Ally Invest promotion offers: bonuses, incentives for opening new brokerage or IRA accounts, promo codes for free trades.

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


Open Ally Invest Account


Ally Invest Overview

Ally Invest is a low-cost or “discount” online broker that’s been around since 2005. This makes them one of the earliest players in the game. Over the years they have changed as a company – they merged with Zecco in 2012 and were recently acquired by Ally Bank. Their calling card has always been that they offer first-class services with the lowest trading commission in the industry – just $4.95. There is also no required minimum balance to open an account.

Ally Invest Commissions and Accounts

Ally Invest compares very favorably to other brokers in the online space. “Discount” is probably not the best word to describe their service and features, but it is definitely fitting at least in terms of price. Here is a breakdown of their current commission costs:

  • Stock trades: $4.95
  • Options: $4.95 + $0.65 contract*
  • Mutual fund trades: $9.95
  • Broker assisted trades: $20.00

* Their $0.65 options trade price is also the same regardless of how many legs being used which can be very useful depending on the option strategy.

Here’s how their stock trade pricing compares to other popular online brokers:

- Ally Invest - $4.95

- Merrill Edge - $8.95

- TD Ameritrade - $6.95

- E*Trade - $6.95

Trading Tools

LIVE is Ally Invest’s browser-based investing platform. This is a dashboard-styled interface that puts all of the broker’s tools in a clean and customizable interface. It includes quick trading, real-time quotes, streams, and data, lots of customization options and favorites, and direct access to other tools like technical analysis and news. It also shows real-time movement on portfolio gains, losses, and balances.

Because LIVE is browser-based it allows the user to get access to the same interface from any computer without downloading a standalone application. It also has the ability to allow customers to make trades on mobile devices via an app or by accessing the website on the phone’s browser.



Ally Invest Advisors Program

The Advisors Program is for new or inexperienced investors that want more direction with their investments. This is Ally Invest’s version of an automated retirement program and it allows the customer to make some simple decisions about their risk profile and needs; then choose among several Ibottson (a subsidiary of Morningstar) – modeled portfolios.

This program is free of charge for the first year if opening a new account, but then they charge:

  • 0.25% Annual Fee
  • $1 per month for balances below $5,000
  • $500 Minimum Balance
  • No commissions or transaction fees in addition to yearly and monthly fees

They say that for a $100,000 balance clients will pay on average $250 a year with Ally Invest versus $1,020 per year with a traditional advisor.

Forex Trading

Ally Invest offers a separate platform for forex (foreign exchange) trading. It is not extremely common to have this feature in an online discount broker, but their merger with Zecco brought this functionality to the broader customer base of Ally Invest.

One nice aspect of their forex trading is that there is no additional cost aside from the spread on trades. They do not charge any commission for these trades. They also have a practice account option which allows clients to use $50,000 in order to learn the system.

Calculators and Screeners

Ally Invest offers a variety of tools for market research, stock picking, and other analysis. These include:

  • Options Pricing Calculator
  • Probability Calculator
  • Profit + Loss Calculator
  • Options and Strategy Scanners
  • Stock, ETF + Mutual Fund Screeners
  • Maxit Tax Manager
  • Technical Analysis




Pros

  • Extremely low pricing
  • Expansive mutual fund list
  • Generous Ally Invest incentive offer to open new account
  • Highly-rated customer service
  • No minimums to open
  • Advanced trading tools
  • Ally Invest has no hidden fees

Cons

  • No commission-free ETFs
  • No transaction-free mutual funds

Ally Invest Review Recap

Ally Invest is a great platform for most investors. It is just about the cheapest way to invest online with individual stocks or options trading. Add to that rich Ally Invest incentive offer and the fact that it has a ton of useful tools behind a clean and user-friendly interface and it becomes a strong contender for a great online investing choice.


Continue Reading