Ally Invest regulation

Trying to find out whether Ally Invest is regulated? Not sure which authorities are overseeing Ally Invest and why this matters?

Rest assured, the lack of regulation at Ally Invest is not a reason for worry. Our brokerage experts have determined that Ally Invest is a fully regulated broker, overseen in USA. We gathered all the information on the regulatory profile of Ally Invest and will explain why this matters.

Why Ally Invest is trustworthy

Why [Broker name] is trustworthy

Edith Balázs

Forex • Safety • Financial Journalism

I have covered forex markets for more than two decades as a financial journalist. My years at Bloomberg and similar news services armed me with an in-depth understanding of the financial market landscape and the forces that move forex markets.

Learn about our methodology

Edith Balázs

Forex • Safety • Financial Journalism

I have personally tested several brokers globally and I am familiar with the regulatory and licensing procedures of at least a dozen financial authorities globally. Here are my key insights into the regulatory status of Ally Invest as of July 2024:

• Ally Invest operates under a very strict regulator, which is vital for the safety of your money if you have an account with the broker.
• Ally Invest must separate client funds/assets from its own operations; this makes all the difference for the safety of your investments.
• Explore the services of Ally Invest in our comprehensive Ally Invest review for 2024 and browse other top-tier regulated brokers with our unique Find My Broker tool.

Think of a broker with strict regulatory oversight like a lifeguard at the beach. Just as the lifeguard keeps you safe in the water, offering immediate help when you need it, brokers operating with top-tier regulation protect your investments. They make sure your investments are secure and handled with integrity and transparency.

Ally Invest has the following regulation:

• USA - Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA)
• Clients opening forex account - Commodity Futures Trading Commission (CFTC)

Why does all this matter? We are contacted by an alarming number of people who ended up working with unregulated brokers and they share with us some sad and frightening stories. Here’s an example.

Marco invested a substantial amount using what appeared to be a credible online trading platform. Initially, his investments showed gains, and he was able to make several withdrawals without issues. Encouraged, he increased his investments, but when he tried to withdraw some profits after a successful trade, his requests went unanswered, and customer service became unreachable. Further investigation revealed the broker was not regulated by any financial authority. Eventually, the platform vanished overnight, taking John's investments with it, leaving him with no recourse to recover his funds.

Choosing a broker with top-tier regulation means you're in safe hands. This level of strict oversight ensures that your investments are protected, you're getting fair pricing, and trading conditions are transparent and favorable.

As a broker with top-tier regulation, Ally Invest is legally required to keep the funds and assets of its clients separate from its own money. This is a game changer in terms of the safety of your investments.

Client fund segregation is like having your money in a separate safe from Ally Invest’s own cash. Thus, if your broker ever runs into financial trouble, your funds won't be touched to settle their debts - they're entirely off-limits. It’s a crucial setup because it protects your money, ensuring that what you’ve invested stays secure and accessible only to you. This segregation is a requirement imposed by top-tier regulators and not something you can request your broker to do. You will only have access to this safety net if your broker has the appropriate regulation.

In the highly unlikely event that Ally Invest commits fraud and uses client assets for its own purposes, you can still recover your money if you have access to investor protection.

This matters for you because the investor protection amount and the regulator may differ from entity to entity.
Ally Invest operates several legal entities, but all customers (except forex) are covered by the US investor protection scheme called SIPC.
The SIPC investor protection scheme protects against the loss of cash and securities in case the broker goes bust. The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash. This amount is substantially higher than what most other investor protection schemes provide.
Not all investments are protected by SIPC. In general, SIPC covers notes, stocks, bonds, mutual funds and other investment company shares, and other registered securities. It does not cover instruments such as unregistered investment contracts, unregistered limited partnerships, fixed annuity contracts, currency, and interests in gold, silver, or other commodity futures contracts or commodity options.
Below is a rundown of Ally Invest regulators, legal entities and investor protection amounts:

As a plus, Ally's clearing firm, Apex Clearing, has also purchased an additional insurance policy through a group of London Underwriters (with Lloyd's of London Syndicates as the Lead Underwriter) to supplement SIPC protection. This policy becomes available to customers in the event that SIPC limits are exhausted, and provides protection for securities and cash up to a total of $150 million.
Like most US brokers, Ally Invest does not provide negative balance protection.

For detailed insights into trading conditions, costs, and service quality at Ally Invest, check out BrokerChooser's Ally Invest review for 2024. All our broker reviews are based on the analysis of nearly 600 data points and direct experience. When we review a broker, we go hands-on by opening a real-money account and trading on its platforms, giving us a complete view of what it offers and how it performs.

The BrokerChooser team has personally tested and reviewed more than 100 brokers globally, all of which have top-tier regulation. All our experience and expertise is included in the Find My Broker tool. Simply answer a few questions and get a personalized broker list.