Microbial eukaryotes are important components of marine ecosystems, and the Marine Alveolates (MALVs) are consistently one of the most abundant and diverse groups of eukaryotes in global environmental sequencing surveys. Relatives of the dinoflagellates, MALVs are thought to be parasites of animals and other protists but the absence of data beyond ribosomal RNA gene sequences from all but two species means much of their biology and evolution remain unknown. Here we show that MALVs evolved independently from two distinct, free-living ancestors and that parasitism evolved twice, in parallel, prior to the divergence of the core dinoflagellates. Phylogenomics shows one subgroup (MALV II and IV, or Syndiniales) to be related to a novel lineage of free-living, eukaryovorous predators, the eleftherids, while the other (MALV I, now the Ichthyodiniales) is related to Oxyrrhis marina. Reconstructing the evolution of photosynthesis, plastids, and parasitism in early-diverging dinoflagellates show a number of parallels with the evolution of their sister group, the parasitic apicomplexans. In both groups, similar forms of parasitism evolved multiple times, photosynthesis was lost many times, and the plastid organelle was lost infrequently, leaving no trace in the genome that they ever existed.