|
Ally Invest Assets Under Management (AUM)
Ally Invest total assets under management. Ally Invest AUM for 2018: client assets, brokerage accounts, and mutual funds.
|
Ally Invest Assets Under Management (AUM)
Ally Invest recently purchased TradeKing, and the old broker’s accounts and assets have been transferred to Ally. Most recent figures point to roughly 260,000 funded accounts. In these accounts, there are nearly 20,000 trades placed every market day that generate commissions for the company.
Although Ally Invest is a small broker by industry standards, the firm nevertheless has roughly $4.7 billion in client assets. Of this amount, approximately $1.3 billion is in cash or on deposit in the broker’s FDIC-sweep program. Assets that are actually managed by Ally are much smaller. The broker-dealer managed just $18 million in discretionary accounts.
Ally’s AUM is smaller than expected given its very competitive robo-advisory service. The broker charges a very low 0.30% and requires just $2,500 to start the program.
Promotion
Ally Financial
Ally Invest is owned by Ally Financial, which operates banking, insurance, mortgage financing, and auto loans. Because Ally’s stock price (ticker symbol ALLY) can be and is affected by operations in all of these areas, it may be helpful to analyze the financial behemoth’s data points.
The banking unit of Ally last reported $67 billion in customer deposits, far outstripping its brokerage counterpart. This amount includes a growth of 20% in just one year. The number of customers has risen 16% and now includes 1.2 million deposit account holders.
In 2016, Ally’s auto financing department originated $36 billion in auto loans. The company’s insurance and mortgage financing segments are much smaller. They contributed just $84 million in revenue on Ally’s most recent financial statements.
All of this business has created over a billion dollars in pre-tax income for the company every year, which has led to share buybacks and dividend payments.
Ally Invest Review
Open Ally Invest Account
Open Ally Invest Account
Ally Account
Getting an account set-up with Ally Invest is fairly straight forward and easy with fast turn around time - usually 3 days from initial deposit - so
accounts are available for trading quickly. They unfortunately don’t give the option to browse through their platform prior to starting an account, but
all of that will be covered shortly to take the guesswork out of it.
The dashboard is easy and user friendly and well organized, making it easy to quickly analyze the performance of open positions and large exchanges. Their Ally Invest LIVE
platform provides an even more detailed home page with customizable widgets ranging from recent industry news, live stock tracking and upcoming events. Ally even
provides the option to set up stock alerts that can be received via text, email, or sound notifications.
In terms of menu usability, the Ally Invest LIVE platform gets the edge making it easier for users to find what they are looking for. Placing a trade is also much easier
on the LIVE platform with a simple streamlined ticket system for quick executions.
The Platform
Their charting platform through the main website is nothing to brag about offering only 28 different indicators and few drawing tools. Thankfully the charting capabilities through their Ally Invest LIVE platform comes armed with 84 different indicators and 11 drawing tools. This makes it easy to apply detailed technical analysis on charts, especially with the events overlay option to spot key changes in the underlying security.
The LIVE platform also has the option to “detach” the chart so it can become it’s own window, making it simple to watch price movement while conducting other research. Available time intervals could be improved, offering only 1 and 5 minute charts before skipping straight to the daily time frame. This completely omits 1 and 4 hour charts.
Taking a look at their smartphone platform, there’s really nothing that makes it stand out from competition. It provides enough usability to check on active trades and positions, but anything beyond that almost always requires the website platform.
Recommended Articles
Charles Schwab vs Ally Invest
Ally Invest DRIP
Ally Invest complaints
Other Thoughts
Many other brokers in the industry aren’t owned by a bank or financial conglomerate. Fidelity and Vanguard are two examples. Fidelity has total client assets of $5.7 trillion (yes trillion with a t), far surpassing Ally Invest. Comparing the two figures shows that Ally Invest is actually just 0.08% the size of Fidelity when measured in terms of client assets ($4.7b / $5.7t).
Fidelity also far outweighs Ally in terms of investment accounts. Fidelity has over 24 million currently open, which is almost a hundred times as many accounts as Ally Invest has.
In terms of assets under management, Ally Invest is beaten by Fidelity again: $264 billion currently managed. Compared to Ally’s $18 million, Fidelity is 14,667 times as large.
Fidelity customers also place over half a million commissionable trades every market day. This is 25 times as many as Ally Invest clients place. Because Fidelity’s trading fee is the same or higher than Ally’s, Fidelity is able to generate more revenue from trading.
Even when compared against Ally Financial (all Ally operations), Fidelity still generates more operating revenue. Fidelity recently reported $3.5 billion in operating income, while Ally Financial had $1.6 billion.
|
|