Platform Comparison

Ally Invest vs Tastytrade

Compare Ally Invest and Tastytrade on fees, DRIP, fractional shares and research for dividend investing.

AI

Ally Invest

★4.2

Ally Bank's brokerage arm pairs $0 commissions and free dividend reinvestment with seamless banking integration—though the lack of direct fractional shares holds it back.

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Higher Rated
TT

Tastytrade

★4.4

The options-focused platform with low contract fees, excellent education, and DRIP support—ideal for dividend investors using covered call strategies.

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Ally Invest vs Tastytrade: Fees, Minimums & DRIP Compared

FeatureAlly InvestTastytrade
Our Rating4.2/54.4/5
Trading Commissions$0$0
Account Minimum$0N/A
Fractional SharesDRIP onlyYes ($5 min)
DRIPFreeFree
Research ToolsBasicBasic
Best ForAlly Bank CustomersCovered Call Writers

Ally Invest vs Tastytrade: Pros and Cons

Ally Invest

Pros

  • + $0 commissions on stocks and ETFs
  • + Free dividend reinvestment (DRIP) with fractional share support
  • + $0 commissions on no-load mutual funds—the old $9.95 fee is gone
  • + Seamless integration with Ally Bank accounts (3.00% APY savings)
  • + Low options pricing at $0.50 per contract

Cons

  • - No direct fractional share purchases—DRIP is the only way to own fractions
  • - High margin rates, starting around 12% for balances under $25,000
  • - No cryptocurrency or futures trading
  • - $50 account transfer out fee (ACAT) and $25 IRA closure fee

Tastytrade

Pros

  • + Commission-free stock and ETF trading
  • + Low options pricing: $1 to open, $0 to close (capped at $10/leg)
  • + Fractional shares available for purchases and DRIP
  • + Free dividend reinvestment program
  • + Exceptional options education and content

Cons

  • - Very low 0.01% interest on uninvested cash
  • - No mutual funds, bonds, or forex trading
  • - Higher-than-average margin rates
  • - Steep learning curve for beginners

Which Is Better for Dividend Investors: Ally Invest or Tastytrade?

Choose Ally Invest if you...

  • Are in Ally Invest's core audience: ally bank customers

Choose Tastytrade if you...

  • Are in Tastytrade's core audience: covered call writers
  • Prefer a higher-rated overall platform

Want the full breakdown of fees, DRIP, and research tools? Read our Ally Invest review and Tastytrade review.

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Investment Disclaimer

Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice.