In my search to find another institution to hold cash at 1% return with FDIC coverage, I began looking at M1 Finance. We are maxed out at Marcus with a 1.1% yield FDIC insured.
I follow Lyn Alden, and Paul Merriman, both are affiliates of M1 Finance and share their portfolios held/recommended for M1. On the surface, M1 has no basic fees for holding or trading stocks and ETF's in their street name. They do not hold mutual funds. They can do DRS with a fairly large fee.
In my due diligence I read the finra reports and relationship summary which led me to hesitate moving large amounts to this broker. They make money in a different way than most big houses.
My largest concern was trade executions. They consolidate trades to occur 2x per day, at open and at noon. It appears to me that this is similar to what Fido and Schwab might due on a real time trade, but I think they are actually doing a mini market maker trade which would lead to less favorable results than simply using Fido. Anyone else look at this?
You must have a brokerage account there before you can have a spend account, and that 1% is only available if you pay an annual $125 (free 1 year). Their main advantage may be that ability to execute an entire portfolio trade with a one button rebalance.
Again, what led me there was their 1% checking/debit account yield, which seemed easy until I tried to move funds and found they had daily limits like T-Mobile money, and the only real way to move large amounts was to pay them a wire transfer fee. Then again you can only have single account holders for interest bearing spend accounts, limiting the FDIC coverage without joint holders. They say "beneficiaries' , up to 5, add additional coverage" Not certain that is true from what I read.....
Great for kids or early investors no doubt, but who here
has experience positive or negative?
I follow Lyn Alden, and Paul Merriman, both are affiliates of M1 Finance and share their portfolios held/recommended for M1. On the surface, M1 has no basic fees for holding or trading stocks and ETF's in their street name. They do not hold mutual funds. They can do DRS with a fairly large fee.
In my due diligence I read the finra reports and relationship summary which led me to hesitate moving large amounts to this broker. They make money in a different way than most big houses.
My largest concern was trade executions. They consolidate trades to occur 2x per day, at open and at noon. It appears to me that this is similar to what Fido and Schwab might due on a real time trade, but I think they are actually doing a mini market maker trade which would lead to less favorable results than simply using Fido. Anyone else look at this?
You must have a brokerage account there before you can have a spend account, and that 1% is only available if you pay an annual $125 (free 1 year). Their main advantage may be that ability to execute an entire portfolio trade with a one button rebalance.
Again, what led me there was their 1% checking/debit account yield, which seemed easy until I tried to move funds and found they had daily limits like T-Mobile money, and the only real way to move large amounts was to pay them a wire transfer fee. Then again you can only have single account holders for interest bearing spend accounts, limiting the FDIC coverage without joint holders. They say "beneficiaries' , up to 5, add additional coverage" Not certain that is true from what I read.....
Great for kids or early investors no doubt, but who here
has experience positive or negative?
