Many financial platforms offer only a single service, but—throughout this M1 Finance review—you’ll soon learn that’s not the case with M1! Founded in 2015, this company offers robo-advisor services, banking options, investment opportunities, low-interest loans, and more. Can a company with its resources spread so far apart really offer a high ROI for its customer? By the end of this review, you’ll find out!
What Sets M1 Finance Apart
Services such as Robinhood and Acorns are designed with beginner investors in mind. Both platforms make it possible for anyone with a bank account to start investing right away. Robinhood focuses more on making individual investments, whereas Acorns offers automated investing via a robo-advisor. So where does M1 Finance fit into all of this?
Well, M1 Finance offers the best of both worlds! The platform enables investors to enjoy secure investing through individual stocks and pre-compiled portfolios. Using its unique “pie” function, M1 provides investors with pre-made portfolios—each designed with a different end-game in mind—that can be later customized by the user. It also has additional features to explore, such as retirement options.
A Lack of Advice
At the beginning of this M1 Finance review, we mentioned that the platform is great for beginners. However, it’s important to note that this service won’t provide you with any guidance, just “pies.” For specific advice on how to invest, investment strategies, and the best stock picks, you’ll need to search for an alternative service like Motley Fool. Thankfully, complete beginners can still get started using the pre-made pies, and simply modify their portfolios later on once they’ve expanded their investing knowledge.
Who It’s Best for
M1 Finance is a platform that can be utilized by investors of all levels. It even offers a few additional services beyond basic investments, and the available options seem to keep piling up as time goes on.
- Beginner investors can use pre-made pies for simplified investing.
- More advanced investors can customize their pies with individual assets.
- Long-term investors can prepare for retirement using the M1 Roth IRA.
- Anyone can take advantage of the M1 Spend feature, which offers a more traditional banking experience.
The only people who won’t get much use out of M1 Finance are day traders, as the platform doesn’t allow for active trading. Free users only have access to the morning trading window, while Plus members have access to the afternoon window as well.
Offerings
For better or for worse, there are simply too many features for us to cover in-depth in this short M1 Finance review! However, let’s take a quick look at each one of M1’s offerings to give you an idea of what this company has to offer.
Basic Account
If you’re interested in getting started but don’t want to pay a membership fee, then a “Basic Account” is for you. This free service allows users to invest their money using the AM trading window (without commission fees), enjoy a 6.5% interest rate on M1 Borrow, open a checking account with one ATM fee reimbursement per month, and apply for credit.
M1 Plus Membership
For $125 per month, an M1 Plus membership builds upon the services offered with a Basic Account. For starters, you’ll instantly relieve access to the PM trading window. You’ll also enjoy a lower interest rate (5%) when borrowing, four monthly ATM fee reimbursements, and Smart Transfers. “Smart Transfers” enable automated transfers between accounts based on available account balances.
M1 Spend
If you want to be able to manage your money alongside investing in your future, then M1 Spend is a feature worth considering. This checking account cashback on eligible purchases, ATM fee reimbursements, early direct deposits, and a 2.50% APY. You can also get an “Owner’s Reward Card,” which is a credit card that offers up to 10% cash back on eligible purchases.
M1 Borrow
The M1 Borrow feature allows you to take out a loan. The maximum loan you’ll be eligible for is equal to 40% of your portfolio’s value.
M1 Roth IRA
This feature allows individuals to invest in a Roth IRA using “pies” or individually per asset. Unlike some alternatives, your M1 Roth IRA will be free of those pesky management fees!
M1 Finance Review: Final Thoughts
M1 is a company that offers a wide variety of services beyond investing. Nonetheless, we think they manage to effectively deliver on each one! Their “pie-based” approach to investing makes it easy for the inexperienced to get started, while still allowing for individual asset selection. Their IRA and Borrow features provide a good value, and even M1 Spend is a great complementary feature. We confidently recommend M1 Finance to investors of all levels. If you have money to invest and are ready to make it start working for you, join M1 Finance for free by clicking here!
