Ally Managed Invest: Fees, Benefits, And Drawbacks

There is no annual or advisory fee for Ally's Cash-Enhanced Managed Portfolios account. There is also no minimum balance requirement to open a self-directed trading account with Ally Invest. However, there are fees for certain transfers and transactions, such as returned checks and IRA transfers. For instance, there is a $50 fee for a full or partial transfer of your securities out of your account. For Robo Portfolios, there is a $100 minimum to start. For Personal Advice, there is a minimum of $100,000 in assets under care.

There is no fee for a Cash-Enhanced Managed Portfolio, but there is a 0.30% annual advisory fee for a Market-Focused Portfolio

When it comes to fees for Ally Managed Invest, there are two types of portfolios to consider: the Cash-Enhanced Managed Portfolio and the Market-Focused Portfolio.

The Cash-Enhanced Managed Portfolio is a great option if you're looking for a fee-free investment choice. This portfolio sets aside 30% of your account as an interest-earning cash buffer, providing a stable foundation for your investments. With no annual or advisory fees, you can get started with a minimum investment of just $100.

On the other hand, the Market-Focused Portfolio comes with a 0.30% annual advisory fee. This portfolio strategy involves holding approximately 2% in cash and investing around 98% in the market. This fee structure equates to a $3 fee for every $1,000 you invest.

So, if you're deciding between the two, consider your investment goals and how actively you want to manage your portfolio. The Cash-Enhanced Managed Portfolio offers a hands-off approach with no fees, while the Market-Focused Portfolio provides a more market-centric strategy with a relatively low annual advisory fee.

There is no minimum balance requirement for a Self-Directed Trading account

With a Self-Directed Trading account, you can choose your own investments and trade stocks, options, ETFs, mutual funds, and bonds. You can also take advantage of commission-free trading on eligible U.S. stocks and ETFs, as well as a wide selection of commission-free ETFs from market leaders.

The Self-Directed Trading account also offers low-priced securities, with a minimum opening purchase of $100 per order on OTCBB and pink sheet stocks. Additionally, there is no commission for stocks and ETFs priced at $2 and higher.

Ally Invest provides a range of tools and resources to support your investment decisions, including charts, screeners, and expert analysis. You can also easily transfer funds between your Ally Bank and Ally Invest accounts, giving you easy access to your money.

While there is no minimum balance requirement for a Self-Directed Trading account, it's important to note that there may be other fees associated with the account, such as transaction fees, service fees, and trading fees for specific types of securities. These fees vary depending on the type of security and the details of the transaction.

There is a $100 minimum for a Robo Portfolio

There is a $100 minimum deposit required to start a Robo Portfolio with Ally Invest. This low minimum makes investing accessible to those who are new to investing or who don't have a large sum of money to invest.

Robo Portfolios are a great option for those who want a more passive investing experience. After telling Ally about your goals, you'll be paired with a diversified portfolio that is managed by their robo-advisor technology. This technology will automatically rebalance your portfolio as needed when changes occur, such as market fluctuations or shifts in your asset allocations.

In addition to the $100 minimum, it's important to be aware of other fees associated with Robo Portfolios. While there is no annual or advisory fee, there is a 0.30% annual fee if you choose to put more money in the market. There may also be internal expense ratios and other fees associated with the underlying ETFs in your portfolio. These are standard trading expenses and will be deducted from your ETF's net asset value.

Overall, Ally Invest's Robo Portfolio is a good option for those looking for a low-cost, passive investing experience, with the added benefit of automated portfolio management and rebalancing.

There is a $100,000 minimum for Personal Advice

Personal Advice is for those who want a more personalised experience. With this option, you start with $100,000 in assets under care. You will receive a personalised plan and a view of all your finances. You can expect a blended annual advisory fee of, at most, 0.85%.

Ally Invest offers a range of services, from robo-advisors to a trading platform for active investors. The robo-advisor is great for those new to investing or who want their investment portfolio to be managed for free. The program takes your goals and financial situation into account to tailor your portfolio.

The Self-Directed Trading program is for hands-on investors. There is no account minimum to start, and no commission fees on most U.S.-listed securities. You can trade stocks, options, ETFs, mutual funds, fixed income, and more.

Ally Invest also offers a range of tools and educational materials to help you make better investment decisions.

There is a $2,000 minimum deposit for a Self-Directed brokerage margin account

There are no fees for Ally Managed Invest. In fact, there is no account minimum to start with Ally Invest. However, there is a $2,000 minimum deposit required to open a Self-Directed brokerage margin account.

A Self-Directed brokerage margin account allows you to borrow from your portfolio, giving you access to cash to seize other opportunities. The money you borrow is lent to you by Ally Invest, using the securities in your account as collateral. You can then use this money to buy additional securities or withdraw the funds to pay for another expense.

Margin trading can amplify the potential return on your investment. However, it is important to weigh the risks. If stock prices take a dip, you could lose your entire investment or more.

Ally Invest offers a range of investment options, including Self-Directed Trading, Automated Investing, and Personal Advice. With Self-Directed Trading, you have free rein to choose stocks, bonds, ETFs, margin accounts, and more. Automated Investing is a robo-advisor service that pairs you with a diversified portfolio based on your goals. Personal Advice offers a dedicated advisor with guidance for your full financial life.

Ally Invest also provides a variety of resources to help you make informed investment decisions, including charts, screeners, expert analysis, and research tools.

Frequently asked questions