ALLY INVEST REVIEW 2023: SHOULD YOU SIGN UP WITH THIS BROKER?

Ally Invest has a background story like any other broker. The company is a subsidiary of Ally Financial, Inc. Here’s a fact: Ally Financial started in 1919 as GMAC. The NYSE ticker symbol for Ally Financial is ALLY.

In 2016, Ally Financial acquired TradeKing and rebranded it as Ally Invest. Ally Invest provides self-directed trading, automated investing and forex trading, and retirement savings accounts. It manages around $13.4 billion in assets and approximately 406,000 customer accounts.

Ally Invest ohmepage

That’s a lot of numbers, I must say. In its annual review of online brokers, Kiplinger named Ally Invest as one of the best. There’s one thing I should add here. The platform is only available in the US. That’s a bummer for most people. However, I can say that if you open an account, you’ll be in safe hands, which brings me to the next section.

WHO ARE ALLY INVEST’S REGULATORS?

It’s great that the broker has got a history behind it. But as a trader, my concern is legitimacy. I’m talking about its regulators. Let’s find out if it’s legit. When you scroll to the bottom of the homepage, you can find the broker’s regulators. Ally Invest is regulated by various entities. It has licenses from

• FINRA (Financial Industry Regulatory Authority)
• SIPC (Securities Investor Protection Corporation)
• SEC (Securities and Exchange Commission)

The firm provides forex trading through NFA membership (National Futures Association).

Ally Invest regulations

The company provides plenty of tradable options. It offers stocks, options, forex, ETFs, bonds, and mutual funds. To open a forex account, you must refer to the broker’s forex page. It is different from the main asset page. Let’s talk a bit about the assets.

Forex

• GBP/USD
• EUR/USD
• USD/CHF
• NZD/USD
• AUD/USD and 45 more

Stocks

• Apple Inc
• Netflix Inc
• Bank of America
• Tesla Inc
• Amazon, and more

ETFs

• Vanguard
• Global X
• iShares, and more

Mutual Funds

• Vanguard 500 Index
• Fidelity 500
• JP Morgan Market Fund
• Morgan Stanley Inst and more

Bonds 

• US 10-Year and more

Although the broker doesn’t provide crypto trading, you can invest in crypto trusts, futures, and stocks.

Ally Invest forex page

Like much of the industry, Ally Invest offers zero-dollar trading on stocks, options, and ETFs. Stocks valued at less than $2 per share, however, are subject to a fee of up to $4.95 + $0.01 per share. Bonds are available at a $1 cost, while mutual funds are available at $9.95 per trade.

HOW DOES THE ALLY INVEST PLATFORM WORK?

The platform was the best thing for me. It was super beginner-friendly. However, there are pros and cons. Here’s what you need to know about the platform. Ally Invest only provides a native platform. The platform is available on the web and mobile versions. Let’s talk about them.

WEB PLATFORM

Many traders may find Ally Invest’s tools and platforms lacking, yet the user interface is simple. The whole options trading process is on one page.

You can view anything from symbols to the profitability calculator. In addition to hundreds of technical indicators (more on that in a moment) the platform includes 36 drawing tools.

Ally web platform

ALLY MOBILE PLATFORM

The mobile app is a nice fit when you are on the go! You can monitor your portfolio using live quotations, trade equities, and multi-leg options.

You can conduct technical analysis using charting tools and stay up-to-date on market events. While it lacks some of the capabilities of Ally’s web trading platform, it serves you well when you cannot be at your workstation.

Ally mobile app

WHAT TRADING INDICATORS ARE AVAILABLE?

While trading, I combine technical and fundamental analysis. For technical analysis, I rely on many tools, like a Technical Summary Box. One of those tools is technical indicators. Ally Invest offers plenty of technical indicators. Some of the available indicators are

• RSI
• Bollinger Bands
• MACD
• Stochastics
• Moving Averages, and many more

Ally Invest offers self-directed trading accounts, robo portfolio accounts, and wealth management accounts. Let’s break down all these account types:

1. SELF-TRADING

This is the broker’s standard account. The self-trading account takes different forms:

• Individual
• Joint
• Custodial
• Traditional IRA
• Roth IRA
• Rollover IRA
• Coverdell

You can open a self-trading account with $0. Yes, it’s completely free.

2. ROBO PORTFOLIOS

If you’re new to investing or don’t have the time to maintain your portfolio, an automated robo portfolio is a simple answer. It is a robo-advisor that will invest and manage your portfolio for you depending on your objectives. A robo portfolio comes in the following types:

• Individual
• Joint
• Traditional IRA
• Roth IRA
• Rollover IRA

To start an account, you must have a minimum balance of $100. Robo portfolio charges no additional fees.

Robo Portfolio account

3. WEALTH MANAGEMENT

The wealth management account comes with all sorts of perks and features. You get a dedicated advisor and a priority customer support service. I haven’t opened a wealth management account yet with any firm.

But I think it’s good for specific goals, whether it is to increase wealth, save for retirement, or plan for a certain milestone. It also has different types

• Individual
• Joint
• Custodial
• Trust
• Traditional IRA
• Roth IRA
• Rollover IRA
• Beneficiary Roth IRA
• Beneficiary IRA
• Coverdell

To open the account, you need $100,000. You’ll also face an advisory fee of 0.85% annually.

Wealth management account

DOES ALLY INVEST OFFER A DEMO ACCOUNT?

Want to get a feel for the market before investing a large sum? Unfortunately, you can’t do that with Ally Invest. The broker doesn’t offer a demo account. Why?

They have a $0 minimum deposit; why would they offer a demo account? However, there’s good news. You can get a $50,000 practice account if you want to trade forex.

HOW SAFE IS ALLY INVEST?

When selecting any broker, safety should be your priority. You don’t want to risk anything. So, what about Ally’s safety? Should you trust it?

Being regulated by top regulatory bodies makes Allly a safe broker. Also, Ally stores its funds in the Ally Bank. Ally Bank is FDIC-insured, so your funds are secure. It means that if the bank goes out of business, your savings in Ally deposit accounts of up to $250,000 are protected.

Ally Invest’s office address is PO Box 30248 Charlotte, NC 28230.

Ally Invest location

WHO OWNS ALLY INVEST?

Let me now put your memory to the test. Do you know who owns Ally Invest? I talked about it earlier. Can you guess? Ally Financial Inc. is the parent company of Ally Invest.

There are five ways to fund your account. They are:

• Debit/credit cards (only for forex accounts)
• ACH transfer
• Wire transfer
• Check
• Transfer from other brokers

Debit/credit card is the fastest method but it is only available for forex accounts. Wire transfers usually take a few hours. All other methods take 5-7 days.

HOW TO WITHDRAW FUNDS FROM AN ALLY INVEST ACCOUNT

Are the withdrawal methods the same on Ally Invest as deposit methods? Are there any additional fees?

I’ll answer these questions here. Let’s find out more. Ally Invest offers the following withdrawal methods:

• Debit/credit cards (only for forex accounts)
• ACH transfer
• Wire transfer

By checking in and choosing Transfers, you may request a transfer. You may also transfer cash to another account for $30 or request a check for $5. For an additional $50, you can order an overnight check by phone.

Ally payment methods

There are several ways to contact Ally. It depends on which of the company’s departments you wish to reach. Ally Invest is part of all the contacts.

Bank 

1-877-247-2559

Open 24/7

Home Loans 

1-855-256-2559

Invest 

1-855-880-2559

Open 24/7

You can also contact them through social media.

Ally offers some of the biggest promotions. The broker pays you to move to it from another broker. That’s a good marketing strategy.

Ally pays you $150 for changing your broker. However, you have to deposit $2,500 into your Ally Invest account.

DOES ALLY INVEST OFFER BONUSES?

I’m sure you love free offers. Bonuses are part of Ally Invest free offers. But what options does Ally provide? Let’s find out!

The broker provides a bonus on your initial deposit. It can range from $100 to $3,000. To be eligible for the bonus, you need to:

• Open a self-directed account
• Make a $10,000 initial deposit

Ally Invest bonus page

Ally Invest doesn’t charge taxes on profits. You can read more about those taxes here.

Initially, I opened my account with Ally Invest in 2013. Back then, it had a different name (I’ll go into more details later). I had an account with Ally until recently. I used to love the platform, as it offered me low-cost trading.

However, I’ve seen its customer service deteriorate in recent years. Waiting times have increased. I waited about 30 minutes the last time I phoned them.

After a brief wait to talk with someone, I was informed that their system was down. That’s not cool! Let’s see what others say:

Can I day trade on Ally Invest?

Yes, you can, but there is a catch. If your account goes below the $25,000 minimum, you will be unable to day trade until you replenish it.

Is Ally Invest the same as Ally Bank?

Ally Invest and Ally Bank are two separate departments of Ally Financial Inc. Ally Invest is for trading, while Ally Bank is part of the company’s fintech. If you open a trading account on Ally Invest, you can get an Ally Bank account.

Is Ally good for Roth IRA?

Ally Invest is not as popular as Fidelity and Vanguard, two other major IRA providers. However, it is worth considering. Ally Invest boasts some of the industry’s lowest trading costs.

How long does it take for Ally Invest to settle funds?

Stock trades settle in two business days from the date, whereas options trades settle in one business day. You can still sell a position bought with unsettled money before settlement and accept the freeride limitation if necessary.

Does Ally Invest charge inactivity fees?

Ally Invest does not impose an inactivity fee, which is helpful because your account will not be charged even if you do not trade for an extended period.

FINAL THOUGHTS

There you have it! We went into the depths of Ally Invest. For me, Ally Invest shines in the areas of assets, safety, and educational and research tools.The broker could improve on customer support and platforms, however.

So, I’ll give it a 4/5. I hope this review was informative and time-saving for you. If you are looking for forex brokers other than Ally Invest, you can check the complete list of brokers here.

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