This site may be compensated through the bank advertiser Affiliate Program. To learn more about our approach to content and product assessments, visit our Editorial Policy and Product Assessment Methodology page. Learn why https://www.forbes.com/advisor/investing/what-is-forex-trading/ – owned by Ally Financial – is a great online broker for investors who want low commission fees and a variety of research resources. A positive development in the transition from TradeKing to Ally Invest is that Ally has eliminated a $50 inactivity fee for customers who have placed no trades within the past 12 months.
This should make the firm a more attractive choice for infrequent traders or investors who are not yet experienced enough to know what their activity level is going to be. The new entity, known as https://beyondvela.com/brokers-comparison-dotbig-vs-ally-invest/, has assumed TradeKing’s brokerage registration, which dates back to 2011. The new firm also carries over some of the attributes that helped TradeKing place in the top half of its peers in a recent MoneyRates.com study of Best Online Brokers.
Why Ally Invest may not be right for margin investors
For investors using margin to leverage their portfolios, the margin interest rate is a critical hurdle that needs to be overcome in order to earn a positive rate of return. On the other hand, for investors pursuing non-leveraged trading strategies, ’s low commission rates make them a cost-effective brokerage firm. Today’s investors are also likely to appreciate the convenience of Ally’s trading platform, which can be managed across multiple devices. In active markets, this ability to trade on the go could prove very valuable.
At $4.95 for standard stock trades, ’s commissions are clearly lower than the average of $6.05 found in the MoneyRates.com survey of online brokers. The $4.95 price point has become something of a standard for brokerage firms wishing to offer inexpensive commissions. While Ally Invest offers very competitive rates for ordinary stock trade commissions, its margin interest rates are less competitive. For a $25,000 margin balance, Ally has bumped up its margin interest rate to 8.50 percent, which is 25 basis points higher than the rate TradeKing charged at the time of the MoneyRates survey.
Who is a good fit for Ally Invest?
Ally Bank has earned a reputation as a leader in online banking by consistently offering highly competitive deposit rates. With its 2016 acquisition of TradeKing, Ally is now trying seeking to make a similar impact on the brokerage business. Understanding the workings of the financial markets is a key to investment success, and https://beyondvela.com/brokers-comparison-dotbig-vs-ally-invest/ helps investors in this regard by offering an Investing Education Center. This provides general background on securities trading as well as more detailed information on stocks, bonds, options and mutual funds. An attractive aspect of Ally Invest is that it offers a combination of affordable commission rates with investor education resources. Our articles, research studies, tools, and reviews maintain strict editorial integrity; however, we may be compensated when you click on or are approved for offers from our partners.
- While Ally Invest offers very competitive rates for ordinary stock trade commissions, its margin interest rates are less competitive.
- Opinions expressed here are author’s alone, not those of the bank advertiser, and have not been reviewed, approved or otherwise endorsed by the bank advertiser.
- A positive development in the transition from TradeKing to Ally Invest is that Ally has eliminated a $50 inactivity fee for customers who have placed no trades within the past 12 months.
- The new entity, known as Ally Invest, has assumed TradeKing’s brokerage registration, which dates back to 2011.
Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are Forex news answered. Opinions expressed here are author’s alone, not those of the bank advertiser, and have not been reviewed, approved or otherwise endorsed by the bank advertiser.
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