhanced Managed Portfolio
If you’d rather not DIY when it comes to your investment portfolio, the Cash Enhanced Managed Portfolio might be a good option for you. Essentially, this Ally Invest product is a robo-advisor, which uses computer algorithms to create and maintain a portfolio ideal for your risk tolerance and goals.
With this option, the bulk of your portfolio will consist of exchange-traded funds (ETFs). However, Ally Invest will always set 30% of your assets aside as a cash buffer. The intention is to protect the whole of your portfolio from downturns in the stock market. But in addition, you’ll be earning interest, too.
Best of all, there are no advisory fees associated with a Cash Enhanced Managed Portfolio account, and the minimum investment is only $100.
Ally Invest has always been low cost (as was TradeKing). However, in October 2019, the company announced that it was eliminating commissions for U.S. exchanged-based stock, options, and ETF trades. In addition, Ally Invest decreased the per-contract price for options to 50 cents.
Although Ally Invest doesn’t offer any fee-free mutual funds, its pricing is among the cheapest in the industry. The commission on more than 8,000 funds is $9.95 per transaction.
Ally Invest doesn’t require any minimums for opening or maintaining an account.
Ally Invest iPhone, iPad, and Android Apps
Ally Invest currently offers smartphone apps for the iPhone, iPad, and Android. These apps allow you to check your account activity, trade stocks and options, perform research, track stock news, and more. Ally Invest also features a mobile-optimized site if you prefer using a standard web interface. You can check out the Ally Invest iPhone and Blackberry apps here.
The Ally Invest Community
The Ally Invest community is well organized and well run. It features a blog and forum section where members can trade notes and ideas and learn from each other.
Members can track recent trade activity and trade notes from those who are willing to share some insight as to why they made a trade. They can also join Ally Invest community groups, which are organized and run by Ally Invest members.
There are quite a few groups, including those for beginning investors, options traders, and those who prefer to specialize in different types of investments including value stocks, penny stocks, ETFs, hedge funds, dividend stocks, and various segments of the market such as automotive, biotech, or individual companies.
Ally Invest Pros & Cons
Ally Invest Pros
- Commission-Free Trading. You’ll pay zero commissions when you invest in U.S. exchange-listed stocks, options, and ETFs.
- Cash Enhanced Managed Portfolio. If you don’t want to DIY, you can use the Cash Enhanced Managed Portfolio robo-advisor service, which requires a minimum deposit of only $100 and is free of advisory fees.
- 24/7 Customer Service. You can contact a living, breathing customer service representative at any hour of the day.
- Easy-to-Use Platform. The Ally Invest trading platform is easy to learn and use.
- Plenty of Tools and Resources. Whether you’re a brand-new investor or an experienced trader, there are plenty of tools and resources to help you improve.
- Ally Bank. You can open an Ally Bank account and create a one-stop-shop for all of your financial needs.
Ally Invest Cons
- No Fee-Free Mutual Funds. At some other brokerages, you’ll find a large assortment of fee-free mutual funds. That’s not the case at Ally Invest, but for the mutual funds you can trade, the transaction fee is only a low $9.95.
- No Brick-and-Mortar Branches. Sometimes, you just want to sit down and have a face-to-face conversation with the person who’s managing your money. As with other online-only discount brokers, there are no offices to visit with Ally Invest. However, you can reach a customer service rep 24/7 via phone or live chat.
Ally Invest Promo Codes
Currently, there are no Ally Invest promotions. However, you can monitor our Ally Invest promotions page to see if that changes.
Ally Invest Review – Conclusion
Overall, I think Ally Invest offers great value and capability in a low-cost, easy-to-use package. Based on my personal experiences and its award-winning ways, I don’t hesitate to recommend Ally Invest if you’re searching for a new brokerage firm.
Who is Ally Invest best for? Ally Invest is a great option for both beginning and experienced investors, as well as those who want a managed portfolio, rather than going the DIY route.