I have been using M1 finances for quite some time and I’m enjoying the no-cost investing platform. I highly recommend M1 finances to any investor being a beginner or more experienced, but I will tell you this that it doesn’t work well with that trading it’s great for everyone but there are some things new users need to know about it.
How does it work
M1 financing is just like any other finance program you choose up to 100 stocks or funds for your portfolio and then adjust the percentages of your money you want to be invested in each one. Once you have strategically came up with the desired percentages M1 Finance will automatically invest your money across the stocks or funds in the amount you designated. Some people may not be too comfortable picking their stocks right away and M1 finances allow you to select from its own recommendations and has them in a different portfolio that consists of 8 categories. Here are some
Diversified Investing- based on what you specified is your risk target recommendations are tailored based on your request
Retirement planning- recommendations will be recommended depending on your age and needs
Income Earners- recommendations are based on high-yield investments and dividend income
Industries and Sectors- Gives you the ability to invest in stocks that are specific to parts of the economy
Stocks and Bonds- build you a portfolio based on stocks and bonds
What makes M1 finance different
The greatest thing about M1 finances is that You can buy, sell and rebalance any stock or your entire portfolio on M1 Finance at no cost. Not worrying about losing trade gains on added fee’s feels great.
Some more of M1 Financing features pros
- No-cost investing
- If set up has automated investing of cash and deposits
- Professional portfolio investment options
- Borrow is just at 3.75%
- Regular and Retirement accounts available
- Has a limited trading window which makes it a non-starter for day traders
- No mutual funds available, though there are 2,000+ ETFs available
With the ability to save investors thousands of dollars of money due to the no fee’s I highly recommend this to everyone. You won’t lose anything giving it a shot.