Starting your investing journey as a beginner can be overwhelming with so many apps and platforms vying for your attention. If you’re searching for a long-term, automated, and commission-free way to grow your wealth, you’ve probably come across M1 Finance. As a personal finance enthusiast, I was curious: Is M1 Finance really the best free investing app for beginners in 2024? Here’s my hands-on, honest review—plus comparisons to other top apps—to help you decide if it deserves a spot in your portfolio.
What is M1 Finance? How Does It Work?
M1 Finance is an automated investing platform that combines the best of robo-advisors and DIY investing. Think of it as a smart blend of hands-off investing with just enough customization to tailor your portfolio to your unique goals. With M1, you can:
Create a custom portfolio ("Pie") of stocks and ETFs
Choose from expert-built portfolios (great for beginners)
Automate deposits and dollar-cost averaging
Rebalance your investments effortlessly
There are no trading commissions or management fees for standard accounts. M1 even lets you start with as little as $100, so it truly caters to new investors. Unlike day trading apps such as Robinhood, M1 is designed for building and growing your wealth over time with automated investments.
Top Features: Why Beginners Might Love M1 Finance
I appreciated how M1 Finance streamlines the investment process while still allowing real control. Here’s what stood out for me and might benefit beginners especially:
Customizable "Pies": Build your own diversified "Pie" of stocks and ETFs, or pick from more than 80 expert-crafted portfolios.
Automatic Rebalancing: M1 automatically keeps your portfolio aligned with your goals—no manual trades needed.
Fractional Shares: Invest any dollar amount, even if you can’t afford a full share (perfect for getting started with big-name stocks).
No Trading Fees: Buy and sell as often as you like with zero commission or management fees (for standard accounts).
Integrated Borrow & Spend: With enough account balance, unlock low-rate portfolio loans and a cash management account.
Retirement & Taxable Accounts: Open IRAs, Roth IRAs, or regular brokerage accounts—helpful for both short- and long-term goals.
If you want to set it and forget it, or simply automate your regular investments, M1 makes it easy and approachable, especially for new investors.
M1 Finance vs. Other Popular Investing Apps
Let’s see how M1 Finance compares to other leading investing apps for beginners. Here’s a quick side-by-side:
M1 Finance: Best for hands-off, automated investing with customizable portfolios and no management fees.
Robinhood: Best for commission-free, individual stock and crypto trading (great for active traders but less automation).
Acorns: Best for turning spare change into investments with automated round-ups and a simple, pre-built portfolio approach.
Coinbase: Best for beginners interested in buying and learning about cryptocurrency.
Which is right for you?
If you want to automate your stock/ETF investing and don’t want to pick individual stocks daily, M1 Finance is a top pick.
If you’re intrigued by investing your spare change, Acorns provides a friendly intro to the markets.
If you’re curious about stocks AND crypto and want to trade actively, consider Robinhood or Coinbase for a simple crypto-first platform.
Personally, I found M1 Finance to be the easiest to "set-and-forget" for my long-term, passive investments, while I use other apps for more active trading and crypto exposure.
Pros and Cons of M1 Finance
Every investing platform has its strengths and possible drawbacks. Here’s a balanced look at what stands out (and what to watch out for):
Pros:
- Truly $0 commissions and account management fees
- Easy, beginner-friendly automation
- Customizable or expert-built portfolios—your choice
- Fractional share investing lets you start with $100
- Retirement accounts available
- Desktop and mobile app access
Cons:
- Slight learning curve for complete newcomers
- No mutual funds or options trading
- No real-time trading (trades execute once per day in standard accounts)
- Customer support is mostly digital
- Not for frequent day traders
If you’re looking for a true "fire-and-forget" passive investing tool, these cons are relatively minor. But if you want 24/7 trading or options, something like Robinhood may be better for your style.
How Does M1 Finance Stack Up for Passive Income and Financial Goals?
I’m passionate about building passive income and wealth—even with a busy schedule. M1 Finance fits that philosophy perfectly by letting me automate regular investments and keep my portfolio diversified. Here’s how I use it within a broader passive income strategy:
Automated Deposits: Set up recurring transfers from my checking to my M1 account—no manual effort required.
Dividend Reinvesting: All dividends are automatically reinvested to maximize compounding returns.
Long-Term Approach: M1 makes it easy to focus on slow, steady growth rather than short-term gains.
For extra diversification, I also use:
Fundrise to passively invest in real estate
Rakuten and Swagbucks for earning cashback and rewards from everyday shopping
Survey Junkie for occasional paid surveys
Combining several passive income streams helps build financial stability faster—and M1 Finance anchors my investing plan with simplicity and reliability.
Final Thoughts: Is M1 Finance the Best App for New Investors?
After months of hands-on use, I can confidently say that M1 Finance is one of the best—if not the best—free investing apps for beginners looking for a hassle-free, automated way to start building wealth. Its unique blend of customization, automation, and zero commissions is hard to beat.
If you’re still exploring options, check out Robinhood for active trading or Acorns to grow your spare change painlessly. But if your goal is hands-off, long-term investing with total control over your portfolio, M1 Finance is my top recommendation.
Ready to start your passive investing journey? Sign up for M1 Finance today and put your wealth on autopilot!
Top comments (0)