Opening
– Who this article is for: You trade or plan to trade with Ally Invest. You want a clear, actionable breakdown of ally commissions and fee exceptions.
– What this article solves: Explain which trades are truly commission-free. List exact fees that still apply. Show how charges are calculated in edge cases. Give step‑by‑step tactics to cut costs when you trade with Ally.
– What to expect in the guide: concrete numbers for typical trades, a comparison table of common fees, practical cost‑saving moves, and a short decision flow to choose the right approach.
Quick Answer / TL;DR
– Most U.S. stocks and ETFs: $0 commission. Trade cost = $0 per order for equities priced ≥ $2.
– Options: $0 commission + $0.50 per contract. Calculate cost = number of contracts × $0.50.
– Low-priced equities (< $2): base commission $4.95 + $0.01 per share on the whole order.
– Other notable fees: ACAT transfer $50 (ACAT — automated customer account transfer), CD transaction $24.95, option position management $100, and sell-side micro-fees (e.g., $0.000195 per equity share on sells).
Definition and scope of Ally commissions — $0 on many trades
Define Ally commissions as the explicit trading fees Ally charges for buying and selling securities in self-directed accounts. Think of these as the per‑trade, visible charges that hit your statement. Ally advertises a headline rule: most U.S.-listed stocks and ETFs trade with a $0 commission for orders where the security price is $2 or higher per share. That $2 threshold is the line between the headline $0 pricing and the low-priced security fee model.
Note the core exception: any equity priced below $2 triggers the low-priced fee structure. That structure uses a $4.95 base commission plus $0.01 per share on the entire order. Example math: buy 100 shares at $1.50 each (100 × $1.50 = $150). Commission = $4.95 + $0.01 × 100 = $5.95. Example 2: sell 500 shares at $1.25 (500 × $1.25 = $625). Commission = $4.95 + $0.01 × 500 = $9.95.
Watch out: $0 commission does not mean zero cost overall. You may pay micro-fees on sells, regulatory fees, spreads between bid and ask, or special charges for transfers, bonds, or foreign trades. Example numbers: $0.000195 per equity share on sells and $0.00329 per option contract on sells often appear as pass-through items.
Mechanics of Ally’s pricing — $2 threshold and $0.01 per share mechanics
Check the rule Ally uses: Ally checks the per-share quoted price at the time it evaluates the order. If the security is a U.S.-listed stock or ETF priced at $2.00 or higher per share, the trade qualifies for the $0 per‑order commission. If the security is priced below $2.00, Ally applies the low-priced model: $4.95 base + $0.01 per share on the entire order.
Order examples:
– Example A: Buy $1,000 of a $50 stock. Quantity = 20 shares. Commission = $0. Total cost = $1,000. Savings vs legacy $4.95 = $4.95.
– Example B: Buy 500 shares of a $1.50 stock. Principal = $750. Commission = $4.95 + $0.01 × 500 = $9.95. Compare to a $0-per-trade alternative if price ≥ $2.
Options math:
– Example C: Buy 3 option contracts. Commission = 3 × $0.50 = $1.50 plus $0 commission. Total = $1.50.
– Example D: Sell 10 option contracts. Commission = 10 × $0.50 = $5.00. Additionally, a sell-side pass-through micro-fee may apply (e.g., $0.00329 per contract), so extra = 10 × $0.00329 = $0.0329.
List of sell-side micro-fees (pass-throughs):
– Equity sell execution fee example: $0.000195 per share on sells. Sell 1,000 shares → $0.195.
– Option sell execution fee example: $0.00329 per option contract on sells. Sell 100 contracts → $0.329.
– Bond sell fee example: $0.00124 per bond on sells (applies to many bond trades). Sell 10,000 bonds → $12.40.
Other mechanics:
– OTCBB and Pink Sheet trades may require a minimum opening purchase. Ally enforces a $100 minimum per order on many OTC listings. Example: buy OTCBB symbol at $0.20 per share. Minimum quantity = 500 shares to meet $100. Commission = low‑priced fee if the equity price is < $2.
– Some index products and single-exchange listed derivatives carry a per-contract fee of $0.35 in special cases. Example: trade 10 index contracts → $3.50.
Watch out for routing and venue effects. Execution spread and venue rebates are separate from Ally commissions. Confirm the displayed per-share price and any sell-side pass-through numbers at order entry. Settlement timing (T+2 for equities) can affect your ability to reuse funds; plan around the T+2 window if you need cash in 2 trading days.
Common fees and exceptions — $50 transfer and $24.95 CD fee
List common non-commission fees you may encounter and when they apply. Use these numbers to budget for actions that trigger them.
Common fees and amounts:
– ACAT transfer: $50 (ACAT — automated customer account transfer). Applies to full or partial transfers out of Ally. Example: move a full account → fee = $50. Move a partial lot → fee may still be $50.
– CD transaction: $24.95 per transaction. Buy or sell a CD through Ally → fee = $24.95.
– Option position management: $100 fee for some complex managed adjustments or forced actions. Example: Ally exercises a complex option adjustment on your behalf → fee = $100.
– Margin sellouts: $40 + regular commission. Example: margin deficiency triggers forced sale → fee = $40 plus any commission applied to the sold security.
– Option expiration sellouts: $40 + regular commission. Example: in‑the‑money option expires and is auto‑sold → fee = $40 plus commission.
– Option assignment and exercise: $0 for the action itself. Example: assign or exercise an option → no Ally commission, but option contract fees still apply where applicable.
Bonds and mutual funds:
– Bond sell fee: commonly shown as $0.00124 per bond on sells. Example: sell 1,000 bonds → fee = $1.24. In other contexts brokers may round to a $1 per bond nominal figure; check your trade ticket.
– Mutual funds: many no-load funds trade at $0 for purchases. Sales of some funds may carry fees set by the fund. Example: no-load fund purchase → $0; load funds may carry purchase or sale charges set by the fund.
Index products and foreign trades:
– Index-product fee: $0.35 per contract on certain single-exchange listed index products. Example: trade 50 index contracts → $17.50.
– Foreign stock transaction fee (non-ADR): $50 + regular commission. Example: buy non-ADR foreign stock → fee = $50 plus whichever commission applies.
Examples to illustrate exceptions:
– Example 1: You transfer holdings valued at $2,500 out via ACAT. Fee = $50.
– Example 2: You sell a corporate bond lot valued at $10,000. If bond fee = $0.00124 per bond and you hold 8,000 bonds, fee = 8,000 × $0.00124 = $9.92.
Watch out for action-triggered fees. Many of these fees occur only on specific actions: transfers, forced sellouts, option expiries, foreign trades, or managed position changes. Plan trades and account moves to avoid repeated $50 or $100 charges.
How to lower your Ally commissions — save $0 to $4.95 per trade with tactics
Use these tactics to reduce trading costs at Ally. Apply one or more tactics to trim fees between $0 and $4.95 per relevant trade.
Tactic 1: Favor stocks and ETFs priced ≥ $2
– Check the per-share price before you click buy.
– Choose securities at $2 or above to keep commission = $0.
– Example: buy 10 shares of a $25 ETF → commission = $0. Buy 200 shares of a $1.50 penny stock → commission = $4.95 + $0.01 × 200 = $6.95. Savings = $6.95 per order.
– Save $4.95 minimum per low-priced order this way.
Tactic 2: Bundle trades to reduce per-order fees and micro-costs
– Group small buys into one order where possible.
– Example A: place ten $25 trades separately → ten orders; if any are < $2 per share they may trigger $4.95 each. Grouping could save 9 × $4.95 = $44.55.
– Example B: buy 1,000 shares in one order at $1.80 → commission = $4.95 + $0.01 × 1,000 = $14.95. Placing 10 separate 100-share orders would cost 10 × ($4.95 + $1.00) = $59.50. Grouping saves $44.55.
Tactic 3: Use options efficiently to minimize contract fees
– Base cost = contracts × $0.50.
– Example A: sell 1 covered call (1 contract) → fee = $0.50.
– Example B: implement three vertical spreads requiring 3 contracts each (3 × 3 = 9 contracts) → fee = 9 × $0.50 = $4.50. Compare returns per contract to decide.
– Reduce contract count to lower absolute fee. Combine positions when possible.
Tactic 4: Avoid unnecessary transfers and paid services
– Compare $50 ACAT vs leaving positions in place.
– Example: moving a $10,000 taxable account costs $50. If you plan to trade frequently, weigh the cost vs expected savings.
– Avoid paid position-management services when you can self-adjust. Example: a $100 option position management fee versus manually closing and reopening positions with contract fees only.
Tactic 5: Plan around sell-side micro-fees
– Sells carry tiny pass-throughs: $0.000195 per share and $0.00329 per option contract.
– Example: sell 50,000 shares → micro-fee = 50,000 × $0.000195 = $9.75. Consolidate sells to reduce repetitive micro-fees.
– Example: sell 200 option contracts → micro-fee = 200 × $0.00329 = $0.658.
Tactic checklist:
– Check price: ensure security ≥ $2 to keep commission $0.
– Bundle orders: favor one order vs multiple small orders.
– Cut contracts: use fewer option contracts when feasible.
– Delay transfers: avoid $50 ACAT unless necessary.
– Avoid forced actions: monitor margin to avoid $40 sellout fees.
Watch out for execution quality. Don’t sacrifice price improvement or risk control solely to save $0.50 or $4.95. Execution slippage can outweigh commission savings. Compare net cost: commission plus spread plus market impact.
Edge cases and timelines — $40 sellout and $100 position management
Cover rare or time‑sensitive charges and how long actions take. Use these numbers to plan for worst-case costs.
Forced sellouts and expiries:
– Margin sellouts incur $40 + regular commission. Example: forced sale of a $500 position results in $40 + commission (if security < $2, commission could be $4.95 + $0.01 per share). If you own 100 shares at $1.50 and a margin sellout occurs, fee = $40 + $4.95 + $0.01 × 100 = $54.95.
– Option expiration sellouts similarly add $40 + any commission. Example: an in‑the‑money option that is auto‑sold at expiration may trigger $40 + $0.50 per contract.
Position management and special adjustments:
– Option position management fee: $100 for some complex adjustments performed by the broker. Example: Ally performs a complex assignment resolution on a multi-leg strategy → fee = $100.
– Option assignment/exercise: $0 to exercise or assign, but other fees and contract costs may apply.
Timelines:
– ACAT transfer processing typically takes 3–7 business days to complete. Example: initiate ACAT on Monday → expect completion within 3 to 7 business days.
– Settlement for equities is T+2 (trade date plus two business days). Example: sell on Tuesday → settlement occurs Thursday. Settlement timing affects available cash and can interact with margin and transfer windows.
– Option expirations occur at specified times; manage positions well before the market close to avoid auto-exercise or sellout.
Examples with numbers:
– Example 1: You trigger a $40 margin sellout on a small $200 position with a low-priced security of $1.50 and 100 shares. Fees = $40 + $4.95 + $1.00 = $45.95.
– Example 2: You request ACAT for part of your account on Friday. Fee = $50. Transfer completes on the following Wednesday (within 3–7 business days).
Watch out for inactivity and account‑closing rules. Some account actions or third-party charges can show up during closure or transfer. Settlement windows (T+2) and transfer timelines (3–7 days) can restrict your ability to withdraw cash or reuse proceeds immediately.
Ally commissions compared — $0 vs $0.50 typical industry patterns
Position Ally’s headline numbers against typical industry patterns. Use neutral comparisons without naming brokers.
Headline comparisons:
– Ally stock/ETF: $0 per trade. Legacy brokers used to charge $4.95 per trade.
– Ally options: $0 commission + $0.50 per contract. A common competitive rate in the industry is $0.65 per contract.
– ACAT: $50 at Ally. Some alternatives charge $75 or more for the same transfer.
Concrete comparative bullets:
– Ally stock/ETF = $0 vs legacy = $4.95. Example: 100 trades at $4.95 would have cost $495; now cost $0.
– Ally options = $0 + $0.50 per contract vs typical = $0 + $0.65. Example: 200 contracts in a month → Ally cost = $100; typical = $130. Savings = $30.
– ACAT = $50 vs typical = $75. Example: one transfer saves $25.
Three usage scenarios with numbers:
1. Frequent small stock trades
– Scenario: 100 trades in a year, average trade size $500 in U.S. stocks ≥ $2.
– Ally cost = 100 × $0 = $0.
– Legacy cost (if $4.95) = 100 × $4.95 = $495. Savings = $495.
2. Large option spreads
– Scenario: execute 50 multi-leg spreads per year requiring 8 contracts each = 400 contracts.
– Ally option fee = 400 × $0.50 = $200.
– Typical competitor at $0.65 = 400 × $0.65 = $260. Savings = $60.
3. Low-priced stock trading
– Scenario: 50 trades in penny stocks, average 200 shares per trade.
– Ally per trade = $4.95 + $0.01 × 200 = $6.95. Total = 50 × $6.95 = $347.50.
– Legacy per trade at $4.95 + $0.01 would be similar; no savings. Penny stock activity is penalized by per‑share fees.
Where Ally stands on special fees:
– Bonds: Ally often lists a bond sell fee of $0.00124 per bond. Example: 10,000 bonds → $12.40. Some firms charge a flat $1 per bond in different contexts; compare before trading.
– Mutual funds: many are $0 for no-load funds. Example: buy no-load mutual fund → fee = $0.
– OTC and foreign: Ally may require $100 minimum for OTC orders and charge $50 + commission for foreign trades. Example: buy pink-sheet stock → minimum $100 order; foreign stock transaction = $50 + regular commission.
Conclusion of pattern: Ally is competitive for standard U.S.-listed equity and option trading. Ally penalizes low-priced and non-U.S. securities with per-share and transfer fees.
Watch out for true cost. Execution quality, spreads, market impact, and clearing charges can outweigh small nominal commission differences. Always calculate net cost: commissions + micro‑fees + spreads.
Comparison table — 5 fee categories compared
Quick side-by-side on the most relevant Ally fee items and typical alternatives so you can spot cost differences at a glance.
| Fee type | Ally cost | Typical alternative | Applies to | Notes |
|---|---|---|---|---|
| Stock/ETF trade | $0 per trade | $0 or $4.95 legacy | U.S.-listed ≥ $2 | $0 headline for standard trades |
| Options commission | $0 + $0.50 per contract | $0 + $0.65 per contract | Options trades | Multiply contracts × $0.50 |
| Low-priced stock fee | $4.95 + $0.01 per share | $4.95 + $0.01 per share | Equities < $2 | Fee applies to full order |
| ACAT transfer | $50 | $50–$75 | Account transfers out | One-time per transfer |
| CD transaction | $24.95 | ~$25 | Certificate of deposit trades | Per transaction charge |
Summary sentence: Ally is competitive on core equity and options pricing but carries predictable charges on transfers, CDs, and low-priced/foreign securities.
Closing — How to choose / Bottom line
– If you trade U.S. stocks and ETFs frequently and avoid sub-$2 shares → use Ally for $0 per‑trade cost and low $0.50 option contracts.
– If you mainly trade low-priced equities, OTC, or need frequent transfers → calculate $4.95 + $0.01 per share and $50 transfer fees before choosing Ally.
– If you trade complex option strategies with many contracts → run the math: contracts × $0.50 and compare to your breakeven. Example: 100 contracts cost $50.
– If still unsure → open a $0 account, test execution with small trades, and monitor any micro-fees or special charges for your pattern; re-evaluate once you have 5–10 real trades.
Final checklist before you trade:
– Verify security price ≥ $2 to keep commission $0.
– Count option contracts and multiply by $0.50.
– Expect sell-side micro-fees: $0.000195 per equity share and $0.00329 per option contract on sells.
– Avoid $50 ACAT unless necessary.
– Plan for T+2 settlement and 3–7 day transfer timelines.
Use the numbers in this guide to model your expected costs for 5, 10, or 100 trades. Test a few small trades to confirm execution quality and actual cost.