You can sign up here and start your investing journey on a platform that takes safety seriously 👇

You can sign up here and start your investing journey on a platform that takes safety seriously 👇

Question: Is M1 Finance better than Fidelity?
Answer: It depends on your investing style. M1 Finance is better for automated, long-term investing with customizable portfolios. Fidelity is better for hands-on investors who want advanced tools, real-time trading, and a wider range of investment options.

Question: Is M1 Finance good for beginners?
Answer: Yes, M1 Finance is beginner-friendly because it offers automated investing with easy-to-understand portfolio customization. It’s great for those who want a simple, hands-off way to invest without paying commissions.

Question: What is M1 Finance?
Answer: M1 Finance is a hybrid investing and personal finance platform that combines automated portfolio management with customizable features. Users can invest in stocks and ETFs using a “pie-based” visual model, automate deposits and rebalancing, and access borrowing and banking tools—all under one roof.

Question: Who is M1 Finance best suited for?
Answer: M1 is ideal for long-term, hands-off investors who want customization without actively trading. It’s great for DIY investors who like to build diversified portfolios, automate contributions, and minimize fees.

Question: What types of accounts can I open with M1 Finance?
Answer: M1 supports individual and joint taxable accounts, traditional IRAs, Roth IRAs, SEP IRAs, and Trust accounts. Business or custodial accounts are not currently offered.

Question: Does M1 offer checking or savings accounts?
Answer: Yes. M1 Spend is a checking account with debit card access. If you upgrade to M1 Plus, you earn higher interest and access features like Smart Transfers and cashback on purchases.

Question: Can I borrow money with M1?
Answer: Yes. M1 Borrow allows eligible users with at least $2,000 in a taxable account to borrow up to 40% of their portfolio value at competitive interest rates.

Question: What is a “Pie” and how does it work?
Answer: A “Pie” is M1’s core portfolio-building tool. Each Pie consists of slices representing individual stocks, ETFs, or custom mini-portfolios. You allocate percentages to each slice, and M1 automatically invests and rebalances based on those targets.

Question: Can I trade individual stocks on M1?
Answer: You can buy and sell individual stocks, but trading is limited to one or two daily trading windows depending on your plan. M1 is not built for active day trading.

Question: Does M1 support fractional shares?
Answer: Yes, M1 allows fractional share investing, enabling users to fully allocate every dollar according to their Pie, regardless of share price.

Question: Can I invest in crypto with M1 Finance?
Answer: Currently, M1 offers limited crypto exposure through crypto-based ETFs. Direct crypto investing is planned for the future.

Question: What is automatic rebalancing and how does M1 handle it?
Answer: M1 uses “dynamic rebalancing” that automatically adjusts your portfolio when you deposit or withdraw funds to keep your Pie close to your target allocations, without triggering unnecessary tax events.

Question: What is a Smart Transfer?
Answer: Available to M1 Plus users, Smart Transfers allow you to set rules for moving money automatically between your accounts (e.g., moving excess cash from your Spend account to your Invest account).

Question: What’s included with M1 Plus?
Answer: M1 Plus offers 2 daily trading windows, 5.00% APY on checking, 1% cashback with the M1 debit card, discounted borrowing rates (as low as 6.25%), Smart Transfers, and priority support.

Question: Is M1 Finance really free?
Answer: Yes, M1 Finance offers commission-free investing with no management fees for its basic accounts. However, they also offer a premium subscription called M1 Plus with added features for a fee.

Question: What is the M1 Finance monthly fee?
Answer: M1 Finance does not charge a monthly fee for its basic investing service. However, there is a $50 minimum investment and a $500 minimum investment for retirement accounts.

Question: Is M1 Finance safe to use?
Answer: Yes. M1 accounts are SIPC-insured up to $500,000 and Spend accounts are FDIC-insured up to $250,000. They also use two-factor authentication and military-grade encryption.

Question: Does M1 offer human financial advisors?
Answer: No. M1 is a self-directed platform with no personalized financial advice, but it provides educational resources and automated tools.

Question: What customer support options are available?
Answer: M1 offers email and live chat support during business hours, with phone support available for M1 Plus members.

Question: How does M1 compare to robo-advisors like Betterment or Wealthfront?
Answer: M1 gives you full control to build your portfolio, unlike robo-advisors that use algorithmic portfolio generation and offer features like tax-loss harvesting. For more guidance and automated tax strategies, a traditional robo-advisor might be better.

Question: How does M1 compare to traditional brokerages like Fidelity or Vanguard?
Answer: M1 focuses on automation and simplicity but lacks mutual funds, options trading, and in-depth research tools. It’s less full-service but easier to use for hands-off investing.

Question: Does M1 offer tax-loss harvesting?
Answer: No. M1 doesn’t actively do tax-loss harvesting but uses tax-efficient withdrawal methods like FIFO or Specific Lot selection.

Question: Can I use M1 for dividend investing?
Answer: Yes, M1 allows automatic dividend reinvestment or manual allocation of dividends within your Pie.

Question: Is M1 Finance good for beginners?
Answer: Yes, if you’re willing to learn how to build and manage diversified portfolios. The interface is intuitive but has a small learning curve.

Question: Is there a mobile app?
Answer: Yes, M1 has a highly rated app on iOS and Android, with full functionality for managing investments, transfers, and banking.

Question: Can I switch brokerages and bring my assets to M1?
Answer: Yes, M1 supports account transfers (ACATS) from other brokerages, though not all securities may be eligible.Investing Glossary (for M1 Finance Users)

Asset Allocation
The way you divide your investments among different asset classes like stocks, bonds, and cash. M1 lets you set this easily using “pies.”

Automatic Rebalancing
A feature that adjusts your portfolio back to your target allocation as values shift over time. M1 automates this whenever you deposit or withdraw funds.

Brokerage Account
A taxable investment account that allows you to buy and sell securities like stocks and ETFs. M1 offers individual and joint brokerage accounts.

Dividend
A portion of a company’s earnings paid to shareholders. If you invest in dividend-paying stocks or ETFs on M1, dividends can be reinvested automatically.

ETF (Exchange-Traded Fund)
A type of investment that holds a basket of assets like stocks or bonds and trades like a stock. M1 supports ETFs in custom or expert pies.

Fractional Shares
Investing in a portion of a share rather than needing to buy a full one. M1 allows you to invest with as little as $1 using fractional shares.

Index Fund
A type of ETF or mutual fund designed to track a specific market index like the S&P 500. Many of M1’s expert pies are built with index funds.

Portfolio
Your collection of investments. M1 visualizes your portfolio as a “pie” divided into slices (stocks, ETFs, or other pies).

Rebalancing
The process of realigning your portfolio to match your original asset allocation. M1 does this passively when new money is added.

Roth IRA
A retirement account funded with after-tax dollars. M1 supports Roth IRAs, which grow tax-free and allow tax-free withdrawals in retirement.

Traditional IRA
A retirement account funded with pre-tax dollars, which may reduce your taxable income now but is taxed on withdrawal.

Tax-Loss Harvesting
A strategy to offset capital gains by selling investments at a loss. M1 does not currently support this feature automatically.

Trading Window
The time of day when M1 places your trades. For most users, M1 has a single daily morning trading window.

Expert Pies
Pre-built portfolios on M1 created by professionals based on different goals or risk levels.

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_{Important Disclosures:}

_{This newsletter is intended for informational purposes only and should not be interpreted as investment, legal, or tax advice. The views and opinions expressed are those of the author alone and do not necessarily represent the views of any business, employer, or affiliated entity. Investing carries inherent risks, including the possible loss of principal. Past performance is not indicative of future results. Readers are encouraged to conduct their own research and seek advice from qualified professionals before making any investment, legal, or financial decisions. While the information provided is believed to be accurate, no guarantee is made as to its completeness or reliability. The author and publisher disclaim any liability for decisions made or actions taken based on the content of this newsletter. This publication does not constitute an offer to buy or sell any security. By subscribing to or continuing to read this newsletter, you acknowledge and agree to these terms and conditions.}