Ally Invest Review: Pros and Cons

• About Ally Invest
  
• Who Ally Invest Is Best For
  
• Pros & Cons
  
• Ally Invest Promotions
  
• Opening an Account
  
• Types of Accounts
  
• Fees & Commissions
  
• Investment Offerings
  
• Platforms and Tools
  
• Cash-Enhanced Managed Portfolios
  
• Forex
  
• Mobile App
  
• Is Ally Invest Safe?
  
• How It Compares

Though not as well-known as competitors (such as E*TRADE and TD Ameritrade), Ally Invest can certainly hold its own against the big boys. It consistently ranks near the top of customer satisfaction ratings.

And best of all, it's trade fees are among the lowest of any online brokerage around.

So how does this budget broker stand up against its more expensive counterparts? Read on to find out.

About Ally Invest

Ally's long history goes back to 1919, when it was founded as GMAC (the financial sector of General Motors). It slowly expanded its financial services and was rebranded as Ally Bank in 2009, offering online banking with high interest rates and minimal fees.

In 2016, Ally Financial acquired TradeKing, which became Ally Invest. New name, new site, and new mobile app. But the same low prices and same trading features.

• See latest promotion

Who Ally Invest Works Best For

Ally Invest is a good choice for:

• Casual traders who want a simple online brokerage account and have a basic understanding of markets and security types.

• Active traders or high-volume traders who can take advantage of the lower commission fees.

• Advanced traders who wish to trade Forex.

• Beginners who want completely hands-off investing with Ally Invest Cash-Enhanced Managed Portfolios.

If any of the above sound like you, this platform is a great, low-cost alternative to some of the more popular and widely advertised brokerages like E-Trade and TD Ameritrade.

Ally Invest Pros & Cons

PROS:

• $0 online stock and ETF trades
  
• Discount for active traders
  
• No minimum to open
  
• Wide variety of products
  
• Strong Forex platform (including a practice account)
  
• Cash-Enhanced Managed Portfolios option for no advisory fees
  
• 24/7 customer service by phone and live chat
  
• Thorough FAQ and education section
  
• Also has full online banking services, so you can invest and bank at the same place
  
• Check out Ally Invest here >>

CONS:

• No physical locations
  
• No practice trading platform (not good for beginners)
  
• No transaction-fee-free mutual funds
  
• Research and tools not as extensive as other online brokerages
  
• Fee for transferring or closing IRA accounts

Get Up to $3,500 Cash Bonus
Click Here to Get Cash Bonus
Expires 12/31/2019
New Ally Invest customers only. Account must be funded for at least 60 days to be eligible for cash bonus.

We'll explain more below. But first, let's highlight the current Ally Invest promotions.

Ally Invest Promotional Codes 2019

Get Up to $3,500 Cash Bonus

Get Cash Bonus

Expires 12/31/2019

New Ally Invest customers only. Account must be funded for at least 60 days to be eligible for cash bonus.

Commission-Free Stock Trades

Get Deal

With no minimum account balance and no minimum trade activity

Get $50 Cash Bonus

New Ally Invest customers only with $10,000 minimum opening deposit. Account must be funded for at least 60 days to be eligible for cash bonus.

Get $50 Cash Bonus

Expires 12/31/2019

Get $200 Cash Bonus

New Ally Invest customers only with $25,000 minimum opening deposit. Account must be funded for at least 60 days to be eligible for cash bonus.

Get $200 Cash Bonus

Expires 12/31/2019

Get $300 Cash Bonus

New Ally Invest customers only with $100,000 minimum opening deposit. Account must be funded for at least 60 days to be eligible for cash bonus.

Get $300 Cash Bonus

Expires 12/31/2019

Get $600 Cash Bonus

New Ally Invest customers only with $250,000 minimum opening deposit. Account must be funded for at least 60 days to be eligible for cash bonus.

Get $600 Cash Bonus

Expires 12/31/2019

Get $1,200 Cash Bonus

New Ally Invest customers only with $500,000 minimum opening deposit. Account must be funded for at least 60 days to be eligible for cash bonus.

Get $1,200 Cash Bonus

Expires 12/31/2019

Get $2,500 Cash Bonus

New Ally Invest customers only with $1,000,000 minimum opening deposit. Account must be funded for at least 60 days to be eligible for cash bonus.

Get $2,500 Cash Bonus

Expires 12/31/2019

Get $3,500 Cash Bonus

New Ally Invest customers only with $2,000,000 minimum opening deposit. Account must be funded for at least 60 days to be eligible for cash bonus.

Get $3,500 Cash Bonus

Expires 12/31/2019

Open an Ally Invest account

Open Account

OPENING AN ACCOUNT

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You must be a US citizen or legal permanent resident, and have a US address. You can get started two ways:

1. A self-directed account.
   If you're comfortable trading, you can handle your own investments.

   There are no account minimums to open a self-directed account. And there are no maintenance or inactivity fees.

   If you have a margin account (which is governed by federal regulation), you must maintain a minimum of $2,000, regardless of the brokerage you choose.
   

2. A managed account.
   If you're a beginner or prefer to be hands-off, you can get an automated Cash-Enhanced managed portfolio. This is a robo-advisor that automatically picks investments for you based on your goals.

   You need a minimum investment of $100 to open. There are no advisory fees for Cash-Enhanced Managed Portfolio.

You can fund your account via electronic transfer from your bank, wire transfer, or by mailing in a check.

Wire transfer will be the fastest method, while an electronic bank transfer can take 3 business days.

TYPES OF ACCOUNTS

Ally Invest supports the following accounts for self-directed trading:

• Individual taxable
  
• Joint
  
• Custodial
  
• IRAs (Traditional, Roth, Rollover, SEP, SIMPLE)
  
• Coverdell

Cash-Enhanced Managed Portfolios support:

• Individual and joint taxable
  
• IRAs (Traditional, Roth, Rollover)
  
• Custodial

Fees & Commissions

Ally Invest has straightforward pricing and boasts one of the lowest fees on the market.

• Stock and ETFs: $0 per trade
  
• Options: $0 per trade plus $0.50 per contract
  
• Mutual funds: $9.95 to buy or sell no-load mutual funds
  
• Penny stocks: Additional $0.01 per share for stocks under $2
  
• Bonds: $1 per bond (minimum $10)
  
• Forex: No commission
  
• Broker assisted trades: $20 + regular commission

All new accounts (no matter your opening deposit amount) will receive commission-free stock trading. In addition, you'll still be eligible for the up to $3,500 cash bonus as well.

INVESTMENT OFFERINGS

Ally Invest offers a wide assortment of investment possibilities, including:

• Stocks

• Mutual Funds: Ally offers thousands of mutual funds, but it doesn't have any no-transaction-fee funds.

• ETFs: Ally offers 500+ commission-free ETFs from Vanguard, GlobalX, WisdomTree, iShares and more.

• Fixed Income Securities: Corporate, agency, treasuries, municipals, strips & zeros, CDs, and new issues.

• Options (equity & index): Ally's platform offers very strong tools for options traders, such as options chains and profit/loss calculator.

• Penny Stocks: Also known as pink sheets or over-the-counter bulletin board. These are very high-risk if you don't know what you're doing.

• Binary Return Derivatives

• Forex (Foreign Exchange): Ally offers a robust Forex trading platform for the advanced trader, including a practice account. You need a minimum deposit of $250. Read more about it in detail below.

Get Up to $3,500 Cash Bonus
Click Here to Get Cash Bonus
Expires 12/31/2019
New Ally Invest customers only. Account must be funded for at least 60 days to be eligible for cash bonus.

PLATFORM AND TOOLS

Ally Invest's platform - called Ally LIVE - is available for free for anyone who opens an account.

It offers tools such as:

• Customizable dashboard. You can drag/remove modules however you want.
  
• Streaming charts. 8 chart types (including candlestick, bar, mountain, and line) with 117 chart studies and 36 drawing tools.
  
• Alerts. Add alerts to your charts
  
• Watchlists. Create customized watchlists.
  
• Options tools. This includes robust tools like option chains and profit/loss graph.
  
• Probability calculator. Estimate the likelihood of hitting your targets.
  
• Research data. See market stats, charts, company quotes, high/low prices, and peer performance comparisons.
  
• Free tools by Recognia.

Here are some screenshots:

Markets Overview

Options Chains and Probability Calculator

Ally's platform is obviously looking to bat with the big boys. But it's still lacking in some tools, such as heatmaps.

It's constantly listening to feedback and making improvements based on customer needs, so hopefully even more tools will come in the future.

Cash-Enhanced Managed Portfolio

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If you're a beginner or just wants to be hands-off, Ally Invest offers a robo-advisor called Cash-Enhanced Managed Portfolio.

Ally will automatically build a portfolio for you based on your goals and risk tolerance. Your portfolio will be professionally managed so you don't have to worry about maintaining it.

Some features include:

• Diversified portfolio of ETFs
  
• Automatic rebalancing
  
• 4 portfolio options: core, income, tax-optimized, and socially responsible

The minimum amount to start is just $100. Cash-Enhanced Managed Portfolio is free of advisory fees.This is lower than other robo-advisors like Betterment. However, the catch is that 30% of your portfolio will be held in cash. Read more about it in our detailed review.

Cash-Enhanced Managed Portfolio lacks tax loss harvesting, which is a feature offered by many other robo-advisor.

Custom Investment Plans Created for You
Click Here to Create Your Plan

ALLY FOREX

Forex trading is done on an entirely separate platform and mobile app. Ally Forex is a separate, but affiliated, company from Ally Invest.

Forex is the most popular traded market in the world. In a nutshell, Forex is traded in pairs: you're buying one currency while selling another. There's a fair amount of risk involved.

Ally Forex features include:

• Customized layout. You can choose from pre-set layouts or create your own to your preferences.

• Advanced charting. Includes more than 80 technical indicators, drawing tools, and integrated order management features. You can overlay technical studies and flip between charts and trade setups. You can even track, trade and modify orders directly on the charts.

• Automation. You can create a custom trading strategy and automate it for real-time buy and sell signals.

• Research. Stay on top of the market with streaming updates, forecasted results, and potential impacts.

• Practice platform. Ally Forex offers a $50,000 virtual practice account with full access to the platforms and tools for 30 days. This practice account is free, and you'll have over 50 pairs of currency to choose from.

You need $250 deposit to open an Ally Forex account. But it's recommended to start with at least $2,500 so you have more flexibility and better risk management.

MOBILE APP

Ally Invest offers trading on-the-go with its iPhone and Android apps - Ally Mobile. It's the same mobile app as the Ally online banking. So if you use the banking services as well, you can bank and invest on the same app.

The app offers a simplified version of the desktop platform. The functions are limited, but they have most of the core abilities, such as:

• Trade stocks and options from your phone
  
• Get live streaming quotes, chart positions, and current news
  
• Use advanced charting tools
  
• View your watch lists
  
• Monitor your investments and check balances

Get Up to $3,500 Cash Bonus
Click Here to Get Cash Bonus
Expires 12/31/2019
New Ally Invest customers only. Account must be funded for at least 60 days to be eligible for cash bonus.

Is Ally Safe?

Ally Invest is a member of FINRA and SIPC. SIPC covers customer claims up to $500,000, including a $250,000 limit for cash claims.

While SIPC protects against the loss of cash and securities (such as stocks and bonds) in the case that Ally Invest fails, it does not protect against investment losses from the market.

Forex accounts are not protected by the SIPC.

Ally Invest's clearing firm, Apex Clearing, also has an additional insurance policy through London Underwriters to supplement SIPC protection. This additional insurance policy covers you if the SIPC limits are exhausted, for up to $150 million.

How It Compares

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No review of Ally Invest is complete without a look at how Ally Invest compares with E-Trade, Fidelity and TD Ameritrade. Here are the side-by-side comparisons to see how the brokers stack up.

Ally Invest vs E*TRADE

While E*TRADE has higher commission fees, the platform is top notch when it comes to research and tools. More advanced traders may find more value in E*TRADE.

E*TRADE also offers a large selection of no-transaction-fee mutual funds, which Ally Invest does not have. However, Ally Invest offers more commission-free ETFs. The better one for you depends on what you want to invest in.

E*TRADE also offers checking account benefits and 30 physical locations across the country.

	Ally Invest	E*TRADE
	Benefits and Features
Stock Trading	$0 per trade	$0 per trade
Options Trading	$0 base + $0.50 per contract	$0 per trade + $0.65 per contract $0 per trade + $0.50 per contract if you make 30+ trades a quarter
Minimum Deposit	$0	$500 for brokerage accounts No account minimum for retirement accounts
Mutual Fund Trading	$0 to buy/sell load mutual funds $9.95 to buy/sell no load mutual funds	$0 for no-load, no-transaction-fee funds $19.99 for transaction-fee funds
Commission Free ETFs	500+ including ETFs from WisdomTree	250+ including ETFs from WisdomTree, Global X Funds, and db-X Deutsche Bank
Penny Stocks	$0.01 per share on the entire order for stocks priced less than $2.00.
Broker Assisted Trades	$20 + Regular Commission	$25 + Regular Commission
Customer Service	(855) 880-2559 (Open 24/7)	800-387-2331
Inactivity Fee		$0
Maintenance Fee		$0
Banking	Integrated with banking on ally.com. Manage your Ally banking and investment accounts in one place.	Checking account offers no minimum balance requirements, free online bill pay, and unlimited debit card and check transactions.
Mobile App
Desktop App		E*TRADE Pro (requires you execute at least 30 trades during a calendar quarter or maintain brokerage account balance of at least $250,000)
Forex Trading
Futures Trading		$1.50 per contract, per side + fees (excluding bitcoin futures)
Locations		30
Online Community		ETrade Community lets you exchange trading and investing ideas with other ETrade customers.
Seminars		Live events and educational seminars at local branches.
Stock Trading
Options Trading
Banking
Mobile App
Commissions and Fees
Ease of Use
Online Community
Research
Trading Platform
Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details. Ally Invest: Pricing information from published website as of 07/18/2019. E*TRADE: Pricing information from published website as of 11/11/2019.

Ally Invest vs Fidelity

Fidelity has the same low trading price for stocks, options, and ETFs. However, Fidelity's mutual funds trading price is significantly higher. But it does offer a huge selection of no-fee funds, including zero minimum investment Fidelity Mutual Funds. It also has a selection of commission-free ETFs.

Fidelity has than 180 branch locations, so it's also good if you want in-person advice.

	Ally Invest	Fidelity
	Benefits and Features
Stock Trading	$0 per trade	$0 per trade
Options Trading	$0 base + $0.50 per contract	$0 per online trade, plus $0.65 per contract
Minimum Deposit	$0	$0
Mutual Fund Trading	$0 to buy/sell load mutual funds $9.95 to buy/sell no load mutual funds	$0 transaction fee for Fidelity funds $0 on purchase for NTF (no transaction fee) non-Fidelity funds. ($49.95 on redemption if held less than 60 days) $49.95 on purchase for non-Fidelity funds; $0 on redemption. (Certain funds may have a $75 transaction fee).
Commission Free ETFs	500+ including ETFs from WisdomTree	357 including 28 Fidelity factor, sector, stock, and bond ETFs and 329 iShares® ETFs
Penny Stocks	$0.01 per share on the entire order for stocks priced less than $2.00.
Broker Assisted Trades	$20 + Regular Commission	$32.95 per trade for representative-assisted trades.
Customer Service	(855) 880-2559 (Open 24/7)	(800) 343-3548
Inactivity Fee		$0
Maintenance Fee		$0 account service fee
Banking	Integrated with banking on ally.com. Manage your Ally banking and investment accounts in one place.	Fidelity Cash Management Account includes reimbursed ATM fees, no monthly fee, no minimum balance requirement, FDIC insurance, mobile check deposit, free billpay and free checkwriting.
Mobile App
Desktop App		Active Trader Pro (requires you trade 36 times or more in a rolling 12 month period)
Forex Trading
Locations		More than 180
Virtual Trading
Stock Trading
Options Trading
Banking
Mobile App
Commissions and Fees
Ease of Use
Online Community
Research
Trading Platform
Mutual Fund Trading
Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details. Ally Invest: Pricing information from published website as of 07/18/2019. Fidelity: Pricing information from published website as of 11/11/2019.

Ally Invest vs TD Ameritrade

Ally Invest's commission for stock trades is less than TD Ameritrade, but TD Ameritrade investors have access to 100 locations in 34 states.

Their cash management account features will appeal to buy-and-hold investors who value service over commission and do not plan to trade frequently.

	Ally Invest	TD Ameritrade
	Benefits and Features
Stock Trading	$0 per trade	$0 commission for online stock, ETF, and option trades
Options Trading	$0 base + $0.50 per contract	$0.65 per contract
Minimum Deposit	$0	$0
Mutual Fund Trading	$0 to buy/sell load mutual funds $9.95 to buy/sell no load mutual funds	$0 for no-transaction-fee mutual funds $49.99 for no-load mutual funds $0 for load mutual funds
Commission Free ETFs	500+ including ETFs from WisdomTree	550+ Commission-Free ETFs
Penny Stocks	$0.01 per share on the entire order for stocks priced less than $2.00.
Broker Assisted Trades	$20 + Regular Commission	$44.99
Customer Service	(855) 880-2559 (Open 24/7)	(800) 669-3900 (Open 24/7)
Inactivity Fee		$0
Maintenance Fee		$0
Banking	Integrated with banking on ally.com. Manage your Ally banking and investment accounts in one place.	Cash Management account offers free ATM withdrawals, no monthly maintenance fees, free online bill pay, and free check writing.
Mobile App
Desktop App		Thinkorswim
Forex Trading
Futures Trading		$2.25 per contract (plus exchange & regulatory fees)
Locations		More than 100 locations in 34 states
Seminars		Online webcast
Virtual Trading		Paper Trading to practice/test strategies and ideas.
Stock Trading
Options Trading
Banking
Mobile App
Commissions and Fees
Ease of Use
Online Community
Research
Trading Platform
Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details. Ally Invest: Pricing information from published website as of 07/18/2019. TD Ameritrade: Pricing information from published website as of 07/18/2019.

BOTTOM LINE: IS ALLY INVEST GOOD?

It's hard to beat Ally Invest's low cost of $0 per stock trade. The website may be more basic and doesn't have as extensive research and tools, but it can definitely hold its own.

Ally is worth considering for the budget investor or active traders. It's also good if you want to trade options or Forex, as those have strong platforms.

Get Up to $3,500 Cash Bonus
Click Here to Get Cash Bonus
Expires 12/31/2019
New Ally Invest customers only. Account must be funded for at least 60 days to be eligible for cash bonus.