Ally Invest vs. Fidelity

Ally Invest and Fidelity are two popular trading and investment platforms. While many of the core features are similar, there are several key differences that make each option better suited towards separate types of investors. Here we compare Ally Invest vs. Fidelity, comparing the two based on key factors like usability, trade experience, offerings and cost.

If you prefer hands-on investing advice, a financial advisor could help you create a financial plan for your investments.

Overview: Ally Invest and Fidelity

Ally Invest is the trading and investment service of Ally Financial. The company was founded in 1919 by General Motors (GM) as General Motors Acceptance Corporation (GMAC). Its purpose at the time was to provide financing for GM vehicles.

The company later entered other financial service sectors, including life insurance and mortgages. It rebranded as Ally Bank in 2009 (later, Ally Financial)., and in 2016, Ally acquired TradeKing, which was rebranded as Ally Invest.

Fidelity Investments, commonly known as Fidelity, was established in 1946 and, although not as large as Ally, it is still one of the top asset managers globally with about $4.1 million in consolidated domestic assets.

Fidelity provides a range of services, including proprietary mutual funds, index funds, life insurance and retirement accounts, in addition to wealth management. For easy access, there are 217 domestic and 14 international branches available to serve you.

Fees: Ally Invest vs. Fidelity

When comparing Ally Invest vs. Fidelity, both generally have low fees. For example, there are no commissions or trading fees when trading stocks and ETFs. Fidelity does charge $49.95 for mutual fund trades, but there are no transaction fees for Fidelity funds, and no-transaction-fee funds are also available.

Ally no longer charges for mutual fund trades. Options contracts have a small fee for each broker, although the difference is minimal: $0.50 per contract for Ally and $0.65 per contract for Fidelity. Still, there are no sales commissions when trading options with either broker. Other fees include account transfers; Ally Invest charges $50, while Fidelity has no fee.

For their respective robo-advisors, Fidelity charges 0.35% when you reach a $25,000 balance, and Ally Invest charges 0.30% (or 0.0% with a cash position). It is also worth noting that Fidelity has mutual funds with no management fees – something you will not find at Ally Invest.

Services and Features: Ally Invest vs. Fidelity

Fidelity and Ally Invest offer a broad range of services and features to cater to the investment needs of most investors. Both offer brokerage accounts, IRAs, CDs, robo-advisors, cash management accounts and money market accounts.

Fidelity has some accounts Ally Invest does not offer, such as 529 plans, health savings accounts (HSAs) and 401(k)s. Ally Invest also has some accounts and services not available with Fidelity, such as high-yield savings accounts, checking accounts and home mortgages.

Both brokers generally allow you to open an account with no minimums, although certain types of investments may require a minimum. Robo-portfolios with Ally Invest require a $100 minimum investment, but Fidelity’s robo-advisor (Fidelity Go) has no minimum.

Fidelity also offer fractional shares, which Ally currently lacks. Fractional shares allow you to buy smaller denominations of stocks, which can be better for new investors.

In terms of selection, both brokerages offer more than 10,000 mutual funds on their platforms. The biggest difference between the two is that Fidelity has its own mutual funds, while Ally Invest does not.

Fee-conscious investors may prefer Fidelity, since it offers no-transaction-fee funds, as well as funds with no management fees. However, costs are generally low at both brokers.

Fidelity offers one-on-one financial coaching with Fidelity Personalized Planning & Advice. Customers can schedule 30-minute coaching calls as part of the service. However, this service requires a $25,000 minimum balance.

Ally Invest provides access to financial advisors through its Wealth Management service, but it has a minimum investment of $100,000. Those who meet that threshold and sign up for the service can enjoy regular check-ins with their advisor, with additional support available as needed.

Online and Mobile: Ally Invest vs. Fidelity

An investor reviews their investment portfolio.

Whether you invest with Fidelity or Ally Invest, extensive trading tools are available, and you can easily monitor and track your investments, both online and via the mobile investment app. Both offer online trading platforms with real-time quotes and data, quick trading ability, a watchlist and advanced charting capabilities.

Both mobile apps pack quite a bit of functionality onto a small screen. Fidelity’s app lets you invest, track spending and move money all in one place. It also monitors stock news and tracks savings goals. The app is highly rated with a 4.8 rating on the App Store and a 4.6 rating on Google Play. Because of its investment focus, the Fidelity app is best suited for trading and investing, as well as retirement planning and wealth management.

Ally’s app is not quite as focused on investing because it sticks to the basics. You can manage your investments, as well as your checking and savings accounts. For example, you can place trades and view stock charts on the app, while also creating and managing buckets for savings accounts. The Ally app also shows details about your wealth advisor if you have one, and you can call or email them with just one tap in the app. Its app is rated slightly lower than Fidelity’s with a 4.7 on the App Store and 4.4 on Google Play.

Because the Ally app allows you to manage checking and savings accounts, it may be the top choice for those who want access to a full suite of services in one place.

Who Could Choose Ally Invest?

Ally Invest could be a good option for investors who prefer a simple, low-cost platform, particularly if they already bank with Ally. Its all-in-one approach tof checking, savings and investing may appeal to those who like managing their finances under one roof.

It may also suit hands-off investors who want an easy way to get started. Ally’s robo-advisor offers automated portfolio management with no advisory fee if part of the balance is held in cash. This could be attractive for investors seeking a set-it-and-forget-it approach.

Ally may also work well for investors who do not need more specialized accounts, such as health savings accounts (HSAs) or 529 college savings plans, and who are more focused on everyday investing and banking. For those who value simplicity, competitive fees and basic tools, Ally Invest could meet their needs without overwhelming complexity.

Who Could Choose Fidelity?

Fidelity could be a better fit for investors seeking a wider range of account options, more robust research tools, and additional features. Active traders may find Fidelity’s platform and extensive market data useful for making more informed decisions.

It may also appeal to long-term investors who plan to use retirement accounts, 529 college savings plans or HSAs – all of which are available through Fidelity. Newer investors interested in fractional share investing (the ability to buy smaller portions of high-priced stocks) may also appreciate Fidelity. Fidelity also offers low-cost mutual funds, some of which carry no management fees. Financial coaching is available for clients who meet certain investment minimums.

Those who want a wider variety of account types, along with advanced research capabilities and professional guidance, may find that Fidelity best aligns with their preferences.

Bottom Line

An investor reviews their portfolio performance.

Both Ally Invest and Fidelity offer a lot while keeping fees low. Fidelity caters more to active traders, as well as those preparing for retirement or in need of wealth management. Ally Invest has more to offer in the areas of money management and banking services like checking and savings accounts. While both brokers are among the best brokerages available today, weighing the differences between Ally Invest vs. Fidelity can help you better decide which service is right for you.

Ask a financial advisor for help creating an investment strategy based on your long-term financial goals and risk tolerance.

Tips for Investing

A financial advisor can help you develop an investment strategy that works for you. And finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Whatever your time horizon might be, it’s important to know where your investments will stand in 10, 15 or 20 years. SmartAsset’s free investment calculator can help you get an estimate.