We are excited to announce that we are now working with TradeStation. Going forward, it will be the primary supported brokerage firm for Lattco Pro and AutoPilot.
Why TradeStation?
Earlier this year, we began the search for another brokerage partner. After meeting with several other companies, we decided that TradeStation would be the best fit for the needs of our clients. In addition to their commitment to customer service, we believe they offer several benefits over Ally Invest:
Lower Commissions: Stock trades will be continue to be $0.00, but you will pay $0.35 per option contract vs. $0.50 at Ally Invest.
Interest on Cash. The current rate is 2% annually. Ally Invest does not pay interest.
Better technology and a Faster API: Their focus on technology should lead to a faster and more reliable trading experience.
Read more about TradeStation benefits here.
Why Are We Changing Brokers?
We made the decision to move to a new brokerage firm based on the recent declines and changes at Ally Invest. Let’s look at some of those changes:
The removal of interest payments on the cash balance of your account is a lost opportunity for an additional boost to your income.
We have heard from many of our clients about a dissatisfaction with the Ally Invest Live platform and the removal of the “Classic” platform.
We have all been frustrated by the decline in customer support and support for our services. This decline began in 2020 and although we were hopeful it would improve over time, that has not happened. The lack of support has continued to escalate over the past few years.
One of our biggest disappointments with Ally Invest is their decision to discontinue the API. The API is the critical technology component that allows Lattco to communicate with Ally Invest. Without an API, you will lose the ability to place trades and download activity in Lattco.
Why Are We Transitioning Now?
In January of this year, Ally Invest told us that the API would likely go away in 18-24 months. At that time, we began to actively look for a new brokerage firm. We felt we had plenty of time to find a great partner and make the transition. During this search, we decided to move forward with TradeStation.
In April, Ally Invest notified us that they were moving up the end date for the API. They told us that it would only be available through the end of the year. Although this put more urgency on the transition, we were still comfortable with moving to a new broker under this timeline.
On July 21st, Ally Invest informed us that the API would go away in August. Clearly, we were shocked by this decision. We began to immediately create and communicate a plan to help our clients move their accounts with the fewest disruptions possible.
Obviously, Ally Invest forced us to make this move sooner than we had planned, but we are confident that we can make the transition within this very limited window. However, it is entirely possible that we may experience issues.
Timeline for Transition
Immediately – If you have not opened your TradeStation account, please do so as soon as possible.
August 21st – Trade at Ally Invest. This will be your last Trade Day at Ally. Please trade no later than Tuesday, August 22nd.
August 24th = Snider Advisors will start sending ACATs to our clients to begin transferring accounts. To help TradeStation work through the number of ACATs they will be receiving from our clients, we will not send them out all at the same time. So, you may not receive your ACAT on the first day.
September 18th – We plan for this to be your first Trade Day at TradeStation.
As you can see above, the first step in this process is to open your account(s) at TradeStation. Make sure you use this link to open your account. Because we are working under a limited timeframe, we need Lattco Pro and AutoPilot clients to complete the application process as quickly as possible.
To help you open your account, we have created a detailed guide that offers step-by-step instructions on completing the account application. We also recently offered a webinar on the process of opening your account. Here is a link to the recording.
Opening Your Account: High Level Details of the Move
- If you have multiple accounts, open your retirement account (Traditional, ROTH, etc.) first.
- If you are opening more than one account, log out and return to this link after completing the first account application.
- Please hold off on opening and transferring any non-Snider Method Accounts.
Key Notes on Configuring Your Account
- When you select account type, make sure it matches your account at Ally Invest. For example, if you have a SEP IRA at Ally, you will open a SEP IRA at TradeStation.
- You must deselect Crypto, Futures, and Futures Options. Only “EQUITIES & OPTIONS” should be selected.
- Keep Margin and Options “On” for ALL account types. This includes retirement accounts.
- Set Option Trading Level to 4 for all account types
We want you to know that our clients matter to us. We understand that moving your account to a new brokerage firm can be a hassle. Our team, as well as a team at TradeStation, is committed helping you make this transition as smoothly as possible. This move is our number one priority over the next few months. We appreciate your patience and cooperation as we work to provide you with the best possible experience.
Disclosure: Snider Advisors has an economic incentive for recommending that clients open an account with TradeStation. Specifically, Snider Advisors receives a flat referral payment for each new customer it refers to TradeStation. More detailed information about the relationship and our fiduciary responsibility can be found in our ADV Part 2A. Clients may contact Snider Advisors with any questions about the terms of the agreement with TradeStation.