Ally Invest Cons, Pros Ally Invest rating

Ally Invest Cons and Pros (2022)

Ally Invest pros and cons, benefits and downsides, perks offered. Is Ally Invest good or bad? Ally Invest individual/joint account advantages and disadvantages for 2022.


No doubt that one of the biggest pros of Ally Invest are some of the lowest commissions of any broker. Stock and ETF trades are $0, for any amount of shares.

Derivative traders at Ally Invest pay $0.50 per option contract. The broker's $0.50 commission is lower than what many other brokers charge, including Vanguard ($1.00), TD Ameritrade and E*Trade (all at $0.65). Exercising an option contract at Ally Invest incurs a $0 charge. Receiving an option assignment carries a $0 fee.

Mutual Funds

Investors at Ally Invest have access to more than 12,000 mutual funds. Merrill Edge, by comparison, provides fewer than 5,000. Load funds at Ally Invest carry no transaction fee, while mutual funds with no loads cost $9.95. This charge is applied to both purchases and sales. E*Trade, one of Ally Invest's major rivals, charges $20 for all mutual fund transactions.

Ally Invest has excellent research tools for investors who are interested in mutual funds. The broker provides fund grades from Lipper. Vanguard, on the other hand, does not provide any mutual fund rankings.

One of the major Ally Invest pros is absence of mutual fund short term redemption fee which most other brokers charge.


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Research and Education

Ally Invest offers its clients good informational resources on its site for different investments. The broker has a useful selection of educational videos, which some brokers does not have. Many articles are available that cover a wide variety of financial issues. For example, there are articles from Seeking Alpha along with discussions of U.S. natural gas inventories. International financial topics are also covered.

The broker also offers S&P Capital IQ stock reports at no cost. Furthermore, a compilation of buy, hold, and sell suggestions from multiple analysts is displayed on a stock's profile page. Ally Invest also supplies recent news on what a stock's insiders have done recently with their shares, a very useful piece of information.

Ally Invest Pros and Cons

Alternative Investments

Ally Invest is one of the few major brokers today that offers forex trading. E*Trade recently closed its forex operations, for example. The broker's customers can open a practice currency account to get their feet wet before committing real money.

Customer Service

A great feature that Ally Invest customers can reach out to Ally Invest representatives for any account-related issues. Most other brokers, including many low-cost Ally Invest rivals don't have such a medium.

Ally Invest Pros

  • Ally Invest is charging very low commissions on online trades: their stock and ETF fee is $0 per transaction; options are $0.50 per contract, and no-load mutual funds are at rock-bottom $9.95 per transaction
  • Their accounts have no minimum requirements, inactivity, or maintenance fees
  • The firm offers free real-time streaming quotes and advanced trading platform to all customers with no conditions
  • Their customer service is rated very highly by all financial magazines
  • Ally Invest does not charge any IRA fees
  • They offer free dividend reinvestment plans on all marginable U.S. equities and selected ADR's priced at $4 or higher
  • The firm's website has an extensive educational resources section
  • For anyone who would like to have a brokerage to manage their money they provide low cost and low deposit professional portfolio management
  • Another one of the Ally Invest pros is that there is no mutual fund short term redemption fee
  • Ally Invest accounts could be opened with no money down and no risk
  • Investors transferring account from another broker could get their account transfer fee reimbursed. Link: Switch to Ally Invest and get up to $75 in transfer fees reimbursed.

Ally Invest Cons

  • To discourage very risky penny stock trading, Ally Invest charges $0.01 per share more on the entire order for stocks that are priced at less than $2
  • NTF mutual funds are not available
  • Another one of the Ally Invest cons is that they have shorter after-market-hours trading period: 4:00 pm - 5:00 pm EST. Most online brokers have it 4:00 pm - 8:00 pm EST

Ally Invest Review

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Ally Invest Promotion Code

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About the Author
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, Chad can usually be found managing his portfolio or building a new home computer.