Ally Invest Review 2023: Pros, Cons and How It Compares
Neither brokerage has commission fees or minimum requirements for self-directed accounts, but their fees vary when it comes to automated advice. Our experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners; however, our opinions are our own. Ally Invest clearly lists its commissions, fees, and non-existent or extremely low minimums on its website. Ally Invest’s competitive rates and fees are a key aspect of its marketing efforts.
- I started with TradeKing, stayed on during the acquisition, and have held a sizable portion of my investments with Ally Invest.
- This content has not been reviewed, approved or otherwise endorsed by any of these entities.
- Additional helpful market information in this section includes market overviews and an events calendar showing macroeconomic releases, expected earnings, and dividend announcements.
- These are algorithm-based portfolios created based on personal needs and questions you answer.
- Ally Invest charges $50 for a full or partial transfer of your securities out of your account (called an ACAT transfer).
- The content on Money Crashers is for informational and educational purposes only and should not be construed as professional financial advice.
You gain access to a number of tools, articles and advisors to help you understand investing and make better investment decisions. Tools include streaming charts, a profit/loss calculator, a profitability calculator, watchlists, market data and options chains. While many brokers of hundreds or thousands of no-transaction-fee (NTF) mutual funds, Ally Invest doesn’t offer any. Instead, it charges $9.95 per trade on its entire menu of no load mutual funds. It should be noted though that Ally has one of the widest selections of mutual funds you’ll find at more than 12,000. As a customer of Ally Invest, you’ll benefit from the broker’s banking partner in the Ally family, Ally Bank.
Ally Invest Robo Portfolios
If you want to be more hands-on with your portfolio, you can open a Self-Directed Trading account. You can invest and trade as you see fit, according to your savings goals and willingness for risk. If you’re familiar with the world of online banking, you’ve likely heard of Philadelphia-based Ally Bank. A subsidiary of Ally Financial, Ally Bank is one of the oldest and best-regarded online-only banks. It’s renowned for above-average yields, low fees, virtually nonexistent bank account opening minimums, and a popular cash-back credit card with no annual fee. Novice investors will quickly be able to master Ally’s desktop and streamlined mobile platforms, which are easy to sync across multiple devices.
Ally Invest was founded in 2005 and is the brokerage side of Ally Bank, headquartered in Charlotte, North Carolina. It is a solid choice for traders and investors thanks to its low costs, low minimums, and solid trading platform. This all-in-one app fits that bill well and is simple to navigate and use.
Ally Invest charges interest based on a sliding scale, where the interest rate decreases as you borrow more. If fractional shares are critical to you, Robinhood and Fidelity Investments allow you to purchase and reinvest in fractional shares in many thousands of stocks. On any standard account, you’ll also be charged a $50 fee for a full or partial transfer.
This brokerage is right for you if:
Ally Invest has basic news headline information from MT Newswires, and news and fundamental information are available when a specific security on the platform is selected. This offering is generic and lacks filtering or search functionality, but is still likely to be sufficient for most investors. Additional helpful market information in this section includes market overviews and an events calendar showing macroeconomic releases, expected earnings, and dividend announcements.
When selling, there is a dropdown list available in the symbol field showing current holdings. All or none was an option for orders on the website, but this wasn’t an option for Ally Invest Live or the app. There is no order routing or automated trading available on Ally Invest. It also can’t create customized orders using criteria other than price (limit orders), such as volume or percentage moves. The options analysis tools are on the Ally Invest website, but not on the Ally Invest Live platform, which is a bit awkward even though they are helpful tools.
Trading platforms overview
Unlike many brokers, Ally Invest doesn’t have a dedicated app for its brokerage activities. Instead, the Ally Mobile app provides functionality for all of the company’s accounts and activities. For example, you can see all your accounts in one spot – checking, savings, CDs, credit cards and brokerage accounts. That’s a great feature for customers who already have an Ally account and want to keep their financial life consolidated within there.
Baker is passionate about helping people make sense of complicated financial topics so that they can better plan for their financial futures. Ally Invest has strong customer support, offering access 24/7 via phone, email and chat. You can choose that recommendation or make some tweaks of your own, then you get started with a minimum of $100 and Ally Invest handles the rest for you.
However, the company doesn’t automatically provide real advisors, doing most of its assessment and rebalancing through technology. This feature can be a positive or negative, depending on what the individual investor is looking for. You can buy and sell any of Ally Invest’s mainline products in a traditional self-directed taxable brokerage account. Eligible products include stocks, bonds, mutual funds, ETFs, and options. Traders who are primarily interested in mutual fund investing will be disappointed with Ally, which offers no $0 commission funds. Traders may also be disappointed with Ally’s lack of futures trading or frustrated with the fact that Ally requires forex traders to open and manage a completely new account to trade.
- You can buy and sell any of Ally Invest’s mainline products in a traditional self-directed taxable brokerage account.
- Though Ally’s automated portfolios don’t offer one-on-one advisor guidance, you can still work with a financial advisor, thanks to its Wealth Management account.
- It should be noted though that Ally has one of the widest selections of mutual funds you’ll find at more than 12,000.
- Neither the website nor the mobile app supports combining order types to create contingent orders, such as adding stops and/or profit-taking levels when entering a limit order.
- The Live platform has user customization options for the look and feel.
In this case, Ally Invest takes the term robo-advisor to heart since you and your investment portfolio aren’t automatically seen and assessed by a human advisor. Every rebalance is done with technology rather than an advisor looking at your account. With its two types of accounts, Self-Directed Trading and Cash-Enhanced Managed Portfolios, Ally Invest opens up its services to almost any kind of investor.
You start by answering how long you want to invest for – anywhere between 5 – 21+ years. Next, Ally asks what is your “goal” amount you’d like to make on your investments. I was uncertain how important this question was, so I hit the “not sure?
While the primary website has links to buy and sell from a quote screen above the chart, positions and order information are not incorporated into the charting. The primary website’s charting allows for a customized timeframe and the ability to show a comparison symbol. This includes a nice drop-down for choosing common comparisons, such as equity indexes, currencies, https://trading-market.org/ or individual commodities, in addition to typing in a specific symbol. This is a fairly basic screener, with few criteria from which to choose. Bankrate follows a strict
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It lets you combine one or more of the above investment options with a 30% cash buffer. The Cash-enhanced Portfolio offers reduced volatility, no advisory fees (otherwise the fee is 0.30% per year), and competitive interest rates on the cash portion. With Ally, you can borrow over $1 million to trade in leverage, depending on the value of the cash and assets you currently hold in your account. Ally’s leverages rates are a bit lower than some competitors like Fidelity — you’ll pay between 8.75% and 4.25% depending on how much you’re borrowing. However, Ally’s margin rates are higher on average than discount brokers like Robinhood or Interactive Brokers. They offer fee-free investing for self-directed traders, plus they also have no fees for their managed portfolios.
But more active traders will be disappointed by the basic trading platform and high commissions for options trading. Most stocks and ETFs have no commission fees, and options trades are $0.50 per contract. When opening an account, you’ll find that even if there is a minimum opening balance, it’s much lower compared to other brokerages — their robo-advisor, for instance, only requires $100 to get started. Not only does Ally Invest provide products for a range of customers, but it also offers low fees for its services. Being that there is no annual fee for the Cash-Enhanced Managed Portfolios program, it’s far cheaper than a traditional financial advisor.
The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. However you get to meet with a Merrill Edge Financial Solutions Advisor™ at least twice a year. If you think you’d like to work with an in-person financial expert, SmartAsset can help you find the right advisor. To start, you’ll answer a few questions to help us figure out what you want and need from a financial advisor. This includes your retirement plans, investment goals and current financial situation.
The money market comes with a debit card and checks, offering greater access than the savings account. With no commission-free mutual fund trades, Ally Invest isn’t ideal for DIY investors looking to build customized portfolios composed primarily of those securities. Founded in 1979, Fisher Investments is a well-known investment advisory firm. But many investors are unaware of the types of services they offer and whether their money managers can improve their portfolio performance.
Often brokers charge a reduced fee for a partial transfer, but in general, $50 isn’t as high as some other brokerages. Like many online brokerages these days, Ally Invest has no account minimum, which is a great perk for someone who doesn’t have much to invest in the beginning. Some brokerages have account ally invest review minimums between a few hundred and a few thousand dollars. We believe everyone should be able to make financial decisions with confidence. Getting started with a managed portfolio is easy and takes less than ten minutes. You answer some questions about your investing goals to get a recommended portfolio.
Ally Invest offers a myriad of investing options, from more active trading to handing your cash off to their robo-advisor. It prides itself on offering low to no fees, commission-free ETFs, and robust trading tools. When looking for investment help, it’s important to first know your own savings and investment goals as well as your own level of investing know-how.
The investment information provided on this page is for informational and general educational purposes only and should not be construed as investment or financial advice. Bankrate does not offer advisory or brokerage services, nor does it provide individualized recommendations or personalized investment advice. Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives.
Blain’s insights have been featured in the New York Times, Wall Street Journal, Forbes, and the Chicago Tribune, among other media outlets. For most investors, the 30% cash allocation Ally Invest Robo Portfolios account option is an inefficient choice that’s too conservative. Keeping nearly a third of your portfolio in cash greatly hinders returns in all but the worst bear markets. Potential clients need to understand that cash-heavy portfolios are invested far more conservatively than the portfolio names may suggest.
It’s similar to the robo-advisory services of other companies (in theory). Like Ally, M1 is free to invest through and has the same $100 minimum investment requirement. I like the fact that M1 Finance has a methodology using “pies” and “slices” so you can choose a variety of investments and pick exactly how much you want in your portfolio. You have more say in choosing your investments than you do with Ally, and M1 still does all the work for you. While Ally Invest has many options for the self-directed traders, complete beginners will feel at home with Ally, too. Each time I had a question, I found a question mark or a button I could press that would give me the answers I was looking for.