Ally Invest Review. Its Features, Tips and More

The following is a review of the Ally Invest platform. I have been using it for about two months now and am happy with my experience so far. The purpose of this article is to provide an unbiased overview of the service, including pros/cons and some tips on how you can use it effectively. This will be written from a personal perspective.


Features of Ally Review

Ally Invest has several features that make investing easy:

  1. It's free! You don't need any money to start investing through them. They do charge $0 fees if your account balance reaches $5k or more. There should be no problem getting started without paying anything upfront if you are just beginning profits.

  2. No minimum deposit is required. There is no minimum amount of funds needed before you can begin investing. All you need is a bank account.

  3. Low-cost trades. When you open an investment portfolio, they give you access to low-cost ETF options. For example, when opening a Roth IRA, Vanguard offers its ETF option at a 0.10% expense ratio. With Ally Invest, you get access to similar ETFs but at much lower costs – usually around.05%.

  4. Easy asset allocation. Once you decide what type of investments you want, you simply select which assets you would like to allocate into each category. Then, once you click “allocate,” all future transactions related to those categories will automatically occur within your chosen allocations.

  5. Automatic rebalancing. Rebalancing occurs whenever you change your asset allocation. In other words, every time you add new securities to one of your portfolios, then you must also remove existing ones. Rebuilding your portfolio helps ensure that your overall risk profile remains consistent over time.

  6. Accessible via mobile app. Ally Invest allows investors to view their accounts anytime, anywhere by downloading their smartphone apps. These apps allow users to check balances, track holdings, see transaction history, etc.

  7. Account aggregation. By default, most brokerage services only let you manage separate individual accounts. However, Ally Invest enables you to multiple aggregate accounts under one login. So instead of logging into ten different accounts, you log into one single account where you can manage all of your financial information.

  8. Social media integration. One feature that sets Ally Invest apart from others is its social media integration. Users can easily share their finances directly onto Facebook, Twitter, LinkedIn, Google+, Pinterest, Instagram, YouTube, Tumblr, Foursquare, Flickr, and even email.

  9. Investment advise. Another unique aspect of Ally Invest is that they offer personalized investment advice based upon user preferences.

 Investors can choose between 3 types of recommendations:

  1. Basic Recommendations - these are general suggestions made by the system on how best to diversify across various asset classes. The goal here is to help people who have little knowledge about investing learn basic concepts such as diversification.

  2. Customized Recommendations - this is where users can customize exactly what kind of recommendation they receive. This includes choosing specific stocks, bonds, mutual funds, exchange-traded funds, real estate, cryptocurrencies, commodities, and so forth.

  3. Financial Planning Advice - this is where users receive customized guidance for achieving specific goals in life.

Tips on how you can use it effectively

  1. Start small. If you don't know anything about investing or finance, start with just $100-$500 per month. You'll be surprised how quickly you can build up enough money to make more substantial contributions later down the road.

  2. Use automatic transfers. Automatically transfer any extra cash you earn above your monthly budget into your savings/investment accounts. It's a great way to save without having to overthink about it!

  3. Set aside some money for retirement. Even if you're not yet ready to retire, setting aside an amount now ensures that you won't run out of money when you need to withdraw during retirement years.

  4. Track your spending. Keep tabs on your expenses using Mint, Personal Capital, or another similar tool. Once you've identified areas where you could cut back, try implementing those changes immediately.

  5. Don't forget tax implications. Make sure you understand the taxes associated with each type of investment vehicle before making any purchases. For example, dividends from stock investments will generally reduce taxable income, while capital gains generated through selling assets may increase taxable income.

What makes Ally Invest better than Robinhood?

Ally Invest has been around since 2011 but was acquired by RBC in 2016. Before being accepted, Ally Invest had over 5 million registered users managing over $10 billion worth of securities. Since then, they’ve continued growing at a rapid pace. In fact, according to Statista, there were almost 2 million new customers added last year alone. They also boast impressive customer service ratings, including a 4-star rating on Trustpilot and 99% positive feedback on Facebook.

On the other hand, Robinhood only launched its app in 2017 and currently boasts less than 1 million active users. While they claim to have millions of investors under management already profits, we haven't seen any official numbers published anywhere else. Their website states that they plan to add support for cryptocurrency trading sometime next year. However, I wouldn't hold my breath waiting for them to catch up to Ally Invest.

Pros

  • Easy to get started.

  • Free to open an account, no fees once you are funded.

  • No minimum deposit is required.

  • Low commission rates compared to most brokerages.

  • High net worth clients are eligible for higher interest rates.

The account aggregation feature allows you to combine multiple brokerage accounts into one portfolio.

Cons

  • A limited number of financial products are offered.

  • Only available in select markets.

  • Not all brokers offer mobile apps.

Frequently Asked Questions


How does this compare to Wealthfront?

Wealthfront is a well-known Robo advisor who offers both free and paid services. The main difference between these two companies is that Ally Invest doesn't charge any setup fee or ongoing maintenance fees. On top of that, Ally Invest provides access to a broader range of financial instruments, including stocks, ETFs, bonds, mutual funds, cryptocurrencies, etc. This means that it's possible to create more diversified portfolios without having to pay additional fees.

Is this safe?

Yes! All transactions made via Ally Invest are fully insured. You can rest assured knowing that your hard-earned cash is protected against theft, fraud, unauthorized use, lost/stolen cards, hacking, malware, viruses, identity theft, data breaches, etc. If anything happens to your account, Ally Invest will cover 100%.

Can I trade Bitcoin?

Currently, Ally Invest supports buying and selling bitcoin. It's important to note that some countries prohibit residents from investing directly in digital currencies such as BTC due to regulatory reasons. As mentioned above, if you live outside of those jurisdictions, you should buy and sell crypto using traditional methods like Coinbase.

Does Ally Invest provide advice?

While not officially endorsed by Ally Invest, our team uses the platform regularly when creating custom asset allocation models. We've found that it works great for us because:

  • It makes it easy to track performance across different investment vehicles

  • Allows us to quickly see how much money we're spending per month on each type of security

  • Provides detailed reports about what happened with every transaction so that we know exactly where our money went

What do people say about Ally Invest?

According to Google Reviews, Ally Invest has received mostly favorable reviews. Most reviewers praise its ease of use and customer service, while others complain about slow response times and high fees.

Ally Invest Review Conclusion

Overall, I think it's safe to say that Ally Invest has become my go-to platform for managing my finance. It provides me with everything I need to keep myself financially organized. If you're looking for something simple yet powerful, then I highly recommend checking out Ally Invest!