Can I Buy Penny Stocks on Ally Invest?
Yes, Ally Invest allows its clients to buy and sell penny and OTC stocks.
Ally Invest offers over 51,000 stocks, but its tool doesn't let you search specifically for OTC market securities. You can still find penny stocks, but you'll need to sift through the listings manually if you're interested.
Ally Invest Penny Stock Fees
| Ally Invest OTC/penny stock fee | $0 on stocks $2.00 and higher
$4.95 + $0.01 per share on stocks priced below $2.00 |
| Ally Invest large order surcharge | $0 |
| Ally Invest ECN surcharge | $0 |
Ally Invest requires a minimum of $100 for all OTC trades.
The maximum charge for penny stocks at Ally Invest is 5% of the transaction value.
This means a transaction of 5,000 shares priced under $2.00 could cost $55 or 5% of the transaction value, whichever is less. While we appreciate Ally Invest, this fee structure is quite high, and we advise looking elsewhere for penny stock trading.
As an alternative, Firstrade
offers commission-free penny stock trading, but only for stocks priced over 10 cents. Firstrade has more than
15,000 OTC stocks available.
Learn more...
Open Firstrade Account
Get up to $250 in transfer fee rebate.
Visit Firstrade Website
OTC Stocks at Ally Invest
Ally Invest has thousands of stocks trading under a dollar. For example, Jaguar Mining, Inc. trades under the ticker JAGGF at 45 cents, with an average daily volume of 34,000 shares and a market cap just over $50 million. While there's no news on Ally Invest's site, there is some commentary available.
Another OTC stock available is Zoned Properties, Inc., which trades at $1.54 under the ticker ZDPY, with an average of 21,000 shares traded daily. It doesn’t offer dividends, and financial details are limited on Ally Invest’s site. No options trading is available for this stock.
How To Buy Penny Stocks on Ally Invest
If you spot a penny stock you'd like to buy, placing an order is straightforward. You can trade on Ally Invest’s website, desktop platform, or mobile app just like any other stock. However, be mindful of the extra fees for any stock priced under $2.
Comparison
Unlike some other brokers, Ally Invest doesn’t have a feature to filter by exchange, making it harder to find OTC stocks directly. In contrast, brokers like Charles Schwab provide this capability in their screeners.
Ally Invest Overview
Customers often choose Ally Invest for its no-commission policy on stocks and ETFs, which also extends to mutual funds and options, offering good value. We’ll explore four key aspects to see how Ally performs in various categories.
Is Ally Invest Good Company For Beginners?
Beginner traders need robust educational support and customer service. Ally Invest offers learning resources on its site, including articles on mutual funds, ETF strategies, and fixed-income products. New investors benefit from resources sorted by experience level, and the online investor community at Ally Invest is a standout feature, offering a platform for novices to learn and exchange ideas.
Ally Invest does not charge an extra commission for trades placed with a broker's help, making it beginner-friendly.
Is Ally Invest Good Company for Long-Term Investors?
For long-term investors, frequent trading costs matter less than access to solid customer service and educational resources. Although Ally offers competitive rates for transactions, other aspects like the lack of 24/7 customer support or physical branches may be drawbacks compared to other brokers. However, Ally’s online forums and lower cost portfolio management services, focusing on ETFs at just 0.25% annually, are appealing.
While Ally does not offer no-load, no-transaction-fee mutual funds, it maintains a competitive $0 cost for trading load and no-load funds. Ally’s mutual fund screener presents thousands of options, although some competitors offer more.
Is Ally Invest Good Company for IRAs?
Ally offers a variety of IRA options, including Traditional, Roth, SIMPLE, SEP, and Rollover IRAs. Its retirement resources are somewhat limited, lacking specific calculators and extensive IRA-focused content, but it does provide basic IRA FAQs. Ally also charges fees for IRA closures and full transfers.
Overall, Ally Invest performs well for IRAs, offering essential services with some limitations.
Updated on 7/5/2024.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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