Overview
Established | 1919 |
Headquarters | Detroit, Michigan |
Overall Rating | 7.5/10 |
Currency Support | USD |
Minimum deposit | Variable |
Payment Methods | Wire transfer, Check, ACH Transfer, Broker to Broker transfer |
Assets | Stocks, bonds, options, mutual funds, ETFs, Forex |
Mobile Trading App | Android and iOS |
Leverage | 50:1 |
Customer Support Service | Email, Telephone, and Live chat |
Ally Financial Inc. takes a position as one of the oldest financial institutions in the United States and, by extension, the world. Established in 1919 as a provider of banking services, Ally has significantly developed, adding to its portfolio an online brokerage that serves thousands of clients through its subsidiary, Ally Invest. While limiting its services to US stocks on the platform, the broker uses its affiliate, Ally Forex, to offer forex trading exclusively.
Ally Invest stands out from its competitors as a leading broker in offering low costs, comprehensive educational resources and tools for seamless trading, and reasonable trading requirements. Continue reading to find out more about these and other features in detail.
Regulation and Security
Regulatory compliance and security play a significant role in determining the credibility and integrity of a broker. Therefore, as a company that has been in the game for several decades, Ally understands the importance of protecting itself and its clients.
Since it is a US-based entity, Ally Invest is regulated by the Securities and Exchange Commission. Also, it is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SPIC), ensuring that the client’s funds are protected in the event of the broker’s bankruptcy. Ally Forex, on the other hand, is regulated by the Commodity Futures Trading Commission (CFTC) and licensed by the National Futures Association (NFA).
Additional security measures adopted are firewalls and Secure Socket Layering (SSL) technology, ensuring that clients’ funds and personal information are protected from all forms of unauthorized access.
Registration and Verification
The registration process at Ally Invest is straightforward. However, to trade forex, traders will need to open a separate account on Ally Forex following a set of simple steps.
Step 1: To kickstart the signup process, traders need to visit the signup page to choose their preferred platform (Ally Invest Forex or MetaTrader). After which, they’d choose between opening a real account or a demo account. Selecting a real account will lead to the next step.
Step 2: Here, traders are expected to fill out the registration form with their personal information, including name, phone number, email, username, date of birth, residential address, employment details, and tax status information.
Step 3: After filling out the form with their details, the broker reviews them in a stringent verification process that usually takes about 24 hours or more.
Once the verification process is completed, traders can then move on to fund their trading accounts. Note GAIN Capital Group, LLC holds and maintains all forex accounts opened with Ally Invest Forex for easy execution of trades.
Educational Resources
Knowledge is paramount when making the best out of one's trading journey. Hence, Ally Invest offers many resources to help traders achieve this. The platform has a comprehensive educational section with materials in diverse forms, including tutorials, webinars, videos, and articles, to help traders of any experience level enhance their skills. These materials cover different aspects of trading, such as fundamental analysis, technical analysis, risk management, and more.
There are also tools on the platform designed to simplify trading, such as an economic calendar, real-time market news, market analysis from industry experts, and a demo account. The best part is that traders can customize these tools to their preferences.
Trading platform
Ally Invest offers the option of choosing between its proprietary platforms and Metatrader 4 (MT4). Let’s have a closer look at their respective features.
Ally Invest Web Trading: This is the broker’s proprietary web-based platform accessible on both macOS and Windows. This user-friendly platform offers several features, including a customizable dashboard, watchlists, technical indicators, and more. However, this platform has limited order types.
Ally Invest Forex Desktop: Similar to the web trading platform, this desktop platform is dedicated to traders using Ally Invest Forex. It is designed for Windows users, offering trailing stops, a customizable trading interface, technical indicators, automated trading, etc.
Ally Invest Mobile: Ally Invest offers traders the option of trading using its proprietary mobile app, Ally Invest Mobile. However, the assets on the app are limited. Also, while the app has several features, it lacks some analytical tools offered on the desktop platform. Ally Invest Mobile is compatible with both Android and iOS devices.
Metatrader 4 (MT4): Ally Invest, like other brokers, incorporates the industry’s leading trading platform, Metatrader 4. MT4 is known for offering many features, such as multiple timeframes, expert advisors, technical indicators, automated trading, one-click trading, etc. The platform has a mobile version (iOS and Android) and is also available to those trading with Ally Invest Forex.
Account types
Ally Invest offers two main trading accounts. They are Self-directed accounts and Managed portfolio accounts. Note that providing multiple trading accounts allows traders to decide the account that best suits their budget and preference.
Self-directed trading Account: This is synonymous with a standard account designed for individual retail trading. However, as the name suggests, the account is managed by its owners, who could be individuals or a group of people. Traders can diversify their portfolios with different assets, including bonds, stocks, mutual funds, options, ETFs, and Forex (only on Ally Forex). It is important to note that while the self-directed account requires no minimum deposit on Ally Invest, it requires a minimum deposit of $250 on Ally Forex LLC.
Managed Portfolios Account: With a minimum of $100, traders who prefer to have their portfolios managed by professionals can get this account on Ally Invest. While setting up the account, the broker provides a questionnaire that allows traders to find suitable instruments for their portfolios.
While Ally Invest does not allow international accounts, it offers individual, joint, and custodial taxable accounts and traditional, Roth, rollover IRAs, and Coverdell accounts.
Trading Instruments
Unlike other brokers that offer its clients access to the global market, Ally Invest limits its offering to US-listed assets. Hence, traders can only trade stocks, bonds, mutual funds, ETFs, Options, and Forex on the US market. Note that the broker doesn’t offer cryptocurrencies or futures.
Mutual funds: Traders can find over 12,000 money funds on Ally Invest, giving them a wide range of options to include in their portfolio.
Stocks: Ally Invest allows traders to buy and sell diverse US exchange-listed equities, individual stocks, and over-the-counter stocks.
Options: This is another widely traded instrument Ally Invest offers its clients. Options are tradable on the Ally Invest platform at a commission-free rate but with a $0.50 per contract cost.
Bonds: With Ally Invest, traders can buy and sell various government and corporate bonds with a minimum commission of $1 per bond and an aggregate cost of $10 per sale.
ETFs: Ally Invest offers ETFs to traders with reasonable trading requirements, making it a good choice for one’s portfolio.
Forex: Traders have access to over 80 currency pairs, including major, minor, and exotic pairs, only on the Ally Forex platform. These currencies are available with tight spreads and flexible leverage.
Offering multiple assets caters to different traders' needs, allowing them to choose instruments that align with their trading goals.
Deposits and Withdrawal
Once an account has been successfully verified, traders can fund it. With Ally Invest, traders have only four funding options: wire transfer, check, transfer from another broker, and ACH transfer. It may be surprising for experienced traders to discover that credit/debit cards and electronic wallets are unavailable. However, traders with an account with Ally Bank will seamlessly move funds from their bank account to their trading accounts.
Ally Invest does not charge deposit fees, but conversion fees may apply on transactions made using any currency other than its base currency - USD. Also, it is noteworthy that the minimum deposit is $0 for the self-directed trading account, $100 for the managed portfolios account, and $250 for the forex account, and that the transaction process is determined by the funding option used.
While it may be easy to fund a trading account, withdrawals may only sometimes be seamless, especially on Ally, where the withdrawal option is only limited to bank transfers. The broker does not charge withdrawal fees to the same account but charges a $30 fee on wiring funds to another account.
Customer Support
Brokers like Ally Invest that are intentional about their clients ensure customer satisfaction at all times. Hence, the broker offers multiple email, live chat, and phone channels for queries and assistance. Additionally, Ally Invest has a comprehensive FAQ and help center that traders can visit for self-help.
Affiliate Programs
Ally Invest presents additional avenues for traders seeking extra profits through its affiliate program. This program is designed for bloggers, website owners, and influencers, empowering them to earn between $25–$50 per sale by creating and promoting content to attract more people to the broker. This program diversifies income streams and establishes a mutually beneficial partnership with the esteemed online broker, enhancing financial success for affiliates.
Pros and Cons
Pros
It offers low costs and fees compared to other brokers
The platform is user-friendly and easy to use
Ally Forex has a demo account with $50,000 in virtual funds
The activities of the broker are regulated and authorized by reputable institutions
No inactivity fee
It employs modern and advanced security measures to protect client’s funds and information from unauthorized access.
Cons
Tradable assets are only limited to the US-listed market.
Crypto trading is not available
Inconsistency between its mobile and desktop platforms.
There are limited funding and withdrawal options
There is no investor protection for Ally Forex LLC.
Conclusion
Whether a person is just starting their trading journey or is looking to switch brokers, Ally Invest ticks the appropriate boxes as a go-to option. The broker, which has been around for a while, has stood the test of time, evolving to cater to all categories of traders. The broker boasts outstanding features that attract traders and set it apart from its competitors.
However, while Ally Invest may stand out as one of the few brokers that caters to US residents, limiting its services only to them is considered a drawback. Similarly, creating a separate platform for forex trading may be discouraging for traders who like to diversify their portfolios.
Ally Invest is a well-regulated and decent choice for beginners and experienced US traders.
FAQs
What is the minimum deposit required?
The minimum deposit on Ally Invest depends on the trading account. While there is no minimum deposit on the self-directed account, a minimum deposit of $100 and $250 is required on the managed portfolios and forex accounts, respectively.
What are the tradable assets on Ally Invest?
Ally Invest offers traders access to different US-listed assets, including stocks, bonds, ETFs, options, and mutual funds. Also, traders can trade forex by signing up with its affiliate, Ally Forex LLC.
How can I fund my account?
Account funding on Ally Invest is straightforward. Simply choose one of the four available methods - wire transfer, check, transfer from another broker, or ACH transfer and follow the procedure.
Does Ally Invest accept residents outside the US?
No. Ally Invest is a US-based broker, so its services are targeted towards US clients alone.
Is Ally Invest the same as Ally Forex?
No. Ally Invest and Ally Forex are different entities, but they are affiliated. While Ally Invest is the online brokerage arm of Ally Financial Inc., Ally Forex is its subsidiary that exclusively offers forex trading.