What is M1 Finance?
M1 Finance is an online investment platform that combines automated investing with customizable portfolios. It allows users to create a personalized investment strategy by choosing from various stocks and ETFs, while also providing automated rebalancing.
When Did It Start Operating?
M1 Finance launched in 2015, aiming to simplify the investment process for both novice and experienced investors.
Where Is Its Headquarters?
The company is headquartered in Chicago, Illinois, USA.
In Which Countries Is It Restricted?
M1 Finance primarily operates in the United States and is not available for residents outside the U.S., including countries like Canada and most European nations.
Advantages:
- No Commission Fees: M1 Finance does not charge trading commissions, which can be beneficial for long-term investors.
- Automated Rebalancing: The platform automatically rebalances portfolios to maintain target allocations.
- Customizable Portfolios: Users can create and manage their own portfolios with a diverse range of investments.
Disadvantages:
- Limited Trading Features: Unlike some brokers, M1 Finance does not offer advanced trading options such as options trading or forex trading.
- Withdrawal Restrictions: There may be limitations on how and when funds can be withdrawn, depending on account types.
Which Instruments Can I Trade?
M1 Finance allows trading in:
- Individual stocks
- Exchange-Traded Funds (ETFs)
What Is the Trading Fee?
M1 Finance charges no commissions for trades. However, some ETFs may have their own expense ratios.
Does It Allow Scalping?
No, M1 Finance is not designed for scalping or frequent trading. It focuses more on long-term investing strategies.
Is There a Trading Platform?
Yes, M1 Finance offers a user-friendly mobile app and web platform that allows users to manage their investments easily.
Is Margin Trading Available?
Yes, M1 Finance provides a margin trading feature, allowing users to borrow money to invest in additional securities, subject to certain eligibility criteria.
