How it works, advantages and disadvantages


Ally Invest offers countless investment options, from more active trading to their robo-advisors who hand your cash to them. It prides itself on providing low to free fees, commission-free ETFs and powerful trading tools.

With their Robo Portfolios product (which is Ally Invest’s robo-advisor product), this is an overall company worth investing in.

What is Ally Invest and how does it work?

Ally Invest is the brokerage department of Ally Bank, which stands out among its products due to its low minimum investment amount, low fees and good trading platform. This brokerage company provides something for most investors, whether you want to DIY your own investment strategy or use Ally’s robo-advisor product.

Most stocks and ETFs do not charge commissions, and option transactions are US$0.50 per contract. When opening an account, you will find that even with a minimum account opening balance, it is much lower compared to other brokerage companies-for example, their robo-advisor can start with just $100.

More advanced traders will be able to log in to their accounts and use the tools provided by many other brokers, but you will find specialized options analysis tools such as dynamic profitability graphs.

Ally Investment

Best for traders

main feature

  • Autonomous trading without commission
  • No consulting fees for Robo portfolio
  • Transfer cash between Ally Bank and Ally Invest

Ally Invest provides DIY options, you can choose your own securities for your investment portfolio, including ETFs, mutual funds, foreign exchange, stocks, bonds and options. Their robo-advisors will manage your investment portfolio based on your investment goals (such as your risk tolerance). The brokerage company also provides other features, such as a commission-free ETF and a powerful trader platform.

Ally Investment

Minimum account opening deposit

0 USD

cost

None (although some securities charge commissions)

Provided account

Taxable (individual and joint) and four IRAs

Prime Minister’s Privilege

Multiple research tools

Ally Investment Overview

feature detail More details
account type Individual/joint taxable Four IRAs
research tool Various calculators REcognia and Maxit
Life trading platform Web-based and mobile Ally Forex Brokerage App
Commissions and fees No consulting fee Commission: 0.50-9.95 USD
Minimum account $0: Proprietary trading $100: Robotic Portfolio
Securities issuance ETF, mutual fund, foreign exchange Stocks and bonds
Robot combination Diversified collocation Low risk, high yield
Customer Support 24/7 access Phone, email, real-time chat

research tool

For traders who are looking for more advanced research tools, there are many tools. Ally Invest provides some very powerful services, especially for discount brokers.

If you are a technical trader, you can use tools such as profit and loss calculators, probability calculators, and tools supported by Recognia. There is also Maxit Tax Manager, where you can view the potential tax impact if you make a specific transaction decision. In addition, it can also help you create 1099 forms on demand.

Option traders will love the range of tools available, such as an option pricing calculator (compare current buy/sell prices), strategy builder (discover and execute option strategies based on set criteria.

Even if your investment journey is still far away, Ally Invest also has an ETF filter that makes it easier for you to find products that suit your investment goals.

As for real-time live quotes, you can get them for free through the Ally Invest LIVE function, but Quotestream’s II-level premium quotes are only available to people who trade more than 10 times a month.

Real-time trading platform

Investors can use Ally Invest’s browser-based real-time trading platform. Features include broker tools, customizable dashboards, fast traditional functions, and real-time streaming quotes. For those who conduct transactions at home or on the go, there is no need to download any programs to use the platform.

Trading can also use Ally Invest’s mobile application-Ally Forex, which is only suitable for foreign exchange trading or Ally Mobile, which is suitable for all other types of available transactions.

Commissions and fees

Ally Invest does not charge any consulting fees for its Robo portfolio and a large number of commission-free ETFs, options and US stocks. Their other fees are competitive, at US$0.50 per option contract and US$9.95 per transaction for no-load mutual funds. Although it is low compared to competitors, you still have to pay $50 for all or part of the transfer.

Minimum account

The minimum amount to open an Ally Invest account is 0 USD, and the minimum amount to open Ally’s Robo portfolio is 100 USD.

Securities issuance

Ally Invest offers a variety of securities-stocks, bonds, options, ETFs, mutual funds, cryptocurrencies, foreign exchange, and even low-priced stocks. This means that all types of investors will find something that suits their trading goals, whether it’s investing in more passive ETFs, not interfering with robo-advisors, or reading penny stocks more actively.

Robot combination

Robo Portfolios (previously called Managed Portfolios) is Ally Invest’s robo-advisor product. Although the portfolio management process is automated, brokers use human investment experts to create the portfolios they manage. Like other robo-advisors, you will not be able to access human advisors.

Unlike autonomous trading where you decide how to allocate your portfolio among various securities products, Robo Portfolios from Ally Invest can help you invest according to your goals. Just like them, they are specifically designed for the reasons you want to invest.

Investors can choose from four types of investment portfolios:

  • nuclear: This option allocates your funds to a diversified portfolio of U.S., international, and fixed income assets. Those who own the Core product portfolio may be those who don’t want to intervene. The managed portfolio will customize your portfolio based on your risk tolerance.
  • income: These investment portfolios are suitable for those who wish to obtain higher dividend yields and lower risk at the same time.
  • Tax optimization: Using this portfolio option, you will be able to save as much tax as possible. Ally Invest invests in low-cost ETFs.
  • Social responsibility: Those interested in using funds for good deeds will be happy to know that these types of portfolios focus on ESG-friendly companies. In other words, these companies include values ​​that promote environmental friendliness, sustainability, and energy efficiency.

Customer Support

Ally Invest offers some of the best customer service, which can be accessed 24/7 via phone, email, and live chat.

Is Ally Invest right for you?

Ally Invest provides low-cost, useful trading platforms and tools for novice and advanced traders. This is perfect for those who don’t have a lot of money to invest-their Robo portfolio of $100 is one of the minimum requirements we’ve seen. More active investors will like commission-free trading and low option contract fees.

A big disadvantage is that you will not find that Ally Invest’s Robo Portfolios will bring tax losses. If you want to ensure that your investment is automatically tax optimized, this is a major disadvantage. However, Ally Invest provides a tax optimization Option, it invests in asset classes, such as municipal bonds and low-cost ETFs that provide tax incentives. Therefore, if you invest in other types of managed portfolios, you are out of luck.

Nevertheless, Ally Invest can meet almost everyone’s needs. Those who wish to invest with robo-advisors will find the simple features of brokerage companies attractive, and active traders will love various research tools. However, if you want futures and fractional stocks, you won’t find them here.

The pros and cons of ally investing

Depending on which features are important to you, Ally Invest may be a good choice. These pros and cons should help you make a decision.


advantage

  • Low cost and expense
  • Can conduct foreign exchange transactions
  • Ability to integrate between bank account and investment account
  • Can earn interest on cash balance


shortcoming

  • Not all platforms provide trading tools
  • No encryption or futures trading
  • Lack of mutual funds without transaction fees
  • No tax loss to gain

Frequently Asked Questions (FAQ) about Ally Invest

We have compiled answers to several frequently asked questions about Ally Invest.

What research tools does Ally Invest provide?

Ally Invest provides a variety of research tools for different types of investors, including:
Stock screener: Allow investors to view information such as fundamentals, exchanges, price performance, industries, and valuations.
ETF and mutual fund screeners: Screen each fund’s profile, performance, investment portfolio, Lipper rating and risk analysis criteria.
Trading idea generator: Use a back-testing strategy, including high-quality inventory at a reasonable price.

Can I conduct day trading on Ally Invest?

Although Ally Invest does not explicitly promote or encourage investors to conduct day trading on their platform, there are many features that can support this type of investment-the company has a wide range of research and technical analysis tools.

When you conduct margin trading, you are essentially borrowing money from a brokerage company to invest in additional securities or other short-term borrowing needs. The money you borrow is usually based on the value of the securities in your portfolio-you need to repay it at interest or margin rates.

Does Ally Invest have socially responsible investment?

portfolio. This product is invested in companies that have been proven to engage in sustainability, energy efficiency, and other types of green initiatives.

Contributor Sarah Li-Cain is a personal finance writer based in Jacksonville, Florida, specializing in real estate, insurance, banking, loans, and credit. She is the host of the Buzzsprout and Beyond the Dollar podcasts.






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