M1 Finance Review: Everything You Need to Know (Is it Legit?)

 in Blog / Budget / Invest

When it comes to investing your money, you want to make sure it is easy, safe, and with no extra fees. M1 finance provides you all of that.

As one of the best brokerages out there, M1 finance combines a brokerage, Robo-advisor, and a bank account all in one.

The question then becomes, is it right for you? Let’s find out.

What is M1 Finance? 

M1 Finance is a great platform that combines cash management, borrowing, and investing in one simple place. You can manage your money as you want without the need to depend on multiple platforms and people. M1 Finance is designed to make sure that you can access all your borrowed funds at the touch of a button and move money as you please. 

How Does M1 Finance Work?

You can build an investment portfolio without any costs as well as schedule monthly, biweekly, and weekly deposits to remain in the investment game at your leisure. M1 Finance gives you access to a flexible line of credit portfolio. When the portfolio reaches $10,000, you can use the funds as you like. 

The M1 Spend feature ensures that the checking account is integrated so that you can pay back loans according to the schedule you have set. You can also invest automatically and set up direct payments according to your schedule.   

M1 Finance Features 

M1 Finances has four key features: invest, borrow, spend, and Plus. Here is a detailed overview of all the features. 

Invest 

The invest feature allows you to build custom portfolios by picking through ETFs and stocks as you want. You can set target allocations for every security you choose. The platform offers you all the tools you will need to invest your money and build wealth for free. You can customize your own portfolio or choose from any of the 80 expert portfolios on the app. 

They have key features like intelligent automation and fraction shares to make sure that you can get the full potential from your money. Fractional shares allow you to own ETFs and stocks regardless of the price of the shares. This makes diversification of wealth easier to do and allows you to remain fully invested. 

The intelligent automation feature allows you to set up schedules to make sure you can keep dynamic rebalancing on track. You don’t have to worry about placing manual trades ever again with such easy features. 

Borrow

You will be able to have access to a flexible line of credit starting from one of the lowest rates in the market at $10,000. You don’t need any paperwork to access your funds in the margin account. Only a few clicks and you can use the funds however you like and payback according to your schedule. 

Borrowing at M1 Finance is done at low rates, sometimes as low as 2%. You can access this line of credit through the margin account and borrow at a maximum of 35% of the portfolio value. This is a really cool benefit that most brokerages don’t offer. All of this occurs under just 10 seconds. 

You can stay as invested as you like and keep the portfolio going while you use your building wealth for other things such as: 

  • Paying for home equity loans or HELOC

  • Paying back high-interest credit card debt, auto loans, or student loans

  • Pay for large purchases like tuition payments, new startup ventures, or dream weddings

  • Add leverage to the portfolio and increase investing to get higher return potential

By itemizing your tax return deductions, you can make the interest turn into a tax-deductible. 

Spend

The M1 Plus feature (we will talk more about it below) also helps you earn rewards. You will be earning 1% when you spend your money as well 1% when you sign up for M1 Plus. 

Plus

There are many features of the M1 Plus function that have hundreds of thousands signing up. The first is the ability to supercharge the checking account in M1 Spend. You can earn 25 times the national average of APY. This means that you will be essentially earning in just 2 weeks than you would if you kept your money in a big bank for a year. You will also receive 1% cashback when you make debit card purchases through M1 Finance. These rewards are great for earning money. 

Secondly, M1 Plus allows you to get better perks on the investments you are making. For example, you can have 2% interest rates for loans in the borrow feature. A 1.5% reduction in the borrowing rate can be enormous. 

Lastly, M1 Finance offers one trade window in a day, but you will also have an additional afternoon trade chance window in M1 Plus. If you have more than 25,000 in the investment portfolio, you can trade in the morning and afternoon both. 

How to Sign Up at M1 Finance

The sign-up process is an easy process. You just need an email and a password to set up an account. After that, you merely have to add information as it asks, and you will have all the desired features set up in no time. 

The best part is that M1 Finance has an easy-to-use application too. You can download it from Google Play Store or the Apple App Store. 

Is M1 Finance Legit, Safe and Insured?

M1 Finance is an easy and unique method of investment that has registered SIPC insurance. The insurance guarantees that the money you are spending is safe and protected under the US government. 

Should You Invest in M1 Finance?

M1 Finance is a revolutionary platform that has made financial investment more accessible to the average investor. Here are some more benefits of investing in M1 Finance:

  • There are no brokers involved, so you don’t have to deal with hefty commissions.

  • The pie investment system is a unique visual component that makes it easier to understand the investment. 

  •  A streamlined mobile application offers users full functionality and convenience

  • There are socially responsible portfolio options that are perfect for users who want to invest in companies that are in line with their values.

For all of these reasons it is definitely worth a try.

andrew
Latest posts by andrew (see all)