Ally Invest vs. Robinhood: Which Broker Is Right for You?
Review
Updated
If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
Ally Invest and Robinhood are relatively new online brokers, and both could be solid choices for many investors. We'll take a closer look at both, focusing on the key differences and the features each offers to see if Ally Invest or Robinhood might be the better option for you.
| Offer |
|
|
|---|---|---|
| Rating |
Rating
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| Commissions |
Commissions |
Commissions |
| Account Minimum |
Account Minimum |
Account Minimum |
| Learn More |
|
Robinhood does something we typically don't see from stock brokers. It matches all customer IRA deposits 1%. It matches Robinhood Gold members deposits 1% and 3% on taxable and retirement accounts. It's the opposite of a commission: it's extra cash in your accounts. The catch is you need to keep deposits in Robinhood accounts for years to earn your full match. It's worth keeping in mind when weighing Robinhood's fees vs. other brokers'.
When it comes to pricing, both Ally Invest and Robinhood are on the lower end of the spectrum, and there are some areas where they are identical. Neither charges commissions for online and mobile stock and ETF trades, and neither has a monthly account maintenance fee.
That said, there are also some big differences. Robinhood is one of the only brokers where investors will get $0 commissions on all option trades. Ally Invest doesn't charge a base commission, but there is a $0.50 fee per options contract. Ally Invest is still quite reasonable -- many rivals charge more per contract.
Mutual funds and crypto: Robinhood doesn't yet offer mutual fund investing, while Ally Invest has an excellent selection of mutual funds, and its standard mutual fund commission is one of the lowest. Conversely, Ally Invest doesn't allow customers to trade cryptocurrencies, while Robinhood is one of the only brokers that allows users to trade several cryptocurrencies with no fees.
| Ally Invest | Robinhood | |
|---|---|---|
| Stock & ETF commissions | $0 | $0 |
| Options commissions | $0 + $0.50 per contract | $0 |
| Crypto commissions | N/A | $0 |
| Mutual fund commissions | $9.95, $0.00 for no load funds | N/A |
| Account transfer fee | $50 | $100 |
| Account maintenance fee | $0 | $0, or $5 per month for Robinhood Gold |
Ally Invest and Robinhood both offer stocks, ETFs, and options, but that's where the similarities end. Robinhood offers fractional share investing, a big perk especially for newer investors, and also offers cryptocurrency trading. Ally Invest is a far more full-featured broker than Robinhood, which is primarily designed to buy and sell stock.
Ally Invest offers over 12,000 mutual funds for one of the lowest commission rates we've seen. Investors can buy and sell bonds, which can be a portfolio staple for income-seeking investors.
Ally Invest has a banking division, so it also offers high-yield CDs as part of an investment strategy. The bank currently offers CDs with terms from three months to five years.
| Ally Invest | Robinhood | |
|---|---|---|
| Stocks and ETFs | Yes | Yes |
| Fractional shares | No | Yes |
| Options | Yes | Yes |
| Mutual funds | Yes | No |
| CDs | Yes | No |
| Bonds | Yes | No |
| Futures | No | No |
| Crypto | No | Yes |
| Currencies (Forex) | Yes | No |
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2025.
| Broker | Best For | Commissions | Learn More |
|---|---|---|---|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Managing your finances under one roof | $0 for stocks,¹ $0 for options contracts⁴ |
Learn More for SoFi Active Investing
On SoFi Active Investing's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low mutual fund fees. | $0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website. |
|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low fees on stocks, ETFs, crypto, and options | $0 for stocks, ETFs, and options |
Learn More for Robinhood
On Robinhood's Secure Website. |
Robinhood has upped its game. It has gone from only offering taxable brokerage accounts to offering traditional and Roth IRAs, a spending account, subscription-free margin accounts, and a credit card. IRAs are especially impressive; Robinhood matches user deposits by 1% (it matches Robinhood Gold members by 3%). Even so, it offers fewer account types than Ally Invest.
Ally Invest offers pretty much every type of account you could want. You can open a standard taxable brokerage account jointly with another owner (like a spouse). You can open a retirement account, including traditional, Roth, and SEP IRAs. And you can open a custodial account like an UGMA or UTMA for a child. Ally Invest also offers a highly rated robo-advisory service for customers who want to put some or all of their investing on autopilot.
It's also worth noting that Ally is a bank in addition to a brokerage (prior to 2010, it was known as GMAC Bank, the financial arm of General Motors). So you can also open a checking account, savings account, or CD. Ally also offers a variety of lending products, including mortgages, auto loans, and personal loans. In short, Ally Invest could be a good choice for people who like to keep all of their financial accounts in one place.
| Ally Invest | Robinhood | |
|---|---|---|
| Taxable brokerage | Yes | Yes |
| Joint tenant | Yes | Yes |
| Margin | Yes | Yes |
| Robo-advisor | Yes | No |
| Traditional IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| Other IRA | Yes | No |
| Custodial | Yes | No |
| Checking | Yes | No but offers spending account |
| Savings | Yes | No but offer brokerage sweeps |
| Credit card | Yes | Waitlist |
Both have highly rated apps that are easy to use, though Ally Invest's recent Google reviews are poor.
Ally Invest holds ratings of 4.7 and 2.5 out of 5 stars on the App Store and Google Play store respectively. Ally Invest reviews often call out the all-in-one nature of the app and praise the live chat and customer service features. Recent Google Play reviews mention a poor refreshed design and log-in experience.
Robinhood's ratings are 4.2 and 4.1. Robinhood's ratings were higher prior to the "meme stock" craze of early 2021, when it suspended trading in certain volatile stocks, disappointing many customers. Robinhood's app offers one of the most seamless ways to trade stocks and cryptocurrencies and manage an investment portfolio. But the in-app ads can get annoying.
Both of these are excellent brokerage options, but are targeted to different types of investors.
Ally Invest is a full-featured brokerage and bank, and offers investment products and accounts designed to meet the needs of all investors. For example, if you want to buy bonds or mutual funds, Ally Invest could be a good choice for you (these investments aren't available through Robinhood).
On the other hand, if you want an easy-to-use platform that keeps expenses at a minimum, Robinhood could be worth considering. Plus, 1% to 3% IRA matching is something unique to Robinhood.
On Robinhood's Secure Website.
2025 Award Winner
A top pick for beginners, Robinhood combines $0 commission trades, an easy-to-use app, and a rare retirement deposit match.
$0 for stocks, ETFs, and options
$0
On Robinhood's Secure Website.
Sure is. Robinhood's app has more than a few ads; swiping through blocks advertising high-risk margin accounts is more than a little annoying. Then there's the catch on deposit match: you must keep money with Robinhood for years, or else you risk having match money revoked.
Also worth noting, Robinhood doesn't offer full-featured checking and savings accounts. What it offers now are piecemeal compared to alternatives. If you want to keep all your money in one place, look elsewhere -- Robinhood has yet to beef up its banking suite to competitive levels.
Yep. Customers have complained about the mobile app. That could make doing business with Ally Invest on your phone inconvenient. Nor does Ally Invest allow fractional trading. If you want to buy a Costco share, you've got to pay full price. Big bummer for investors with small balances.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
SoFi Disclosure:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Value Prop Disclosures
Promotion Disclosures
J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
