M1 Finance: Invest In Etfs With Ease

M1 Finance is a fee-free platform that combines investing, cash management, and borrowing. It offers commission-free trading for stocks and ETFs, and users can build custom portfolios, called pies, that allow them to invest for specific goals or objectives. M1 Finance does not support mutual funds and options trading, but it does offer a variety of financial tools, including a cash account and a rewards credit card. The platform also provides access to loans secured by assets in the user's portfolio.

M1 Finance offers commission-free trading for ETFs

M1 Finance offers a range of over 6,000 stocks and ETFs listed on the NYSE and NASDAQ exchanges, as well as a select number of OTC securities. The platform also supports crypto trading, allowing users to invest in Bitcoin, Ethereum, and Litecoin.

M1 Finance's commission-free trading extends to its retirement accounts, including traditional, Roth, and SEP IRAs. These accounts allow users to pick their own stocks and ETFs, select professional portfolios, purchase fractional shares, and automatically reinvest dividends.

In addition to its investment offerings, M1 Finance provides a range of financial tools, including a cash account and a rewards credit card. The platform also offers M1 Borrow, which allows investors to borrow against their portfolio at a competitive rate.

M1 Finance is designed for long-term investors who prefer a hands-off, goal-based approach to investing. The platform's automation features and customisable pies make it easy for users to meet their specific investment objectives.

While M1 Finance offers commission-free trading, there is a $3 monthly platform fee for accounts without an active M1 Personal Loan or assets held on the M1 platform amounting to less than $10,000. This fee can be waived if certain requirements are met, such as maintaining a minimum account balance of $10,000.

You can build custom portfolios, called pies, with M1 Finance

M1 Finance allows users to build custom portfolios, which are called "pies". The platform offers a high degree of automation and customisation, allowing users to set goals and automate contributions to their portfolio.

The "pies" feature lets users choose which stocks, ETFs, or portfolios they want to invest in and what percentage of their money they would like to allocate to each investment. Users can also invest in M1's Model Portfolios, which are themed investment portfolios of stocks and ETFs aligned with different goals, such as socially responsible investing or retirement.

M1 Finance offers a range of account types, including individual and joint brokerage accounts, IRAs, crypto accounts, and custodial accounts. The platform also supports fractional share investing, allowing users to invest in partial shares of stocks or ETFs.

In addition to custom portfolios, M1 Finance provides access to loans secured by the assets in the user's portfolio, known as M1 Margin Loans. Users must have at least $2,000 in assets in their account to borrow against their portfolio, and not all investments are eligible for collateral.

M1 Finance's platform combines self-directed brokerage features with pre-built portfolios and automated portfolio management capabilities. The extensive customisation options make it a good choice for investors seeking a high level of flexibility and automation in their investment strategies.

M1 Finance offers tax-advantaged retirement accounts: traditional, Roth and SEP IRAs

M1 Finance offers a range of tax-advantaged retirement accounts, including traditional, Roth, and SEP IRAs. These accounts provide investors with various benefits, such as tax-deferment or tax-free growth, depending on the type of account.

With a traditional IRA, investors can contribute pre-tax dollars, which may provide them with a tax deduction. The investments in the account grow tax-deferred, and taxes are paid when funds are withdrawn during retirement. On the other hand, Roth IRAs are funded with after-tax dollars, meaning there is no upfront tax benefit. However, the investments grow tax-free, and qualified withdrawals during retirement are also tax-free. Lastly, SEP IRAs are similar to traditional IRAs but are specifically designed for self-employed individuals or small business owners and their employees. They offer tax-deductible contributions and tax-deferred growth.

M1 Finance's retirement accounts provide investors with the flexibility to choose from over 6,000 stocks and exchange-traded funds (ETFs) listed on the NYSE and NASDAQ exchanges. This allows investors to create diversified portfolios that align with their retirement goals and risk tolerance. Additionally, M1 Finance offers features such as automated rebalancing and dynamic rebalancing, ensuring that investors' portfolios stay aligned with their target allocations.

It is important to note that M1 Finance does not provide tax or investment advice, and individuals should consult with a qualified tax or financial advisor before making any decisions regarding their retirement accounts.

M1 Finance offers a cash account and a credit card

M1 Finance offers a range of financial products and services, including a cash account and a credit card.

M1 Finance Cash Account

The M1 Finance High-Yield Cash Account is an investment product that allows users to earn interest on their idle cash, with a competitive 4.25% APY. This account is powered by an M1 brokerage account, which is required to participate in the High-Yield Cash Account. It is important to note that M1 is not a bank, and the High-Yield Cash Account is not a typical checking or savings account. Instead, it is designed for investing in securities. The cash account offers unlimited withdrawals, instant transfers, and customizable automation features. Additionally, it provides FDIC insurance of up to $3.75 million for added security.

M1 Finance Credit Card

The Owner's Rewards Card by M1 is a credit card that offers cashback rewards for purchases made with popular brands. Cardholders can earn up to 10% cashback with select brands and 1.5% cashback on all other purchases. The cashback rewards can be automatically reinvested in the user's M1 portfolio, helping to work towards long-term investing goals. The credit card is subject to approval and offers added protections such as Visa Signature perks and Visa Zero Liability.

M1 Finance provides a platform for individuals to manage their investments and finances, offering tools like the High-Yield Cash Account and the Owner's Rewards Card to help individuals maximize their financial potential.

M1 Finance offers loans secured by the assets in your portfolio

The Margin Loan acts as a flexible line of credit, using your underlying securities (e.g. stocks, ETFs, bonds or mutual funds) as collateral. M1 Finance offers access to Margin Loans with built-in margin access, allowing you to borrow in seconds and pay back at your own pace. There is no extra paperwork required as margin access is built-in, and there is no application process.

The rate for a Margin Loan is fixed at 6.50% or 7.25%. This is a competitive rate, and it does not change based on how much you borrow. You are billed for interest monthly and can pay back the principal whenever you want. It is important to note that the M1 base rate for margin lending is variable and tracks the Federal Funds Rate.

To be eligible for an M1 Margin Loan, you must have at least $2,000 invested in an M1 Individual Brokerage Account, Joint Brokerage Account, or Trust Account. The portfolio line of credit is automatically available to you the next business day after you meet the eligibility requirements. It is important to consider the risks before using Margin. If your portfolio value declines, your account may trigger a maintenance call, and M1 may need to sell a portion of your portfolio to cover the loan.

With M1 Finance, you can invest in over 6,000 stocks and ETFs listed on the NYSE and NASDAQ exchanges. You can also invest in a select number of OTC securities and cryptocurrencies. M1 Finance offers a combination of automation and customization, allowing you to set goals and implement your preferences.

Frequently asked questions