Equities Unveiled: Ally's Guide To Stock Market Investing

Ally Invest is a brokerage service that offers a range of investment options for clients of all experience levels, including self-directed and managed accounts. With a focus on providing accessible investing services, Ally Invest offers low costs, low minimums, and a robust and intuitive platform. The company provides online banking, securities brokerage, investment advisory, mortgage and auto financing, and insurance offerings to its approximately 11 million customers.

Ally Invest's platform allows users to trade U.S.-listed equities, exchange-traded funds (ETFs), options, mutual funds, and fixed-income products. The service also provides foreign exchange trading in over 50 currency pairs.

One of the key features of Ally Invest is its automated investing service, where the company manages your portfolio through a robo-advisor. This service has a minimum investment requirement of $100 and offers two types of portfolios: cash-enhanced and market-focused.

Ally Invest also provides self-directed trading with no account minimum, allowing investors to choose from a wide range of investment selections with no commission fees on most U.S.-listed stocks, ETFs, and options.

With its competitive rates, educational support, and easy-to-use platform, Ally Invest is a good choice for beginner and intermediate investors looking for a user-friendly and low-cost entry point into the world of investing.

Equities from Ally Investments are available for all budgets and experience levels

Ally Invest has commission-free trades for eligible US stocks, options, and exchange-traded funds. This is typical of brokers these days—charging a commission for stock and ETF trades is relatively rare. There are a few instances in which you might pay a fee on a transaction using Ally. For stocks and ETFs priced under $2, Ally charges a $4.95 base commission plus $0.01 per share.

Ally Invest also offers over-the-counter trading. As for other fees, Ally Invest charges $50 for a full or partial transfer of your securities out of your account (called an ACAT transfer).

Ally Invest's browser-based platform is basic but effective. It offers quick trading capabilities, real-time streaming quotes and data, a customizable dashboard, and access to all of the broker's tools. Customers who frequently trade from various computers will appreciate this web-based platform, which doesn't require any downloads. Ally also allows its customers to trade via mobile devices with the Ally Mobile app.

Ally Invest offers stocks, ETFs, options, bonds, and nearly 5,500 no-transaction-fee mutual funds. Though there is a strong selection of tradable securities on offer, two fairly common securities are missing from that list: futures and cryptocurrency. And unlike some competitors, Ally doesn't offer access to IPOs.

Ally Invest is a solid choice for traders and investors thanks to its low costs, low minimums, and solid trading platform.

There are no account minimums or fees for self-directed brokerage cash accounts

Equities are another word for stocks. They are a type of security that represents ownership in a company. When you buy a stock, you are purchasing a small piece of that company, becoming a shareholder. This means you are entitled to a share of the company's profits, as well as a say in how the company is run (usually through voting rights).

Ally Invest

Ally Invest is the brokerage side of Ally Bank. It provides online banking, securities brokerage, investment advisory, mortgage and auto financing, and insurance offerings to its approximately 11 million customers.

Ally Invest offers several options for investors of all experience levels, including self-directed and managed accounts.

Self-Directed Brokerage Cash Accounts

Ally Invest offers self-directed brokerage cash accounts with no account minimums or fees. This means that you can start investing with any amount of money and you won't be charged any fees for maintaining your account.

With a self-directed brokerage account, you have complete control over how you invest your money. You can choose from a wide range of investment options, including stocks, bonds, exchange-traded funds (ETFs), mutual funds, and more. You are not limited to a narrow selection of funds picked by a financial advisor or your employer.

Self-directed brokerage accounts offer several benefits over traditional investment accounts, including lower costs, more precision in your investment choices, and fewer conflicts of interest.

With Ally Invest's self-directed brokerage cash accounts, you can start investing with $0 and there are no commission fees on most U.S.-listed securities. You have free rein to choose from a variety of investment options and can buy, sell, or hold whenever you please.

A self-directed brokerage account gives you more control over your investments and offers several advantages:

• Lower costs: You can choose from a wider range of investment options, including lower-cost choices, instead of being limited to high-cost mutual funds offered by many employer-sponsored plans.
• More precision: You can more easily allocate your money according to your specific goals. For example, if you want to put exactly 10% of your assets in small-cap stocks, you can do so with a self-directed account as there are countless small-cap funds to choose from.
• Fewer conflicts: When you hire a financial advisor, there may be conflicts of interest as they are often paid more to sell certain products with higher fees. With a self-directed account, you eliminate these conflicts and can choose investments that best align with your goals and interests.

Types of Self-Directed Brokerage Accounts

There are three main types of self-directed brokerage accounts:

• Individual retirement accounts (IRAs): This is the most classic type of self-directed brokerage account as it is completely separate from any employer. You can open an IRA with a discount broker and choose from thousands of mutual funds, ETFs, and individual stocks to invest in.
• Ordinary brokerage account: This type of account gives you the flexibility to invest as you please, without the tax advantages of a tax-deferred or tax-free retirement account.
• Some 401(k) and 403(b) plans: Some employer-sponsored plans offer a "brokerage window" that allows you to invest in stocks or funds that are not normally offered in the retirement account. However, only about 20% of employers offer this option.

Benefits of Ally Invest Self-Directed Brokerage Cash Accounts

In addition to having no account minimums or fees, here are some other benefits of choosing Ally Invest for your self-directed brokerage cash account:

• Easy to use: Ally Invest provides simple explanations and useful tidbits to help you make informed investment decisions.
• Variety of investment options: Ally Invest offers a wide range of investment choices, including stocks, bonds, ETFs, margin accounts, and more.
• Charts and analysis: Ally Invest provides charts, screeners, and expert analysis to guide your investment research.
• Customer support: Ally Invest offers customer support via phone, chat, and email, so you can always get the help you need.
• Financial consolidation: Ally Invest integrates well with other Ally products, such as online banking, credit cards, CDs, and loan offerings. This allows you to easily view your overall financial condition and manage your finances in one place.
• Ability to earn interest: You can earn interest on your cash balance with Ally Invest, with competitive rates of up to 3.80%.

Final Thoughts

Ally Invest's self-directed brokerage cash accounts offer a great option for those looking to take control of their investments. With no account minimums or fees, you can start investing with any amount of money and have the flexibility to choose from a wide range of investment options. Remember to consider your investment goals, conduct thorough research, and seek professional advice when needed.

Ally offers a robo-advisor service that manages your portfolio for you

Ally Invest Robo Portfolios

Ally's robo-advisor service is automated, meaning it will manage your portfolio for you. The service is designed to take the guesswork out of investing and let you sit back and relax while the robo-advisor does all the work.

The robo-advisor will build your portfolio using a blend of diversified exchange-traded funds (ETFs) based on your goals and risk tolerance. You can choose from a variety of portfolio types, including:

• Cash-enhanced portfolio: This option provides added security by setting aside 30% of your portfolio in cash to act as a buffer against market volatility. It currently offers an annual interest rate of 3.80% on the cash buffer, credited monthly.
• Market-focused portfolio: This option invests most of your money in the market, with only about 2% held in cash. It charges a 0.30% annual advisory fee, which is competitive compared to other brokers.

Ally's robo-advisor service offers several benefits, including:

• Fee-free rebalancing: Your portfolio will be reviewed daily, and rebalanced if needed, at no extra cost.
• 24/7 access: You can keep tabs on your portfolio's performance and update your goals anytime, day or night.
• Customer support: Ally provides customer support via phone, chat, or email, with extended hours for your convenience.
• Socially responsible investing: You can choose to invest in companies with strong environmental, social, and governance practices.

However, there are also some drawbacks to consider. The lack of tax-loss harvesting may be an issue for investors with taxable brokerage accounts. Additionally, access to human advisors is limited and requires a minimum of $100,000 in investable assets.

You can trade commission-free on US-listed stocks, ETFs, and options

Ally Invest is an intuitive trading platform that is great for both novice and experienced investors. With Ally Invest, you can trade commission-free on eligible US-listed stocks, ETFs, and options. This means that you can buy and sell these securities without having to pay a fee for each transaction.

Ally Invest offers a wide range of investment selections, including stocks, bonds, ETFs, options, mutual funds, and margin accounts. The platform is designed for DIY investors who want to take control of their investing future. There is no account minimum required to start, making it accessible to investors of all levels.

In addition to commission-free trading, Ally Invest also provides other benefits such as interconnectivity with Ally Bank, allowing for easy fund transfers and a comprehensive view of your finances. The platform also offers tools like screeners, watchlists, and analyst recommendations to help you make informed investment decisions.

With its user-friendly interface, educational resources, and competitive fees, Ally Invest is a solid choice for those looking to start their investment journey or for experienced investors seeking a robust and intuitive platform.

Ally provides 24/7 customer support and educational resources for beginner investors

Ally Invest is a great option for beginner investors, as it provides 24/7 customer support and a range of educational resources.

Ally's customer support is available via phone, online chat, or on the Ally mobile app. The average hold time is just 30 seconds, and assistance can also be provided via social media.

In terms of educational resources, Ally offers a range of articles, guides, and tips to help investors improve their understanding of investment strategies and market trends. These resources are geared towards newer investors and traders and cover topics such as how to start investing and how to become a better investor.

Ally also provides advanced charting tools and numerous calculators to help investors analyze their trades. These include a probability calculator and an options tool that shows profitability graphs.

In addition, Ally offers a range of investment options suitable for beginners, including Robo Portfolios. These are automated investment portfolios that are managed by a robo-advisor. The robo-advisor will recommend and manage a professionally designed portfolio based on your personal goals, time frame, and risk tolerance. The platform will then monitor and automatically rebalance your portfolio to ensure it stays on track.

Ally also offers a range of other investment options, such as Self-Directed Trading, where investors can choose their own investments, and Personal Advice, where investors receive guidance from a dedicated advisor.

With its 24/7 customer support, educational resources, and beginner-friendly investment options, Ally provides a comprehensive and supportive platform for those new to investing.

Frequently asked questions