Ally Invest should be on your radar if you're considering switching your investments to a different broker. It's one of the best investment brokerages accessible, especially when you consider all of the services they offer for just about every aspect of your financial life. It's part of the Ally Bank family of companies.
Ally Invest is a venture capital firm based in New York CityTradeKing was purchased by Ally Bank in 2016, which is one of the most popular online banks and offers some of the highest savings rates available. The investment firm was renamed Ally Invest, keeping much of what made TradeKing so successful but adding Ally Bank's own unique spin. With $4.7 billion in assets under management, Ally Invest manages 250,000 customer accounts. Ally Bank is one of the largest auto lenders in the US, with over 4 million customers and $70 billion in customer deposits. Both self-directed and managed accounts are available through Ally Invest. They have one of the lowest commission fee systems in the business and offer a comprehensive range of investment opportunities to self-directed investors.
Self-Directed Investing with Ally InvestHere's a breakdown of the services they provide for self-directed investors. Traditional, Roth, rollover, SEP, and SIMPLE IRAs are among the account types accessible, as are custodial and Coverdell accounts, as well as specific business accounts. Stocks, bonds, options, mutual funds, exchange-traded funds (ETFs), FOREX, and futures are among the investments available. Ally Bank (see "Ally Bank" section below) offers checking and savings accounts, certificates of deposit, and money market accounts.
- No initial investment is required!
- Fees for trading: There are no yearly, inactivity, or IRA fees. The following are the trading fees:
- $0 in stocks and ETFs
- Mutual funds: No-load funds only: $9.95 per trade (No fee applies on load funds)
- Options: $0.50 per contract + $0 per trade
- Bonds: $1 per bond, with a minimum of $10 and a maximum of $250.
- US Treasury Bills are free.
- There are no commissions in Forex trading; instead, Ally Invest makes money through the buy/sell spread.
- Customer care is available by phone, email, and live chat around the clock.
- Protection for the $500,000 in cash and securities, including $250,000 in cash, is provided by the Securities Investors Protection Corporation (SIPC). This is insurance against broker failure rather than market losses. Additional coverage of up to $37.5 million is available, including $900,000 in cash. This insurance does not cover Forex or futures accounts, though.
- iOS and Android apps are available.
- Ally Invest's clearing agency, Apex Capital, provides access to checking and debit cards. Apex provides checking and debit card access to your account. The annual costs for checking are $20, and the debit card is $35.
Ally Invest Trading Tools for Self-Directed InvestingAlly Invest offers one of the most complete trading platforms available. This is especially true when it comes to options trading, which was a strong point for TradeKing in the past. But it appears that whatever TradeKing provided, Ally Invest enhanced and expanded. Ally Invest provides the following trading tools:
Streaming ChartsAlly Invest offers six different chart formats, as well as over 90 chart studies and drawing tools. These will aid in the analysis of stock, ETF, and index performance. You can also change the settings and use interactive charts for pricing and study comparisons.
WatchlistsUse this tool to track the market statistics for groups of securities.
Market Research and InformationQuotes, charts, high/low prices, dividend dates, news, historical quotes, and peer performance comparisons can all be found here.
Calculator for ProbabilityYou can use implied volatility in this tool to help you assess the chance of meeting your targets before investing.
Graph of Profit/LossThis tool will assist you in fully comprehending the profit and loss prospects of options trading. You can examine results depending on volatility and time fluctuations.
Chains of OptionsTrade options, including complex multi-leg spreads, with ease.
Forex and Futures Trading with Ally InvestIndividual securities or managed options are more popular than this investing alternative. However, with an average daily turnover of $3.2 trillion, the Forex market is the biggest traded market on the planet. To be sure, it's a specialized investment, but Ally Invest can give you a completely equipped platform if you're familiar with it. You can trade more than 50 currency pairs with Ally Invest, including gold and silver. Furthermore, trades are possible in real-time. Ally Invest provides in-depth research and analysis to assist you in becoming a better trader.
Customer support for Forex and futuresHours are limited compared to the general platform; however, they are still more than many other sites. The customer support operates on a "24/5" schedule, meaning that it is available 24 hours a day, five days a week. It runs from 10:00 a.m. on Sundays until 5:00 p.m. on Fridays - all timings are Eastern.
Minimum starting investment for Forex and FuturesYou can open an account with as little as $250, although Ally Invest advises that you start trading with at least $2,500. That is the absolute minimum you will require to utilize the account fully.
App for Foreign Exchange and FuturesUsing your iPhone or Android, trade forex and futures on the move. Charting tools, price alerts, real-time news and commentary, and the online app's fundamental features are all available on the mobile app.
Instruments for Trading in Foreign Exchange and FuturesAlly Invest provides a number of tools to assist you in improving your Forex and futures trading skills.
Practice Account (Forex and Futures)This service is not available with the self-directed account at Ally Invest, although it is offered for Forex and futures. They provide you with a free practice account worth $50,000. For up to 30 days, they provide full access to the trading platform and tools. It will allow you to practice trading before risking real money.
Web ForexTraderThis is a basic trading platform for Windows and Mac. It has a fully integrated charting tool and real-time position account information. It also has a number of single and contingent order types, including If/then, If/then OCO, and Trailing Stops.
Premium Charting for ForexThis is a series of professional-level tools that will assist you in identifying and decoding Forex patterns and trends. You may, for example, decode numerous indicators for advanced technical analysis, view auto trend line indication continuance on charts, and configure charts to your liking.
Robo Portfolios at Ally InvestYou can hire a professional to manage at least a portion of your portfolio, if not the entire thing. Ally Invest Robo Portfolios is the Ally Invest Robo-advisor, which offers algorithm-based investment management comparable to those of Betterment and Wealthfront. Robo Portfolios uses the same investment management strategy as Robo Advisors. Modern portfolio theory, or MPT, is the foundation of this strategy. All aspects of asset management, including quarterly rebalancing, are taken care of for you. A questionnaire is the first step in the procedure. Your risk tolerance, investment goals, and time horizon are all determined by this. Several diversified, low-cost index funds make up your portfolio (ETFs). From then, everything is taken care of for you, and all you have to do is fund your account. The following are some of the fundamentals of Robo Portfolios:
- $100 is the minimum initial investment.
- Cash-Enhanced Robo Portfolios have no advisory fees; classic Robo Portfolios have a 0.3 percent advisory charge.
- Individual and joint taxable accounts, traditional, Roth, and rollover IRAs, and custodial accounts are all available.
Portfolio Make-Up by Ally InvestAlly Invest has six different portfolio options to choose from:
- Moderate Development
- Aggressive Development
- NEW! Investing with a conscience
- iShares Core S&P500 – US Large Cap Equities
- iShares Core S&P Mid-Cap US Mid Cap Equities
- iShares Core S&P Small Cap US Small Cap Equities
- Vanguard FTSE Developed ETF – Developed Ex-US Equities
- Vanguard FTSE Emerging Markets ETF - Emerging Market Equities
- iShares 7-10 Year Treasury Bonds (US Government Bonds)
- iShares Intermediate Credit Bonds - US High-Quality Corp. Bonds
- Vanguard Total International Bonds – Global ex-US Bonds
Bank AllyOne of the features that distinguish Ally Invest is its affiliation with Ally Bank. You can perform a lot of your banking and invest through the Ally Bank platform. Ally Bank is regarded for having some of the greatest savings interest rates available on the internet. They're also one of the best banks for auto loans.
CheckingAlly Bank offers interest-bearing checking accounts with remote deposit capabilities. Even though the bank does not have any local branches, you will have access to over 43,000 ATMs around the country. Meanwhile, Ally Bank will reimburse you for any ATM fees levied by other banks up to $10 every statement cycle. Savings The Online Savings Account from Ally Bank is a no-fee savings account that pays some of the greatest savings interest rates available. This account also allows you to deposit checks from anywhere.
Market for MoneyThe Money Market Account from Ally Bank pays excellent interest rates and has no monthly maintenance costs. You can also make remote deposits and make unlimited deposits and ATM withdrawals.
Deposit Certificates (CDs)Ally Bank truly shines in this area. They have a number of appealing CDs with some of the highest interest rates available on the internet.
Lending by Ally BankAlly Bank has a mortgage lending division that can help you finance your home. They also have a cashback credit card with no annual fee and limitless benefits, providing 2% back at gas stations and grocery stores and 1% back on everything else. The account has no yearly cost and can be linked to Apple Pay or Samsung Pay.
Vehicle FinancingHowever, vehicle financing is likely to be Ally Bank's strongest area. They provide innovative automobile purchase and lease programs. They even offer customized car finance, which covers accessibility requirements such as wheelchair lifts and right-hand driving capability.
SmartLease from Ally Pre-OwnedThe most intriguing of their auto finance alternatives is this. You can lease used vehicles through the SmartLease program. For the vehicle you're leasing, they have three requirements:
- Have clean background reports
- Are under the age of four model years
- Have less than 75,000 miles on it
Ally Invest Advantages and Drawbacks
The ProsLow fees. At $0 per trade, Ally Invest has one of the lowest costs in the business. Self-directed trading and Robo Portfolios are available at Ally Invest. You can have some of your money professionally managed while simultaneously dabbling in trading. Ally Invest staff are available 24 hours a day, seven days a week for customer service. The Ally Bank connection Ally Bank has some of the greatest savings and CD interest rates available on the internet. You can also choose from a variety of auto finance alternatives offered by the bank. You can switch your risk tolerance, and hence your portfolio type, from one classification to another with Robo Portfolios. This gives you the option of making your portfolio more conservative or aggressive.
The ConsThere isn't a demo account available. Some investment platforms provide a paper account for you to practice with before investing with real money. Except for Forex and futures, Ally Invest does not offer this option. If you prefer face-to-face interaction, there are no local branches. Although there are Robo-advisors that have lower management fees than Robo Portfolios, the increased price may be worth it if you want to retain your money with the same broker.
What makes Ally Invest stand out?How does Ally Invest stack up against the other leading trading platforms? Check out the table below to see how Ally Invest, E*TRADE, and M1 Finance stack up.
|Company||Best For||Fees||Investment Requirement Minimum|
|Ally Investments||Investing choices are numerous.||Robo Portfolios, self-directed stocks, ETFs, and a few mutual funds have none.||Managed accounts cost $100, whereas self-directed accounts cost nothing.|
|E*TRADE||Active Investors||None||A typical brokerage account costs nothing; automatic investing costs $500.|
|M1 Finance||Stocks and ETFs||Stocks, ETFs, and mutual funds have none.||$100|
Should You Put Your Money With Ally Invest?TradeKing was one of the top trading platforms available at the time, with some of the lowest commissions accessible. By maintaining a solid self-directed investment platform, Ally Invest has enhanced its reputation. Robo Portfolios, on the other hand, take it a step farther. If you want to start with the managed option and work your way up to self-directed investment, this is the brokerage for you. You might even opt to strike a balance between the two in the future. If you're still not sure if Ally Invest is perfect for you, read our other brokerage evaluations before making a final decision.
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