Ally Invest Review – Managed Portfolio Trading 2021

By | May 11, 2021

In this Ally Invest Review, We will discuss What Ally Invest is? its fee structure, market, and product offered research and education tools. 

What is Ally Invest?

Ally invest Review

Ally is a US-based stockbroker. 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

Similar Investment Apps :

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

Minimum Deposit

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.

AssetsFee 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

Ally Invest’s margin rate depend on the volume of the transaction. Larger the amount, lower the margin rate.

Transaction ValueRate
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

Deposits & 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

TradingAlly InvestAlly ForexMetaTrader4
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

Ally Invest EFT

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

Ally invest 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.

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

ProsCons
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 a friendly and easy-to-use mobile and web trading platform. It also has a good quality education and research tools. 

While on the other hand, deposit and withdrawal fees 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 an inactivity fee and has a good image in the US stock exchange. 


Ally Invest Review

9.2

Fees

9.3/10

Account

9.1/10

Customer Service

9.2/10

Products Offered

9.3/10
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