Videos M1 Finance: Too Good to Be True? (no, they’re awesome) Admin 8 months ago Transcript 0:00 Welcome to another Friday vlog. 0:01 Wanna try something new here 0:02 and do more of a laid back type review 0:05 and we’ll see how this goes but my main thing here 0:08 is let’s still keep it informative, 0:09 just maybe a little bit more laid back. 0:11 But M1 finance is who I wanna talk about 0:14 and someone that I would highly, highly recommend, 0:18 and I’ll explain more of that as we unfold here. 0:22 But it’s something where I was thinking, 0:25 that sounds a little too good to be true. 0:27 All these different claims 0:28 and the way it’s supposedly structured. 0:31 So I’ve kinda put this on the back burner for a while, 0:33 but finally a couple weeks ago I thought, 0:35 you know, let me just dig a little bit deeper. 0:38 So I signed up for an account, I funded the account, 0:41 and let me just say, I’m extremely impressed. 0:44 Mainly three different facets 0:46 and all working together in a very nice fashion. 0:51 First one is, zero dollar commissions. 0:53 So it’s free. Yeah, I get it. 0:56 There’s Robin Hood, but Robin Hood is pure garbage 0:59 compared to M1 Finance, assuming this, 1:01 assuming you want to invest. 1:03 If you wanna trade, M1 Finance, 1:06 I’m not gonna say they’re awesome for that. 1:09 Maybe you can make it work, but maybe. 1:11 But as far as investing when you compare it to Robin Hood 1:14 at the time of this recording. 1:15 Yeah, Robin Hood is truly a piece of garbage 1:17 and here is exactly why. 1:19 So yes, they’re both equal, 1:20 they have zero dollar commissions. 1:22 But M1 Finance allows you to buy partial shares. 1:26 I’m gonna talk more about that 1:28 when you go to my desktop here in a little bit. 1:29 So they’re just partial shares. 1:31 But the big one is M1 Fiance offers tax friendly accounts. 1:37 All those different accounts that’ll allow your money 1:38 to grow tax-free over time, 1:40 which as of right now Robin Hood does not offer 1:44 and from an investing standpoint, 1:45 remember, we’re not talking about trading 1:46 we’re talking investing, M1 Finance blows Robin Hood 1:50 out of the water for that reason. 1:52 The tax-friendly accounts, I’m assuming Robin Hood 1:56 has something like that in the works 1:57 and they better catch up with that, 1:59 because right now M1 Finance, that gives them 2:01 a huge advantage over Robin Hood. 2:04 And again, the partial shares, huge, huge advantage, 2:07 which I’ll get more into as we go to the desktop. 2:09 Now as far as M1 Finance, are they legit? 2:11 Yes they are, you can go and look down in the fine print 2:13 and they’re register with all the agencies 2:15 that they need to be, so it’s not like 2:16 it’s some fly by operation or anything like that. 2:19 So they’re totally legit, 2:21 and from a piece of mind perspective, 2:24 it’s like I said, at first it’s like, I don’t know, 2:26 but yeah, they’re registered across the board. 2:29 It’s not like they’re being run out of some 2:32 bunker in insert other country that you may not trust name. 2:37 They’re run right out of, I think Chicago 2:39 off the top of my head, 2:40 but they’re run out of the United States, 2:41 and they got a lot of good things 2:42 going for it from that perspective. 2:44 As far as how’s it look, how’s it work. 2:47 Very, very streamlined, very, very efficient. 2:49 And I don’t wanna get too much into that 2:51 ’cause we’re about to go to my desktop 2:52 so I can show you how it all works. 2:54 So with that being said, yeah, let’s go to the desktop 2:56 and I’ll show you exactly how it works and how it all 2:58 functions from a visual appealing perspective. 3:02 Welcome to my desktop here, 3:03 and right here we are just at M1 Finance, their homepage. 3:07 And right up here, quite straightforward. 3:09 You would just come up there and click log in. 3:13 That brings you to the log in page 3:15 and from there we’ll just click log in. 3:18 Obviously my stuff’s already preloaded, 3:20 but you would just type in your information. 3:22 Click log in there, and here is what the behind the scenes 3:25 looks like in terms of a desktop. 3:28 A little context here, I have only put in 100 dollars, 3:32 because I just wanted to test it out 3:34 and not just think it works good, 3:38 or wow, in theory that works good. 3:40 I wanted to put a little bit of money in here. 3:42 Now this is not what I’m gonna personally use. 3:44 I already have an account where I don’t pay any fees 3:47 because my checking accounts and such meet certain balances 3:51 but, and not to pat myself on the back, 3:54 but their balances were, some people it would be 3:56 understandable if you can’t meet those. 3:58 So a way to get around those higher balances 4:00 that some, I use Merrill Edge through Bank of America 4:04 and I use Bank of America for my banking, 4:06 but if you don’t have the amount of money 4:11 to meet those minimums, like I said, 4:12 this is a way around that. 4:13 So this is why I am recommending it 4:16 but then not necessarily using it. 4:18 Because I already have a zero fee 4:21 and zero commission broker, 4:23 but that’s not available to everybody, 4:25 again, due to those account commissions. 4:26 But, so my point here is that I have used it, though. 4:29 I have put 100 dollars to work 4:32 and I just bought Apple with it. 4:34 And just to kind of illustrate the big 4:36 and powerful thing that stands out to me, 4:38 so just clicking on that, like I said, 4:40 the key word, or I should say key number, 4:42 being 100 dollars that I’ve used. 4:44 And you can see that the average share price 4:46 when I bought Apple, was 168.79. 4:50 So you go through that math and you’re thinking, 4:51 well, if you only had 100 dollars, but it cost 168, 4:55 then most brokers you would not be able to purchase a share. 4:59 However, because M1 Finance offers partial shares, 5:03 as I’ve talked about, right up here you can see 5:05 what my position actually looks like. 5:07 It’s still allowed me to buy some of Apple’s shares 5:10 and right now I don’t own a full Apple share, 5:12 but I own .77017 of a share. 5:17 And that may look, oh, you don’t even own one? 5:19 You’re looking at things the wrong way. 5:20 Just the ability to get involved with Apple, 5:23 in and of itself is pretty powerful. 5:26 And actually, you look up here, 5:28 and you know, bought Apple at a pretty good time. 5:30 At least at the recording of this video. 5:32 But I’m already up 14 percent on my money. 5:35 So 14 percent, I’ll take that. 5:38 And 14 percent is 14 percent whether it’s a .77 share 5:42 or 77 shares, it’s still a good return on your money. 5:45 But the concept here is that M1 Finance 5:50 allowed me to get involved for just less 5:53 than what a price of a share cost. 5:56 And a lot of brokers, you would’ve never been able to 5:57 get the 14 percent return because you couldn’t 6:00 have ever bought a share in the first place. 6:02 So that’s kinda the big thing here, 6:03 is just how they allow you to get involved 6:07 and I know I’ve talked about that already 6:08 but this is how it plays out. 6:10 Where again, when I bought it was 168, 6:14 but I only had 100 dollars, 6:14 but it still allowed me to buy .77 worth of shares. 6:20 So that kind of how it’s all broken down right there. 6:22 What I really like is My Pies, 6:24 and for those of that that have watched my 101 series, 6:27 I don’t use a pie example, but I use pizza as an example. 6:30 And the way you can look at that 6:31 is you click on multiple, you can add as many as you want. 6:36 You can go right up here. 6:38 They have the create new pie, 6:41 so you could do that if you wanted to. 6:43 For me, if that said create new pizza, 6:46 that would be perfect, but again, 6:47 that just goes back to the previous video I’ve done. 6:50 But you just click right here, 6:52 and it’s just breaking down my holdings. 6:54 I only have one, like I said, all I’ve bought is Apple. 6:57 But then it’s just showing you 6:58 all the information about it. 6:59 And the cool thing here is if you were to 7:01 wanna add another slice to your pie, 7:04 another slice to your pizza for those of you 7:05 that have watched my 101 video. 7:07 Then yeah, all you would do right there 7:08 is click add slice, and you can go 7:11 and add whatever sort of stock you want. 7:13 So if you wanna do a bit of research here, 7:16 up on the Discover, I mean they have all sorts 7:20 of different companies that you can go through, 7:22 and even if one’s not listed. 7:24 Let me just come up, let’s see. 7:27 What’s a company out there? 7:29 I don’t know, there’s Facebook right there. 7:31 What about Google? No, Amazon. 7:34 I don’t see Amazon. 7:35 So A-M-Z-N, so right there you have Amazon. 7:38 And right there if you wanted to, 7:39 you can do some basic research here. 7:42 And if you wanted to, you would just add this 7:45 as a slice to your overall pie. 7:49 And it’s really as simple as that. 7:51 The other thing is well, Clay, I don’t wanna do stocks, 7:53 I wanna do index funds. 7:54 Well, again let’s go back to the Discover tab right there. 7:58 And let’s just, you know, 7:59 the SPY probably the most famous index fund out there. 8:02 There you go, you can click on that. 8:04 And if you were to wanna add that, 8:06 well then, there you go. 8:06 So it’s not only stocks that you can add. 8:09 You are able to add index funds 8:11 and all that other stuff and everything else. 8:14 There’s funding, very easy to fund. 8:16 You can look at your activity, 8:18 you can look at the holdings, which we’ve already done. 8:21 So all sorts of good streamlined processes, 8:24 but again, at the end of the day, 8:26 what really separates this from a lot of other brokers 8:29 is yes, the zero dollar fees. 8:31 They’re not the only zero dollar fees out there. 8:32 But the ability to buy partial shares. 8:35 That is huge, because, yeah, if you can just do 8:37 100 bucks a month or 200 bucks a month, 8:40 then you would never be able to buy Amazon. 8:42 I mean, Amazon right now at the time of this video 8:44 is trading for up over 1000 dollars a share. 8:47 So I mean, heck, you could show up with 1000 dollars 8:49 and a lot of brokers, you would never be able to buy Amazon. 8:53 I should probably pull up Amazon 8:54 so you can actually see what I mean by that. 8:57 So right here, yeah, at the time of this recording 9:00 Amazon currently trading for over 1600 dollars a share. 9:04 So really, you could show up with 1500 9:06 and still not be able to buy Amazon 9:08 with many brokers out there, 9:10 but with M1 Finance they would still allow you 9:12 to get involved with that. 9:14 And as I already alluded, they do have 9:16 their retirement accounts, which is huge. 9:18 So the IRAs and the 401k and all that sort of stuff. 9:20 And that also separates it from a lot of different 9:22 accounts out there, they just don’t have 9:25 those retirement accounts, 9:26 but M1 Finance really does seem to have it all. 9:29 So like I said, this is just a quick, 9:31 kind of brief behind the scenes, how it all works. 9:33 But after using it, not only from adding funds 9:38 and then buying stock, I can tell you 9:40 it was very straightforward, very streamlined, 9:43 and anybody can do it, you just have to have 9:46 a basic understanding of how, you know, 9:49 if you wanna buy, well then you gotta look at the price. 9:51 But I guess now that I think about it out loud here, 9:53 that’s not even necessarily required 9:55 because you just tell it how much you want. 9:57 I wanna put 100 dollars let’s say, in Amazon, 9:59 and it does the rest, it does the math for you, 10:01 and it’ll just give you the amount of shares 10:04 that 100 dollars would give you. 10:05 So by no means you need to be a math genius 10:07 or anything like that. 10:09 So even from really a basic, basic understanding of math, 10:11 you don’t even need that. 10:12 You just need to know much of something you wanna buy. 10:15 And that’s that, I mean, that’s it. 10:17 If you have 100 bucks, and you just tell it, 10:19 I wanna 100 dollars of Amazon. 10:21 I want 200 dollars of Apple, so on and so forth. 10:24 So it truly is very streamlined. 10:27 I hope you found that beneficial, 10:29 and I know have repeated this many times over 10:32 but I’m just gonna do it one more time. 10:34 Partial shares, the ability to get involved is what matters. 10:38 It really stinks with some of these share prices 10:40 to think that a lot of people just have sit there 10:43 and, well, I can’t get involved yet. 10:45 I can’t get involved yet. 10:46 But with M1 Finance, you can get involved right away 10:49 and that’s the awesome thing 10:51 and I think that really makes it. 10:52 Especially, once again, in combination 10:54 with the tax-friendly status and structure of the accounts 10:57 with the IRAs and all that good stuff. 10:59 I mean, there’s a lot of great things going on. 11:02 A lot of great dynamics that are working together 11:04 for the investing perspective, 11:06 and Robin Hood, maybe someday the can catch up 11:09 and try to one up each other. 11:11 But hey, that’s the beautiful thing about free markets. 11:13 Competition, it’s gonna drive up services. 11:16 But right now, M1 Finance, like I said. 11:19 I do not have an account with Robin Hood, 11:20 but I do with M1 Finance as you saw in the video. 11:24 Finally, if you wanna just get a quick 10 dollars, 11:26 then down below this video, 11:27 so if you’re watching this on YouTube, 11:29 in the description section, or if you’re watching this 11:32 on claytrader.com, just down below the video. 11:35 Click on that link, and you will get 10 dollars. 11:37 Just click on the link and there you go. 11:40 Full disclosure that is an affiliate link 11:42 and I will also get 10 dollars, though. 11:43 So if you’re saying, Clay no, you’re a scumbag. 11:45 I don’t want you to make anything. 11:47 Okay, I guess don’t click on that link. 11:48 But if you want a quick 10 dollars in like a half a second 11:50 for just clicking on it and then filling it out 11:52 then yeah, use that link down below. 11:55 And it’s a win-win situation, but I assure you 11:57 I’m not recommending them because I’ll get 10 dollars. 12:01 I’m not trying to be cocky or anything, 12:02 but 10 dollars is not really worth 12:05 recommending some total garbage person 12:07 just to get 10 dollars. 12:09 So I really do, I was impressed, 12:11 and from now on if I know anybody with the smaller accounts 12:14 and just looking to get started, 12:15 M1 Finance will be where I direct them. 12:18 Because again, zero dollar commissions, 12:21 partial shareablity, tax-friendly accounts. 12:25 How could you not recommend that to somebody? 12:27 It seems to be too good to be true, but it’s not. 12:29 So yeah, sign up in that link down below. 12:31 If you are out there trading alone currently 12:33 and maybe are in the market, looking for a community to join 12:37 to assist you in your trading or to just help you. 12:39 You know, give you another set of eyeballs, 12:41 then I do have a private trading community 12:43 when you can trade alongside me 12:44 and other experienced traders. 12:46 So what you see popping up on the screen right now 12:48 is both an information link, 12:50 so if you click in the inner circle one, 12:52 that is going to take you the page 12:54 where I explain all the details 12:55 of what exactly come with the community, 12:57 both the chatroom and the newsletter. 12:59 And then the other image that has popped up 13:01 is a behind the scenes tour where you can see 13:03 exactly what is going to be contained within the community. 13:06 I take you through, like I said, 13:08 a behind the scenes tour of everything, 13:10 and that way you’ll know precisely 13:11 what you are getting when you join. 13:14 So definitely check that stuff out if you are interested 13:17 and thinking about wanting to join a community, 13:19 and let me know if you have any questions.