Ally Invest: The Future Of Commission-Free Trading

Ally Invest has been offering commission-free trading on eligible US stocks, ETFs, and options since October 2019. This means that Ally Invest customers can trade certain US stocks, ETFs, and options without paying any commission fees. However, there are some instances where fees may apply, such as for stocks and ETFs priced under $2, and certain account fees such as transfer and closing fees.

Ally Invest offers $0 trading commissions on eligible US stocks, ETFs, and options

On October 9, 2019, Ally Invest cut its base commissions for eligible US stocks and ETFs to $0. The firm also eliminated the per-leg commission for options trades, charging $0.50 per leg. This means that Ally Invest offers $0 trading commissions on eligible US stocks, ETFs, and options, with a low $0.50 options-contract fee. This change was part of a wave of cost-cutting measures that swept through the brokerage industry in 2019.

Ally Invest's commission-free trades apply to eligible US stocks, options, and ETFs. However, there are some instances where you may have to pay a fee. For stocks and ETFs priced under $2, Ally Invest charges a $4.95 base commission plus $0.01 per share. This is known as the low-priced securities fee.

Ally Invest also offers a wide range of investment choices, including stocks, ETFs, options, mutual funds, fixed income, and more. With no account minimums, Ally Invest is a great option for beginners and experienced investors alike. The company also provides professional insights, stock research tools, and a dynamic streaming trading experience across multiple devices.

In addition to its competitive pricing, Ally Invest offers 24/7 customer support via phone, email, and chat. The company also has an integration feature with its parent company, Ally Bank, allowing customers to easily transfer funds between their savings and brokerage accounts to take advantage of higher interest rates.

There is no account minimum to get started with Ally Invest

Ally Invest offers a range of investment choices, including stocks, ETFs, options, mutual funds, fixed income, and more. They also provide various tools and resources to support all types of investors, such as professional insights, stock research tools, and market analysis tools.

In addition to having no account minimum, Ally Invest also offers commission-free trading on eligible U.S. stocks, ETFs, and options. This means that investors can buy and sell these securities without having to pay a fee for each transaction. It's important to note that there may be other fees associated with trading, such as low-priced security fees for stocks and ETFs priced under $2.

Ally Invest also offers Robo Portfolios, which are automated investment portfolios based on an individual's goals, timeframe, and risk tolerance. These portfolios can be started with a minimum investment of $100.

Overall, Ally Invest provides a range of flexible options for investors, making it an attractive choice for those looking to get started with investing or those who want to take a more hands-on approach to managing their portfolio.

Ally Invest charges a $0.50 options-contract fee

Ally Invest is a strong option for all types of traders, with $0 trading costs on eligible U.S. securities, no account minimum, and low-cost options trading. In addition to not charging a base commission for options trades, Ally Invest also stands out by charging a low per-contract fee of $0.50. This is in contrast to some other brokers, who charge a higher per-contract fee.

Ally Invest's options-contract fee is part of its broader pricing structure, which includes commission-free trades for eligible U.S. stocks, options, and exchange-traded funds (ETFs). It is worth noting that there are some instances where a fee may be charged on transactions using Ally, such as for stocks and ETFs priced under $2, where a $4.95 base commission plus $0.01 per share is applied.

Ally Invest's pricing and fee structure cater to both beginner and experienced investors. The absence of an account minimum makes it easier for those new to investing to get started, while the low options contract fee appeals to active investors. Additionally, the ability to instantly transfer funds between Ally savings and brokerage accounts provides convenient access to higher interest rates compared to typical default sweep interest rates offered by most brokerages.

Overall, Ally Invest's competitive pricing, trading tools, and user-friendly trading platform make it a compelling choice for individuals looking to invest.

Ally Invest offers a wide selection of commission-free ETFs from market leaders such as Vanguard, GlobalX, and iShares

The company has partnered with market leaders to offer a diverse range of high-quality ETFs. These ETFs are carefully selected to provide you with a variety of options to enhance your portfolio. By investing in commission-free ETFs, you can keep more of your investment returns without sacrificing the quality of the financial products you choose. This approach makes it easier for you to align your investments with your financial goals and risk tolerance.

Ally Invest's commission-free ETFs include offerings from well-known and respected providers such as Vanguard, GlobalX, and iShares. These companies have established themselves as leaders in the financial industry, known for their expertise and track record of success. By investing in ETFs from these market leaders, you can be confident that you are accessing a wide range of investment opportunities that have been carefully curated and designed to meet the needs of a diverse array of investors.

In addition to the commission-free ETFs, Ally Invest also provides a broad range of investment choices, including stocks, options, mutual funds, and fixed-income securities. This variety ensures that you can create a well-rounded and diversified portfolio that aligns with your investment goals. The company also offers self-directed trading, robo-portfolios, and personal advice services, catering to investors with different levels of experience and involvement.

With its wide selection of commission-free ETFs from market leaders, Ally Invest empowers you to make informed investment decisions and build a robust and diversified portfolio. By taking advantage of these offerings, you can take control of your financial future and work towards achieving your short-term and long-term financial objectives.

Ally Invest offers a Cash-Enhanced Portfolio where 30% is set aside as an interest-earning cash buffer

The cash buffer serves to balance out potential risks in the event of changing market conditions. If money is withdrawn from the account, the portfolio automatically rebalances to maintain the 30% cash buffer. This portfolio type is available for all four portfolio options: core, income, tax-optimized, and socially responsible.

The Cash-Enhanced Portfolio is well-suited for those seeking a more conservative investment approach. It is important to note that the large cash allocation may cause performance drag in the long term, which investors should consider when making their investment decisions.

In contrast, the Market-Focused Portfolio is designed for investors who want most of their money invested in the market. This option carries a 0.30% annual advisory fee, and nearly all the money is invested, with only about 2% held as cash. The cash balance also earns interest at the current rate, and the portfolio automatically rebalances to maintain the market-to-cash ratio if withdrawals are made.

Ally Invest offers a range of investment options, including self-directed and managed accounts, to cater to investors of all experience levels. The platform provides a user-friendly, low-cost, and straightforward investing experience, making it a solid choice for those looking to consolidate their financial life.

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