Introduction
Choosing the right online brokerage can make a big difference in your investment experience. Two popular options are Fidelity and Ally. While both offer a range of investment products and tools, they have some differences that may suit different investors. In this article, we will compare Fidelity vs Ally and help you decide which one is right for you.
Overview of Fidelity
Fidelity is one of the largest and most established online brokerages in the US, with over 35 million individual customers and $7.8 trillion in total customer assets. It offers a range of investment options, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and options. Fidelity also has a robust research and educational platform, as well as tools for retirement planning and portfolio analysis.
Overview of Ally
Ally is a newer player in the online brokerage space, having launched its platform in 2017. However, it has quickly gained popularity for its low fees and user-friendly interface. Ally offers stocks, bonds, mutual funds, ETFs, and options, as well as forex trading. It also has a strong focus on education and offers a range of articles, videos, and webinars to help investors learn about different investment strategies.
Investment Products
Fidelity
Fidelity offers a wide range of investment products, including:
- Stocks
- Bonds
- Mutual funds
- ETFs
- Options
Ally
Ally offers similar investment products to Fidelity, including:
- Stocks
- Bonds
- Mutual funds
- ETFs
- Options
- Forex trading
Overall, both Fidelity and Ally offer a good range of investment products, but Ally’s addition of forex trading may be attractive to more experienced investors.
Fees
Fidelity
Fidelity’s fees are generally higher than Ally’s, but they vary depending on the investment product. For example, Fidelity charges $4.95 per trade for stocks and ETFs, and $0 for mutual funds. Options trades cost $4.95 plus $0.65 per contract.
Ally
Ally’s fees are generally lower than Fidelity’s. Stock and ETF trades cost $0, while options trades cost $0.50 per contract. Mutual funds are also free to buy and sell, but there is a $9.95 fee for no-load mutual funds that are held for less than 60 days.
Overall, Ally’s lower fees may be more attractive to investors who trade frequently or have smaller account balances.
Research and Education
Fidelity
Fidelity has a robust research and educational platform, including:
- Stock and fund screeners
- Market and economic analysis
- Retirement planning tools
- Portfolio analysis and tracking
- Online courses and webinars
Ally
Ally also offers a range of educational resources, including:
- Investment articles and videos
- Webinars and events
- Portfolio analysis tools
- Forex education and analysis
Overall, Fidelity’s research and educational platform is more comprehensive, but Ally’s resources may be more accessible and user-friendly for beginners.
Customer Service
Fidelity
Fidelity has a reputation for good customer service, with phone and chat support available 24/7. It also has over 190 physical branches around the US for in-person support.
Ally
Ally also offers 24/7 phone and chat support, as well as email support. However, it does not have any physical branches.
Overall, both Fidelity and Ally offer good customer support, but Fidelity’s physical branches may be more convenient for some investors.
Mobile App
Fidelity
Fidelity’s mobile app is highly rated, with a range of features including:
- Trading for stocks, ETFs, and options
- Real-time market data and news
- Portfolio tracking and analysis
- Bill pay and money transfer
Ally
Ally’s mobile app is also highly rated, with features such as:
- Trading for stocks, ETFs, options, and forex
- Real-time market data and news
- Check deposit and bill pay
- Portfolio analysis and tracking
Overall, both Fidelity and Ally offer excellent mobile apps with a range of features.
Security
Fidelity
Fidelity has a strong reputation for security, with measures such as:
- Two-factor authentication
- Biometric login
- Encryption and firewalls
- 24/7 fraud monitoring
Ally
Ally also takes security seriously, with measures such as:
- Two-factor authentication
- Encryption and firewalls
- 24/7 fraud monitoring
Overall, both Fidelity and Ally have strong security measures to protect their customers’ accounts.
Pros and Cons of Fidelity vs Ally
Fidelity Pros
- Wide range of investment products
- Robust research and educational platform
- Physical branches for in-person support
Fidelity Cons
- Higher fees than Ally
- Less user-friendly interface
Ally Pros
- Low fees
- User-friendly interface
- Forex trading available
Ally Cons
- Less investment products than Fidelity
- No physical branches
- Less comprehensive research and educational platform
Conclusion
Overall, both Fidelity and Ally are solid options for online brokerage accounts. Fidelity offers a wider range of investment products and a more comprehensive research and educational platform, while Ally has lower fees and a more user-friendly interface. Which one is right for you will depend on your investment goals and preferences.
