Ally Invest Review

By | March 24, 2021

About Review : In this review we will discuss what Ally Invest is?, its fees structure, market and product offered, research and education tools. 

What is Ally Invest?

Ally is a US based stock broker. It is regulated by the SEC and FINRA. It has a long operating history and discloses its financial record every financial year. Its parent company, Ally Financial Inc. founded back in 1911, and is listed on the New York Stock Exchange. It also holds a banking license in the name Ally Bank

Ally invest

Account Opening 

Opening an account is simple and fully digital. The base currency provided is USD only. Only US residents can open an account with Ally Invest

What is the minimum deposit at Ally Invest?

The minimum deposit is different for different types of account-

  • Self-Directed Trading : $1
  • Managed Portfolios : $100
  • Forex account: $2,500
  • Margin account: $2000

Account Type :

Ally Invest offers various types of accounts

  1. Individual Account
  2. Joint Account 
  3. Retirement Account
  4. Custodial Account
  5. Coverdell Account 
  6. Managed Portfolios

Fees 

Ally Invest charges low trading & non- trading fees. But it has high margin rates.

Assets Fee Terms 
US stockFree stock and ETF trading for stocks priced above $2, otherwise $4.95 per trade + $0.1 per stock
Mutual Fund$9.95 per trade
Inactivity FeeNo inactivity fee

The Ally Invest margin rate for stocks is volume-tiered. The higher the amount, the lower the margin rate.

Debit Balance Rate%
Under $10,0007.75%
$10,000 – $24,9997.75%
$25,000 – $49,9997.50%
$50,000 – $99,9996.75%
$100,000 – $249,9995.50%
$250,000 – $499,9994.50%
$500,000 – $999,9994.00%
$1,000,000 +3.25%
Ally invest

Deposit & Withdrawal

Ally Invest charges no deposit fees. Clients can use bank transfer, ACH & check to transfer funds. It does not allow transfer through electronic wallet. 

On the other hand, the withdrawal process is the same as deposit. They do not charge withdrawal fees for using ACH transfer, but wire transfer costs $30. 

Trading Platform

Ally Trade platform comes in three format :

  1. Web Trading Platform
  2. Mobile Trading application
  3. Desktop Trading Platform

All of the trading platforms are easy to use and are beginner friendly. They provide a safe login and clear fee report. Mobile apps are available in both Android and iOS.

However, desktop trading platforms are not very suitable for beginners. Desktop trading platforms are so advanced and have so many functions. 

It does not have its own desktop trading platform, whereas you can only trade forex on a desktop where the desktop platform is provided by Ally Forex. 

Trading platform

Ally InvestAlly Forex MetaTrader4
Tradable productsStocks, ETFs, mutual funds, bonds, optionsForexForex
Web trading platform offeredYes Yes No 
Mobile trading platform offeredYes Yes Y
Desktop trading platform offeredNo Yes Yes 
Own or third-party providedOwn Provided by Forex.com (GAIN Capital)Provided by MetaQuotes Software

Products offered

This allows you to trade in stocks, options and more. But it does not offer trade in forex & futures. Also it covers only the US market.

Ally Trade Product Selection

Stock markets (#)5
ETFs (#)2,300
Fund providers (#)600
Options markets (#)1

Ally Invest Managed Portfolio

It also offers a robo-advisory service, called Managed Portfolios. It’s a great service if you need help managing your investments.

To get started, first you have to answer questions about your investment goals, risk tolerance, time horizon and available funds. Then, based on your answers, a portfolio is created and the robo-advisor will automatically rebalance the portfolio when needed.

It only takes a $100 minimum amount to start your portfolio, and the annual advisory fee is low, at 0.3% of the account balance.

Ally invest

Customer Service

It provides phone, live chat and email support, but that too only on weekdays. No 24/7 service is available. 

Is Ally Invest Safe?

Ally Invest is regulated by a top tier financial institute, and its parent company is listed on New York Stock Exchange.  Clients Ally Invest are covered by SIPC.

It does not cover instruments such as unregistered investment contracts, unregistered limited partnerships, fixed annuity contracts, currency, and interests in gold, silver, or other commodity futures contracts or commodity options.

Ally Invest legal entity

Country Of ClientsProtection AmountRegulatorLegal Entity 
US (other than forex)SIPC: $500,000 ($250,000 cash limit)Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA)Ally Invest Securities LLC
US (forex)No protectionCommodity Futures Trading Commission (CFTC)Ally Invest Forex LLC
Pros Cons
Great web and mobile trading platformNo price alerts
Low stock and ETF feesHigh outgoing wire transfer fee
Multiple fee structures to choose fromCredit/Debit card not available
Banking backgroundNo price alerts
Financial information is publicly availableNo demo account

The Verdict

It is friendly and easy to use mobile and web trading platforms. It also has good quality education and research tools. 

While on the other hand, deposit and withdrawal fee are not user friendly. No forex trading available. Many research tools are not available for free.  

Feel free to try Ally Trade as it does not charge any inactivity fee and has a good image in US stock exchange. 

Ally invest

FAQ’s

How do I switch to a different portfolio type?

If you have an Ally Invest Managed Portfolio account and want to learn about switching your portfolio or getting a portfolio with less cash holdings, call us at 1-855-880-2559.

Can I place trades in my Ally Invest managed portfolio?

No. All trades made in your managed portfolio will be made at the discretion of Ally Invest Advisors.

Do you charge an advisory fee for your cash-enhanced managed portfolio?

No. There are no advisory fees, annual charges or rebalancing fees for our cash-enhanced portfolio, and 30% of your portfolio is set aside as an interest-earning cash buffer. All you need is $100 to get started.

What’s the 30% cash buffer?

For the cash-enhanced portfolios, the cash we set aside earns a competitive variable interest rate and is meant to balance out potential risk should market conditions change. We’ll rebalance and add more money to your other investments as your cash grows, but your portfolio will always have about 30% cash.

Ally Invest Review

9.2

Fees

9.3/10

Account

9.1/10

Customer Service

9.2/10

Products Offered

9.3/10

Pros

  • Low stock and ETF fees
  • Banking background

Cons

  • No price alerts
  • No price alerts

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