M1 Finance Review 2024
Website: m1.com
Min. Deposit: US$ 100
Leverage: Margin Trading
Trading Platforms: M1 Proprietary Trading Platform, Mobile Apps
Regulation: SEC, FINRA, SIPC
Headquarters: USA
Founded: 2015
Regulatory Licenses:
- M1 Finance LLC - authorized by SEC (USA) CRD#: 281242/SEC#: 8-69670
- M1 Finance LLC - member of FINRA & SIPC (USA)
Updated on January 22, 2024
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In conducting our comprehensive review of M1 Finance, we've applied a rigorous methodology, comparing it against over 1000 brokers in the industry. This involved analyzing various factors such as regulatory compliance, trading platforms, product offerings, fees, customer support, and security measures. Our aim is to provide an unbiased and detailed assessment to help investors make informed decisions.
M1 Finance stands out as a unique blend of self-directed investing and robo-advisory services, catering to traders and investors by offering a wide array of trading products including Stocks, Shares, ETFs, Cryptocurrencies, Fractional Shares, and Securities. The platform is known for its user-centric design, aiming to simplify the investment process for both novices and seasoned investors alike. With stringent oversight from the US SEC, FINRA, and SIPC, M1 Finance ensures compliance with securities laws and maintains transparency, making it a trusted name in the investment world.
Pros
Notable for its innovative Pie investing feature, allowing easy creation and management of diversified portfolios with fractional shares.
Offers automatic rebalancing, commissionfree trading, and the option to borrow against one’s portfolio via M1 Borrow, enhancing its appeal.
Cons
Limited research tools and educational resources compared to traditional brokerage platforms, potentially disadvantaging investors needing indepth market analysis.
Lack of access to certain investment products such as mutual funds and options, which might limit investment choices for some users.
Is M1 Finance Safe or a Scam? ▲
M1 Finance is a legitimate and reliable stock trading firm, operating under the stringent regulations of top-tier authorities such as the SEC, FINRA, and SIPC. These regulations ensure low-risk investing and safeguard client assets, affirming that M1 Finance is far from being a scam. It is a reputable platform with a commitment to operating within regulated jurisdictions, thus providing transparency and trustworthiness to its investors.
M1 Finance takes a unique approach to margin trading by offering the M1 Borrow feature. This allows users to borrow against their portfolios at competitive rates, providing a flexible and cost-effective alternative to traditional margin trading. Though not a standard margin trading account, M1 Borrow aligns with SEC, FINRA, and SIPC regulations, offering U.S. traders leverage up to 1:50 for major currency pairs, underlining the firm’s innovative approach to meeting investor needs.
In the realm of financial trading, the broker offers a comprehensive suite of account types designed to meet the diverse needs of investors. Whether you're a seasoned trader or just starting, the broker provides options that cater to various investment goals and risk tolerances. From individual and joint brokerage accounts to IRAs and trust accounts, the flexibility in account selection ensures that investors can find the right fit for their financial ambitions.
This broker stands out for its broad spectrum of trading products, catering to a wide array of investor preferences. The portfolio includes but is not limited to Stocks, Shares, ETFs, Cryptocurrencies, Fractional Shares, and Securities. Such a diverse offering enables investors to craft holistic portfolios that resonate with their financial goals and appetite for risk. The broker's Markets Range Score is adjusted to 4.0 out of 5, reflecting a high rating for its comprehensive trading products. Nonetheless, it's worth noting that some sought-after asset classes remain absent, suggesting that investors might also explore alternative platforms to fill any gaps in their investment strategy.
The platform distinguishes itself with its commitment to fee transparency, ensuring that traders can engage in buying and selling stocks and ETFs without worrying about transaction costs. Furthermore, the absence of account management fees, coupled with the cost-effective borrowing option through its borrowing service, positions the broker as an appealing choice for cost-conscious investors. After an exhaustive comparison with over 1000 other brokers, the broker's Fees are considered competitively low, with an overall score of 4.3 out of 5. While many services are offered free of charge, certain services may incur fees, underscoring the importance of reviewing the specific fee structure for a thorough understanding.
The broker is acclaimed for its no-commission trading model, allowing for stock and ETF trades without the usual commission fees. This approach is particularly attractive to investors looking for a budget-friendly trading environment. Despite the commission-free structure, it's crucial for traders to stay informed about any potential changes in fees or commissions that may arise due to fluctuations in market conditions or specific investment choices. With a score of 4.3 out of 5, the broker's Commission stands as competitive and transparent, making it a suitable option for investment.
Aligned with the operational hours of major U.S. stock exchanges, the broker's trading hours mirror those of the New York Stock Exchange (NYSE) and the NASDAQ Stock Market, running from 9:30 AM to 4:00 PM Eastern Time, Monday through Friday. This schedule facilitates a structured trading environment, while also allowing users the flexibility to manage their portfolios, devise investment strategies, and initiate trades outside these hours, with the actual execution of trades occurring during the designated market hours.
The platform supports a select range of funding methods to deposit money into user accounts, providing some flexibility for investors. Deposits can be made through electronic bank transfers (ACH transfers) and wire transfers from linked bank accounts. These options offer a convenient way for investors to fund their accounts.
Our evaluation of the funding methods available ranked favorably, with an overall score of 3.8 out of 5. Fees are competitively low, and the inclusion of popular funding methods is a benefit.
Here are some positive and negative points for the funding methods found:
Pros
Competitive low fees
Variety of popular funding options
Cons
Limited funding methods compared to some competitors
The minimum required deposit for M1 Individual Brokerage, Joint Brokerage, Custodial, and Crypto Accounts is set at $100. This is relatively low compared to the industry standard, which often requires a minimum deposit of $500. However, for M1 Traditional IRA, Roth IRA, and SEP IRA accounts, a minimum deposit of $500 is necessary to open an account.
Withdrawals from accounts are facilitated through ACH transfers, allowing traders to transfer funds from their M1 Finance accounts to their linked bank accounts with ease.
To withdraw funds from your trading account, the firm outlines a standard procedure:
1. Log in to your account
2. Select 'Withdraw Funds' in the menu tab
3. Enter the amount to be withdrawn
4. Choose the withdrawal method
5. Complete the electronic request with the required details
6. Confirm withdrawal information and submit
7. Monitor the current status of your withdrawal through your Dashboard
M1 Finance delivers a comprehensive and intuitive trading experience via its proprietary trading platform accessible through the web. Additionally, M1 Finance extends its trading capabilities to mobile users with applications for both iOS and Android devices, enabling investors to manage their portfolios, execute trades, and monitor market activity from anywhere.
The platform's overall rating stands at 4.0 out of 5, indicating a positive comparison to over 1000 other brokers. The advanced features and user-friendly interface of the trading platforms contribute to this good rating.
The broker's mobile app, compatible with iOS and Android devices, offers a streamlined and user-friendly interface. It allows users to efficiently manage their investments, execute trades, and stay updated on market developments while on the move. Features such as dynamic trading, fractional share investing, and automated portfolio rebalancing make the M1 Finance mobile app a comprehensive tool for investors seeking convenience and flexibility.
The company provides 24/5 customer support through live chat, email, phone, and social media channels, aiming to offer responsive assistance for user inquiries. The quality of customer support at M1 Finance has been ranked at 4.0 out of 5 based on our evaluations. The fast and knowledgeable responses, coupled with easy accessibility during working days, contribute to this positive assessment.
Unfortunately, the platform's educational offerings are somewhat limited, with only financial education articles and guides available. This lack of comprehensive education and research materials, seminars, and webinars may be seen as a drawback for investors looking to improve their skills and knowledge.
The education resources provided by M1 Finance have been rated at 3.5 out of 5. While the platform's offerings are limited, they may not be entirely suitable for beginner traders, suggesting the consideration of alternative brokers with a wider range of learning materials.
In summary, M1 Finance stands out for its commitment to offering a commission-free and user-friendly trading experience, providing comprehensive investment opportunities. Despite lacking extensive educational resources and some advanced features, the broker's transparent fee structure and focus on cost-effective trading present a compelling option for those seeking a straightforward investment approach.
Overall, the platform is found to provide a reliable trading environment. Nonetheless, it is advisable to conduct your own research and determine whether the firm’s offerings align with your specific trading needs.
Based on our findings and financial expert opinions, M1 Finance is recommended for:
Traders from the US
Investing
Selfdirected investing
Fractional share trading
Stock trading
Advanced traders
Professional trading
Low fee structure
Competitive trading conditions
Supportive customer service
