Today’s video will show you how to open an M1 Finance account and get started with as little as $100 to start building wealth.
▶︎▶︎You can open your free account by using this link (aff):
One of the most requested videos that you have been want me to do is to review different platforms or investment applications.
I am going to review the most requested, M1 Finance for you. Why is this one so highly requested? Well, you can buy stocks and ETFs and there are NO transactions costs. No trading fees, no account fees, and no costs involved when you make your first trade.
To have an investment platform like M1 Finance that allows you to buy a stock with zero transaction costs, is huge! That’s why I want to share some of the benefits and the pros and cons.
They are still a bit new, they started in 2016, but they already have over $100 Million in assets that they manage and are growing rapidly.
What types of accounts can you open? You can open individual, joint, trust, or retirement accounts. You can do after tax with individual and joint accounts or as a retirement with Roth IRA.
Other than having zero trading costs/fees, I like that you don’t have to have any money to open an account. You can’t make your first investment until you have at least $100 in that account. For a retirement account they want you to have at least $500 in a traditional or Roth IRA before you make your first investment. Either way, that is not a lot of money to get started.
With M1 Finance, the don’t just sit on your cash. You are going to go ahead and make your selections or your trades. Once you have more than $10 sitting in cash they are going to place those trades for you.
I set up an account with $1,000, I set up a few stocks and ETFs. When I deposited that $1,000 within two business days they set up those trades for me. I already have ownership in those stocks and ETFs.
You’re money is going to work for you not just sit in cash making zero interest.
So, what type of investments do they have?
Any stock that is traded on the NASDAQ, NYSE or BATS - you will have access to all of those. All the big players.
The other thing they offer is investment PIES. They are basically ETF portfolios that they have built for you. You can choose from aggressive to conservative. I think on average you are looking at 7 to 9 ETFs. Most of these are Vanguard ETFs. This really compares to Betterment or Wealthfront where if you are not comfortable picking, you can select one of these PIES. Where it is different - Betterment will ask questions so they can assess what risk level is right for you.
With M1 Finance, you will have to select your own risk level. If you know if you are low risk or high risk you can choose the PIE that fits your needs. There are no fees to rebalance or change those PIEs when you want.
What they do NOT have is the penny stocks, Mutual Funds or Cryptocurrencies. You are not buying options on this platform. You are not buying annuities.
This niche is buying and selling individual stocks and ETFs. This is how they keep from charging you those fees.
You can buy fractional shares of stocks through M1 Finance. You can’t do that with a lot of local or online platforms. If you only have $100 to get started, you can buy a fraction of a share of stock, like Amazon at $1,200/share.
So how do they make their money?
One of the most common ways is by lending securities. It’s very similar to the way banks make money. They also do margin loans. Other investment platforms do the same thing.
How safe are they?
They do not offer FDIC insurance (you will only get that with a bank). You WILL get SIPC insurance up to $500,000 and $250,000 of that can be cash. The investments you are making inside the platform is not in M1 Finance - you are investing in stocks and will still have access to those investments.
➡️ 14:00] You can watch me open an account in the video so that you will know how each step will look.
If you’ve opened an account with M1 Finance, I would love to know what your experience was like.
Let us know in the comments.
▶︎▶︎You can open your free M1 Finance account by using this link (aff):
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