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A free Robo Advisor platform for investors


M1 Finance is a leading theft advisor, and they can offer you a lot if you want a semi-automatic investment platform.

The concept of obtaining a financial advisor in person to help you create a good investment plan is quite common, but the idea of ​​doing the same with an automatic advisor may be completely unknown if you have ever thought about it. In fact, robo-advisors have built their reputation since 2008 and it is said that technology is the future of the investment industry.

Over the years, the emergence of big names in the field of investment such as Morningstar, Financial Engines, Betterment, Wealthfront or Acorns, along with the technological revolution in all aspects of our lives, pave the way for the emergence of the technology of robo-advisor.

In this challenging environment, a new platform was launched with the aim of filling the gap in the financial investment market and, at the same time, providing significant innovation in the financial services industry: M1 Finance.

Visit M1 Finance

So what is M1 Finance? It's worth a try?

This review will give you an end-to-end guide to everything you need to know about M1 Finance, so you can decide if it is the right robbery for you.

First look at M1 Finance

M1 Finance, based in Chicago and in business since April 2015, is best defined as a hybrid theft advisor and a traditional investment brokerage service.

With robo-advisor automation combined with a complete online brokerage personalization and control service, M1 Finance offers a free service for individual investors that is hard to match. M1 Finance is almost invincible if you are looking to create a diversified investment portfolio and do not want to pay much to do so.

M1Finance website

M1 Finance has managed to attract an unprecedented number of investors despite its relatively short history. The financial tool currently has more than 25,000 accounts and more than $ 100 million in client funds. The average user's M1 Finance account has about $ 4,000.

How M1 Finance works

M1 Finance stands out compared to other robo advisors through a completely controlled investment process in its portfolio, which includes security options. M1 Finance helps to provide people who want additional support with their selection and investment management.

With the information it offers (age, financial situation, objectives and risk tolerance), the system incorporates a set of algorithms to create a portfolio that meets your requirements. Then buy the necessary assets to build the portfolio. When you add or remove money from your account, your wallet is automatically balanced with the robo-advisor M1 Finance.

M1 Finance helps manage your continuous flow of investment, but is completely under your control of how your money is invested.

M1 financial characteristics

Cake inversion

The debate that never calms down between traditional brokerage firms and automotive advisors for portfolio management can put modern companies under great pressure, in order to choose a winning model for the future. It is easily said that robo-advisors are incredible tools and work quite well in many circumstances.


However, M1 Finance decided to combine traditional brokerage accounts and robotic advisors, the program was created to manage everything as needed. Once you decide to invest with M1 Finance, the system allows you to create "cakes".

A pie can be understood as a group of chosen investments, which can consist of individual shares, ETF (Exchange Traded Funds) or even more. It is also possible to build your own cake, otherwise you can go with more than 60 prebuilt

The cake is the basic tool to manage your portfolio. From this point on, M1 Finance will automatically purchase the correct proportions of your assets, both when you directly finance your account and when you create additional funds.

Investment Categories

M1 Finance comes with a range of available empanadas, which include:

  • General investment: a distributed portfolio focused on its own risk tolerance
  • Retirement plan: invest for your target retirement time
  • Responsible investment: strategies for socially responsible investors
  • Income winners: a portfolio built on dividends and income gains
  • Followers of the Hedge Fund: follow / imitate investment strategies of some of the most successful investors
  • Industries and sectors: a range of specific sectors for you to invest
  • Just Stocks and Bonds: design a diverse portfolio with two ETFs focused on stocks and bonds
  • Other strategies: additional investment options to help you discover what works best for you

There are also variations in each of these general Foot groups. Just Stocks & Bonds Pie, for example, provides nine different empanadas.

You can choose a combination of 10% shares and 90% bonds, 20% shares and 80% bonds, and all combinations up to 90% shares and 10% bonds. Dividend yield, historical performance and level of risk are also included in each Foot mentioned.

Expert Empanadas

M1 financial price model

M1 Finance does not charge any of the services listed below. There are no commercial commissions, no account maintenance fees, no deposit or withdrawal charges, the entire platform is basically free for investors.

One-time payments are subject to the only possible charges on the free platform. For example, when you open a M1 Finance retirement account and then decide to close the account, you will be charged a $ 100 account cancellation fee (this is common at brokerage firms).

You can opt for another option with the M1 Plus account for $ 100 ($ 125 a year later), which gives you a second daily trading window, as well as a discount on the interest rate if you apply for a loan through M1 Borrow. Users will receive additional advantages on the three M1 pillars with M1 Plus.

Customers will receive 1.5% APY, 1% reimbursement on all transactions, a lower APR on loans using M1 Borrow, a second trading period, early access to M1 Spend and more. The main drawback of M1 Plus is that it costs $ 125 per month, which during the first year is reduced to $ 50.

That's a lot of money: $ 4.16 per month in the first year, up to $ 10.41 per month in the second year.

M1 Finance Prices

Set up your M1 finance account

Opening an account with M1 Finance is simple and the process will only take a few minutes. Go to the site, create your password, then you will be directed to the first part of a three-step process:

1. Building Portfolio
2. Create a brokerage account
3. Financing your account

The Portfolio Creation section introduces you to the concept of M1 Finance Pie. You will decide your portfolio in that registration process as mentioned above. Then complete the application process and fund your account once you have created your portfolio.

M1 Finance Record

How does M1 Finance make money?

M1 Finance earns money in several ways. M1 Finance earns money through other services such as a bank that offers a free checking account. M1 Finance lends money to user values ​​and cash in their accounts.

Cash loan in your investment account

Do you remember the cash in your investment account?

This is the first source of income for M1 Finance to earn money. Imagine that M1 Finance is a bank and once you send your money to this bank account, the bank uses your money to finance loans and earn interest income from those loans in return.

If you think you can count on a free system to earn easy money, you may think again, there is no way to do a big business with little or no effort.

Depending on the choice of a broker, you may or may not obtain additional income, and because M1 Finance is a free investment platform, no interest is offered on your investment account.

Then, instead of charging a fee, M1 Finance lends the balance in cash to the banks and charges interest in the process.

Stock loan to short sellers

Short selling is a complicated issue and we are not delving into it, and we will save the topic for another article.

The key thing to keep in mind is that short sellers borrow actions to bet against them. In other words, the concept is: an investor borrows shares and sells them at the current market price, with the hope that their value will decrease.

If they are correct and the shares fall in value, the investor can repurchase the shares at a lower price and benefit from the change in value. However, M1 Finance can lend shares owned by investors to short sellers and make a profit by doing so.

M1 Finance lends less than 5 percent of the total securities held on the platform to mitigate risk, according to its page. If stocks are lent to short sellers, in this case interest is paid to the borrower who is M1 Finance.

M1 loan

M1 Borrow is another feature that M1 Finance offers to earn money. Investors can withdraw a line of credit portfolio and, in return, their investments in the M1 Finance account serve as collateral. The M1 loan allows you to borrow at a variable interest rate of up to 35% of the balance of your M1 Finance account.

M1 Finance simply offers you a loan and, if you do not make a refund, M1 Finance can go out directly and sell your investments to cover the debt.

The risk of lending money from M1 Finance is relatively low, the current rate for M1 Borrow is 3.50%, which is not too high compared to most mortgages, car loans or even other types of loans. Then it is easy money for them.

M1 loan

This is a favored way of taxes to borrow money; You do not have to sell shares or pay taxes on capital gains you may have. You can also exclude interest payments on your personal taxes against your investment income (check with a tax professional for more information).

The other advantage for consumers is that there is no additional paperwork, credit check or approval process. Money available upon request.

The use of M1 Borrow allows you to deal with three main risks: rising interest rates, falling asset values ​​and forcing a maintenance call, or losses are magnified as a result of leverage. If you take advantage of this feature, make sure you know these risks.

Address order

Brokerage accounts such as M1 Finance can earn commissions or payments for issuing execution orders to various parties. The brokerage provides a small multi-part payment for order channeling.

M1 expense

M1 Spend is another feature that M1 Finance recently launched. It is a checking account and a debit card that is directly compatible with your M1 Finance account. They are offering a free version of this, as well as a premium M1 Plus model. M1 Finance can stimulate revenue by spending M1 in two available ways:

M1 Finance obtains additional income on the cash balance of the M1 Spend checking account, equivalent to the money retained in the brokerage account.
When you use your M1 Spend or M1 Plus debit card, M1 Finance collects those charges from merchants, called exchange.

M1 expense

M1 Finance Pros and Cons

M1 Finance Pros

M1 Finance clearly has a lot to offer to people looking for a robo-advisor to help them manage their investments.

M1 Finance is in charge of investments and administration, will work to take your money management to a new level. M1 Finance can be a confusing concept for new investors. But to make smart investments, you don't need to be a financial expert.

  • M1 Finance works to simplify investments.
  • Investors can choose from hundreds of expert cakes produced by financial experts.
  • Depending on its risk tolerance, a robo-advisor tries to maintain a perfect balance for investors.
  • The circular investment approach allows you to control your investment strategy and work towards your goals with ease.
  • A custom cake is another option. Custom cakes make your investment portfolio and asset allocation more regulated.
  • The excellently designed M1 Finance applications also offer benefits.

It doesn't matter if you choose the free standard account or the M1 Plus, it can have different features and benefits that meet your own needs.

M1 Finance Cons

You should consider some disadvantages before deciding whether M1 Finance is the right investment tool for you.

  • The collection of tax losses (TLH) is one of the most pressing concerns among investors. Essentially, TLH is a practice used in a portfolio to offset income and obtain taxes without significant changes. The platforms that provide TLH will sell securities that have suffered a loss and replace them with different options to maintain a stable portfolio and reduce taxes.
  • Due to the quality of TLH, it is a standard feature provided by many robo advisors platforms. But with M1 Finance, they do not offer TLH and this fact is a decisive factor for investors.
  • Another point to consider before trying M1 Finance is that your investment options are limited. Although you can invest in ETFs and individual shares, you cannot buy mutual funds. If you expect to manage external investment with the M1 Finance platform, you may want to think twice, as it is almost impossible.
  • Setting objectives is also something to consider, since the platform offers little help with this function.

M1 Finance is not marketed as an advisory agency. Actually, M1 is an automated investment system designed to manage the continuous portfolio it builds, it is expected that you know what your goal is and what you will do to achieve it.

M1 financial alternatives


Recognized as one of the strongest rivals of M1 Finance, Betterment is another automated platform for investors. M1 Finance and Betterment are both highly qualified robo-advisors, however, there are a couple of key features in the structure and the portfolios that distinguish them.

Betterment creates a portfolio based on your specific needs and objectives from scratch. This custom service has a low annual rate of 0.25%. Compared to M1, Betterment provides personalized advice based on your interests, risk tolerance and needs.

If you are someone who prefers to get help and guidance through a conversation with an advisor, Betterment could be an excellent investment platform for you.

M1 Finance and Betterment has different characteristics that will make them more suitable for different markets. While M1 allows you to obtain loans against your portfolio, which is more attractive to the risk-tolerant crowd, the account opening procedure and objective evaluation at Betterment are clearly aimed at less experienced investors who could benefit from more financial assistance.

Betterment and M1 Finance are designed to be very easy to use and cost effective. For both newcomers and experienced investors, both are good platforms. You should probably pay a small fee to access the enhancement features and it may be worth considering this platform, as there are many useful features you can try.

Best Theft Advisors

Read: What are Robo Advisors and which ones are the best?

Wealth front

Wealthfront offers fully digital investors at a very competitive price if you are looking for financial advice and do not expect to get it from a human being.

Wealthfront's goal setting and planning technology looks great and should create a precedent for other robo advisors to follow. In addition, starting to use Wealthfront gives you access to Path, the free financial planning tool that integrates your account data and uses third-party data to better anticipate your financial situation in the future.

Wealthfront is where preparation and monitoring objectives shine. Your control panel shows all your assets and liabilities, giving you a quick visual review of the likelihood that your goals will be achieved.

Automatic deposits are easy to set up with Wealthfront since your bank account is linked in the incorporation process.

Wealthfront seems to be making a great effort to merge all its money products with its Self-Driving Money model on a single platform where you deposit your payment online and manage your finances for yourself. This service is not yet operational, but as part of the next major release, it is a main focus for the company.

Like many low-cost robo advisors, in terms of customization, Wealthfront does not offer you many options. You are looking for the wrong option if you want to choose your own actions.

However, Wealthfront is more than ready for work if you want to make regular deposits in a portfolio and not think about it. The planning tools are fantastic and definitely worth a look, even if you don't have a plan to fund your account.

Is M1 Finance right for you?

Making investments is not a game for everyone and, therefore, investing with a platform like M1 Finance could make a lot of sense.

Many people can benefit from the use of M1 Finance to establish an investment portfolio. The tool fits perfectly not only for those who want a robo-advisor to manage their investments, but also for those who want to have almost complete control over their portfolio.

The platform is a great solution for new and non-dependent investors who take their first step in investment and determine to go for a long-term goal. You can still choose how the funds are distributed. M1 Finance is doing a lot for a little money and covers what many investors need.

You do not have to worry about moving investments around your portfolio or changing them all the time. However, at the same time, your portfolio is organized and distributed according to your investment style.

For people interested in a passive investment strategy, M1 Finance is perfect. Unfortunately, for active traders, M1 Finance is probably not the best. You may want to look elsewhere if you are a daily operator interested in regular trade in the market.


M1 Finance is one of the most attractive algorithmic platforms for investment in recent years and could make a big difference in your financial life.

The investments included in your portfolio can be customized to meet your requirements. The platform manages your accounts daily, including regular rebalancing. In addition, M1 Finance is basically free to use, with no broker fees or commissions.

M1 Finance has some parallels with Motif Investing in a single portfolio of motives of up to 30 shares / ETF. Motif is looking for more active operators, while M1 is mainly for purchase and retention investors who prefer to choose their own investments.

At the same time, it allows you to control your assets without the burden of managing the portfolio.

It would be a great improvement if M1 Finance allowed investment in mutual funds, offered tools for tax loss collection and retirement planning. But overall, M1 Finance is worth considering, apart from those three missing pieces.

Visit M1 Finance

M1 Finance

M1 Financial Review


  • Free to use
  • No minimum deposit
  • Excellent application
  • No commercial commissions
  • Fractional actions


  • Harvest without loss of taxes
  • No mutual funds


Disclaimer: The opinions expressed herein are only those of the author, not those of any bank or credit card issuer and have not been reviewed, approved or endorsed by any of these entities.

Disclaimer: The answers below are not provided or commissioned by the bank advertiser. The responses have not been reviewed, approved or supported by the bank advertiser. It is not the responsibility of the bank advertiser to ensure that all publications and / or questions are answered.

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