M1 offers a free, customizable, no-minimum and zero-commission investing platform with fractional shares and automation, similar to Robinhood. Where it differs, however, is in its offering of different accounts: brokerage, IRA, trust, and it’s ability to manage and rebalance a customized portfolio over time and its lending and cash management services.
But M1 does not offer users financial advice, make recommendations or offer users the ability to link parts of their portfolios to specific financial goals — it occupies a space between a wide-open investment app like Robinhood and a goal- and risk-oriented robo-advisor.
According to M1 Finance, more than 500,000 investors now have more than $2 billion in assets on its platform.
[CEO:] “The perfect finance account will manage all of a person’s finances and optimize them according to the individual’s unique wants and needs… M1’s platform is furthest along in making this vision a reality and this fundraise lets us move faster towards that ideal.”