Order Routing and Payment for Order Flow Disclosures
Payment For Order Flow Disclosure:
Pursuant to federal securities regulations, Ally Invest is required to disclose at the time your account is opened, and annually thereafter, our payment for order flow practices. Ally Invest routes your equity orders to broker-dealers or market centers (i.e., primary exchanges or electronic communication networks ("ECN")) for execution. These broker-dealers and market centers may include dealers who make markets in these securities. Ally Invest may receive compensation for routing equity orders to dealers. In exchange for routing your equity orders to certain market centers, we may receive monetary rebates per executed share for equity orders that add liquidity to its book and/or rebates for aggregate exchange fees. The rebates are considered payment for order flow even though it may not necessarily offset our aggregate payments for removing liquidity.
Ally Invest may receive payment for routing your options orders to designated broker-dealers or market centers for execution. Compensation is in the form of a per contract cash payment. Order routing decisions are based on a number of factors including the size of the order, the opportunity for price improvement and the quality of order executions. However, Ally Invest regularly reviews routing decisions and market centers to ensure that your orders meet our duty of best execution.
Order Routing Practices:
The U.S. Securities and Exchange Commission’s Rule Rule 606 requires all broker-dealers (including introducing firms) that route customer orders in equity and option securities to make publicly available quarterly reports that, among other things, identify the venues to which customer orders are routed for execution and also disclose the material aspects of the broker-dealer's relationship with such venues. This information is available on our website, or upon customer written request a hard copy will be provided. Download the most current summary of Ally Invest's order routing activity by clicking on the following PDF or XML links:
4th Quarter 2020
3rd Quarter 2020
2nd Quarter 2020
1st Quarter 2020
Questions regarding this report should be addressed to the Ally Invest Customer Service Department.
Order Handling Disclosure:
SEC Rule 606(b)(1) requires that, upon request, Ally Invest Securities disclose to each client that places one or more orders in NMS stocks a report identifying certain details regarding that client’s orders, specifically: (i) the identity of the venue to which the client’s orders were routed for execution in the six months prior to the request; (ii) whether the orders were directed orders or non-directed orders; and (iii) the time of the transactions, if any, that resulted from such orders. If you would like to receive SEC Rule 606(b)(1) information related to the orders you placed at Ally Invest Securities, contact Ally Invest Customer Service and request a SEC Rule 606(b)(1) report at Support@invest.ally.com.