Ally Invest Eliminates Trading Commissions in 2019: Zero Fees on Stocks, ETFs & Options
Starting October 9, 2019, Ally Invest removes all commissions on U.S. stock and ETF trades, plus cuts options per-leg fees to zero, joining the zero-commission investing revolution.
Ally Invest, the online brokerage arm of Ally Bank, has taken a bold step in reshaping the investing landscape by eliminating commissions on stock and ETF trades across the U.S., effective October 9, 2019.
Previously part of General Motors Acceptance Corporation and now traded under NYSE: ALLY, Ally Invest has joined a rapidly growing trend among brokerages to reduce trading costs for investors. The firm is also removing the $0.50 per-leg fee on options trades, making options trading more affordable than ever.
This move follows a wave of commission-free announcements starting with Interactive Brokers’ launch of IBKR Lite, followed by Charles Schwab’s decision to waive stock, ETF, and options commissions from October 7, 2019. TD Ameritrade, E*TRADE, and TradeStation soon followed, sparking an industry-wide revolution toward zero-commission trading.
Ally Bank states that commissions contributed less than 4% to their total revenue in the first half of 2019, a figure that includes earnings from loans and insurance. This strategic decision to cut commissions is designed to enhance customer value without significantly impacting the company’s financial health.
Lule Demmissie, President of Ally Invest, commented, “We have anticipated the democratization of investing and are proud to offer zero commission trades while maintaining a superior customer experience with innovative investment and banking solutions.”
Among major brokerages, Vanguard remains one of the last holdouts with a $7 commission per stock or ETF trade. However, most Vanguard clients trade in the firm’s own commission-free ETFs.
Industry experts are closely watching Fidelity, managing $2.5 trillion in assets, as it has yet to respond to the growing zero-commission movement.
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