Ally Invest is a discount brokerage that follows rules set by big authorities like the SEC and FINRA. They offer really good prices on things like stocks, ETFs, options, and mutual funds. The fees you might have to pay can be for trading or other stuff. They don’t charge anything for commissions, which makes them a top choice for buying stocks. In this review, we’ll look at its commission and other fees to help you decide if Ally Invest is the right brokerage for you.
Overview of Ally Invest Fees and Charges
Let’s talk about the fees and charges you might encounter when you use Ally Invest. When you’re choosing a broker, it’s important to know about these fees. There are two main types: trading fees and non-trading fees.
Trading fees include things like commissions, spreads, and financing rates. Commission is a fee you pay when you make a trade, whether you’re buying or selling. Sometimes, brokers charge different commissions based on how much you trade, or they might have a flat fee for every trade. Nowadays, some brokers don’t charge any commission at all. If you want to know more about these commission-free brokers, you can click on these links to find the best ones in the US and the EU.
Spread is the difference between the buying and selling prices of a financial instrument. When you trade forex, this difference can add up and become a big part of your trading costs.
The financing rate, also known as overnight costs, comes into play if you’re trading with leverage. This means you’re borrowing money to make trades. If you hold onto your positions overnight, you might have to pay a fee. This fee could be a percentage of your trade or measured in swap points.
Non-trading fees happen when you deposit or withdraw money from your account. They can also occur if you don’t use your account for a certain amount of time.
Commission and other Trading Fees of Ally Invest
Here’s a breakdown of Ally Invest’s fees compared to Merrill Edge and Fidelity:
- Stocks and ETFs: Ally Invest charges either low fees or none at all for trading stocks and ETFs. If a stock is priced above $2, trading is free; otherwise, it’s $4.95 plus $0.10 per share. This is cheaper compared to Merrill Edge and Fidelity, which also charge low fees for stock trading.
- Funds: Investing in mutual funds through Ally Invest is commission-free. This is a better deal compared to Merrill Edge, which charges $20, and Fidelity, which charges $37.50.
- Bonds: For US Treasury bonds, Ally Invest charges $1.00 per bond, with a minimum of $10. Merrill Edge and Fidelity do not charge fees for this type of bond.
- Options: Trading options with Ally Invest comes with a fee of $0.50 per contract, which is lower than what Merrill Edge and Fidelity charge.
Final Thoughts
We believe Topforex has helped you understand Ally Invest’s commission and other fees. Overall, Ally Invest has fair prices, useful tools for trading, and a simple platform. It’s easy for beginners to start because there’s no minimum account requirement. Active investors will like that Ally offers free trades on certain U.S. stocks and low fees for option contracts. But if you’re an advanced investor wanting to trade futures or cryptocurrency, you might find a better fit with a different broker.
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