How To Use Ally Invest

Ally Invest is a popular, user-friendly brokerage platform that offers commission-free trading and no account minimums, making it an attractive option for new and experienced investors alike. In this detailed guide, we will walk you through how to use Ally Invest effectively—from opening your account to making your first trade and exploring the platform’s features.

If you’ve been wondering how to use Ally Invest, this guide will cover every essential step you need to start your investment journey confidently.

Getting Started: Opening an Ally Invest Account

The first step in learning how to use Ally Invest is creating your brokerage account. You can visit the Ally website at ally.com.

1. Navigate to Investing Section
   • On the homepage, click on Investing & Retirement.
   • From the drop-down menu, select Explore Investing.
   • Click Start Investing.
2. Choose Your Investment Type
   You will be prompted to choose between:
   • Automated Investing
   • Self-Directed Trading
   For this guide, we’ll focus on Self-Directed Trading, which allows you to select and manage your own investments.
3. Register a New Account
   • Select I am new to Ally.
   • Enter your personal information (name, email, etc.).
   • Click Register Now.
4. Select Account Type
   Ally offers various account types:
   • Individual
   • Joint
   • Custodial
   • Trust
   • IRA Accounts
   For most beginners, an Individual Account is a straightforward choice. Follow the prompts to provide your:
   • Birth date
   • Citizenship
   • Marital status
   • Dependents
   • Social Security Number
   • Home address and phone number
   • Security question and employment status
5. Provide Financial Information
   Unlike some brokers, Ally Invest requests:
   • Annual income
   • Net worth
   • Liquid net worth
   • Tax bracket
   These help Ally understand your financial profile but are not verified in detail.
6. Investment Experience and Objectives
   • Answer questions about your investment experience.
   • Choose your investment goal (e.g., Growth, Income, Preservation of Capital).
   If you’re unsure, Growth and Income is a balanced option for many investors.
7. Margin and Options Trading (Optional)
   Unless you’re experienced, it’s best to avoid margin and options trading initially. You can always add these features later.
8. Ally Securities Income Program (Optional)
   This program allows Ally to lend your securities in exchange for interest payments. However, you will lose voting rights on these shares. Read the details carefully before opting in.
9. Review and Submit
   • Carefully read the terms and conditions.
   • Click Submit Application.

Congratulations, your Ally Invest account is now open!

Funding Your Ally Invest Account

To start trading, you need to fund your new account.

1. Link Your Bank Account
   • Ally uses Plaid to securely connect your bank account.
   • Select your bank, log in, and authorize the connection.
   • Choose the account you want to link.
2. Deposit Funds
   • Enter the amount you wish to transfer (e.g., $30).
   • Select the transfer date (typically auto-populated).
   • Click Submit.
3. Set Up Your Login Credentials
   • Create a username and password for future logins.
   • Complete any security setup.

You will receive a confirmation email once your deposit is processed, typically within three business days.

How To Use Ally Invest Trading Dashboard

After logging into your Ally Invest account, you can access the Trading Dashboard in two ways:

• Click Investments.
• Click Quick Trade next to your account balance.

Market Data Agreement

Before you start trading, you’ll need to:

• Read the Market Data Agreement.
• Answer three quick questions.
• Agree to the terms.

You’ll also have the option to add a trusted contact for your account.

Making Your First Trade on Ally Invest

Here’s how to use Ally Invest to buy your first stock or ETF:

1. Select Your Investment
   • Type the ticker symbol in the search bar.
   • Review the stock or ETF details.
2. Set Your Order
   • Click Buy.
   • Enter the quantity.
   • Select Market Order (executes immediately at current price).
   Note: Ally Invest does not support purchasing fractional shares. You must have enough funds to cover the full share price.
3. Preview and Submit Order
   • Click Preview Order.
   • Once confirmed, click Place Order.
4. Monitor Your Holdings
   • Your investments will appear under the Holdings tab.
   • You can also add stocks to your Watch List for future monitoring.

How To Sell Stocks on Ally Invest

When you’re ready to sell:

1. Go to Dashboard
   • Click the three dots next to the stock you want to sell.
2. Initiate Sell Order
   • Select Trade Now.
   • In the new window, set the action to Sell, quantity to the number of shares you own, and order type to Market.
3. Preview and Submit
   • Click Preview Order and then Place Order to complete the sale.

Selling is just as simple as buying on the Ally platform.

Additional Features and Tools

While how to use Ally Invest is relatively simple, it’s important to know the platform’s limits and additional options.

Stock and ETF Information

• Ally offers basic charts and analysis from Morningstar.
• Unfortunately, detailed reports are not available within the platform.
• Information on dividends, sector breakdown, and top holdings is minimal.

If you rely on in-depth stock research, you may need to use external resources.

Dividend Reinvestment

If you plan to invest in dividend-paying stocks or ETFs, consider enabling dividend reinvestment:

• Go to Dividend Reinvestment on the dashboard.
• Toggle the feature ON to automatically reinvest your dividends.

This is a smart strategy for long-term growth.

Summary: Pros and Cons of Ally Invest

Pros:

• Commission-free trades.
• No account minimums.
• Easy account setup.
• User-friendly interface.

Cons:

• Limited research and educational tools.
• No fractional shares.
• Basic stock analysis.

Final Thoughts on How To Use Ally Invest

If you’re new to investing and want a simple, easy-to-navigate platform, Ally Invest is a solid choice. The process of opening an account, funding it, and making your first trades can be done in under an hour. However, advanced investors may find the lack of research tools limiting.

Learning how to use Ally Invest is straightforward, but it’s important to continue building your knowledge about investing. Always research your assets thoroughly—using additional resources if necessary—and take time to understand the market.

Remember, how to use Ally Invest is just the beginning. With consistent learning and strategic investing, you can build a strong financial future using this platform.