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A comprehensive review of Ally Invest

Security, trading fees, tradable assets and more

4/5 star rating

Ally Invest is a US-based stockbroker founded in 2005. The platform is known for providing millions of customers around the world access to investment vehicles such as stocks, ETFs, options, bonds, mutual funds, and forex trading services, and all activities on the broker are regulated and authorised by bodies including the SEC and FINRA. Ally Invest has an intuitive and easy-to-use  trading platform that makes investing easy, while at the same time offering other financial services such as home loans and banking services.

Pros & cons

Pros

  • Free stock and ETF trading
  • Expansive education center
  • Low trading & non-trading fees
  • No minimum deposit
  • Interactive, useful charting tools
Cons

  • Only supports trading on US markets
  • Credit/Debit card not available payment options
  • High outgoing wire transfer fee
  • Doesn’t offer crypto, CFDs, or futures
  • No demo account

What can I do with Ally Invest?

Ally Invest allows users to trade a wide range of assets – including stocks, ETFs, bonds, mutual funds, options, and forex. The platform offers free stock and ETF trading, similarly to other popular stockbrokers such as Charles Schwab, Robinhood, and Interactive Brokers. Ally Invest also offers other financial services, including home loans, banking services, and auto deals. 

Which assets can I trade?

You can trade the following assets on Ally Invest: 

  • Stocks
  • ETFs
  • Forex 
  • Options
  • Mutual funds
  • Bonds 

Payment Methods

Ally Invest only supports payments made by bank wire transfer. This gives users less flexibility than with some other platforms that allow payments through credit or debit cards.

Ally Invest also has deposit and withdrawal limits. The maximum deposit is $50,000 per day and up to $250,000 every 30 days. The maximum withdrawal limit is $50,000 per day. 

What devices can I use Ally Invest on?

Ally Invest can be used on virtually all devices. It has a web-interface platform that can be accessed on computers and mobile browsers, and also has an app available on both iOS and Android operating systems.

You can use Ally Invest in the following devices: 

  • Computers: desktops and laptops
  • Android Phones
  • iPhones

How easy is it to use Ally Invest?

The Ally Invest trading platform is user-friendly and easily accessible to all traders. Once you access the web-interface platform, they have a “QuickTrade” button that pops up with a simple trade ticket. You can use this option to buy stocks, ETFs, or options quickly, without having to spend time searching for the assets or products you wish to trade.

The Ally Invest platform can also be easily customised to make the trading experience match your preferences. You can make cosmetic changes, such as selecting the color and layout of the dashboard, and also set your preferences for which columns of content display prominently, such as your watchlist.

The Ally Invest mobile app has a workflow that makes them equally simple and straightforward to use for trading. However, your research and education options are heavily limited when using the app. 

One thing to note is that in order to trade forex you need to go to an entirely new platform from the main Ally Invest website or app, which can have a big impact on your trading experience if you’re looking to trade different currencies.

Countries supported

Ally Invest is a US-based platform and currently restricted to use only in the following two places:

  • The United States
  • Puerto Rico

Every other nation outside these three is not allowed to access the Ally Invest platform.

Regulation

Ally Invest is regulated within the United States. The platform is therefore regulated by the top three regulatory agencies in the United Stats: the SEC, CFTC, and FINRA. 

Account Verification

As a regulated broker, Ally Invest abides by the AML and KYC policies. Hence, all users are required to verify their trading accounts before they can begin trading. To verify your account on Ally Invest, you will need the following: 

  • ID Verification: Ally Invest asks for documents like passport, driver’s license, and national ID for verifying identity. You can submit a scanned copy of any of these documents. 
  • Proof of residency: for proof of residency, Ally Invest accepts bank statements and utility bills from the past three months.

Customer support

Ally Invest has good customer support which can be reached through a variety of channels. Currently if you need to get in touch with Ally Invest, you can do so through: 

  • Email
  • Phone
  • Live chat

The Stockbroker

First impression

Ally Invest has excellent web-trading and mobile app platforms. They offer access to numerous trading and research tools. Their education center also houses various articles for those who wish to learn more about trading. 

Both the website and app allow users to trade various assets, including stocks, ETFs, forex, indices, options, bonds, and mutual funds. Ally Invest also offers free stock and ETF trading, and relatively low fees for other trades. Their account opening process can take a while, but it is fully digital with no need to send in physical forms.

Overall, Ally Invest has an excellent platform for trading stocks, ETFs, forex, indices, options, bonds, and mutual funds.

What currency pairs can be traded?

You can trade forex on Ally Invest, with access to a wide range of currency pairs. Here are the major pairs you can find on Ally Invest:

  • EUR/USD
  • GBP/USD
  • EUR/JPY
  • USD/JPY
  • AUD/USD
  • GBP/EUR
  • XAU/USD
  • ZAR/JPY
  • USD/CHF

Are there fees for trading?

Yes, there are. While trading stocks and ETFs is free, you will pay for the other assets on Ally Invest. Here’s a summary of the fees charged on Ally Invest:

  • Forex: 5%
  • Mutual funds: $9.95 per trade
  • Inactivity fees: no fees
  • Options: $0.50 per contract
  • Wire transfer: $30
  • Live broker fee: $20 per trade 

What is the minimum Spread?

The minimum spread on Ally Invest is 1.6 pips.

Can I trade assets with leverage on Ally Invest?

Yes, you can. Ally Invest supports leveraged trading of stocks, forex, and ETFs. The maximum leverage on Ally Invest currently stands at 50:1. This means that a trader can place a trade with a value of $50, while only having to stake $1 of their own money.

We advise traders against trading with leverage unless they are experienced, as it comes with high risk. The forex market is highly volatile, which means prices can swing in any direction within a few minutes, and inexperienced traders could see themselves lose a lot of money very fast if the market moves the wrong way.

What are the margins required?

The margin requirement on Ally Invest depends on the amount you have in your balance. Here’s a quick summary:

  • $0-$25,000: 7.75%
  • $25,000-$50,000$50,000-$100,000: 7.5%
  • $50,000-$100,000: 6.75%
  • $100,000-$250,000: 5.5%
  • $250,000-$500,000: 4.5%
  • $500,000-$1,000,000: 4%
  • Above 1,000,000: 3.25% 

Can I open long and short positions?

Yes, you can open short and long positions on Ally Invest. In trading, having a long or short position means betting on an asset to either go up in value or drop value over time.

Traders and investors that are bullish on the price of an asset buy it and wait for it to increase. When that happens, it is called going long. Shorting is when an investor is bearish on the price of an asset and sells it in order to buy it at a cheaper rate later. 

Are there withdrawal and deposit limits?

Yes, there are withdrawal and deposit limits on Ally Invest: 

  • Withdrawal limit: The withdrawal limit is $50,000 per day.
  • Deposit limit: minimum of $50,000 per day and $250,000 per month

Summary of Ally Invest Broker

Ally Invest is a good option for trading a variety of financial products, but is only available within the USA currently. The platform allows users to trade a limited number of assets, including equities, ETFs, mutual funds, bonds, options, and forex.

Bothe the Ally Invest web and mobile app trading platforms are intuitive and user-friendly, and suitable even for first time investors. 

While stock and ETF trading is free on Ally Invest, other trades will come with a variety of charges which can eat into your profits, and it is also worth noting that you’re only able to pay by wire transfer on the platform.

Conclusion

Ally Invest is one of the leading brokerage platforms in the US, offering millions of users the ability to trade equities, ETFs, mutual funds, bonds, options, and forex. You can reach the support team via email, phone call, and live chat, and the platform is regulated by the SEC, CFTC, and FINRA. 

With no fees for trading stocks or ETFs and a customisable user interface, Ally Invest is a great option both for experienced traders and beginners – but anyone looking to trade cryptocurrency will have to go elsewhere.

How to open an account with Ally Invest

If you wish to get an account with Ally Invest, follow these steps: 

  1. Visit the Ally Invest website
  2. Navigate to the ‘GET STARTED
  3. Choose whether you are opening a self-directed trading account or managed portfolio account
  4. Add personal information and email address
  5. Provide further personal data, and details for later verification of your account (such as your Social Security Number)
  6. Insert phone number and select a security question 
  7. Provide your employment information 
  8. Add your investment profile and trading preferences
  9. Provide more investment objectives and also state your margin and option preferences
  10. Add your documents for account verification
  11. Optional: register for a separate Ally Invest forex account if you wish to trade forex
By Pooja Kadia
Pooja is an avid blockchain enthusiast, who believes in exploring the space to its maximum potential. She is the co-founder of Cryptochain Sphere, a website dedicated to educating people on blockchain and cryptocurrency space. She believes in creating engaging content to facilitate the community driving blockchain adoption.
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