Ally Invest Day Trading Rules in 2024

Ally Invest day trading rules, active trader platform, margin account requirements, buying power limits, and SEC/FINRA restrictions. Can you day trade on Ally Invest (ROTH) IRA?

Pattern Day Trading at Ally Invest

If you don't have $25,000 in your account at Ally Invest but still want to day trade, we'll show you how. You can actually day trade as much as you like by legally avoiding this rule.

How Many Day Trades Does Ally Invest Allow?

In the United States, you must have at least $25,000 in your account to day-trade, unless you qualify for an exemption. This rule isn't specific to Ally Invest; it's a widespread industry regulation set by financial regulators, not the companies themselves. Because Ally Invest must enforce this rule, its customers who want to day trade need to comply.

A pattern-day-trading account is defined quite simply:

- The account must place 4 or more round-trip day trades of stocks, options, ETFs, or other securities in one trading week (or any 5-business-day period).
- The account must be a margin account.
- The account's day trades must comprise at least 6% of the total trading activity.

If your account doesn't meet all three criteria, it isn't considered a pattern-day-trading (PDT) account, so you don't need to deposit $25,000.

General Strategy

The PDT rule might be annoying, but there are several loopholes to get around it. It's perfectly legal to structure your trading in a way that doesn't meet the strict definition of a pattern day trader. If you do this, Ally Invest won't require you to maintain $25,000 in your account.

Ways to Bypass the PDT Rule

One way to avoid being classified as a pattern day trader is to open a cash account instead of a margin account. Remember, only a margin account can be considered a PDT account, so with just a cash account, you won't meet the PDT criteria.

Keep in mind, if you choose this option and trade with a cash account, you won't be able to trade with unsettled funds. It usually takes two business days after a trade date for funds to settle. For example, if you sell a stock on Thursday, you won't be able to use those funds to trade again until Monday.

Another way to avoid the PDT regulation is to make no more than 3 trades each week. Since the rule defines a PDT as someone who executes 4 or more trades, you can trade up to three times every five business days without triggering the rule.

Additionally, you can manage the number of day trades you make to less than 6% of all your trading activities. This method requires a lot of regular trading, so it might not be practical for most traders.

Day Trading on Ally Invest

While Ally Invest may not be the most popular broker for day trading, it does offer some basic tools and a reasonable commission schedule. Let's explore further.

Ally Day Trading Platforms

Ally Invest LIVE is the broker's browser-based platform. It provides real-time data for stocks, ETFs, and options. The order ticket on this platform allows you to place market, limit, stop, trailing, and market-on-the-close orders. However, the platform lacks Level II quotes or direct-access routing.

The charting features include about 100 technical studies, such as the Alligator, Keltner Channel, and Price Oscillator. Chart intervals can be set as low as one minute and styles include bar, candle, and volume candle.





Orders can be quickly placed next to the charts, facilitating fast trading, although right-click trading isn't possible.





For active traders, Ally's desktop software Quotestream offers Level II quotes and tick-by-tick price history, which are significant advantages for day trading.


Ally’s forex platform supports a variety of orders, including stop, limit, and contingent (OCO, if/then). Its charting includes multiple technical indicators, and the platform also provides an easy close button for positions. Ally offers over 50 currency pairs with 50:1 leverage.


In addition to its proprietary software, Ally also offers MetaTrader 4 to its forex clients, along with a forex mobile app.

Commission Schedule

Ally Invest does not charge commissions on forex trades but earns through the bid-ask spread. Stocks and ETF trades are free, while options trades cost 50 cents per contract.

Ally Invest doesn't impose account fees. Securities accounts have no minimum deposit requirements, whereas forex accounts require at least $50 to start.

Better Broker For Traders

For those looking for more options, Charles Schwab is a superior choice over Ally Invest. It offers futures trading, more products, and more advanced trading platforms.