A Beginner's Guide To Placing Orders On Ally Invest

Ally Invest is an online platform that offers banking and investing services to its customers. The platform provides a range of investment options, including self-directed and managed accounts, with competitive rates and low minimums. With no account minimum, it is a great platform for beginners to start investing.

To make an order on Ally Invest, users can utilise the browser-based platform or the mobile app. The browser platform offers a customizable dashboard, real-time streaming quotes and data, and access to various tools. The mobile app, on the other hand, provides access to holdings, the trading platform, research, screeners, and a watchlist.

When placing an order, users can choose from various order types, including market, limit, stop, and stop-limit orders. Additionally, the platform supports four-leg options strategies and streaming quotes to ensure up-to-date pricing. It is important to note that Ally Invest does not support contingent or trailing stop orders.

Before placing an order, users should ensure they have sufficient funds in their account. If an error message regarding insufficient funds appears, users can make a deposit, reduce their share quantity, or limit price.

Ally Invest also offers 24/7 customer support and resources to help users navigate the platform and make informed investment decisions.

How to make an order on Ally Invest with insufficient funds

To make an order on Ally Invest, you must first have an account. Ally Invest offers a range of accounts, including individual and joint taxable accounts, traditional and Roth individual retirement accounts (IRAs), and Coverdell education savings accounts (ESAs).

Once you have an account, you can begin trading. However, if you have insufficient funds, you will need to deposit more money into your account. You can do this by transferring funds from another Ally account, from another financial institution, or by depositing a check. If you are attempting to trade with unsettled funds, you may be able to use the proceeds from a sale to make another purchase in a cash account, as long as the proceeds did not result from a day trade.

If you are still unable to make a trade due to insufficient funds, you may need to reduce your share quantity or limit price. You can check your existing trading funds at any time by selecting Balances. It is important to remember that existing open orders also reduce your buying power.

Ally Invest's trading platforms and apps

Ally Invest offers a browser-based platform that is basic but effective. It provides quick trading capabilities, real-time streaming quotes and data, a customisable dashboard, and access to all of the broker's tools. This web-based platform is ideal for customers who frequently trade from different computers, as it does not require any downloads.

Ally also offers a mobile app, which is part of the larger Ally Bank app. The app allows users to access holdings, the trading platform, research, screeners, a stocks watchlist, and more. The app has less overall functionality than the browser-based platform, with fixed-income and mutual fund trades only available on the website. However, it does include a research page with news headlines, recent quotes, major market indices, and a list of NYSE market movers.

Ally Invest also provides a Live platform with streaming quotes and more modern website functionality. While this platform has user customisation options, it lacks some of the features of the primary website, such as screeners and options trading and analysis tools.

Ally Invest's platforms work well, but the technology is a bit dated, and there may be more than one screen/platform required to accomplish some tasks. The initial website logo always brings users to the primary Ally home screen, which shows all related accounts across the Ally platform. From there, users can click on the individual investment account to move to the Ally Invest home web page.

Ally Invest's trading platforms are sufficient for most traders, but they have basic functionality for orders, with none of the platforms allowing for contingent orders for stop losses and/or take profits, and no support for trailing stops.

How to set profit targets on Ally Invest

Setting profit targets is a key practice for beginner retail investors entering the stock market. A profit target is the predefined price level at which you plan to sell a stock to secure gains. This strategy helps manage emotions and promotes disciplined decision-making. Here are the steps to follow to set profit targets on Ally Invest:

• Risk management: Define the potential reward in relation to the risk undertaken in a trade. By setting profit targets, investors establish a clear ratio of expected gains to potential losses, ensuring a disciplined approach to risk.
• Discipline and emotional control: Having predefined profit targets helps investors maintain discipline and control their emotions. It prevents impulsive decisions driven by fear or greed during market fluctuations. Emotions can cloud judgment, and having a target provides a rational basis for making sell decisions.
• Avoiding overtrading: Without profit targets, investors may fall into the trap of overtrading, continuously buying and selling without a clear exit strategy. Setting profit targets encourages a more strategic and selective approach to trading, reducing transaction costs.
• Capital preservation: Knowing when to take profits is crucial for preserving capital. Setting profit targets allows investors to lock in gains at favourable levels, reducing the risk of losing those gains due to market reversals.

There are several approaches to setting profit targets:

• Risk-reward ratio: Consider the risk-reward ratio, where potential profit is weighed against potential loss. For example, aim for a 2:1 ratio, seeking twice the potential gain compared to the acceptable loss.
• Technical analysis: Utilise technical analysis to evaluate and predict future price movements of stocks based on historical price data and trading volume.
• Regular monitoring: Stay informed about relevant news and events that could impact your investments. Regularly monitor the stock's performance and adjust profit targets based on changing market conditions.

Ally Invest offers a "take-profit" or "limit order" feature, which is a great tool to execute your trading strategy and ensure you reap the rewards of your successful trading ideas.

Ally Invest's investment selection

Ally Invest offers a wide range of investment options to cater to the needs of different investors. Here is an overview of the investment selections available through Ally Invest:

• Stocks: Ally Invest allows investors to trade stocks on major exchanges, providing access to a diverse range of companies and industries. This includes the ability to trade Over-the-Counter (OTC) stocks, which are typically smaller companies or foreign companies trading on U.S. exchanges.
• Exchange-Traded Funds (ETFs): With Ally Invest, investors can buy and sell a wide variety of ETFs, which are baskets of securities that trade on an exchange like a stock. ETFs offer exposure to various markets, sectors, and asset classes, providing investors with diversification and flexibility.
• Options: Ally Invest supports options trading, including equity and index options. Options are a type of derivative contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date.
• Mutual Funds: Investors can access thousands of mutual funds through Ally Invest, including load and no-load funds. Mutual funds pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.
• Fixed Income: Ally Invest offers a range of fixed-income investment options, such as corporate bonds, agency bonds, treasuries, municipal bonds, strips & zeros, certificates of deposit (CDs), and new issues. These investments provide a steady stream of income for investors.

In addition to the above, Ally Invest also provides access to foreign exchange trading in over 50 currency pairs through a dedicated platform. However, it is important to note that Ally Invest does not offer futures, fractional share trading, or direct investment in cryptocurrencies.

Overall, Ally Invest provides a comprehensive suite of investment selections that cater to a wide range of investors, from beginners to advanced traders. The platform's low fees, intuitive tools, and seamless integration with other Ally products make it a popular choice for those looking to manage their investments effectively.

Ally Invest's customer support

Ally Invest offers customer support via phone, email, and live chat.

Phone Support

Email Support

Live Chat Support

Ally Invest also offers live chat support, which can be accessed by logging into your account.

Frequently asked questions