Ally Invest vs Robinhood: Best Option | Pros & Cons

If you are to choose an investment platform between Ally Invest vs Robinhood, which will be your pick, and for what reason?

A lot of questions on the two financial investment platforms arise and lack of adequate information has left a dim light. We’re here to throw more light.

In this article, we’ll take a dive into these two platforms, highlighting their pros and cons.

While Ally Invest might have a user-friendly interface, and educational content to guide investors, Robinhood also presents one of the simplest investment platforms for beginners and pro alike. But, which is better for you? We’ll find out soon.

What Is Ally Invest?

Ally-Invest is an online investment platform that offers self-directed or managed portfolios. It is best known for its FDIC-insured banking services through Ally Bank which includes online banking, auto financing, and home loans.

Ally-Invest engages both novice and professional stock traders with $0 trading cost on eligible U.S. securities and a $0 account minimum: This makes it one of the best low-cost brokers.

How Can I Invest On Ally Invest?

Ally Invest is part of Ally Bank financial services company that includes banking, lending, and an options-centric brokerage.

Ally Invest is comparatively user friendly and much more easy to use if you already have an account with Ally Bank.

That is to say, if you’re already an Ally Bank customer, opening an Ally Invest account is made easier. Once you have set up the account, you choose your default layout for the account snapshot and transfer in some cash once you’re ready to trade.

Just like opening a bank account, setting up an Ally-Invest profile is done online. The whole process is as quick as opening a yahoo mail account and it is free of charge.

What are the requirements to open an Ally-Invest account?

To get rolling on Ally, you’re expected to provide the following documents;

  • Proof of identity (National ID)
  • Proof of residency
  • Social security number
  • Passport
  • Driver’s license

Account opening at Ally Invest is fully web-based, so you can go through the whole identification process on the company’s web platform.

Once you’re through with the registration, you’re good to go.

To invest in Ally-Invest you will need to transfer the minimum deposit to your brokerage account from your bank account to be able to start trading.

Registration is free, you only need to deposit into your account to start trading. That is to say, you can start with the little you have and grow as you wish.

Step-by-step process of opening an Ally-Invest account

To open an Ally account, follow these general steps. One good thing about Ally is that the registration and setting up of the account can be done in a couple of minutes.

Here are the steps to follow…

1. Choose your account

Before submitting your personal information, make sure you have selected the right type of brokerage account for you.

2. Add personal info

Go through the basic information section and provide the basic details like your bio-data and other necessary documents like your National ID, Drivers license, SSN, passport, and any other document they deem necessary.

The details you’ll be asked to provide will solely be dependent on the broker you chose. Additionally, you will also have to provide answers to some security questions.

3. Sign the terms and conditions

Once you’ve successfully done the basic registration and identification, you will have a chance to examine the information given, and then sign a virtual contract after agreeing to the terms and conditions.

4. Fund your account

Once your account is confirmed, you are good to go. The next step is to transfer any amount of money into your broker account to get the ball rolling.

How Much Do I Need To Pay To Invest In Ally-Invest?

Ally Invest has no required minimum initial investment or ongoing balance requirements.

The trading platform has dropped its commissions to $0 for eligible U.S. stock, options, and ETF trades.

The price for options trades also has fallen from $0.65 to $0.50 per contract, a price previously available only to investors who made 30 or more trades per quarter or had a balance of $100,000 or more. 

The price of an options contract is 50 cents, among the faintest on the market. The mutual fund trading fee, at $9.95 per trade. For the Ally Invest Cash-Enhanced Managed Portfolio, there are no advisory fees. Broker Assisted Trades Fee is at $20.00

However, its robo advisor, Ally Invest Cash-Enhanced Managed Portfolios, does have a minimum initial investment requirement of $100.

Account minimum: 

Ally Invest’s $0 account balance minimum means there’s nothing stopping you from start trading, especially for investors at the beginning of their retirement savings journey.

Why Should I choose Ally Invest?

Being one of the biggest US stockbrokers regulated by top-tier regulators, Ally has a low trading and non-trading fees and also offer a good range of investment options for beginners and pro alike.

Additionally, setting up and getting along on the platform will be quite easy because the digital platform makes it easy to register and also sets up educational tools to help orient the users on its usability.

Ally is transparent about their investment performance statistics, which you’ll see once you set up a managed portfolio. Investors choose a goal-saving for retirement, building wealth, making a big purchase, or generating income.

Alongside $0 stock and ETF trades, Ally’s greatest boasts of personified customer service and ease of use. Whether banking or trading, Ally understands the essence of a clean user experience, which could make it a good fit for beginner investors.

What Are The Pros and Cons of Ally Invest?

Ally Invest offers low trading and non-trading fees. In addition to their user-friendly website, there are a lot of high-quality educational tools to assist beginners.

As with many online brokerages that are part of a larger financial offering, Ally Invest is the best fit for the Ally Bank client who wants to get into holding stocks and ETFs. The more integrated you are with the banking platform, the more benefits you will enjoy on the investment side.

Beyond this fact, Ally Invest is joining the hunt for retail investors. There are still a lot of legacy functions that serve the active trading crowd, but the new development projects are mainly focused on appealing to and onboarding investors with simpler requirements.

On the flip side, the product portfolio incorporates only the US market; forex is available only through a separate Ally Forex account provided by GAIN Capital (; the financing rates are also high when you trade on margin.

Take a look at the pros and cons of Ally-Invest;

Pros of Ally Invest

  • Low trading and non-trading fees.
  • Easy and fully digital account opening.
  • Great education.
  • Tightly integrated with banking capabilities.
  • Managed portfolios have a low minimum investment requirement. 
  • The InvestLIVE platform is customizable and has streaming real-time quotes.
  • Ally Invest native mobile apps and mobile browser pages offer quick bank transfers and auto-updating quotes.
  • All levels of investors are welcome.

Cons of Ally Invest

  • You can’t trade outside the U.S. markets.
  • Forex trading is made available through a separate account.
  • High financing (margin) rates.
  • The basic web platform is old and clumsy and the mobile apps don’t have some analytical tools.
  • You cannot trade futures, futures options, or any international assets.

What is Robinhood?

Robinhood is a commission-free stock trading app that enables you to exchange stocks, ETFs, options, and crypto. It is open to beginners and pro alike who want to invest in the simplest way possible. The brokerage is willfully basic with a fantastic user interface.

Furthermore, the trading app has a very simple design that makes it easy to understand the trading process. Robinhood is 100% commission-free.

How Can I Set Up A Robinhood Account?

You can set up a Robinhood account using your smartphone, tablet, or computer device. See the steps below.

  1. To start your account, Click here and fill in your contact info and other necessary background details.
  2. You’ll receive a notification email with a link which you’ll use to launch stellar investments.

To set up the account, you don’t need to pay any commission or fees.

However, to invest you need to deposit any amount into the account to set the ball rolling. Any amount is good for a head start.

Robinhood uses instant verification with many top banks. Bank transfers of up to $1,000 are available immediately for investing, and the same goes for profits of up to $1,000 from selling stocks. Deposits larger than $1,000 will take around five business days to process.

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How Can I Invest On Robinhood?

Robinhood offers commission-free stock, ETF, and cryptocurrency trades. Nevertheless, this investment app stands out most for offering a streamlined trading platform and free cryptocurrency trading.

Account minimum: 

Robinhood doesn’t have one, which means investors can get started with $0. However, in order to invest, you’ll need to have sufficient investment power to purchase the investment you have your eye on.

Why Should I Choose Robinhood?

Robinhood’s most known feature is commission-free trading. That extends to trading stocks, cryptocurrencies, and ETFs. Best of all, there are no hidden fees.

Robinhood’s commitment to presenting 100% commission-free stock, securities, ETF, and cryptocurrency trades is commendable, and the savings for investors who trade frequently is significant.

Every money you save on commissions and fees is a dollar added to your returns. Still, these days many big-name brokers also offer free trades, so it will be nice to compare other features while picking a broker.

How Much Do I Need To Pay To Invest On Robinhood?

Robinhood offers commission-free stock, ETF, cryptocurrency, and options trades. More so, Robinhood offers $0 stock trades by cutting out physical offices and manual account management. However, you need to fund your account to begin trading. Any amount is a good start.

If you’re keen on stock trading, managing your own securities, and want more investment options, the Robinhood investment app will offer you a better and more fruitful experience.

Robinhood Gold account demands $2,000 for a margin account (regulatory minimum).

What Are The Pros and Cons Of Robinhood?

Robinhood offers commission-free stock, ETF, and cryptocurrency trades. Nevertheless, this investment app stands out most for offering a streamlined trading platform and free cryptocurrency trading.

The app and website are user-friendly and very easy to use and charging zero commissions attract extremely cost-conscious investors who trade small quantities.

That said, the offerings are very light on research and analysis, and there are pressing questions about the quality of the trade executions and areas of strength.

Here’s a list of the pros and cons.

Robinhood Pros

  • Zero-Commission trades on stocks, ETFs, crypto, and options.
  • A Cash Management account allows passive money to gain meaningful interest.
  • On Robinhood, it is easy to obtain tax documents and important information regarding the account.
  • It is very easy to set up a brokerage account.
  • Robinhood offers access to cryptocurrency including Bitcoin and Ethereum.
  • User-friendliness.
  • Instant access to $1,000 upon deposit.
  • Fractional shares are open for many users.
  • Bonus reinvestment allows you to earn compound interest.

Robinhood Cons

  • Customer support is only obtainable in market hours.
  • Margin trading is only disclosed to Gold members.
  • Educational materials that will guide investors are not restricted.
  • On Robinhood, there are limited access to research reports without a Gold membership.
  • Robinhood doesn’t provide a technical trading platform to perform analysis.

Ally Invest vs Robinhood: Which Trading Platform Is Better?

If you want to trade on a platform that gives a detailed analysis of the investment returns, Ally will be a perfect fit. More experienced traders enjoy the site’s low-cost structure and the opportunity to explore various investment options.

On the other hand, investors who want a simple and streamlined platform for stock trading will appreciate Robinhood’s restricted pattern. Though this trading platform offers little or less guidance to investors, the little trading opportunities and confines available will always seem to interest you.

To trade commissions and fees, Ally and Robinhood kick off at $0. The minimum.

Cryptocurrency and options traders should also check out Robinhood. The lack of fees makes these risky trades more affordable than they might be otherwise.

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Ally Invest vs Robinhood: Which is better for beginners?

Ally Invest is a better option for newbies in the game of investing. This is because it offers investors access to all-round education as it relates to the workings of the website, unlike Robinhood.

Furthermore, Robinhood doesn’t offer many asset classes, so you’re limited in what you can trade. Nevertheless, for investors who want to stick to ETFs and stocks, Robinhood’s offerings should be more than enough.

Robinhood trading app doesn’t disclose comparing investment performances. This style leaves investors who demand transparency in awe and may not go down well with them. Ally invest gives full data of investment performances.

Summarily, most beginners will fancy Ally Invest because of the ease of usage and user friendliness.


To cap it up, Ally offers better direction to novice investor and also avails many account options. On the other hand, Robinhood is ideal for investors who are knowledgeable about the workings of the investment platform and may not need much help.

Therefore, before you decide on the investment trading platform to use, you need to consider its features and pros and cons to check if it satisfies your desire.

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