Ally Invest vs Fidelity in Comparison 2022


Depending on your investing needs, interests, and abilities, you may find yourself comparing different brokerages at some point. In that case, you’ll want to learn more about the services offered by these companies and how they stand out from one another. With so many options available, it can be tricky to determine which investment firm is best for you.

Ally Invest vs Fidelity

Fortunately, this article on AtoZ Markets will explore the details of both Ally Invest vs Fidelity so you can make an informed decision about where to invest your money moving forward. This comparison article is going to be neutral.

About Ally Invest 

Ally Invest is a direct stock trading platform that allows investors to buy and sell stocks, exchange-traded funds (ETFs), options, and other securities with ease. It’s offered by Ally Invest Inc. (formerly TradeKing), a financial services company that has been in the investment brokerage business since 2009.

Ally Invest

The brokerage firm is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), which means it’s held to strict standards of conduct and business ethics. First and foremost, Ally Invest is an online investment platform that enables you to buy or sell stocks, ETFs, options, and other securities online. What’s more, it offers a wide range of investment options, including over 100 commission-free exchange-traded funds (ETFs).

Secure a bonus of up to $3,000 when you open an account.

Sign Up with Ally Invest

About Fidelity

Fidelity is a no-frills online brokerage with a focus on helping individuals save for retirement and other long-term financial goals. The brokerage firm has been in business since 1946 and is one of the world’s largest financial services companies.

Overview of fidelity

It is regulated by FINRA and the SEC and operates under a fiduciary standard of care. Fidelity provides customers with a wide range of investment options and tools, including free trading for more than 80% of its stocks and ETFs, free virtual trading tools, and robust mobile trading apps.

Fidelity Vs Ally Invest: Pros and Cons

Here are some of the main advantages of each brokerage:

- Fidelity has been in business for over 70 years and has wide name recognition in the investment industry.

- Fidelity offers a range of investment tools and resources, including investment advice from Human Advisor and virtual trading tools.

- Fidelity has competitively low trading fees and minimal account fees.

- Ally Invest has low account minimums and offers a wide range of investment options, including over 100 commission-free ETFs.

- Both brokerages offer competitive trading platforms and excellent customer service. - You can trade stocks, ETFs, and other investments with either brokerage.

- Fidelity has a larger selection of investment options, whereas Ally Invest offers low-cost trading.

- The minimum requirements to open an account are lower at Ally Invest, but Fidelity offers premium services to high net worth clients.

- Fidelity offers a wider range of retirement account options than Ally Invest.

- Fidelity charges lower account fees and has higher investment minimums, but it offers higher management account fees.

Ally Invest vs Fidelity: Regulations

Fidelity is regulated by the US's Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

On the other hand, Ally Invest is a licensed stockbroker in the United States that is licensed by the Securities and Exchange Commission ( SEC ) and the Financial Industry Regulatory Authority (FINRA).

Fidelity Vs Ally Invest: Fund Security

Fidelity and Ally Invest  serves US customers and are subject to the SIPC (Single Investor Protection Corporation) scheme, which protects customers from the loss of cash and securities in the event the broker goes bankrupt. The SIPC's protection limit is $500,000, which includes $250,000 for cash, which is considerably higher than most other investor protection schemes. 

Fidelity offers a total coverage of $1 billion on an aggregate company basis. 

Securities coverage is unlimited per account, but cash coverage is limited to $1.9 million per account. 

SiPC does not protect all investments; in general, SIPC covers bonds, shares of investment companies, mutual funds, and other registered securities. It is not applicable to unregistered investment contracts, unregistered limited partnerships, fixed annuity contracts, currency, and interests in gold, silver, or other commodity futures contracts, or commodity options. 

Fidelity and Ally Invest do not offer negative balance protection. You'll be unprotected against a negative account balance.

Ally Invest vs Fidelity: Trading Platforms

Before you invest your money, you’ll naturally want to test out the trading software offered by each brokerage. Fidelity offers two trading platforms: Fidelity.com as well as Active Trader Pro. Both are completely free for all customers. Highlights include advanced screens that utilize strategies-testing and research tools that are based upon 10 years' worth of data.

trading platforms

Active Trader Pro platform includes an downloadable desktop version and a web-based version on ActiveTraderPro.com. Investors are able to switch seamlessly between both. The platform is customizable and includes easy shortcuts, a pre-built market filters for technical and options as well as advanced options tools. multi-trade tickets that allow you to keep orders in a safe place for future use and make up to 50 orders at one time.

Ally Invest's platform for browser-based trading provides quick trading capabilities with real-time streaming quotes, data, a custom-designed dashboard and access to all the tools available to the broker. 

People who trade frequently from multiple computers, like at both at work and home for instance will be pleased with this platform, which doesn't need any downloads. Ally offers its customers to trade on mobile devices via Ally Mobile or Ally Forex The app of the brokerage that is specifically designed for trading forex.

Depending on the type of trading you’re doing, one trading platform or the other might be more suitable for your needs.

Ally Invest vs Fidelity: Investment Options

If you’d like to invest your money into mutual funds, exchange-traded funds (ETFs), stocks, bonds, or other securities, you should know that both brokerages offer a wide range of investment options:

Fidelity offers a wide range of mutual funds and ETFs. It also offers stocks, bonds, options, and other securities.

Investors can choose from more than 500 mutual funds, over 100 ETFs, and a few thousand stocks, bonds, and other securities.

Investors can choose from a wide range of mutual funds and ETFs and can also choose stocks and other investments.

On the other hand, Ally Invest also offers Stocks, EFTs, Forex, Funds, Bonds, and options. Ally Invest also offer Crypto trusts, crypto Stocks and bitcoin futures.

Ally Invest also offers Robo Portfolios and Wealth management services.

Fidelity Vs Ally Invest: Account Types

Most of the options are suitable to experienced traders. These are the different types of accounts of Fidelity.

  • Brokerage Account
  • Cash Management Account
  • The Brokerage and Cash Management
  • Fidelity Account for Business
  • Rollover IRA
  • Traditional IRA
  • Roth IRA
  • Inheritance IRA
  • Inheritance Roth IRA
  • SEP IRA
  • Self-Employed 401(k)
  • SIMPLE IRA
  • Small-Sized Investment-Only Plans to help Small Business
  • 401(k) plan for Small Businesses
  • Fidelity Go7
  • Fidelity Personalized Planning & Advice8
  • Portfolio Advisory Services Accounts9
  • Fidelity tax-managed U.S. Equity Index Strategy
  • Fidelity Equity-Income Strategy
  • Fidelity International Equity Strategy
  • Fidelity Global Equity Strategy that is Tax Managed
  • Fidelity U.S. Large Cap Equity Strategy
  • Savings and investment account for the child
  • Roth IRA for Kids

As you can observe, there are many different types of accounts offered by Fidelity. Thus, you can are offered a variety of options to pick the most suitable option for your investment.

Ally Invest also offers different types of accounts under three categories.

Self-Directed Trading

If you are you are the owner of self-directed bank account, the decision is yours. Ally Invest provide the following types of accounts:

 

  • Individual
  • Joint
  • Custodial
  • Traditional IRA
  • Roth IRA
  • Rollover IRA
  • Coverdell

Ally Invest Robo Portfolios (Automated investing professionally managed)

After you've sign up for your account our questionnaire will help you in choosing the right the best investments in your portfolio of robos. Ally Invest offers:

 

  • Individual
  • Joint
  • Traditional IRA
  • Roth IRA
  • Rollover IRA

 

Wealth Management (For those who wants to receive individualized advice)

If Wealth Management is an appropriate fit, then after your initial meeting, Ally Invest will pair you with an advisor to help you determine which one of the following types of account is best for you.

 

  • Individual
  • Joint
  • Custodial
  • Trust
  • Traditional IRA
  • Roth IRA
  • Rollover IRA
  • Beneficiary Roth IRA
  • Beneficiary IRA
  • Coverdell

Ally Invest vs Fidelity: Fees and Commissions

Depending on your trading volume and the type of investment you’re trading, you might be required to pay a fee. Fortunately, most brokerages offer low or even zero trading fees, so this expense shouldn’t become a problem:

Fidelity is already an industry market leader in low-cost commissions. However, it removed commissions in 2019 for U.S. stock, ETFs and options trades. It also has low-cost options for mutual funds.

Ally Invest offers free trading for most stocks, ETFs, and other securities. It also has low-cost options for mutual funds.

Investors who trade a lot may save money by choosing either brokerage.  If you trade with a lot of money, you’ll likely prefer Fidelity’s lower fees.

Ally Invest vs Fidelity: Customer Support

The support at Ally Invest is excellent, with service offered 24 hours a day via phone, email, and chat, and for brokerage accounts at Fidelity it is 24 hours a day. The chat is open Monday through Friday, 8 AM ET to 10 PM ET. ET.

Who should use Fidelity?

Fidelity is a rare broker to offer active traders as well as retirement investors in the same way. It sets the bar on every level, starting with a range of mutual funds that is comparable to the top broker, and includes even free products. Fidelity offers a range of other beneficial assets for investors, like its strong trading platforms, no commissions on trades, and a broad selection of research products. It is impossible to imagine an investor being dissatisfied with Fidelity.

Who should choose Ally Invest?

Ally Invest has competitive pricing with helpful trading tools as well as an easy-to-use platform for trading. There is no minimum account requirement, making it simple for novices to begin, while the active investor will be pleased with commission-free trading on suitable U.S. securities and low fees for options contracts. For investors who want to trade the futures market, they could go for TD Ameritrade

Fidelity Or Ally Invest?

Now that you’ve learned about the services offered by each brokerage, it’s time to decide which one you should use. Before making a final call, however, you might want to consider other factors, such as trading platform quality, investment selection, and customer service. - You may want to go with Fidelity if you plan to use its wealth management services down the road. - If you’re focused on finding low-cost trading, consider going with Ally Invest. - If you want to trade stocks, ETFs, and other investments, you can use either brokerage, although Fidelity offers a wider range of investments. - If you plan to use a retirement account, you may want to go with Fidelity. - If you want to trade stocks, ETFs, options, and other investments, and you want low-cost trading, choose Ally Invest.

Ally Invest vs Fidelity: Which one is better?

You should use the brokerage that best suits your individual needs. That being said, if you’re looking for low-cost trading, you should go with Ally Invest. Meanwhile, Fidelity is a good choice if you plan to use its wealth management services in the future. There’s no right or wrong decision when it comes to choosing between Ally Invest vs Fidelity. It all comes down to personal preference and your unique needs as an investor.

Conclusion

If you have specific requirements which brokerage is the right for you. With Fidelity they have access to more commission-free funds as well as foreign markets, however, the cost to purchase certain mutual funds is more expensive than other brokerages. Ally Invest has cut-rate commission costs, but it does not permit trading on foreign exchanges and fund investors be charged a transaction fee for every trade , since they don't have mutual funds or ETFs that are commission-free.

In the end, it is based on the kind of service you prefer in a brokerage and the way you intend to trade.

Additional Resources:

- Ally Invest Review

- Ally Invest vs Robinhood

- Ally Invest vs eTrade