Leverage: Margin Trading
Regulation: SEC, FINRA, SIPC
Min. Deposit: $100
HQ: USA
Platforms: M1 Proprietary Trading Platform, Mobile Apps
Found in: 2015
M1 Finance is a Stock trading and Investing company that provides a combination of self-directed investing and robo-advisory services, allowing traders to buy and sell a variety of trading products, including Stocks, Shares, ETFs, Cryptocurrencies, Fractional Shares, and Securities.
Based on our research, the firm adheres to strict regulatory oversight by the US SEC, FINRA, and SIPC to ensure compliance with securities laws and provide transparent information.
Overall, the firm is known for its user-friendly interface and aims to simplify the investment process for both beginners and experienced investors.
Yes, M1 Finance is a Stock Trading brokerage platform that combines self-directed investing with robo-advisory services. It allows users to create and manage diversified portfolios, by selecting individual stocks and ETFs and offers features like fractional share investing and automatic rebalancing.
Per our findings, the firm has gained popularity for its innovative approach to investing, offering several advantages. One notable strength is its Pie investing feature, allowing users to easily create and manage diversified portfolios with fractional shares. The platform’s automatic rebalancing, no-commission trading, and the option to borrow against one’s portfolio through M1 Borrow are additional benefits.
For the cons, M1 Finance has fewer research tools and educational resources compared to traditional brokerage platforms, which could be a drawback for investors who rely heavily on in-depth market analysis and research. While the firm offers a wide range of Stocks and ETFs, it does not provide access to certain investment products such as mutual funds and options. This limitation could restrict investment choices for some users.
| Advantages | Disadvantages |
|---|---|
| SEC, FINRA, and SIPC regulation and oversee | No 24/7 customer support |
| US traders and investors | Limited investment products |
| Competitive trading conditions | No paper trading or demo account |
| Self-directed investing | Limited education and research materials |
| Robo-advisor technology | |
| User-friendly interface | |
| Secure investing environment | |
| Commission-free trading for Stocks and ETFs |
| 🏢 Headquarters | USA |
| 🗺️ Regulation | SEC, FINRA, SIPC |
| 🖥 Platforms | M1 Proprietary Trading Platform, Mobile Apps |
| 📉 Trading Products | Stocks, Shares, ETFs, Cryptocurrencies, Fractional Shares, Securities |
| 💰 Stock Commission | From $0 |
| 🎮 Paper Trading/ Demo Account | No |
| 💳 Minimum Deposit | $100 |
| 💰 Base Currencies | USD |
| 📚 Education | Limited |
| ☎ Customer Support | 24/5 |
According to our analysis, with its automated investment approach and comprehensive solutions, M1 Finance holds a competitive position in the financial market. However, we recommend considering the specific investment needs, preferences, and potential limitations of the platform before making a decision.
| Ranking | M1 Finance | AJ Bell | Questrade |
|---|---|---|---|
| Our Ranking | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ |
| Advantages | Trading Conditions | Investment Services | Trading Products |
While the firm offers competitive trading conditions for investors, other stock trading firms may offer additional benefits such as a wider range of trading products, trading platforms, etc. So, we have compiled a list of alternatives for you to consider.
No, M1 Finance is not a scam. It is a reliable Stock trading firm that follows the strict rules and guidelines established by the SEC, FINRA, and SIPC. These Top-Tier regulations safeguard client assets and provide low-risk investing.
Yes, M1 Finance is a legitimate and regulated investing platform. It is authorized by reliable US financial authorities and has a good reputation in the financial market.
Additionally, the broker does not offer services in offshore zones, emphasizing its commitment to operating within regulated jurisdictions and providing transparency to investors.
See our conclusion on M1 Finance Reliability:
| M1 Finance Strong Points | M1 Finance Weak Points |
|---|---|
| Member of SIPC | None |
| Top-tier licenses | |
| Professional investing environment | |
| Client funds security |
The company prioritizes the security and protection of its clients’ investments by adhering to regulatory standards and industry best practices. This commitment includes implementing measures to prevent fraud, unauthorized account access, and stringent identity verification processes.
Moreover, as a member of the Securities Investor Protection Corporation (SIPC), the firm protects its customers up to $500,000 (including $250,000 in cash), providing an additional layer of security. However, investors should remain cautious, regularly monitor their investments, and practice safe online habits to enhance their trading protection further.
We found that the firm does not provide traditional margin trading services as offered by some other brokerage platforms. While M1 Finance allows users to borrow against their portfolios through the M1 Borrow feature. This operates as a flexible and low-cost portfolio line of credit rather than a standard margin trading account.
M1 Finance Margin Levels are offered according to SEC, FINRA, and SIPC regulations:
Based on our findings, the firm offers Individual, Joint, and Custodial brokerage accounts as well as tax-advantaged retirement, Crypto, and Trust accounts to cater to a range of investor needs.
M1 Finance supports retirement accounts such as Traditional IRAs, Roth IRAs, and SEP IRAs. These tax-advantaged accounts allow investors to save for retirement while enjoying potential tax benefits.
| Pros | Cons |
|---|---|
| Fast and easy account opening | No paper trading or demo account |
| Variety of account types | |
| Low minimum deposit |
Opening an account with a broker is considered quite an easy process, as you can log in and register within minutes. Just follow the opening account or M1 Finance login page and proceed with the guided steps:
The broker offers a range of investment products designed to cater to diverse investor preferences, including Stocks, Shares, ETFs, Cryptocurrencies, Fractional Shares, and Securities. This variety of trading products empowers investors to create comprehensive portfolios that align with their financial objectives and risk preferences.
According to our findings, the platform is known for its fee transparency and does not charge commissions on trades, allowing users to buy and sell stocks and ETFs without incurring transaction fees.
Additionally, there are no account management fees. The firm also offers a low-cost borrowing option through M1 Borrow, where users can access a portfolio line of credit at competitive interest rates.
| Fees | M1 Finance Fees | AJ Bell Fees | Questrade Fees |
|---|---|---|---|
| Deposit fee | Yes | No | Yes |
| Withdrawal fee | Yes | No | Yes |
| Inactivity fee | Yes | No | No |
| Investment Plans | Yes | Yes | Yes |
| Fee ranking | Low/Average | Low/Average | Low/Average |
Based on our test trade, M1 Finance is recognized for its commission-free trading approach, enabling traders to engage in stock and ETF transactions without incurring traditional commission fees. This model contributes to the platform’s appeal for cost-conscious investors seeking a budget-friendly trading experience.
However, trading commissions and fees can change over time and may vary based on the specific investments and market conditions. Therefore, traders should review the platform’s fee details for a comprehensive understanding of the costs associated with their investments.
| Asset/ Pair | M1 Finance Commission | AJ Bell Commission | Questrade Commission |
|---|---|---|---|
| Stocks Fees | From $0 | From £3,50 | From $4,95 |
| Fractional Shares | Yes | No | No |
| Options Fees | - | - | From $9,95 |
| ETFs Fees | From $0 | From £3,50 | From $0 |
| Free Stocks | Yes | No | No |
We found that the broker, like many other brokerage platforms, operates in alignment with the standard trading hours of the major U.S. stock exchanges. The regular trading hours for the New York Stock Exchange (NYSE) and the NASDAQ Stock Market are from 9:30 AM to 4:00 PM Eastern Time, Monday through Friday.
Outside of these hours, M1 Finance users can view their portfolios, make investment decisions, and set up trades, but the actual execution of trades will occur during regular market hours.
The platform supports a few funding methods to deposit money into user accounts. Users can fund their accounts through electronic bank transfers (ACH transfers) and wire transfers from linked bank accounts. These funding options provide flexibility for investors to fund their accounts conveniently.
Here are some good and negative points for M1 Finance funding methods found:
| Advantage | Disadvantage |
|---|---|
| Fast digital deposits | Limited funding methods |
| Low funding fees |
For M1 Individual Brokerage, Joint Brokerage, Custodial, and Crypto Accounts, the minimum required deposit is $100. However, for M1 Traditional IRA, Roth IRA, and SEP IRA accounts, a minimum deposit of $500 is needed to open an account.
M1 Finance minimum deposit vs other brokers
| M1 Finance | Most Other Brokers | |
| Minimum Deposit | $100 | $500 |
Per our analysis, the platform allows users to initiate withdrawals from their accounts through ACH transfers. Traders can transfer funds from their M1 Finance accounts to their linked bank accounts.
To initiate a withdrawal fund from your trading account, the firm provides a set of typical steps that can be followed:
M1 Finance provides a comprehensive and user-friendly trading experience through its proprietary trading platform, which users can access via the web. In addition to the web-based platform, M1 Finance offers mobile apps for both iOS and Android devices, empowering investors to manage their portfolios, make trades, and monitor market activity on the go.
| Platforms | M1 Finance Platforms | AJ Bell Platforms | Questrade Platforms |
|---|---|---|---|
| MT4 | No | No | No |
| MT5 | No | No | No |
| cTrader | No | No | No |
| Own Platforms | Yes | Yes | Yes |
| Mobile Apps | Yes | Yes | Yes |
According to our findings, the broker offers a robust mobile app, compatible with both iOS and Android devices. The app provides users with a streamlined and user-friendly interface, enabling them to efficiently manage their investments, execute trades, and stay informed about market developments while on the move.
With features like dynamic trading, fractional share investing, and automated portfolio rebalancing, the M1 Finance mobile app offers a versatile and comprehensive tool for investors seeking convenience and flexibility in their financial management.
The company offers 24/5 customer support through live chat, email, phone, and social media channels. The platform aims to offer responsive assistance to address user concerns, ensuring a positive and supportive experience for its investors.
See our find and ranking on Customer Service Quality:
| Pros | Cons |
|---|---|
| Email, live chat, phone support | No 24/7 customer support |
| Supportive customer service |
In the end, the platform lacks comprehensive education and research materials, seminars, and webinars, providing only financial education articles and guides. This limitation may be considered a drawback as robust educational resources play a crucial role in the improvement of investors’ skills and knowledge.
In conclusion, M1 Finance offers comprehensive investment opportunities and stands out for its commitment to providing a commission-free and user-friendly trading experience.
While it lacks extensive educational resources and some advanced features, the broker’s transparent fee structure and emphasis on cost-effective trading make it an appealing choice for those seeking a straightforward approach to investment.
Overall, we found that the platform provides a reliable trading environment, however, we advise conducting your research and evaluating whether the firm’s offerings suit your specific trading requirements.
Based on Our findings and Financial Expert Opinions M1 Finance is Good for:
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