Ally Invest vs Robinhood in Comparison 2024

When it comes to choosing an online broker, there are many factors to consider. Two of the most popular choices among investors are Ally Invest and Robinhood. In this Ally Invest vs Robinhood comparison, we will take a look at the key features and benefits of each platform to help you decide which one is right for you.

Ally Invest is a comprehensive online broker that offers a wide range of investment products and services. Robinhood is a newer entrant to the online brokerage space that has gained popularity due to its commission-free trading model.

Both Robinhood and Ally Invest offer competitive pricing. They each have their strengths and weaknesses. It is important to evaluate your investment goals and objectives when deciding which platform is best for you. 

Ally Invest vs Robinhood

This article will review the two platforms and discuss the advantages and disadvantages of each. At the end you'll be able to determine which platform is the most suitable one for you.

This will be an objective comparison. AtoZ Markets does not assume any responsibility for the information provided by its authors. not in any way accountable for any information supplied by the author.

About Robinhood

Robinhood Markets, Inc. is a licensed broker-dealer in the United States, registered with the Securities Investor Protection Corporation, and is headquartered in Menlo Park, California. Its mobile app launched in March 2015 allows users to make commission-free trades of stocks, exchange-traded funds, and cryptocurrencies.

Robinhood review

There are many features in the app, including:

√ An intuitive interface

√ Real-time market data

√ There are many investment options

You can use these tools to make educated investment decisions. You can buy and sell stocks with no commission. 

About Ally Invest

Ally Invest is a great stock broker for both novice and experienced traders. It offers no commissions, a wide range of trading options available through the app or website (including real-time charts) A dependable customer support that is available whenever you need them most even during holiday hours.

Ally Invest

The story of Ally Financial, Inc. was founded in 1919. It was made public through an IPO in 2014. The company purchased TradeKing and changed it's name to "Ally invest" after the rebranding was completed with offices throughout America and even Sandy Utah where they have their headquarters, as well as 9 other offices across the nation.

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

Robinhood Vs Ally Invest: Regulations

Robinhood Regulations

Robinhood Securities LLC that provides securities products and services, has membership with Financial Industry Regulatory Authority (FINRA). The US regulators are known for being strict with companies that behave in an unjust manner. You can rest assured that every safeguard has been taken to prevent you from falling for a Robinhood scam.

Ally Invest Regulations

Ally Invest Securities LLC provides Securities Products and Services and is a member of FINRA and SIPC.

Ally Invest Advisors, Inc. provides advisory products and services and is a registered SEC (US Securities and Exchange Commission), investment advisor.

Self-directed investors can access foreign exchange products and services through Ally Invest Forex LLC. The subsidiary is a member of NFA (National Futures Association) and offers Forex products.

Ally Bank, another Ally Financial Inc subsidiary is a member FDIC and Equal Housing Lender.

Ally Invest vs Robinhood: Security

Ally Invest as well as Robinhood offer investors a range of security features. Robinhood offers two-factor authentication for Ally Invest, while Robinhood offers one-factor authentication.

Ally Invest is a member of the Securities Investor Protection Corporation (SIPC). This covers customers' claims up until $500,000 and a maximum of $250,000 for cash claims. SIPC protects your investment assets in the event Ally Invest fails. It doesn't protect against market loss.

Ally Invest provides additional coverage up to $37.5 million, including up to $900,000. Cash and an aggregate limit of $150,000,000.

On the other hand, Robinhood Financial is a member the Financial Industry Regulatory Authority.

Robinhood Financial LLC is a SIPC member, which protects its members' securities customers up to $500,000 (including $250,000 cash claims).

Robinhood Crypto offers cryptocurrency trading through its account. Robinhood Crypto does not belong to SIPC or FINRA. Your cryptocurrencies investments are not covered by the FDIC or SIPC.

Robinhood Crypto offers cryptocurrency trading through its account. Robinhood Crypto does not belong to SIPC or FINRA. Your cryptocurrency investments are not covered by the FDIC or SIPC because they are not stocks.

Ally Invest vs Robinhood: Fees and Commissions 

If you're looking to invest without having to pay any fees, Robinhood and Ally Invest are both great options. Both brokerages offer $0 commission on stocks, ETFs, and options trades, and there are no minimum account balances required.

However, there are a few things to keep in mind with Ally Invest. First, there is a $0.50 fee per options contract. Additionally, mutual fund trades are $9.95 and broker-assisted trades are $20. Finally, managed accounts require a minimum balance of $100.

Overall, both Robinhood and Ally Invest are great choices if you're looking to invest without paying any fees. Just be sure to keep an eye out for the few fees that Ally Invest does charge.

Robinhood Vs Ally Invest: Investment Selection

Both Ally Invest and Robinhood offer a good selection of investment products. Ally Invest offers stocks, ETFs, mutual funds, bonds, options, and futures. Robinhood offers stocks, ETFs, and options.

When it comes to the selection of investable assets, Ally Invest has a clear advantage over Robinhood. However, Robinhood does offer some unique investments that are not available through Ally Invest, such as cryptocurrency.

Robinhood Vs Ally Invest: Account Types

Robinhood offers three types of accounts: Instant, Cash and Gold. Sign up to receive your instant account level. You can then convert it into cash or upgrade to a gold account.

Ally Invest, on the other hand, offers Individual, Joint and Custodial Traditional IRAs, Roth IRAs, Rollover IRAs and Coverdell accounts in Self Directed Trading and Robo Portfolios.

Robinhood makes it easy to trade with them. Ally Invest can be a bit complicated, as it offers many account types that might suit different purposes. A retirement account is especially useful for seniors who want to make their lives easier and keep their money safe.

Ally Invest vs Robinhood: Trading Platforms and Tools

Trading platforms

Ally Invest offers two different platforms for its customers: a desktop platform and a mobile app. 

Robinhood only offers a mobile app. The app is simple and easy to use but lacks some of the more advanced features offered by other online brokers.

When it comes to online and mobile trading experiences, Ally Invest and Robinhood offer different approaches. Robinhood focuses on a quick and easy trading experience, with a mobile platform that prioritizes smooth use and fast trades. However, this simple design can lack some valuable tools that experienced traders may need. 

Ally Invest's mobile platform allows for easy bank transfers and provides updated data, but it lacks some features offered by other online brokers. Ultimately, the decision of which platform to use comes down to the individual trader's needs and preferences.

Robinhood Vs Ally Invest: Research and Education

Ally Invest offers a good selection of research and educational resources on its website. These resources include market analysis, stock screeners, and educational articles. Robinhood also offers a few research and educational resources on its website but these are not as comprehensive as those offered by Ally Invest.

Ally Invest vs Robinhood: Pros and Cons

Pros and Cons

Ally Invest Pros

√ They have easy and simple to Use Platforms

√ Low costs and fees

√ Financial consolidation of banking, personal finance, investing, and other financial activities

√ Ability to earn interest on cash balance

√ Forex trading is possible

Ally Invest Cons

-Mobile app doesn't support all trading products

-Contingent orders and other orders cannot be supported

-No futures or crypto currency trading

Robinhood Pros

√ Trade without commissions

√ Margin trading

√ Trade over 5,000 instruments

√ Purchase fractional shares

√ Interest on capital not invested

Robinhood Cons

-Trading tools are limited

-Mutual funds are not available

-There are no retirement accounts

-Only available for US residents

Who Should Use Ally Invest?

Ally Invest is a good choice for investors who are interested in forex and retirement accounts. It is also a good choice for investors who want to watch their money grow or who are advanced traders. However, it is not as research-oriented as other platforms. Ally investors should also look into the platform's other uses such as high-interest savings accounts or unique loan options.

Who Should Use Robinhood?

Robinhood is an excellent choice for investors looking for an easy-to use platform. It was designed to be easy-to-use and accessible. This can be a huge asset for some investors. Many potential customers don't have the necessary investment knowledge to use it prudently.

Robinhood wants Americans to use their service. However, without proper investment knowledge, it's difficult to recommend it. Our in-depth review page on Robinhood's brokerage reviews includes more information under the heading "Robinhood Review & Rating 2024".

The interface is easy to use and there are very few fees. Robinhood may be a good platform for investors with some experience.

Is Ally Invest Better Than Robinhood?

In our opinion, Ally Invest is a better choice than Robinhood for several reasons. First, Ally Invest offers much more comprehensive customer support than Robinhood. They have 24/7 live customer service available via phone, chat, and email, whereas Robinhood only has email support. Second, Ally Invest has significantly lower fees than Robinhood. For example, Ally Invest charges $4.95 per trade, while Robinhood charges $6.95 per trade. Third, Ally Invest offers many more investment options than Robinhood. For example, Ally Invest offers stocks, bonds, mutual funds, ETFs, and options, while Robinhood only offers stocks and ETFs. Finally, we believe that Ally Invest is a better choice for investors who are looking for a more comprehensive and user-friendly platform.

Ally Invest vs Robinhood: Customer Service

Ally Invest and Robinhood both offer customer support through email and phone. However, Ally Invest offers more in-depth support than Robinhood. For example, Ally Invest provides 24/7 customer service, while Robinhood only offers customer service during business hours. In addition, Ally Invest has a dedicated team of investment professionals available to answer questions, while Robinhood does not.

Ally Invest also offers a wider range of resources than Robinhood. For example, Ally Invest provides an online learning center with articles and videos on topics such as investing basics, market analysis, and portfolio management. Robinhood does not have an online learning center but does provide a blog with articles on investing topics.

Finally, Ally Invest offers paper trading, which allows customers to practice trading without using real money. Robinhood does not offer paper trading.

Overall, Ally Invest provides more comprehensive customer support than Robinhood.

Why Choose Ally Invest?

There are many reasons to choose Ally Invest, but here are some of the most important ones:

-Ally is great for beginners. If you're new to trading and want to stick with the basics, Ally will start you off on the right foot.

-Ally is low-cost. More experienced traders will enjoy the site's low-cost structure and the opportunity to explore different asset classes like futures and forex.

-Ally is convenient and secure for those who have (or want) an Ally Bank account. Ally Bank accounts offer traders extra security and convenience.

Why Should You choose Robinhood?

There are a few reasons why someone might choose to use Robinhood as their stock trading platform. 

-One is that it is very simple and straightforward, without any frills or extras. This can be appealing to investors who just want to get the job done without any fuss. 

-Another reason is that Robinhood is a good choice for investors who are extremely independent and don't need or want much guidance. 

-Finally, people who trade in small quantities may prefer Robinhood because there are no fees associated with trades. Cryptocurrency and options traders may also find Robinhood to be a good option because of the lack of fees. 

Final Thoughts

Ally Invest and Robinhood are both popular online brokers that offer commission-free trading. When deciding which platform is right for you, it is important to consider your investment goals and objectives. If you are looking for a comprehensive online broker with a wide range of investable assets, Ally Invest may be a good choice. However, if you are looking for a simple platform with no frills and no commissions, Robinhood may be a better option.

Additional Resources:

- Ally Invest Review

- Webull Vs Robinhood 

- Ally Invest vs eTrade

- Robinhood vs TD Ameritrade

- M1 Finance Vs Robinhood