When it comes to online brokerages, there are numerous options available to investors. One popular choice is Ally Invest, formerly known as TradeKing. But is Ally Invest good? In this article, we’ll take an in-depth look at the features, fees, and services offered by Ally Invest to help you decide if it’s the right fit for your investment needs.
Overview of Ally Invest
Ally Invest is an online brokerage firm that offers a range of investment products and services, including self-directed trading, robo-advisory, and wealth management. The company is a subsidiary of Ally Financial, a well-established financial institution that provides a range of banking and investment services.
Ally Invest was founded in 2005 as TradeKing, and in 2016, it was rebranded as Ally Invest after being acquired by Ally Financial. Today, the company is headquartered in Charlotte, North Carolina, and has over 250,000 customers across the United States.
Features and Services
Ally Invest offers a range of features and services that cater to different types of investors, from beginners to experienced traders. Here are some of the key features and services offered by the company:
Self-Directed Trading
Ally Invest’s self-directed trading platform allows investors to buy and sell a range of investment products, including:
- Stocks
- Options
- ETFs
- Mutual funds
- Bonds
- Forex
- Futures
The platform offers advanced trading tools, including technical charts, real-time quotes, and customizable watchlists. Investors can also set up price alerts, place conditional orders, and access research reports from top analyst firms.
Robo-Advisory
Ally Invest’s robo-advisory service, known as Ally Invest Managed Portfolios, offers automated investment management services to investors. The service uses a diversified investment strategy to manage your portfolio, with no management fees or commissions.
There are three managed portfolio options available:
- Core Portfolio: A diversified portfolio of ETFs that tracks the market as a whole
- Income Portfolio: A portfolio focused on generating income through dividend-paying stocks and bonds
- Tax-Optimized Portfolio: A portfolio designed to minimize tax liabilities
Wealth Management
Ally Invest’s wealth management service offers personalized investment advice and portfolio management services to investors with larger accounts. The service is designed for investors who have at least $250,000 in investable assets.
Wealth management clients have access to a dedicated financial advisor, who will work with them to create a customized investment plan tailored to their goals and risk tolerance.
Fees and Commissions
One of the most important factors to consider when choosing an online brokerage is the fees and commissions charged. Here’s a breakdown of Ally Invest’s fees and commissions:
Trading Fees
Ally Invest charges the following trading fees:
- Stocks: $0 commission for online trades, $20 for broker-assisted trades
- Options: $0 commission for online trades, $20 for broker-assisted trades (plus $0.50 per contract)
- ETFs: $0 commission for online trades, $20 for broker-assisted trades
- Mutual Funds: $9.95 for online trades, $20 for broker-assisted trades
- Bonds: $1 per bond, with a $10 minimum and $250 maximum
- Forex: No commissions, but Ally Invest earns revenue through the bid-ask spread
- Futures: $1.50 per contract, plus exchange fees
Management Fees
Ally Invest’s managed portfolio service has the following management fees:
- Core Portfolio: 0.25% annual management fee
- Income Portfolio: 0.40% annual management fee
- Tax-Optimized Portfolio: 0.45% annual management fee
Wealth Management Fees
Ally Invest’s wealth management service has the following fees:
- 0.50% annual management fee for accounts up to $250,000
- 0.40% annual management fee for accounts between $250,000 and $500,000
- 0.30% annual management fee for accounts above $500,000
Pros and Cons
Like any online brokerage, Ally Invest has its pros and cons. Here are some of the key advantages and disadvantages of using the service:
Pros
- Low fees and commissions: Ally Invest offers competitive pricing for trading and management fees
- Advanced trading tools: The platform offers a range of advanced trading tools and features, including technical charts and conditional orders
- Robo-advisory service : Ally Invest’s managed portfolio service offers a low-cost, automated investment management option
- Wealth management services: The company’s wealth management service offers personalized investment advice and portfolio management for larger accounts
- Mobile trading app: Ally Invest’s mobile app allows investors to trade on-the-go
Cons
- No free trading for options: Ally Invest charges a $0.50 per contract fee for options trades, which can add up quickly
- No cryptocurrency trading: Ally Invest does not currently offer cryptocurrency trading
- Minimum balance requirements: Some account types and services have minimum balance requirements, which can be a barrier for new investors
- Limited international trading: Ally Invest only offers trading in a limited number of international markets
Security and Regulation
Ally Invest is a member of the Securities Investor Protection Corporation (SIPC) and the Financial Industry Regulatory Authority (FINRA). This means that customer accounts are protected up to $500,000, including $250,000 in cash claims.
Ally Invest also has a number of security measures in place to protect customer accounts, including:
- 128-bit SSL encryption
- Two-factor authentication
- Secure login and password protection
- Regular security audits and testing
Customer Support
Ally Invest offers a range of customer support options, including:
- Phone support: Available 24/7 for trading and account-related issues
- Email support: Available for general inquiries and account-related issues
- Live chat: Available for quick questions and assistance
- Online knowledge base: A comprehensive resource center with FAQs, tutorials, and guides
Conclusion
So, is Ally Invest good? The answer depends on your individual needs and preferences as an investor. If you’re looking for a low-cost, online brokerage with advanced trading tools and a range of investment products, Ally Invest is definitely worth considering.
However, if you’re looking for free trading options or cryptocurrency trading, you may want to look elsewhere. Additionally, if you’re a beginner investor, you may want to start with a more user-friendly platform with more educational resources.
Ultimately, Ally Invest is a solid choice for investors who want a range of investment options, advanced trading tools, and competitive pricing. But as with any investment decision, it’s essential to do your research and carefully evaluate your options before making a decision.
What is Ally Invest and how does it work?
Ally Invest, formerly known as TradeKing, is an online brokerage firm that allows users to buy and sell stocks, exchange-traded funds (ETFs), options, and mutual funds. The platform offers a range of tools and resources to help users make informed investment decisions, including real-time market data, technical analysis tools, and research reports.
To get started with Ally Invest, users can sign up for an account online or through the mobile app. Once the account is funded, users can begin trading and accessing the platform’s various features and tools. Ally Invest offers a user-friendly interface that makes it easy to navigate and execute trades, even for beginners.
How much does Ally Invest cost?
Ally Invest offers competitive pricing for its services. For stock trades, the platform charges $4.95 per trade, with options trades costing $4.95 + $0.65 per contract. There are no monthly maintenance fees or minimum balance requirements, making it an accessible option for investors of all levels.
In addition to trading fees, Ally Invest also offers a range of additional services, including options trading, margin trading, and investment advisory services. These services may incur additional fees, but Ally Invest provides clear and transparent pricing information to help users understand the costs associated with each service.
What are the benefits of using Ally Invest?
One of the main benefits of using Ally Invest is its user-friendly interface, which makes it easy to navigate and execute trades. The platform also offers a range of tools and resources, including real-time market data, technical analysis tools, and research reports, to help users make informed investment decisions. Additionally, Ally Invest offers competitive pricing and no minimum balance requirements, making it an accessible option for investors of all levels.
Another benefit of using Ally Invest is its excellent customer service. The platform offers 24/7 support, including online chat, phone, and email support. Ally Invest also has a comprehensive FAQ section and online resources to help users get started and resolve any issues that may arise.
Is Ally Invest safe and secure?
Ally Invest is a safe and secure online brokerage firm. The platform is a member of the Securities Investor Protection Corporation (SIPC), which provides protection up to $500,000, including $250,000 in cash claims. Ally Invest also has additional insurance coverage through Lloyd’s of London, providing excess coverage up to $37.5 million.
Ally Invest also has robust security measures in place to protect user accounts and data. The platform uses 256-bit encryption, two-factor authentication, and other security protocols to ensure that user information is protected from unauthorized access.
Can I use Ally Invest for retirement accounts?
Yes, Ally Invest offers a range of retirement account options, including traditional IRAs, Roth IRAs, and rollover IRAs. The platform also offers custodial services for 401(k) and other employer-sponsored retirement plans. Ally Invest’s retirement accounts offer competitive pricing and a range of investment options, including stocks, ETFs, options, and mutual funds.
Ally Invest’s retirement accounts also offer tax benefits, such as tax deductions for contributions to traditional IRAs and tax-free growth for Roth IRAs. The platform also provides educational resources and tools to help users plan and manage their retirement savings.
What are the limitations of Ally Invest?
One of the limitations of Ally Invest is that it does not offer forex trading or futures trading. The platform also has limited international trading capabilities, with limited access to international markets. Additionally, Ally Invest’s options trading platform is not as advanced as some other online brokerages, with limited options analytics and strategy tools.
However, Ally Invest’s limitations are outweighed by its strengths, including its user-friendly interface, competitive pricing, and excellent customer service. The platform is continually evolving and improving, with new features and tools being added regularly.
How does Ally Invest compare to other online brokerages?
Ally Invest compares favorably to other online brokerages, offering competitive pricing, a user-friendly interface, and a range of tools and resources. The platform is similar to other online brokerages, such as Fidelity and Charles Schwab, in terms of its features and services. However, Ally Invest’s pricing and fees are more competitive, making it an attractive option for cost-conscious investors.
Ally Invest also stands out from other online brokerages due to its excellent customer service and comprehensive educational resources. The platform offers a range of online tutorials, webinars, and other resources to help users improve their investing skills and knowledge.