Ally Invest brokerage hidden fees. Ally trading inactivity, maintenance and monthly fee, additional charges. Cost of the the broker's IRA account.

Overview of Hidden Fees at Ally Invest

Ally Invest doesn’t hasn’t done away with commissions like some brokers (i.e. Robinhood, Firstrade, and Webull), but they do offer competitive pricing, especially for heavy traders. If Ally is among the brokers you’re considering for your new investment account, you should continue reading. We’ll go over all of Ally’s fees, starting with the most relevant – commissions – and then covering some of the lesser known fees that are often easily avoidable with some degree of care.

Commission on Stocks

Ally’s base commission for equity trades is a flat $4.95 per trade. More frequent traders can easily qualify for their discounted rate of $3.95 per trade by either placing at least 30 trades or maintaining an average daily account balance of at least $100,000 over the prior quarter. For stocks trading below $2/share (i.e. penny stocks), Ally Invest charges a variable commission equal to $0.01 per share (with a minimum commission of $4.95 and a maximum equal to 5% of the trade’s value). Ally also cautions against investing in low-priced stocks because they can incur heavier settlement fees, which will be passed on to the investor, if the security is not DTC-eligible.

Commission on ETFs

Ally’s ETF commission rates are the same as for stocks except for certain ETFs. Similar to many brokers, Ally offers a large number of ETFs from Wisdom Tree and iShares that qualify for $0 commissions. This is certainly a plus, especially considering the rising popularity of ETFs as the backbone of many portfolios, but investors should remember they are still on the hook for the expense ratios charged by these ETFs, which generally range from 0.20% to 0.90% for Wisdom Tree and iShares.

Options Commissions

Ally charges a default commission of a flat $4.95 per options trade plus an additional $0.65 per contract. If your account qualifies for the frequent trader/large account discount outlined earlier, you will pay $3.95 per options trade plus a slightly lower $0.55 per contract. A nice perk we discovered with Ally Invest is that they won’t charge you any commission when you’re closing out an options position priced at $0.05 or less per contract. This is helpful when your position is nearly wiped out and you have to ask yourself whether it even makes financial sense to close it out.

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Commission on Fixed Income and Mutual Fund Trades

Ally doesn’t offer any preferred commission tiers for mutual funds and bonds – all investors pay the same fees with these securities. Placing a bond trade will cost you $1 per bond (1 bond = $1,000 par value) with a $10 minimum per trade, however trading U.S. Treasuries is commission-free. Buying or selling a no-load mutual fund on Ally’s platform will cost you a flat $9.95 per trade. Buying or selling a CD will cost a flat $24.95.

Margin Account Fees

Ally offers margin accounts to those investors that want to employ leverage or hold short positions. When you borrow funds from Ally they will charge you an interest rate on your margin balance, which decreases as you borrow more. Their margin rate starts at 9.75% and gradually falls to 5.25% as your margin balance nears $1,000,000. While not the worst margin rates, Ally’s borrowing fees are above average.

Ally Trading Fees

Transfer Fees

Besides commissions, there are some other fees that may apply to your Ally account if you take certain actions. If you ever want to transfer your Ally account to another broker, Ally will charge you $50 for this service. There is also a $25 fee for full IRA distributions. Additionally, if you choose to wire funds out of your Ally Invest account, Ally will charge you a $30 fee. Ally doesn’t charge any fees for incoming wires, and if your incoming wire is from an Ally checking account, they will reimburse you for the wire fee charged to your checking account. ACH/electronic transfers are free of charge.

Ally Invest Account Inactivity/Maintenance Fees

Ally does not charge any account maintenance or inactivity fees or impose any required minimum balances.

Ally Invest Hidden Fees Summary

We’ve covered all of the common fees and costs that an Ally investor would likely encounter, but we recommend you read Ally’s complete list of fees before opening an account as they do charge small fees for less common actions, like dealing in physical stock certificates, redeeming via check, or requiring paper account statements. These can be easily avoided by ~98% of investors.

Ally Invest Promotion

Up to $3,500 cash bonus + commission free trades for new accounts.

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Ally Invest Fees reviewed by TopRatedFirms.com Rating: 5