Ally Invest pros and cons. Advantages, benefits and disadvantages of Ally Invest brokerage company in 2019.

Ally Invest Rating:  Ally Invest rating

Ally Invest Advantages and Benefits

If you’re looking at different brokers to see which one is best for your investing goals, we would recommend you take a look at Ally Invest. They are not a household name, but they offer a quality service at a reasonable price. This article will go over the main advantages and benefits of investing with Ally.


One of the many advantages of an Ally Invest account is its low commission schedule relative to other full-service brokers, like Ameritrade and Etrade. Equity trades at Ally start out at just $4.95 per trade regardless of share quantity, but can be as low as $3.95 if you either qualify as a frequent trader or have an account balance of $100,000 or more. Ally defines frequent trader as someone who makes at least 30 trades in a quarter. Options commissions are a flat $4.95 per trade plus a variable per contract rate of $0.65, or $0.50 for those who qualify for the volume/large account discount. Like Ally’s stock commissions, their options fees are a bit below the competition. Exercising an option in your Ally account comes with a $9.95 charge and receiving an option assignment costs $4.95.

Mutual Fund Selection

Although Ally doesn’t have quite as many mutual funds as Ameritrade, they still boast a robust selection of 11,000 to choose from. Buying or selling a mutual fund with no load fee at Ally will cost you a flat $9.95 per trade, whereas those with load fees are commission-free. Ally also offers a number of tools to help you compare different mutual funds, including fund grades from Lipper. Another pro of Ally is that they don’t charge any short-term redemption fee like some brokers do for selling your mutual fund too soon.

Ally Invest

Promotional Offer

Another advantage of Ally is that they have a current promotion going on where new accounts will receive 90 days of commission-free trades plus the option to receive a cash bonus (up to $3,500) depending on how much you deposit into your new account.

Ally Invest Promotion

Up to $3,500 cash bonus + 90 days of commission free trades (up to $500 in value).

Open Ally Invest Account

Research and Education

A plus of investing with Ally is that they offer a wealth of information to further your education and understanding of the markets and to help you research investment ideas. They have a wide selection of informational videos and articles to explain finance and investing topics to beginners. They also offer a variety of articles covering potential investment ideas and the recent market climate. Your Ally Invest account also gives you access to investment articles from Seeking Alpha, a popular user-contributed library of investing ideas.

Alternative Investments

Many brokers offer just stocks, ETFs, mutual funds, options, and maybe fixed income on their platforms, and so we consider it a plus that Ally also offers forex and futures trading. Futures trading can give you nearly around the clock, liquid access to the major market indices. And forex trading is a popular tool for those looking to hedge foreign investments or place active currency bets.

Customer Service

Ally does quite well in the customer service department by offering live phone support 24/7. We’ve never had to wait long to get in touch with an agent either. This is great because not all brokers have easily accessible reps waiting by the phone.

No Account Minimums or Maintenance Fees

An advantage of Ally Invest that not all brokers can claim is there lack of minimum account balance requirements or account inactivity/maintenance fees. You can open an account today without depositing any money and you won’t have to worry about accumulating any fees – until you place your first trade.

No IRA Fees

Ally Invest doesn’t charge any additional setup, maintenance, or termination fees for those looking to open an IRA.

Free DRIP Service

A dividend reinvestment plan (DRIP) is where the broker automatically reinvests any dividends that your investment pays in more shares of that security. This is a nice service because the alternative would be to receive the dividends in cash and then place a trade to reinvest it in more shares, which would incur another commission. Ally offers a free DRIP service for any stock priced at $4 or more.

Low-Cost Professional Portfolio Management

If you are interested in having someone manage your portfolio for you, a benefit of investing with Ally is that they offer an AI-driven professional management service for the lowest-cost of 0.00% per year. They also have a relatively low minimum requirement of $2,500 to enroll in this service, which is less than most other brokers that offer similar services.

Phone-Assisted Trades

Another advantage of an Ally account is that if you are newer to the market or not by a computer you can call them up and have a live agent put a trade in for you for no extra charge. Almost every other broker we’ve researched charges a fee for live agent-assisted trades.

Ally Invest Promotion

Up to $3,500 cash bonus + 90 days of commission free trades (up to $500 in value).

Open Ally Invest Account

Ally Invest Advantages Summary

Overall, Ally Invest compares favorably with many brokers on a number of categories. We wouldn’t say they are hands down the best out there, but they hold their own when compared to other strong brokers out there, like Ameritrade. Ally’s trading platform and account features, while not the best in the industry, are still robust, and even more attractive when considering that Ally’s commissions are lower than competitors like Ameritrade and Etrade.

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