Ally Invest review

  • Stocks & ETFs: $4.95 or $3.95*
  • Options: $4.95 + $0.65 per contract or $3.95* + $0.50 per contract
  • Mutual funds: $9.95

* - $3.95 per equity trade and 50 cents per options contract for users who make 30 or more trades in the prior calendar quarter and/or maintain an average daily balance of more than $100,000 in the prior calendar quarter.

Minimum funding requirement to open an account: $0

Ally Invest was formed by the merger of two strong financial institutions - TradeKing and Ally Financial. TradeKing announced an acquisition by Ally Financial in the early 2016, aiming to continue offering value and great brokerage services to its clients without any increase in cost. In May 2017, TradeKing officially became Ally Invest.

 

Ally Invest pricing review

The merger of two companies allowed Ally Invest to provide more services, products and value to its clients for the same low pricing, which TradeKing has offered since 2005. The merged company does not anticipate any price changes for the foreseeable future. Moreover, Ally Invest lowered its commissions for active traders and investors with a high account balance. Ally Invest truly deserves the definition of a discount brokerage firm with its commissions of $4.95 per trade with a standard pricing and $3.95 per trade with a volume/balance pricing.

Stocks, ETFs, options and mutual fund commissions are very low compared to some other brokers. At this point, it would be interesting to notice one of the disadvantages of low-cost brokers or one of the advantages of higher cost brokers whatever option you prefer. The higher cost brokers such as TD Ameritrade usually offer a variety of commission-free ETFs and/or no-transaction fees mutual funds. Ally Invest has nothing to offer in this area. However, all commission-free ETFs and no-transaction fee funds are subject to an early redemption fee, which can be as high as $50 for some brokers. With no commission-free ETFs offered by Ally Invest, there is no need to worry about the early redemption fee.

Commissions and brokerage fees are all clearly disclosed on the official Ally Invest website. The broker offers a range of commission-free IRAs with no annual fee. Ally Invest no longer charges an inactivity fee, which is another great effect of the merger. All infrequent traders were charged $50 annually by TradeKing.

There is no minimum funding requirement to open a brokerage or IRA account. Basically, anyone can open an account with Ally Invest and start to explore it after completing a quick and simple online application. The process is as simple as opening an online bank account.

Ally Invest trading and research tools review

How impressive it is for a low-cost brokerage to have powerful broker's trading and research tools! Ally Invest offers market and stock research, a set of tools for trading options, customizable charts and alerts system. These are all offered for free.

The web-trading platform is clean and well designed. The navigation is very easy and pleasant throughout the platform. A trade can be placed easily from anywhere at any desired moment with the help of a ticket window that expands from the right side by simply clicking on the Quick Trade button in the top right corner.

If you are a trader on the go, Ally Invest mobile trading platform is a great fit for you.

Ally Invest education resources review

All customers have access to a great educational base. Ally Invest education center offers a vast number of articles organized by different asset classes and then by trader's level of experience.

You will learn the basic rules and strategies for trading stocks, bonds, options and mutual funds online as well as how you can use investing for your tax advantages. The written material is extensive and rich in content; however, its aliveness and interactivity are missing. If you are not committed enough to learn about investing, just reading articles can become uninspiring and even boring. If you are more of a visual type of learner, then TD Ameritrade with its excellent visual educational material might help you to stay motivated and learn faster. Access to TD Ameritrade's education is free for all clients, and an account can be opened with no minimum deposit and obligation. Open a new account here or learn more about the company from TD Ameritrade review.

Ally Invest competitive no-fees, high interest banking products

One of the greatest advantages of Ally Invest is a wide set of banking products with competitive rates. The feature was not available in the past. Once again, the merger of two companies allowed to offer a wider range of financial services and benefits to new and existing clients.

Ally Invest offers a very convenient way for customers to manage all their money under one roof. Right through their investing account, customers can open a high interest savings, interest checking account, and money marker savings accounts. CDs offer rates from 0.30% to 2.25%, depending on terms and investment balance. Also, there is a range of banking IRA accounts such as IRA Online Savings (1.20% APR), IRA High Yield CD (0.30% APR - 2.25% APR) and IRA Raise Your Rate CD (1.50% APR). Ally credit card offers excellent cash back rewards and no annual fee.

 

Ally Invest advantages and disadvantages

Two very low pricing plans No commission-free ETFs
Easy-to-use trading platform No professional level platform
Broad range of investments
Free access to research reports and streaming quotes
No minimum to open an account
No-fees IRAs
Extended hours trading

 

Ally Invest review summary

The merger of two companies gave Ally Invest more strength against its close competitors and allowed to give its clients more financial services and banking products for the same low price.

Ally Invest is a true discount brokerage. Very low commissions and straightforward fees, no minimum funding requirement, and easy-to-use trading platform are attractive features for beginning and more experienced investors. Buy-and-hold investors and in-frequent traders can benefit from the waived inactivity fee. Active traders are offered very low pricing. If you are an active trader, TD Ameritrade with its free professional level trading platforms will serve your needs as an active trader best. Otherwise you will find trading experience via clean and fully customizable Ally Invest trading platform very pleasant.

If you are interested in retirement savings, you will have access to different markets and a plethora of investment options. Bank IRA savings accounts, money market accounts and CDs can be opened and reached with a single login through your Ally Invest account.

Ally Invest is one of the leading low-cost brokers for self-directed investors with powerful trading and research tools, and a wide range of investing options. The brokerage firm is stable and earns the trust of millions of customers across the country. Ally Invest is a very strong contender that deserves consideration.

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