How to Get Started with M1 Finance: A Comprehensive Buying Guide

Your Guide to buying the best M1 Finance

Overview

M1 Finance is an online investment platform that combines the automated convenience of robo-advisors with the flexibility and affordability of traditional brokerage accounts. This buying guide will provide an overview of the features, benefits and costs associated with M1 Finance, and will provide advice on how to get the most out of your M1 Finance account. We will discuss the types of investments that M1 Finance supports, offer step-by-step instructions for creating and managing an M1 portfolio, and provide tips on how to maximize returns and minimize risk. With this guide, you will have the knowledge and confidence to make the most of your M1 Finance account.

Key features

  1. Robo Advisory: M1 Finance offers a robo-advisory service that helps users build a smart, diversified portfolio with minimal effort. Users can choose from a variety of pre-set portfolios or create a custom portfolio tailored to their individual financial goals.
  2. Fractional Shares: M1 Finance allows users to purchase fractional shares of stocks and ETFs, making it easier for them to diversify their portfolio without having to worry about investing large sums of money.
  3. Tax Efficiency: M1 Finance is a tax-efficient platform, allowing users to minimize their taxes by harvesting losses and deferring gains.
  4. Low Fees: M1 Finance offers low fees on its various services, making it an attractive investment platform for those looking to save money.
  5. Automatic Investing: M1 Finance allows users to set up automatic investments, making it easier to save money and invest in the long-term.
  6. Banking Features: M1 Finance offers a variety of banking features, including checking accounts, debit cards, and ACH transfers.
  7. Security: M1 Finance offers secure banking and investment services, with safeguards in place to protect users' personal information and financial data.

See the most popular M1 Finance on Amazon

Important considerations

Pros

  • Low Costs - M1 Finance offers low costs for investing with no commissions or account minimums.
  • Automated Investing - M1 Finance offers automated investing, allowing investors to set up a portfolio and have it managed automatically.
  • Wide Range of Investments - M1 Finance offers access to a variety of investments, including stocks, ETFs, and mutual funds.
  • Tax-Advantaged Accounts - M1 Finance offers tax-advantaged retirement accounts, such as a Traditional IRA, Roth IRA, and SEP IRA.
  • User-Friendly Interface - M1 Finance offers a user-friendly interface with easy-to-use tools and charts for investors of all skill levels.
  • Robo-Advisor - M1 Finance offers a robo-advisor to help investors make better decisions about their investments.

Cons

  • Costs: M1 Finance can become costly based on the number and type of investments you make. The stock trades are commission-free, but other investments, such as ETFs, require a fee.
  • Features: M1 Finance offers fewer features than some of its competitors. This includes limited portfolio performance analysis and educational content.
  • Technology: The M1 Finance app is available only for iOS and Android devices, so if you use a different operating system, you’ll need to access the website to manage your account.
  • Customer Service: M1 Finance has limited customer service. They do not offer a phone number or chat support, instead providing only email support.
  • Security: M1 Finance offers a variety of security measures to protect your account, but it does not offer FDIC insurance.
  • Minimums: Before you can begin investing, you must have at least $100 in your account.

Best alternatives

  1. Betterment - a robo-advisor that provides automated investing and portfolio management services.
  2. Acorns - a micro-investing app that allows users to invest spare change and build wealth.
  3. Wealthfront - an automated investment platform that helps users to manage their investments.
  4. Wealthsimple - a digital wealth management service that focuses on making investing easier and more accessible.
  5. SigFig - a digital wealth management platform that helps users to manage their investments.
  6. Stash - an online broker that helps users to invest in fractional shares of stocks and ETFs.

Related tools, supplies, and accessories

  • Smartphone app - Mobile app that allows you to access and manage all of your M1 Finance accounts.
  • Investment account - Account that allows you to make investments.
  • M1 Borrow - A margin loan offered by M1 Finance that allows you to borrow money against your portfolio.
  • Auto-Invest - Automatically invests cash that arrives in your account.
  • M1 Spend - A checking account connected to your M1 portfolio.
  • Portfolio Builder - A tool that helps you build a portfolio tailored to your investment goals.
  • Tax-Loss Harvesting - Automatically harvest tax losses for more efficient tax planning.
  • Tax-Optimized Investing - Automatically optimize your portfolio to minimize taxes.

Common questions

  1. What is M1 Finance? M1 Finance is an online investing platform that allows users to build customized portfolios that are managed according to their goals and risk tolerance. It also offers a number of financial services, such as automated deposits, automatic rebalancing, and tax optimization.
  2. What are the benefits of using M1 Finance? The benefits of using M1 Finance include access to a diverse array of investment options, low fees, automated deposits and rebalancing, and tax optimization.
  3. What fees are associated with M1 Finance? M1 Finance does not charge any management fees; it only charges a fee for automated deposits into your account. There may also be other fees associated with certain transactions.
  4. What types of investments can I make through M1 Finance? M1 Finance allows users to build customized portfolios of stocks, ETFs, and other investments. It also offers a number of pre-built portfolios that are designed for specific investing goals.
  5. What accounts does M1 Finance offer? M1 Finance offers individual taxable accounts, joint accounts, trust accounts, and retirement accounts (Roth IRAs, Traditional IRAs, SEP IRAs, and Rollover IRAs).
  6. Is M1 Finance secure? M1 Finance uses industry-standard security measures to protect user accounts. It also provides users with the ability to set up two-factor authentication for added security.

Trivia

M1 Finance is the first investment platform of its kind to offer commission-free investing and portfolio automation. It has gained a lot of attention lately for its innovative features like Pie Builder which allows users to create personalised portfolios from over 6,000 individual stocks and ETFs. It also offers users the ability to sync their bank account for automatic deposits, as well as other features such as portfolio rebalancing and automated tax loss harvesting. One interesting fact about M1 Finance is that they also offer members a referral program which allows them to earn rewards for referring friends to the platform. Referrals can earn users up to $2,500 for each successful referral, which makes it an attractive proposition for those looking to save money and grow their investments. Source: M1 Finance website

Disclaimer: This buying guide was not created by humans, and it is possible that some of it's content is inaccurate or incomplete. We do not guarantee or take any liability for the accuracy of this buying guide. Additionally, the images on this page were generated by AI and may not accurately represent the product that is being discussed. We have tried to convey useful information, but it is our subjective opinion and should not be taken as complete or factual.