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Ally Invest Automatic Investing Plan

2020: Does Ally Invest offer automatic investment plan (AIP)? Ally Invest dollar cost averaging program setup and review. DCA/AIP fees on ETFs, stocks, and mutual funds monthly/weekly auto investing.

Ally Invest Dollar Cost Averaging Plan and Robo Investing

This article will talk about Ally Invest's automatic investment plan (also known as dollar cost averaging, DCA/AIP). If you are interested in Ally Invest robo investing service, then go to Ally Invest’s Cash-Enhanced Managed Portfolios review.

Does Ally Invest Offer Automatic Investing Plan?

Many brokers today provide an automatic investment plan of some type at least for mutual funds. Purchase orders are entered by an automated system using a fixed-dollar amount on a periodic basis. This form of dollar-cost averaging uses a fixed amount rather than a fixed number of shares. Doing so causes more shares to be purchased when the price of the security is low.

Unlike WellsTrade, Schwab, and several other brokers, Ally Invest does not offer an automatic investing plan. To see which companies offer the best automatic investment plans read Brokers with automated investing article.

However, Ally Invest does have a Dividend Reinvestment Plan, otherwise known as a DRIP. To be eligible for the firm's DRIP service, a stock or ETF must have a minimum volume of 50,000 trades per day. A security must also be DTC eligible. This means that the shares must be qualified to be deposited into the DTC, which is the Depository Trust Company. This organization helps brokerage houses to process transactions and improve liquidity. Majority of dividend paying stocks and ETF's will satisfy these requirements.

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Ally Invest Pricing

Ally Invest offers very low commissions to all its customers: just $0 per trade on stocks and ETFs, and $9.95 per mutual fund transaction. The firm has few fees (and no hidden fees) and no-annual-fee IRA accounts. Minimum to open a cash account is hard-to-beat $0 and only $2,000 is required for a margin account.

Ally Invest also offers good margin schedule. The broker charges 4.50% for balances of $500,000 and above. Its highest rate is 9.25% for balances of up to $4,999. The firm has an incremental margin schedule with decreasing rates as balances increase from $4,999 to $500,000.

Ally Invest Services

Ally Invest offers professional-caliber trading tools for stocks, options, ETFs, mutual funds and fixed income securities. Some of the tools include Probability Calculator, Profit and Loss Calculator, Stock and Option Screeners, Technical Analysis Tools and more. A new alerts center enables clients to set up alerts that are delivered via both email and text.

The company's trading platform called Ally Invest LIVE, combines news, streaming charts, options chains, account data, and a flexible trade ticket. It offers the ability for traders to customize features on the main dashboard, an enhanced Options Workbench with strategy recognition, and real-time, intraday updates that display cost basis on all stock positions.

Trader Network is an online community of Ally Invest's customers. It has a forum and a dashboard where all traders could see each others portfolios (if allowed by the user), and write comments on trades. One can also see a scrolling trading activity of what is hot and being traded by Ally Invest traders as well as members' gains or losses. This could be invaluable information for beginner investors as well as for more experienced ones.