How Does Ally Invest Make Money
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How Does Ally Invest Make Money

How Does Ally Invest Make Money

Ally Invest is one of the most popular online brokerages, offering customers a wide array of investment opportunities. But how does Ally Invest make money? In this article, we’ll take a closer look at how Ally Invest makes its money and why it has become so popular with investors in recent years. We’ll also explore some of the features that make it stand out from other online brokerages and how you can use them to your advantage. By the end of this article, you should have a better understanding of what Ally Invest does and how it turns a profit.

What is Ally Invest?

Ally Invest is an online investment platform that offers a variety of investment products, including stocks, bonds, mutual funds, and ETFs. Ally Invest does not charge any commissions on trades, making it a popular choice for investors who are looking to keep their costs low. Ally Invest also offers a number of other features and services, such as research tools and a mobile app, that makes it a well-rounded investment platform.

How Does Ally Invest Work?

Ally Invest makes money in the same way that any other broker does: They charge commissions for each trade that you make. Commissions are generally around $5 per trade but can be cheaper if you make more trades or if you have an account with a higher balance. Ally also makes money from the interest on your account balance, and from selling products like mutual funds and insurance.

What Does Ally Invest Cost?

Ally Invest charges very low commissions for online equity and options trades. For equity trades, the commission is just $4.95 per trade. For options trades, the commission is $4.95 + $0.65 per contract. There is no minimum account balance required to qualify for these low commissions. Ally also offers commission-free trading for certain ETFs.

How Does Ally Invest Make Money?

Ally Invest makes money in three primary ways: commissions, interest on cash balances, and gains/losses on their securities holdings.

1. Commissions: Ally Invest charges a commission for each trade placed. The commission schedule is as follows:

– $4.95 for equity and options trades
– $9.95 for mutual fund trades
– $19.95 for broker-assisted trades

2. Interest on Cash Balances: Ally Invest offers its customers the ability to earn interest on uninvested cash balances in their accounts. The current interest rate is 0.20% APY for all account types.3. Gains/Losses on Their Securities Holdings: Like all investment firms, Ally Invests make money by buying and selling securities at a profit.

Is Ally Invest Safe?

When it comes to online investing, one of the key concerns is always safety. Is my money going to be safe? Is the site I’m using reputable? With Ally Invest, you can rest assured that your money is in good hands.

Ally Invest is a member of the Securities Investor Protection Corporation (SIPC), which means that your account is protected up to $500,000 in the event that Ally goes out of business. Additionally, your account is also protected against fraud and theft. So you can rest easy knowing that your money is safe with Ally Invest.


In conclusion, Ally Invest is a great way to start investing without the hassle of traditional brokerage firms. With a variety of investment options and low fees, Ally Invest makes it easy to invest the money you have saved. It also provides additional services such as automatic deposits and retirement planning tools that help you get the most out of your investments. So if you’re looking for an easy and cost-effective way to invest, then Ally Invest might be right for you.