M1 Finance Review 2021: Is It The Perfect Investment Platform?

Investing is hard due to a myriad of factors ranging from behavioral to psychological. Getting started with investing and continuing with investing should ideally be automated so we do not second guess ourselves; trying to time the market or chase the next hot sector.

Despite all the technological advances and myriad of brokerages competing for our investment dollars, there are not many perfect investment platforms.

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Characteristics Of My Perfect Investment Platform

I reviewed a number of investment platforms and scored them based on the advantages offered by each platform.

My ideal dream platform would have zero fees, wide selection of low expense ratio funds and very low minimum investment. In addition to these basic characteristics, it should help one get started with a basic asset allocation.

Zero fees:

In this day and age when almost anything can be done online; it is criminal to charge fees for the act of investing. Fees could have been justified back in the day when you needed a human to answer the phone or manually place a trade. Wealthfront and Betterment charge 0.25% to 0.40% fee on all accounts.

Selection of Funds: Vanguard, Schwab and Fidelity have an extensive selection of funds; albeit restricted to mostly their own fund families. However since most of their own index funds have a low expense ratio, this is not a major negative. M1 Finance supports most common stocks, ETFs and close ended funds listed on supported exchanges.

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Minimum Investment:

Although I love Vanguard for popularizing index funds and being a pioneer wrt forcing lower expense ratios across the industry; the minimum investment is an area where it fails miserably.

Auto Invest:

The best results from investing come from putting money to work in the market with regular frequency. It is hard to know what causes the markets to rise and fall on a daily basis.

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