Discover M1 Finance: A Cost-Effective Solution Outpacing Traditional Robo Advisors

Interested in investing your money, getting a loan, and earning cashback on everyday purchases all under one roof? M1 Finance could be your solution! This app lets you invest freely, construct your fund, and even invest in fractional shares with any money amount.

M1 Finance is a user-friendly investing app giving you complete control over your finances. It’s more than a regular “robo advisor” because of the level of customization it provides. It enables you to create your own fund, which is exciting and unique.

What makes M1 Finance special is zero fees for opening an investment account or maintaining balances. Their earnings mainly come from features like their M1 Spend Plus account and their borrowing option.

M1 Finance presents many types of investment accounts like regular brokerage investing, IRA, SEP IRA, Trust, and even an interest-bearing and cashback checking account known as M1 Spend.

They offer stocks and ETFs only. You also have the liberty to create your own funds. You can design, add investments, and decide how much you want to invest in your fund.

Investments with M1 Finance include:

Building your Custom Fund: Uniquely with M1, you get to build your own custom fund. You can include this in your portfolio, just like you would with an ETF.

Fractional Shares: Instead of purchasing full-share investments, you can buy fractional shares allowing any dollar amount investment into any company, irrespective of share prices.

Free Trades: There is no charge on transactions when investing with M1 Finance.

Automated Investments: M1 can auto-invest for you with a pre-set investment pattern that distributes your funds according to your preferences.

Free Portfolio Management: You can make easy selections from professionally created funds or your own. Any contribution you add gets invested automatically according to your selections.

Diversification: By spreading your money across different investments, your portfolio risk is effectively managed.

Dynamic Rebalancing: M1 follows a dynamic rebalancing technique, keeping your investment allocations at the target level.

M1 Finance also offers borrowing options if your account balance is at least $10,000, allowing you to borrow up to 35% without any credit checks at an affordable interest rate.

However, M1 Finance does have some limitations. For day traders, the trading window system used by M1 may not be ideal, as trades are not real-time and only execute at certain times of the day. The availability of alternative investment tools is limited, and withdrawal processes can be prolonged.

M1 Finance is an excellent choice for long-term investors who enjoy customizing their portfolio. If you’re keen on investing in fractional shares, investing for free, borrowing against your portfolio, and managing your portfolio – M1 is an option you won’t regret.

Please do check out other investment platforms as well – Public, Moomoo, and Webull are worth exploring.