Charles Schwab vs Ally Invest 2024

Comparing brokers side by side is no easy task. We spend hundreds of hours each year testing the platforms, mobile apps, trading tools and general ease of use among online brokerages, as well as comparing commissions and fees, to find the best online broker.

Though many U.S. brokers offer basic trading features, such as an app, charting tools, stock research and educational content, the depth of those features can vary widely. Let's compare Charles Schwab vs Ally Invest.

In stock trading, the more you know, the better you’ll do. Taking advantage of resources like articles, webinars, videos and interactive elements is a great way to shorten the learning curve. In our analysis, we examine the availability of several different types of educational materials.

For 2024, our review finds that Charles Schwab offers more comprehensive new investor education for beginning investors than Ally Invest. Charles Schwab offers investors access to Videos, Education (Stocks), Education (ETFs), Education (Options), Education (Mutual Funds), Education (Bonds) and Education (Retirement), while Ally Invest offers investors access to Education (Stocks), Education (ETFs), Education (Options), Education (Mutual Funds), Education (Bonds) and Education (Retirement). Neither have Paper Trading.

Charles Schwab and Ally Invest charge the same amount for regular stock trades, $0.00. Option contracts are pricier at Charles Schwab, costing $0.65 per contract versus $0.50 per contract at Ally Invest. For futures, Charles Schwab charges $2.25 per contract and Ally Invest charges (Not offered) per contract. For a deeper dive, see our best brokers for free stock trading or options trading guides.

Looking at a full range of investment options, including order types and international trading, our research has found that Charles Schwab offers a more comprehensive offering than Ally Invest. Charles Schwab ranks #2 out of 18 brokers for our Investment Options category, while Ally Invest ranks #8.

Charles Schwab offers investors access to Stock Trading, Fractional Shares, Options Trading, OTC Stocks, Mutual Funds, Futures Trading, Forex Trading and Advisor Services, while Ally Invest offers investors access to Stock Trading, Options Trading, OTC Stocks, Mutual Funds and Advisor Services. Looking at Mutual Funds, Ally Invest trails Charles Schwab in its offering of no transaction fee (NTF) mutual funds, with Charles Schwab offering 6085 and Ally Invest offering 3900.

In our analysis of top U.S. brokerages, we research whether each broker offers the ability to trade cash cryptocurrency, such as bitcoin and ethereum. Though crypto has risen steadily in popularity, availability still varies from broker to broker. Our review finds that neither Charles Schwab or Ally Invest offer crypto trading.

To compare the day trading platforms of Charles Schwab and Ally Invest, we focused on trading tools and functionality across both web and desktop-based platforms. Popular day trading platform tools include streaming real-time quotes, stock alerts, trading hotkeys, direct market routing, streaming time and sales, customizable watch lists, backtesting, and fully functional charting packages, among many others. For day trading, Charles Schwab offers a better experience.

After testing 25 features across the stock trading apps of Charles Schwab and Ally Invest, we found Charles Schwab to be better overall. The best stock market apps are easy to use, have excellent design, and deliver a fully featured online trading experience. Charles Schwab ranks #4 out of 18 brokers, while Ally Invest ranks #13.

Charles Schwab Trading App Gallery

Ally Invest Trading App Gallery

For research, Charles Schwab offers superior market research than Ally Invest. Charles Schwab ranks #1 and Ally Invest ranks #7.

Over the years, we've found that the best brokers provide rich market commentary, a variety of third-party research reports, and thorough quote screens that are not just easy to navigate, but that also include a comprehensive selection of fundamental data. Robust stock, ETFs, and mutual fund screeners are also must-haves for trade idea generation.

Charles Schwab requires a minimum deposit of $0.00, while Ally Invest requires a minimum deposit of $0.00. From our testing, we found that SoFi is the only broker that requires a minimum deposit.

Charles Schwab charges 13.575% for accounts under $25,000 while Ally Invest charges a margin rate of 13%. The industry average of the 18 brokers we track is 9%.

While Charles Schwab offers fractional shares, Ally Invest does not. Our research has found that 54% of brokers offer fractional shares investing. Fractional shares allow traders to buy a part of a whole share of stock. For example, if Amazon is trading at $1,000, you could buy half a share for $500.

Both Charles Schwab and Ally Invest allow you to trade penny stocks. Charles Schwab charges $6.95 per trade while Ally Invest charges $4.95. Penny stocks are companies whose shares trade for under $5 and are listed over the counter (OTC). For brokers that do offer penny stock trades, the average commission is $3.

Online banking can be a benefit for investors, and some brokerages do provide banking services to customers. Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans are available to customers of Charles Schwab and Ally Invest.

StockBrokers.com partners with customer experience research group Confero to conduct phone tests from locations across the United States to thoroughly evaluate the quality and speed of brokerage customer service. (Read more about How We Test.) Here are the results of our current testing.

Charles Schwab was rated 3rd out of 13 brokers, with an overall score of 9.1 out of 10.

Ally Invest was rated 4th out of 13 brokers, with an overall score of 8.69 out of 10.

With the addition of TD Ameritrade's thinkorswim platforms and the enhancement of several features, Schwab is now a vigorous competitor with thought-provoking research and commentary and a client experience to fit any preference.

In the 2024 StockBrokers.com Annual Awards, Charles Schwab was ranked No. 1 for Research, High Net Worth Investors, Bond Research, Desktop Stock Trading Platform, and Trader App. It was among Best in Class for Commissions & Fees, Platforms & Tools, Mobile Trading Apps, Investment Options, Education, Ease of Use, Day Trading, Beginners, Customer Service, Futures Trading, Options Trading, Penny Stock Trading, IRA Accounts and Overall.

For current Ally customers looking to invest in stocks, Ally's universal-accounts experience and easy-to-use website offer a convenient solution. Its website is far stronger than the mobile app.

In the 2024 StockBrokers.com Annual Awards, Ally Invest ranked among Best in Class for Bank Brokerage and Customer Service.