M1 Finance is a mix between a robo-advisor and a discount brokerage firm. Most robo-advisors use Modern Portfolio Theory to guide their clients’ investment strategies. While M1 Finance does offer portfolios based on MPT – that’s not all they offer. When you sign up on their platform, you are given a choice between several portfolios that all differ in investment strategies. This is what makes M1 Finance stand apart from other robo-advisors. In addition, if an investor wants to create their portfolio from scratch, even by selecting individual companies, they can do that. It’s for this reason we describe this company as a mix between a robo-advisor and a brokerage account.
Whether you create your own portfolio or choose a predetermined one, M1 Finance will use technology to manage your account. They offer portfolio rebalancing and fractional shares, but it should be noted they do not offer tax-loss harvesting. I recommend checking out our M1 Finance review to learn more.
Ready to give M1 Finance a try?
Investor Junkie readers are being offered 3 months free! When you sign up on the M1 Finance website, there will be a field to input a promotion code. Simply type “INVESTORJUNKIE” in that field and you will not be charged any management fees for three months, no minimum deposit required!