Ally Invest Review: Is It the Right Investment Platform for You?
Written by
Cynthia Bowman
Edited by
Melanie Grafil
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
GOBankingRates Score
Ally Bank
-
Opening Requirements
5.0
-
Fees
4.5
-
Breadth of Products
4.5
-
Web Platform
5.0
Although Ally Invest reviews are mostly positive, the investment platform may not be the best fit for everyone. Here’s a look at its pros and cons.
Pros
- No account minimums
- No trading commissions for stocks, exchange-traded funds and options
- Self-directed and managed portfolios available
- Robust research tools and online investment tutorials
- Reimburses transfer fees up to $75 when you transfer $2,500 or more from another brokerage
- DRIP (dividend reinvestment) enabled
- Fractional shares allowed
Cons
- Online only
- Crypto, Futures and Forex trading not available
About Ally Invest
Ally Invest’s platform is robust enough to service new investors or experienced traders. New investors can try their hand using the self-directed trading platform or by signing up for a no-fee, automated managed portfolio from one of the best robo-advisors around.
Experienced traders will have plenty of free research and trading tools at their disposal, such as:
- Streaming charts
- Probability calculators
- Option chains
- ETF screeners
Best of all, trades are commission-free with no account minimums, with the exception of stocks priced under $2 per share, which charge $4.95 per trade plus $0.01 per share.
Ally Invest at a Glance
Ally Invest’s services are fairly comprehensive, making the platform ideal for new and experienced traders.
| Feature | Details |
|---|---|
| Opening minimums | None for self-directed trading; $100 for managed portfolios |
| Trading commissions for stocks, ETFs and options | None |
| Mutual fund commissions | None |
| Low-priced stocks (under $2.00) | $4.95 per trade and $0.01 per share |
| Funding options | -Checks -Wire transfers -ACH Transfers from another account |
| Options trades | $0.50 per contract |
| Automatic investment available | Yes, via Ally Invest Robo Portfolios |
| Account types | -Individual -Joint -Custodial –Traditional IRA –Roth IRA -Rollover IRA |
| Managed portfolio types | Four portfolio types available |
| Securities available | –Stocks –Bonds –ETFs –Mutual funds -Options -Margin accounts -Penny stocks -American Depository Receipts, or ADRs |
| Customer support | -By email: support@invest.ally.com -By phone 24/7: 855-880-2559 -By live chat |
Thanks!
Ally Invest Features
Ally Invest works in different ways, depending on your needs. The trading platform allows for hands-on trades through the self-directed option or passive investing when you select the managed portfolio option. More confident investors also have access to forex trading. Here’s a closer look at each option.
Ally Invest Robo Portfolios
Beginners may choose to go with an Ally Invest Robo Portfolio. You’ll need $100 to fund one but have the option of choosing a portfolio that doesn’t charge any advisory fees. The Cash-enhanced portfolio keeps 30% of your invested funds in cash to avoid market volatility. Plus, your cash earns 4.20% interest. This is also how Ally makes money–using your cash balance for loans and other investments.
You can also choose to have all of your money invested in the market with its Market-focused portfolio. There is a 0.30% annual fee charged in this portfolio–but all of your money is put to work in one of the pre-selected investments portfolios.
One of the steps when you apply for an account is an online questionnaire that helps the robo-advisor determine your goals and comfort with risk. You’ll receive portfolio recommendations based on your answers.
All of the four portfolio types invest in ETFs. They are:
- Core: The most diversified, designed for conservative to aggressive investors and those that want global exposure to multiple markets.
- Income: More conservative with higher dividend yields and focused on income over growth.
- Socially responsible: Only invests in companies that are environmentally friendly, sustainable or socially responsible.
- Tax optimized: This portfolio invests in tax-efficient ETFs and other tax-optimized funds. This is ideal for investments in a brokerage account (not a retirement account).
Self-Directed Trading
The self-directed investment platform has all the features a newbie or experienced day trader could use. Some of the tools and resources available with your free and low-cost trades are:
- Eight types of streaming charts, including candlestick
- ETF screener you can use to research available ETFs and find the best one
- The probability calculator looks into the future to show you your future net worth and investment needs.
- Option chains allow you to see everything available in one place.
- Profit and loss graphs
- Watchlists available to view and compare market data
Security
Ally Invest is a member of the Securities Investor Protection Corp., which protects each investor with up to $500,000 in securities coverage. In addition, mobile app usage is protected by two-factor authentication.
Ally Invest Fees
Ally Invest is a low- or no-cost platform that offers several commission-free investment choices. However, there are a variety of small fees that can add up if you’re not vigilant. They include:
- Transfer out fee: $50
- Outgoing domestic wire transfers: $30
- Paper statements: $4 per account statement
- Phone orders: $20 in addition to the regular commission
- Options trades: $0.50 per contract
What Ally Invest Is Best For
Ally aims to make investing accessible for all. While the managed portfolio option is great, its features are not unique enough to set it apart from the competition. Based on Ally Invest reviews and GOBankingRates research, Ally Invest may be best for armchair day traders in search of a full-featured, low-cost trading platform.
Research Tools
Investing requires due diligence to ensure you’re making a wise financial choice. Many traders spend more time doing research than they would trading the equity. Ally Invest’s learning resources are broad. Streaming charts and live ticker news are just a couple of research tools. They’re provided for free by Morningstar, Zacks Investment Research and more.
Ally Invest Mobile App
Advanced traders can manage their equities using the mobile app. It can display your holdings, account activity and orders. You can set up a watchlist to notify you of price changes. In addition, you’ll also have access to an ETF screener.
Variety of Tradable Securities
Investors can trade a variety of securities. They include stocks, bonds, ETFs, mutual funds, penny stocks and options.
Where Ally Invest Falls Short
Brokerages and financial service companies that try to spread themselves thin by going after all investors typically miss in some areas. Ally Invest is pretty solid, but there are a couple of areas that could use improvement.
No Level 2 Research
While Ally Invest offers a decent amount of investment research for free–active traders and professionals would benefit from Level 2 market data for more thorough evaluation of an investment.
Penny Stock Fees
Securities that cost less than $2 per share are subject to a $4.95 trade fee and $0.01 per share. Depending on how many shares you buy, the fees could end up costing you a a large portion of your investment.
Ally Invest vs. Competitors
The market for robo-advisors and low-cost online brokerages is fairly competitive. There are several quality alternatives.
Ally Invest vs. Robinhood
Ally Invest and Robinhood both provide full-featured trading platforms. Ally Invest beats Robinhood in tradable securities by providing individual bonds and mutual funds — things that Robinhood does not provide. In Robinhood’s defense, the online broker’s fees are lower than Ally’s. In addition, Robinhood may not have as many securities available, but you can buy and sell cryptocurrency.
Ally Invest vs. Wealthfront
Ally Invest’s managed account is similar to Wealthfront’s robo-advisor. However, Wealthfront allows you to manage all your external bank accounts in one place. Once you link them with Wealthfront, you can also get investment recommendations based on your financial picture.
Wealthfront charges a 0.25% annual fee for robo-advisory management, while Ally Invest offers a free plan and a market-focused plan that costs 0.30% annually. In an apples-to-apples comparison, Wealthfront is objectively less expensive when comparing their portfolios with a comparable Ally Invest market-focused portfolio.
Who Should Use Ally Invest?
Everyone could use Ally Invest. The platform is full featured, making it possible to expand your options as you gain more investing knowledge and experience.
You can get started with a managed portfolio that is automatically maintained and rebalanced. While your portfolio grows, take advantage of the large database of research and tools to learn more about investing. Once you feel you have a good grasp of the basics, you could open a self-directed account to take a more hands-on approach with your investments.
Ally Invest FAQ
Here are the answers to some commonly asked questions about Ally Invest.- What are Ally Invest reviews like?
- Ally Invest account holders appreciate the low to no fees, variety of investment options and free research tools. You can access many of the web tools as well, so you can trade securities anytime you find it convenient.
- Who owns Ally Invest?
- Ally Invest is brought to you by Ally Financial. The company also offers Ally Bank, one of the best online banks featuring high-yield savings rates and low fees.
- Is Ally Invest legit?
- Ally Invest is a reputable and robust investment platform. It's suitable for both beginners and intermediate traders alike. It offers a wide range of investments, low fees, self-directed and managed account and high interest on cash balances
- What are the cons of Ally Invest?
- Ally invest charges $4.95 plus $0.01 per share for stocks valued under $2 per share. And while Ally has a “free” robo-advisor option—the portfolio holds 30% cash, which can severely hurt overall growth.
- Is Ally Invest better than Robinhood?
- Ally Invest offers more investment choices, the same low fees, more trading tools, and high yields on cash with monthly fees. Overall, it’s a better investment platform than Robinhood for most investors. But Ally Invest does not offer crypto trading, whereas Robinhood does.
Jacob Wade contributed to the reporting for this article.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
Is this your bank?
Take Advantage of our Best Offer(s)
