Ally Invest Reimbursing ACAT Transfer Fees
Unfortunately, Ally Invest does not reimburse ACAT (transfer) fees for moving an investment account
from another firm. Alternatively, Charles Schwab will
reimburse up to $100 of your current broker’s transfer fee
if your transfer is at least $10,000.
Charles Schwab Website
Open Schwab Account
Ally Invest Refunds ACAT Transfer Fees
If you’ve been thinking about transferring a brokerage account to Ally Invest, but have hesitated because of your current broker’s transfer fee, get ready to make your move.
Ally Invest will reimburse any transfer fee (up to $75) charged by the outgoing brokerage firm when the transfer is sent electronically through the Automated Customer Account Transfer (ACAT) Service. This promotion is valid for one transfer per customer, and a minimum of $2,500 must be transferred. Additionally, the ACAT request must be submitted within 15 days of opening your new Ally Invest account.
Note that Ally’s rebate does not cover termination or maintenance fees charged by the old brokerage firm. It could take up to a month for Ally to credit the rebate to your new account.
Making the Transfer
To transfer your old brokerage account to Ally Invest, first, open your new Ally Invest account. Once you’ve done this, log into your new account and click on My Accounts in the top menu. In the drop-down menu that appears, click on Transfer Funds and then select Transfer an Account.
On the next screen, Ally’s website will guide you step-by-step through the transfer process. Everything is done electronically for your convenience. If you prefer the old-fashioned method, you can fill out a paper transfer request form and mail it to Ally.
Ensure the names on both accounts match. Note that Ally Invest does not accept transfers of penny, worthless, or foreign securities.
About Ally Invest
Ally Invest (formerly known as TradeKing) might arouse suspicions of its legitimacy mainly because the discount
online brokerage firm was founded in 2005 and it offers very low pricing. It is a relative newcomer in the
world of online trading. Compared with early entries into online trading such as E*Trade (founded in 1991) or
Scottrade.com (founded in 1996), Ally Invest doesn't have quite as established track record. Being a privately
held company instead of a public company like E*Trade or Charles Schwab might also raise some uncertainty in
customers' minds.
However, Ally Invest is one of the 10 largest discount brokers in the United States. Companies of that size and ranking in
their industry rarely attain those levels by using questionable business practices or taking advantage of their
customers.
Is Ally Invest Safe and Legitimate Firm?
No company is 100% safe. Businesses regularly fail or file for bankruptcy for all sorts of reasons. But Ally Invest has established itself as a reputable online broker, winning a
slew of awards from entities such as Kiplinger magazine, Barron's, and Consumer Reports.
Being a broker of all types of securities, Ally Invest is regulated and monitored by the
Securities and Exchange Commission (SEC). One of the SEC's most important purposes is to guarantee that all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it.
Since Ally Invest also offers trading in commodities futures and foreign currency exchange, it is registered with the Commodities Futures Trading Commission (CFTC) and the National Futures Association NFA).
Ally Invest is a member of the Financial Industry Regulatory Agency (FINRA).
This agency is "an independent, not-for-profit organization authorized by Congress to protect America's investors by making sure
the securities industry operates fairly and honestly." This means member firms such as Ally Invest are willing to submit to
scrutiny of their operations, comply with FINRA's rules, and promote market transparency and investor education. In this respect,
Ally Invest is as safe and as legitimate as any other discount brokerage in the country.
The Platform
Their charting platform through the main website is nothing to brag about offering only 28 different indicators and few drawing tools. Thankfully the charting capabilities through their Ally Invest LIVE platform comes armed with 84 different indicators and 11 drawing tools. This makes it easy to apply detailed technical analysis on charts, especially with the events overlay option to spot key changes in the underlying security.
The LIVE platform also has the option to “detach” the chart so it can become it’s own window, making it simple to watch price movement while conducting other research. Available time intervals could be improved, offering only 1 and 5 minute charts before skipping straight to the daily time frame. This completely omits 1 and 4 hour charts.
Taking a look at their smartphone platform, there’s really nothing that makes it stand out from competition. It provides enough usability to check on active trades and positions, but anything beyond that almost always requires the website platform.
Updated on 12/5/2024.
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