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Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.
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Ally Invest and Robinhood are relatively new online brokers, and both could be solid choices for many investors. We'll take a closer look at both, focusing on the key differences and the features each offers to see if Ally Invest or Robinhood might be the better option for you.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Commissions
$0 for stocks, ETFs, and options; up to $6.99 monthly for Robinhood Gold
Robinhood does something we typically don't see from stock brokers. It matches all customer IRA deposits 1%. It matches Robinhood Gold members deposits 1% and 3% on taxable and retirement accounts. It's the opposite of a commission: it's extra cash in your accounts. The catch is you need to keep deposits in Robinhood accounts for years to earn your full match. It's worth keeping in mind when weighing Robinhood's fees vs. other brokers'.
When it comes to pricing, both Ally Invest and Robinhood are on the lower end of the spectrum, and there are some areas where they are identical. Neither charges commissions for online and mobile stock and ETF trades, and neither has a monthly account maintenance fee.
That said, there are also some big differences. Robinhood is one of the only brokers where investors will get $0 commissions on all option trades. Ally Invest doesn't charge a base commission, but there is a $0.50 fee per options contract. Ally Invest is still quite reasonable -- many rivals charge more per contract.
Mutual funds and crypto: Robinhood doesn't yet offer mutual fund investing, while Ally Invest has an excellent selection of mutual funds, and its standard mutual fund commission is one of the lowest. Conversely, Ally Invest doesn't allow customers to trade cryptocurrencies, while Robinhood is one of the only brokers that allows users to trade several cryptocurrencies with no fees.
Ally Invest
Robinhood
Stock & ETF commissions
$0
$0
Options commissions
$0 + $0.50 per contract
$0
Crypto commissions
N/A
$0
Mutual fund commissions
$9.95, $0.00 for no load funds
N/A
Account transfer fee
$50
$100
Account maintenance fee
$0
$0, or $5 per month for Robinhood Gold
Data source: Ally and Robinhood.
Ally Invest vs. Robinhood: Investments available
Ally Invest and Robinhood both offer stocks, ETFs, and options, but that's where the similarities end. Robinhood offers fractional share investing, a big perk especially for newer investors, and also offers cryptocurrency trading. Ally Invest is a far more full-featured broker than Robinhood, which is primarily designed to buy and sell stock.
Ally Invest offers over 12,000 mutual funds for one of the lowest commission rates we've seen. Investors can buy and sell bonds, which can be a portfolio staple for income-seeking investors.
Ally Invest has a banking division, so it also offers high-yield CDs as part of an investment strategy. The bank currently offers CDs with terms from three months to five years.
Ally Invest
Robinhood
Stocks and ETFs
Yes
Yes
Fractional shares
No
Yes
Options
Yes
Yes
Mutual funds
Yes
No
CDs
Yes
No
Bonds
Yes
No
Futures
No
No
Crypto
No
Yes
Currencies (Forex)
Yes
No
Data source: Ally and Robinhood.
Alternatives to Consider
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
Account
Fees
Account Minimum
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
$0 for stocks, ETFs, and options; up to $6.99 monthly for Robinhood Gold
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Ally Invest vs. Robinhood: Account types available
Robinhood has upped its game. It has gone from only offering taxable brokerage accounts to offering traditional and Roth IRAs, a spending account, subscription-free margin accounts, and a credit card. IRAs are especially impressive; Robinhood matches user deposits by 1% (it matches Robinhood Gold members by 3%). Even so, it offers fewer account types than Ally Invest.
Ally Invest offers pretty much every type of account you could want. You can open a standard taxable brokerage account jointly with another owner (like a spouse). You can open a retirement account, including traditional, Roth, and SEP IRAs. And you can open a custodial account like an UGMA or UTMA for a child. Ally Invest also offers a highly rated robo-advisory service for customers who want to put some or all of their investing on autopilot.
It's also worth noting that Ally is a bank in addition to a brokerage (prior to 2010, it was known as GMAC Bank, the financial arm of General Motors). So you can also open a checking account, savings account, or CD. Ally also offers a variety of lending products, including mortgages, auto loans, and personal loans. In short, Ally Invest could be a good choice for people who like to keep all of their financial accounts in one place.
Ally Invest
Robinhood
Taxable brokerage
Yes
Yes
Joint tenant
Yes
Yes
Margin
Yes
Yes
Robo-advisor
Yes
No
Traditional IRA
Yes
Yes
Roth IRA
Yes
Yes
Other IRA
Yes
No
Custodial
Yes
No
Checking
Yes
No but offers spending account
Savings
Yes
No but offer brokerage sweeps
Credit card
Yes
Waitlist
Data source: Ally and Robinhood.
Ally Invest vs. Robinhood: Mobile app and trading platforms
Both have highly rated apps that are easy to use, though Ally Invest's recent Google reviews are poor.
Ally Invest holds ratings of 4.7 and 2.5 out of 5 stars on the App Store and Google Play store respectively. Ally Invest reviews often call out the all-in-one nature of the app and praise the live chat and customer service features. Recent Google Play reviews mention a poor refreshed design and log-in experience.
Robinhood's ratings are 4.2 and 4.1. Robinhood's ratings were higher prior to the "meme stock" craze of early 2021, when it suspended trading in certain volatile stocks, disappointing many customers. Robinhood's app offers one of the most seamless ways to trade stocks and cryptocurrencies and manage an investment portfolio. But the in-app ads can get annoying.
Final take
Both of these are excellent brokerage options, but are targeted to different types of investors.
Ally Invest is a full-featured brokerage and bank, and offers investment products and accounts designed to meet the needs of all investors. For example, if you want to buy bonds or mutual funds, Ally Invest could be a good choice for you (these investments aren't available through Robinhood).
On the other hand, if you want an easy-to-use platform that keeps expenses at a minimum, Robinhood could be worth considering. Plus, 1% to 3% IRA matching is something unique to Robinhood.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Bottom Line
Robinhood is a simple, low-cost brokerage with a few rare perks. What it lacks in customer service it provides in a smooth in-app experience. Without membership, you will lack research resources but still be able to trade affordably. With a membership, you can earn 3% and 1% match on IRA and taxable deposits. The app grows fast -- new perks are being released at a rapid pace.
Sure is. Robinhood's app has more than a few ads; swiping through blocks advertising high-risk margin accounts is more than a little annoying. Then there's the catch on deposit match: you must keep money with Robinhood for years, or else you risk having match money revoked.
Also worth noting, Robinhood doesn't offer full-featured checking and savings accounts. What it offers now are piecemeal compared to alternatives. If you want to keep all your money in one place, look elsewhere -- Robinhood has yet to beef up its banking suite to competitive levels.
Yep. Customers have complained about the mobile app. That could make doing business with Ally Invest on your phone inconvenient. Nor does Ally Invest allow fractional trading. If you want to buy a Costco share, you've got to pay full price. Big bummer for investors with small balances.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Ally is an advertising partner of The Ascent, a Motley Fool company. Cole Tretheway has no position in any of the stocks mentioned. Matt Frankel has positions in Ally Financial. The Motley Fool has positions in and recommends Alphabet, Costco Wholesale, and Target. The Motley Fool has a disclosure policy.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
E*TRADE services are available just to U.S. residents.
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