Exploring Free Trading Platforms: A Comparative Analysis of Public.com and Ally Invest

Let’s talk about investing. If you’re new to this, you might have heard of a couple of affordable trading platforms – Public.com and Ally Invest. They’re great choices for beginners and seasoned investors who want to keep trading costs down. But which one’s the better pick? Let’s break it down.

Public.com used to go by the name Matador and was launched in 2018. It’s a mobile app-based trading platform with a desktop version too. Its user-friendly app lets you trade stocks for no charge. They also carved a niche by adding a social aspect to their platform, allowing users to connect, share advice, and learn from each other.

– Some cool features offered by Public.com:
– Commission-free trading of stocks, ETFs, and even 27 different cryptocurrencies.
– You can buy fractional shares, that is, pieces of stocks, even ones from big companies.
– It encourages social interaction among investors to share and learn.
– They offer themed collections to find investments that fit your interests.

Remember, they don’t charge for opening or closing an account, and there are no account minimums. However, they do have some charges such as $5 for paper statements and $25 for outgoing domestic wire transfers.

On the other hand, Ally Invest is part of Ally Bank with the same goal – uncomplicating banking services. Compared to Public.com, Ally Invest offers a wider range of investment options like ETFs, mutual funds, options, and fixed income products. Their platform is user-friendly, but charges apply for some services. For instance, $0.50 for each options contract, $9.95 for each no-load mutual fund trade, and a $50 fee for transferring your account elsewhere.

Where Public.com shines is its focus on fostering a social, collaborative community among its users. Here, you can connect with other investors, learn from them and share your own insights. Ally Invest, however, serves more generic market information.

Ally Invest does offer a more extensive range of data and research options. If you favor in-depth research and backtesting strategies, then Ally might be a better fit for you.

One unique selling proposition of Public.com is that they offer fractional shares and access to a broad range of cryptocurrencies, which makes them quite appealing, especially for folks new to investing.

So, both platforms have their own advantages. Ally Invest offers more depth, but is slightly more complex, while Public.com focuses on the social aspect and simplicity. If you’re comfortable sticking to stocks, cryptocurrencies, and ETFs, Public.com could be a simpler choice for you. But if you’re looking for wider options, Ally Invest might fit your needs better.

Remember, investing always has risks, so make sure to make informed decisions, regardless of the platform you choose.