2019 Stash Invest vs Ally Invest: compare IRA, commissions, investing fees, trading tools, account pros and cons. Which online broker is better?

Broker Cost

Broker Fees Stock/ETF
Mutual Fund
Annual IRA
Ally Invest $4.95 $9.95 $4.95 + $0.65 per contract $0 $0
Stash $0 na na 0.25% 0.25%


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

Stash Invest: Get $5 bonus when you open new account.

Ally Invest Overview

Ally Invest customers typically choose the broker for its low commissions and good value. In other categories, is the firm as attractive? Let's take a look at four specific areas and see how the broker performs.

Is Ally Invest Good Company For Beginners?

Novice traders need good educational resources and support from customer service. There are some learning materials on Ally Invest's website. For example, articles cover issues such as buying and selling mutual funds, ETF strategies, and fixed-income products. A pdf document entitled "Top Ten Mistakes New Option Traders Make" is available for download. Resources can be sorted by experience level, a feature that would benefit new investors.

Ally Invest is one of the very few stock brokers offering online investor community. There, beginner investors could learn the ropes, ask questions, follow successful, advanced traders and investors, and even get investing ideas. This is probably the most valuable feature novice investors could ask from a brokerage house and Ally Invest provides it.

Unlike most other brokers, Ally Invest doesn't charge additional commission if new investor calls a broker and places a trade with his or her help.

All the above makes Ally Invest the Best investing firm for beginners in 2019.

Is Ally Invest Good Company for Long-Term Investors?

Because buy-and-hold investors don't trade very often, commissions aren't as important to them. While Ally Invest does have a very low $4.95 charge for stock and ETF transactions, long-term traders don't have the opportunity to really benefit from it. Instead, they will prefer access to customer service and educational materials.

Fidelity has much more educational and research material on its website, compared to Ally Invest. Ally Invest also doesn't have 24/7 service, which Merrill Edge does have. There are no brick-and-mortar Ally Invest locations, which long-term customers may want. Schwab, by comparison, has over 300 offices across the United States. However, there is an extremely helpful Ally Invest customer forum on the broker's website. Most firms lack this very useful feature.

Long-term investors may also be interested in financial planning and retirement assistance. Ally Invest offers portfolio management services at some of the lowest rates on the market. Account management costs 0.25% annually, although the service only includes investment in passively-managed ETF's.

Long-term investors often invest in mutual funds. Ally Invest doesn't offer any no-load, no-transaction-fee products. Instead, the broker charges rock-bottom $9.95 to buy and sell funds without a load, while load funds are always free to trade. The mutual fund screener on Ally Invest's site returns 8,337 products that are available for purchase, while Capital One Investing has just one thousand.

Overall, Ally Invest is a good broker for long-term investing.

Ally Invest Promotion

Is Ally Invest Good Company for IRA's?

Several IRA types are available at Ally Invest. These include Traditional, Roth, SIMPLE, SEP, and Rollover. By comparison, E*Trade clients can choose from ten different types, while WellsTrade offers only four.

There are some articles and videos on the Ally Invest website, but most of them aren't devoted to retirement topics. There is a small IRA FAQ that covers questions such as how to add a beneficiary to a retirement account. There are no retirement calculators on the broker's website. Vanguard and Fidelity, by contrast, have several.

A Ally Invest IRA does come with some notable fees. There is a $50 charge for closing an IRA or for transferring one. If you do a full transfer to another broker, Ally Invest will assess two $50 charges. A partial transfer results in a $10 per security charge, with a $50 maximum.

Overall, Ally Invest does well for IRA's but TD Ameritrade is a better choice.


Continue Reading