Ally Invest: Will They Slash Commission Fees?

In 2019, Ally Invest, a subsidiary of Ally Bank, announced that they would be cutting their base commissions for stocks and ETFs to zero, joining a wave of similar moves across the brokerage industry. This means that Ally Invest now offers commission-free trading on eligible U.S. stocks and ETFs, with no account minimum required. However, there are still some fees associated with trading on Ally Invest, such as a $4.95 base commission for stocks and ETFs priced under $2, and a $0.50 per contract fee for options trading. Overall, Ally Invest is considered one of the best low-cost brokers, especially for active traders.

Ally Invest's $0 trading costs

Ally Invest, a subsidiary of Ally Bank, offers $0 trading costs for eligible US stocks, options, and exchange-traded funds (ETFs). This means that you can buy and sell certain US stocks, options, and ETFs without paying any commission or fees to Ally Invest. This feature makes Ally Invest very competitive compared to other brokers and is attractive to both beginner and experienced investors.

It is important to note that $0 trading costs only apply to specific US stocks, options, and ETFs. For stocks and ETFs priced under $2, there is a $4.95 base commission plus an additional $0.01 per share. There are also other fees associated with trading, such as wire transfers, account transfers, and certain types of trades.

Ally Invest provides a comprehensive list of its commissions and fees on its website, including pricing for various types of trades, accounts, and services. It is always essential to review all the fees and costs associated with investing before proceeding.

Commission-free trades

Ally Invest offers commission-free trades on eligible US stocks, options, and ETFs. This is typical of brokers these days, as charging a commission for stock and ETF trades is relatively rare. There is a wide selection of commission-free ETFs from market leaders such as Vanguard, GlobalX, and iShares.

Ally Invest also offers commission-free stock and ETF trading for stocks priced above $2. For stocks and ETFs priced under $2, a $4.95 base commission plus $0.01 per share is charged. The maximum commission charge doesn't exceed 5% of the value of the trade.

In February 2023, Ally Invest eliminated its $9.95 fee for mutual fund trades. There are now about 5,500 no-transaction-fee mutual funds to choose from.

Ally Invest's options trades also have no base commission, with a per-contract fee of $0.50, which is lower than some other brokers.

Ally Invest has low trading fees in general and is considered one of the best low-cost brokers.

Low-priced securities

Ally Invest has a $4.95 base commission for low-priced securities, which are defined as any equity below $2. There is an additional charge of one cent per share on the entire order. The maximum commission charge does not exceed 5% of the value of the trade. If the principal value of the order is less than the base, the commission is equal to the full trade value.

Ally Invest's low-priced securities commissions are part of their Trading Commissions for Self-Directed Accounts. They offer commission-free trading on eligible U.S. stocks and ETFs, and there is no account minimum to get started.

Ally Invest has been recognised for its low commissions and fees, receiving 4.5 out of 5 stars for commissions and fees by Stockbrokers.com in their 2022 Annual Review of online brokers.

In February 2023, Ally Invest eliminated its $9.95 fee for mutual fund trades, allowing customers to choose from about 5,500 no-transaction-fee mutual funds.

Account fees

Ally Invest offers a range of accounts with different fee structures. Here is a breakdown of the account fees for each type of account:

Self-Directed Trading Account

• Minimum Deposit: There is no minimum deposit required to open a Self-Directed brokerage cash account. However, a Self-Directed brokerage margin account requires a $2,000 minimum deposit.
• Account Maintenance Fee: There is no annual or inactivity fee for this account.
• Transfer Fee: There is a $50 fee for a full or partial transfer of securities out of your account (ACAT transfer).
• Closing Fee: There is no explicit mention of a closing fee for this account type.

Robo Portfolios Account

• Minimum Deposit: This account requires a $100 initial minimum deposit.
• Account Maintenance Fee: There is no mention of annual or inactivity fees for this account.
• Transfer Fee: The information on transfer fees for this account is not available.
• Closing Fee: There is no explicit mention of a closing fee for this account type.

Personal Advice Account

• Minimum Deposit: This account requires a minimum of $100,000 in assets under care, which includes investments and money managed by Ally Invest.
• Account Maintenance Fee: There is no mention of annual or inactivity fees for this account.
• Transfer Fee: The information on transfer fees for this account is not available.
• Closing Fee: There is no explicit mention of a closing fee for this account type.

It is important to note that Ally Invest does not charge commissions on any options trades, but there is a $0.50 per option contract fee. Additionally, there are no trading commissions on eligible U.S. stocks, ETFs, and options. However, for stocks and ETFs priced under $2, there is a $4.95 base commission plus $0.01 per share.

Advanced features

Ally Invest offers a range of advanced features for investors. Here are some of the key features:

• Automated portfolio management: Ally Invest offers an automated portfolio management option, allowing investors to automate their investment strategy.
• Free tools for technical investors: Ally provides a suite of free tools for technical investors, including an options pricing calculator, a strategy builder for options trading, and an ETF screener.
• Extended trading hours: Ally offers extended trading hours, running from 8 am to 5 pm ET. This allows investors to trade outside of regular market hours.
• Over-the-counter (OTC) trading: Ally allows OTC trading, providing access to a wider range of securities and potentially better prices. However, fees may apply for securities priced below $2.
• Instant money movement: Ally offers instant money movement between Ally savings and brokerage accounts, allowing investors to take advantage of higher interest rates compared to typical default sweep interest rates offered by most brokerages.
• Integration with Ally Bank: Ally Invest is integrated with Ally Bank, making it easy for customers to transfer funds and manage their finances in one place.
• Research and data: While Ally only offers access to three third-party research providers (Morningstar, CFRA, and TipRanks), it provides a range of investing tools and calculators, such as a profit-and-loss calculator and a probability calculator.
• Customer support: Ally Invest offers 24/7 customer support via phone, email, and chat, ensuring that investors can get assistance whenever they need it.
• Low fees: Ally Invest has low trading fees, including commission-free trades for eligible U.S. stocks, options, and ETFs. There is also a low $0.50 options-contract fee.

Frequently asked questions