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Ally Invest might be for you if: You're looking for a brokerage with a wide selection of investments and low fees. Ally Invest offers some of the most competitive pricing on stocks, exchange-traded funds (ETFs), options, and mutual funds. Zero-dollar commission fees make this one of the best stock brokers we've seen. In this Ally Invest review, we'll cover everything you need to know to decide whether this brokerage is for you.
Ally Invest
Ally Invest impresses with $0 commissions and no account minimums. It's a great choice for those looking for an intuitive platform from which to make cheap trades.
$0 stock and ETF trades
$0
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
Ally Invest is one of our favorite brokerages. It ranks among the best brokers we've seen in these categories:
Keep reading for the perks that make Ally Invest one of our top stock brokers.
Ally Invest is in line with much of the industry in offering $0 trades for stocks, options, mutual funds, and ETFs. However, stocks priced less than $2 per share are charged a commission of as much as $4.95 plus $0.01 per share. Bonds trade at $1 commission.
Ally Invest is in the middle of the pack for margin rates, offering rates lower than the larger players, but it charges more than one of the low-cost leaders, Interactive Brokers. It is most competitive for investors who use large amounts of margin as it is significantly less expensive than peers for those who have a margin balance of $500,000 or more.
Ally Invest is a true no-minimum discount broker, as you can open an account with as little as $1 to start. We think that makes it a good online stock broker for beginners who plan to add to their account balance over time.
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While Ally has joined most of the industry in dropping commissions for online stock trades to $0, it still charges a commission on lower-priced stocks. For customers buying large blocks of sub-$2 stocks, this broker can get very expensive.
Ally Invest doesn't offer a sophisticated platform for active investors like many of its competitors. While Ally is well-suited for most long-term investors, those who like to do lots of research and make frequent trades could be better off with a more tech-heavy competitor.
While the cost of making a trade isn't everything, it is an important consideration when deciding which broker to use. Ally Invest has some of the lowest commissions on stocks and mutual funds of any discount broker we've seen.
Stocks and ETFs | Stock options | Mutual funds |
---|---|---|
$0 | $0 per trade, $0.50 per contract | $0 |
Although Ally Invest offers more than 17,000 mutual funds, some of them come with a load to buy them (a fee as a percentage of what you invest).
It's good practice to fully read any broker's fee disclosures before opening a brokerage account, but we did some of the homework for you. After reading through Ally Invest's list of fees, there were a couple of fees that stuck out as necessitating further discussion.
This brokerage doesn't have a complicated trading platform, which can be both a pro and a con, depending on how you use your brokerage account. The company's web-based trading platform is built using HTML 5, so it works well on large and small screens.
Mobile traders may prefer to download its mobile app (available on iPhone and Android) for an experience that is tailored for smaller devices. As long-term investors ourselves, we don't put much emphasis on trading platforms, given that virtually any broker makes placing a trade as easy as entering a ticker symbol and making a few clicks.
Margin balance | Interest rate |
---|---|
Up to $9,999 | 13.00% |
$10,000 to $24,999 | 13.00% |
$25,000 to $49,999 | 12.75% |
$50,000 to $99,999 | 12.00% |
$100,000 to $249,999 | 10.75% |
$250,000 to $499,999 | 9.75% |
$500,000 to $999,999 | 9.25% |
$1 million and up | 8.50% |
Brokerage firms allow you to borrow against the value of your investments. Some people use margin loans to leverage their portfolio (invest with borrowed money), which can increase the profits if your investments rise in value at a rate higher than the cost of borrowing money. That said, using margin also adds more risk to your portfolio, as it multiplies losses if your investments fall in value.
Other investors use margin differently, using it instead as a way to be able to immediately reinvest the proceeds from selling stock. Stock sales are "settled" in two days, which means that if you sell a stock in a cash account on Tuesday, you won't be able to use the money until Thursday. Investors who have a margin account can borrow the money for two days, so as to be able to immediately reinvest the proceeds from the sale of an investment.
Ally Invest charges interest based on a sliding scale, where the interest rate decreases as you borrow more. You can see Ally Invest margin rates in the above table.
Discount brokers may not offer the same assistance of full-service brokerage firms, but that doesn't mean they leave clients in the dark. Many offer research and screening tools that can help investors find suitable investments.
There are two notable research and news solutions available to Ally Invest customers:
RELATED: See The Ascent's complete Zack's Trade review to see how they combine trading and research.
If the following statements apply to you, Ally Invest is likely a good fit for you:
RELATED: Do you use Robinhood? See how The Ascent's Ally Invest vs. Robinhood comparison.
Want a bonus? Check out The Ascent's guide to the best broker bonuses.
Wondering how Ally Invest stacks up to the competition? Check out our reviews:
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See our full methodology here: Ratings Methodology
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Fidelity disclosure
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.