The newest robo-advisor on the market called M1 Finance gives the more established, sophisticated investors great investing options. M1 Finance simplifies the investment process for beginning and experienced investors alike. Unlike other robo-advisors, M1 Finance does not charge a fee, and it gives you the option of taking more control over your investments if you want them (and less if you don’t)
Is M1 Right For You?
M1 Finance will be right for you if you need a low cost investment platform that gives you the freedom to do more for less.
Even as a beginning investor, you can find the tools within the platform to create an account that can help you reach your goals.
Here are our pros and cons:
- Commission Free Trading for individual investors.
- Pies help you visualize your investment strategy.
- Easy and fun app to use.
- Expert pies are easy ways to get started with a balanced portfolio.
- Buy individual stocks and partial shares.
- Auto rebalances your account to keep you in line with original goals.
- Minimizes long term expenses and fees.
- Reinvest dividends automatically with no transaction cost.
- Loan program allows you to take a loan on your account and not remove the funds from the market.
- $100 minimum balance to start trading.
- Only one trade window per day, usually 10:00 am CT.
- Free trading may cause you to trade more than you should.
- The news section is a little light on relevant information.
M1 Finance gives you the most robust brokerage platform we have found with as little total cost associated with that platform. If that sounds exciting, it should, because M1 is the only platform that operates this way.
There are metric tons of brokerage houses out there that will love to assist you in your financial journey, but they all have a disadvantage or two compared to what M1 offers. Here are some examples of other brokerages and how they work:
Betterment: This is one of the original robo advisor firms and they have compelling features like auto rebalancing and tax advantaged rebalancing. Their biggest problem is cost, they charge .25% on top of any funds you select just for using their platform.
Charles Schwab: This nationwide chain of investment advisors offers a more “full service” approach to investing. They still charge for equity trades, but do offer some robo advising and funds.
Edward Jones: This firm hearkens back to the days of an advisor that goes through all of your finances with you in person and step by step. Only go this way if you are ready to pay for that kind of attention.
While these three examples give you an idea of what is out there, this is not an exhaustive list of who competes with M1 Finance for your investment dollars.
Take the time to research the one that fits you best, and then come back to let us know if M1 was the best fit for you.
Why We Chose M1
We scoured the internet and YouTube looking for a certain type of brokerage. One that would support our unique qualifications and situation.
Actually, I’m kidding. We were looking for what most people look for, a low cost, easy to use investing platform that gave us the freedom to trade stocks and ETFs.
What drove the nail into the decision, was the free trades. There are other platforms that offer free trades, like Robin Hood, but the ease of use isn’t there. That brokerage almost seems like an open source, direct access kind of software. It didn’t fit the ease of use and it didn’t offer the expert portfolios M1 has.
Another app we considered was Acorns and this app came in a close second to M1 Finance.The cost of using the platform is really low(starting at $1 a month), but what drove me to consider them, was the concept of planting your acorns.
This means that any leftover money from transactions can be deposited into your Acorns account. An extremely easy way to keep a steady flow of funds into your investment account. This novel idea didn’t sell us fully on the app though.
Ultimately, M1 allows me to build my own portfolio and then gives me the freedom to trade at will with no commissions or fees. That kind of flexibility and sensible investing won us over.
By now you have a pretty good idea of what M1 Finance is about and why we are always raving about them. There aren’t many investment platforms that can get you salivating at the chance to invest your money.
Once you fund your account with $100, you’ll be ready to jump into the market and get started on an investing journey.
M1 offers more features, more investing options, and lower costs than any other platform out there. I’m glad you stopped by to see what M1 Finance is all about, but please let us know below if you are a fan like we are.
Feel free to use our link to see what M1 Finance can do for your investing future! Also receive an addition $10 in your account when you sign up
Disclaimer: Always keep in mind that we are not financial advisers and that we are recommending an investing platform and not giving you investing advice. Do not accept advice from blogs alone. Research your investment choices thoroughly. Choose investment advice wisely from professional sources.
DISCLOSURE: This post contains affiliate links, which means I may receive a small commission, at no cost to you, if you make a purchase through a link.