M1 Finance $100 Brokerage Transfer Bonus

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Extended through May 7th. As noted in my post on best online brokers, my favorite option in the now-crowded “robo-advisor” category is now . Here’s a quick rundown of what makes them different:

  • Fully customizable. You pick your own ETF asset allocation “pie”. (You can add individual stocks too.) You can simply copy one of the many model portfolios out there, or tweak it as you like. You have full control! Here is my pie which I named the .
  • No commissions. Free stock/ETF trades with a low $100 minimum account size for taxable accounts and a $500 minimum for retirement accounts.
  • No management fee. Most robo-advisors charge an annual management fee of 0.25% to 0.50% of assets (or force you to own something bad, like artificially low-interest cash).
  • Automatic rebalancing. M1 will rebalance your portfolio back to the target allocation for you automatically (for free). You don’t need to do any math or maintain any spreadsheets.
  • Fractional share ownership. For example, you can just set it to automatically invest $100 a month, and your full amount will be spread across multiple ETFs. Dollar-based transactions were one of the good things about buying a mutual fund, but it seems that ETFs are the future due to their lower costs and tax-efficient structure. Fractional shares solve this problem.

Short version: Free and DIY, of course I like it!

How do they make money? Here’s how . As commissions shrink, this is the business model for pretty much all online brokers now:

1) Interest on idle cash (can be minimized as you can auto-invest all idle cash in the investment account)
2) M1 Borrow (margin loan interest)
3) M1 Spending (debit card generates fees for them)
4) Payment for order flow (same as Robinhood and TD Ameritrade)
5) M1 Plus (premium subscription that gets you higher interest rates and debit card cash back).

$100 account transfer bonus. Now through May 7th, they will give you a $100 cash bonus if you perform a brokerage account transfer of $20,000+ over to M1. Works with both taxable and IRA accounts. Via their post on , this bonus should basically cover the cost of any outgoing fee. The most common transfers come from Vanguard, Betterment, Wealthfront, Robinhood, E*Trade, TD Ameritrade, Fidelity and Schwab.

Here is a . Here are the main steps:

  • First, you’ll need to . For a smooth transfer, your M1 account type should match your current account type. For example, a Joint account should be transferred to a Joint account and a Roth IRA should be transferred to a Roth IRA. If you choose to change account type in a transfer, it will require additional paperwork.
  • Email them at “[email protected]” with your most recent account statement and any additional instructions, including directions on which securities you do and do not want transferred.
  • Transfers typically take 7-10 days. The $100 bonus will appear in your M1 account on July 15.

Bottom line. M1 is a new brokerage account that acts like a free, customizable robo-advisor with automatic rebalancing into a target portfolio. I am trying them out with my 2019 IRA contribution. Right now, there is also a transfer bonus if you move $20,000+ over to them from another broker.

“My Money Blog has partnered with CardRatings for our coverage of selected credit card products. My Money Blog and CardRatings may receive a commission from card issuers. All opinions expressed are the author’s alone, and the content has not been provided nor approved by any of the companies mentioned. Datenfluss.info is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for supporting this independent site.”



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Comments

  1. Any idea how they may money?

  2. Errr….any idea how they make money?

    • Here is what i found in their website

      • 1) Interest on idle cash (can be minimized as you can auto-invest all idle cash in the investment account)
        2) M1 Borrow (margin loan interest)
        3) M1 Spending (a banking product with a debit card that generates fees for them)
        4) Payment for order flow (same as Robinhood and TD Ameritrade)
        5) M1 Plus (premium subscription that gets you higher interest rates and debit card cash back).

    • Good question, I have added my comments to the original post.

  3. I’m not understanding the value add is. Vanguard already allows you to enjoy fractional ownership. I can chose to purchase $3.23 of VTSAX and they will let me. On the flip side, I can choose to sell $10.07 of VTSAX and they will let me.

    I can evaluate my portfolio for free with Excel + Mint or with Personal Capital. KISS (keep it simple stupid).

    Am I missing something?

    • The main value add is that you can now manage a more complex portfolio of up to 500 ETFs (not that I recommend that) without having to do all the trades yourself. You could have a portfolio with Value ETFs, Small Value, International, Emerging Markets, High-Yield Bonds, Municipal bonds, etc and it will rebalance for you regularly and with all new cashflows. You don’t need Excel or to place any trades yourself. Also, I can use any ETF from any provider, for example I happen to like the Schwab TIPS ETF more than the Vanguard alternative.

      Between Vanguard mutual funds vs ETFs, a smaller factor is that some Vanguard ETFs are now cheaper than their Admiral shares, and I suspect that number will only grow bigger with time. ETFs have lower internal costs for Vanguard and in order to compete with iShares and Schwab, they are no longer sharing those cost savings with Admiral shares.

  4. Bhadran Narayanan Potti says:

    You have mentioned about My Money Blog Portfolio pie. If you make any changes to the pie % allocation or change ETF in it, will it get reflected in the portfolio of whoever using it?

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