Using data from our latest annual broker review which tested more than a dozen different online brokers
over six months, we can compare Charles Schwab vs Ally Invest to determine which broker is best. Let's dive in.
First, we will break down the commission charges of both brokers for placing stock and options trades. Charles Schwab and Ally Invest have equal fees for trading stocks (equities), $4.95 per trade. Looking at options, the base fees charged are the same for both brokers, $4.95. Option contracts at both of the brokerages are the same at $0.65 each. Instead of flat rate fees, several brokers charge a per-share fee instead. For a complete review of trading charges, read our full online broker reviews
Next, investors want to make sure they can trade the investment vehicle they want. Ally Invest offers clients Stock Trading, Options Trading, Mutual Funds, Forex Trading and Futures Trading while Charles Schwab offers Stock Trading, Options Trading, Mutual Funds and Futures Trading. As far as mutual funds go, Ally Invest boasts an offering of 10264 mutual funds compared to Charles Schwab's 5509 available funds. And, commission free ETFs deserve a comparison, with Ally Invest falling behind Charles Schwab, offering 100 commission free ETFs compared to Charles Schwab's 244.
Finally, by comparing the each broker's website and platform features, we can surface interesting differences. Charles Schwab nor Ally Invest offers virtual trading. For mobile trading, Charles Schwab and Ally Invest both have a iPhone App, iPad App and Android App. Online banking is also used by many customers, and multiple full-service brokerages provide these services. Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans are available to customers of Charles Schwab and Ally Invest. All factors considered, when it comes to platform tools, research, and mobile trading, Charles Schwab was rated Best in Class - Platforms & Tools and Best in Class - Research, while Ally Invest was rated none of these.
Overall, Charles Schwab takes the upper hand with 4.50 stars over Ally Invest's 3.50 stars.