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Ally Adds Brokerage and Investments Services To Its Website


There has been a change to Ally Bank’s website. Ally’s top navigation bar now includes an “invest” link that opens up an investment menu. Ally issued a press release today describing the launch of Ally Invest and its new integration of its brokerage services with its banking services:

Bank Integrates and Rebrands TradeKing Brokerage and Advisory, Bringing Low-Cost Investing Together with High-Yield Savings

In April 2016, Ally announced they had agreed to acquire the brokerage TradeKing. The move was seen as Ally wanting to expand its services to include trading and investing. ING Direct (which is now under Capital One) did this in 2012 when it acquired the brokerage Sharebuilder.

Both brick-and-mortar banks and credit unions have also been doing this. Large banks have their own wealth management businesses while small banks and credit unions have been partnering with brokerage firms. These integrations haven’t always been seen favorably by banking customers. Over the years, many readers have reported going into their bank or credit union to renew a CD and being referred to a financial advisor to discuss non-bank investment ideas.

If you’re an Ally Bank customer who also wants to invest in stocks, bonds, mutual funds and other investment products, Ally Invest may appeal to you. It’s designed to appeal to both the hands-on investor who wants to do self-directed trading and to the hands-off investor who wants managed portfolios. Ally is advertising low fees for both. In addition to low fees, Ally is touting the integration advantages in which you can access all of your online banking, brokerage and wealth management accounts via ally.com. In addition, you can transfer money between these Ally accounts.

My Take

For Ally Bank customers who already have brokerage accounts at places like Vanguard and Fidelity, I’m not sure if the current advantages of Ally Invest will be enough to make them want to move their investments. I can see Ally Invest being attractive to Ally Bank customers who are wanting to start investing. This gives them an easy way to start investing without having to open an account at another financial institution.

Related Pages: nationwide deals, Internet banks
  |     |   Comment #1
At Schwab and Vanguard there are lots of ETFs that can be traded commission free.

At Fidelity and TD Ameritrade lots of ETFs can be traded commission free after holding them for 30+ days.

If Ally were to offer commission free trading for ETFs without any hold period (like Schwab and Vanguard) then I will take a look.
  |     |   Comment #2
Would be surprised if they improve anything, likely just wanted to "buy customers". I had been waiting for some positions to be called away to close my Tradeking account, and don't see any reason to keep it open with Ally
  |     |   Comment #3
Free trades are better, and I supposed more flexibility is better as well.
But keep in mind that a whole lot of studies, both academic and real-world, show that 80 - 90% of individual investors time their "bets" wrong when buying or selling stocks or mutual funds, net of transaction costs.. For most of us, the more often we trade the worse we do.
  |     |   Comment #6
About these so called "studies".

Wonder how students who are performing these "studies" get the theories about the buying/selling by "individual investors". Wonder if they have some sort of tie-up with likes of Schwab/Fidelity that share the buy/sell data with the students. Or may be these students have some inroads with the IRS itself that shares massive data of the "individual investors" to draw some sweeping conclusions like 80% to 90%?

Wonder then why is it so hard to get simple data like (say) how much taxes has "the" Donald paid for tax years 1995 thru 2016. Just one individual you know !!
  |     |   Comment #8
Ok aaa, I suggest you look at the Dalbar and Morningstar websites and results - just 2 among many - and check out the protocols and procedures they used for their results.

And if your don't believe them perhaps you'll believe the many publications by Bogle, Malkeil, Fama & French, etc. - the list is almost endless.
  |     |   Comment #9
No. Cannot accept publications no matter how end-less the list, that's not based on hard facts.

Credible data regarding the 'individual investors' is with (1) the brokers who carry out the trades, and (2) with SEC that wields authority to monitor each trade, and (3) with IRS that has details in 1099-B.

If the students of these so called "studies" have access to the above data sources then analysis made using this is credible. Else its questionable.

I can accept studies made using details like "Annual Statements" and "1099-B". (So called) Studies made using anecdotes has questionable value (if any).
  |     |   Comment #10
Well aaa, I don't believe how much taxes President Trump paid is any of yours, mine, or anyone else's business. That is personal business between him and the I.R.S.

I doubt that you would disclose your income tax information for everyone in the world to see. And probably would run as fast as you can to a lawyer if someone made it public without your consent.
  |     |   Comment #11
Being a public official is a little bit different that us mere mortals.
  |     |   Comment #13
Well then I am curious to know if how much I (or my wife or my friends or my colleagues) or in general any of my fellow "individual investor" tax-payers made / lost annually is any business of the authors of the so called "studies".

And more important from where/how are these people getting trading data for me and my fellow individual tax-payers?

Hence my original question : Do these students of the so called "studies" have some inroads with IRS to get the 1099-Bs for all the tax-payers year after year? (Or they are using some anecdotal / imaginary / fake data?)

Maybe 111 has some answers? ... Or maybe not ...
  |     |   Comment #14
Do a google search on your name, soc sec no., address, etc. and see what data is available...surprise/surprise see income figures.
  |     |   Comment #15
I google searched "the" Donald ... cannot see the taxes paid figures ... :-)

... Wait ... lack of figures for taxes paid could mean there were none !!!

.... That's no surprise ...
  |     |   Comment #16
Well let us keep aside "the" Donald ...

By chance are you hinting that the students of so called "studies" conduct google search for all the "individual investor" tax-payers and obtain everyone's 1099-B?
  |     |   Comment #17
I have friends that trade stocks and it seems 80 -90% lose money. More people it seems make money in real estate however.
  |     |   Comment #18
I'm sure you trust your friends to believe in whatever it is that they are telling you.

But then there is that Reaganesque nagging little thingy "Trust but verify".

One way to verify appears to be going over 1099-B ... No?
  |     |   Comment #19
dreamer: Polling your friends to justify/support the unsubstantiated "studies" by likes of Morning Star, Bogle, Malkeil, et al perhaps is the poster-child of the what is unscientific and anecdotal.

None of these people have have Annual Statements for vast majority of Americans. They may for for themselves and their close friends/relatives, but surely not for vast number of 'individual investors'. Whatever they do and "111" cites above is not realistic.
  |     |   Comment #4
It cost me $2 for a stock trade on Vanguard except for Munis which is $10. I maybe make 3 trades a year. No costs to buy an ETF, mutual fund or CD
  |     |   Comment #7
Costs me to $1 commission to trade 100 shares of any US listed stock at "Interactive Brokers".

Oh ... and costs me $0 commission for any stock trade at "robinhood".
  |     |   Comment #12
Never heard of these companies and don't know the services. My point is that is stock trading is a low cost in most cases. I like Vanguard as it is a full service shop with low fees. I have my stocks. Munis bonds, Brokered CDS as well as mutual funds with them. I may trade stocks a few times a year and the $2 commission is for any stock trade. Stock trading fees are commodities.
  |     |   Comment #20
Att: Are you not a millennial? People who use smart phones with ease will find robinhood quite an easy broker to use.

If you are not very comfortable with use of smart phones for trading then I would not recommend robinhood. But for others check it out.
  |     |   Comment #21
Att, have any "direct/non-brokered" CDs with the banks that you have brokered CDs?
  |     |   Comment #5
$4.95 per trade - I can live with that. Thanks for the tip.
  |     |   Comment #22
Ken, FYI, Ally Invest also has stock, options, and futures trading with its acquisition of MB Trading (TradeKing bought them about 2 years ago), and has forex trading from its old acquisition merge with Zecco.

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