M1 Finance: Too Good to Be True? (no, they’re awesome)


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.
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