Over the past few years, investing has evolved significantly, thanks to the rise of automated platforms that are revolutionizing traditional methods. These innovative robo-advisors offer unparalleled convenience and present the potential for long-term income and growth, making them an increasingly popular choice among investors across the globe.
Within this comprehensive guide, we will delve into one of the leading names in the industry – M1 Finance. As a prominent financial technology company, M1 Finance provides its clients seamless access to customized portfolios and comprehensive checking and credit solutions.
M1 Finance has garnered recognition for its impressive array of customizable portfolios and cutting-edge financial solutions, causing ripples in the investment landscape of the United States. Its presence has led to robust competition with renowned platforms such as Betterment, Wealthfront, Robinhood, and Webull.
If you are a Canadian investor curious about the accessibility of M1 Finance Canada, rest assured that this guide is tailored to address your inquiries. We will provide insights into whether M1 Finance is available to Canadian investors and explore alternative options for automated investing in the Canadian market.
Is M1 Finance Available in Canada?
Unfortunately, M1 Finance, the top-ranking online brokerage, is unavailable in Canada. The platform is restricted to use by American citizens (holders of Green Cards) who are above the age of 18 and possess a valid US mailing address.
For Canadian investors interested in M1 Finance, there is currently no official statement from the company regarding its availability in Canada. However, Canadian investors need not worry, as several M1 Finance alternatives are already accessible and being enjoyed by Canadians.
While M1 Finance may not be an option for Canadians at the moment, numerous other platforms are catering to Canadian investors’ needs. These alternatives offer similar features and services, making it easy for Canadians to manage their investments efficiently.
Top Alternatives to M1 Finance in Canada
M1 Finance might not have a direct equivalent in Canada, but fear not! Several top discount brokerages offer excellent alternatives.
Here are the leading M1 Finance alternatives available in Canada:
1. Wealthsimple
Wealthsimple Trade is a great trading platform that offers commission-free buying and selling of thousands of stocks. Its user-friendly interface and mobile-optimized investing dashboard make it easy to navigate and accept various payment methods, such as bank transfers and debit cards. In addition to traditional online stock trades, Wealthsimple Trade allows you to engage in other investment activities. It supports both taxable and registered (non-taxable) accounts such as RRSP and TFSA, and there is no minimum balance requirement when opening an account, making it accessible for investors with little money.
Wealthsimple is Canada’s leading low-cost automated investing platform, widely recognized for its popularity and household name status. One of its standout features is the absence of commission charges on ETFs and stocks, making Canada’s sole brokerage offer such an advantage.
Wealthsimple Trade, an alternate robo-advisor within the platform, provides Canadians with automated savings and investment solutions. The lack of a minimum balance requirement sets it apart from competitors like M1 Finance, enabling users to start trading with as little as $1. However, it’s worth noting that Wealthsimple Trade does not support mutual funds, bond trading, or options trading.
When it comes to account options, Wealthsimple offers a range of choices, including TFSA, RRSP, RESP, RRIF, LIRA, Corporate, and personal non-registered accounts. As for fees, clients can expect to pay between 0.40% to 0.50% per year, depending on the services they utilize.
Security is a top priority for Wealthsimple. Clients’ accounts benefit from CIPF protection against bankruptcy, providing peace of mind with coverage of up to $1 million in the unlikely event of insolvency.
Pros
- Zero commission on ETFs and stocks
- Multiple accounts
- No minimum balance requirement
- Easy to use
- Automatic portfolio rebalancing
- Cryptocurrency trade
Cons
- Mobil-only app
- Limited research options
Click here to learn more about Wealthsimple Trade.
2. Questrade
Questrade is an online discount brokerage established in 1999 with a $25 billion asset under management. Its popularity in Canada lies in its low commission, low trading fees, and multiple ranges of accounts. As a result, both beginners, intermediate and seasoned investors in Canada find Questrade attractive for DIY and active management investing.
Key Features
- Free tax-loss harvesting
- Low management fees
- Several investment options
- Automatic portfolio rebalancing
- Active management
- Ease of use
Questrade is one of Canada’s leading stock trading platforms, rivalling even the popular Wealthsimple. As a low-cost robo-advisor, Questrade offers a highly competitive service with the added advantage of zero commissions on buying ETFs, making it an attractive option for Canadian investors.
While Questrade excels in several aspects, it’s important to note that it charges commissions on selling ETFs, trading stocks, mutual funds, and other securities. This sets it apart from Wealthsimple, which doesn’t impose such fees.
To open an account with Questrade, a minimum balance of $1000 is required, slightly higher than M1 Finance’s minimum balance of $100. However, the platform’s Questwealth Portfolios provide a range of cost-effective registered and unregistered accounts for Canadian investors, catering to their specific needs and preferences.
Questrade’s offerings extend beyond ETFs and stocks, encompassing various investment options such as Forex, mutual funds, precious metals, and IPOs. The platform also provides various account types, including RRSP, TFSA, RESP, RRIF, LIRA, LIF, Corporate, margin, and personal non-registered accounts.
When it comes to fees, Questrade charges $4.95 to $9.95 per trade for stocks and ETFs, while ETF purchases remain free. This transparent fee structure allows investors to make informed decisions based on their trading preferences and objectives.
In terms of security, Questrade ensures the safety of its users’ brokerage accounts by protecting CIPF for up to $1 million. This added layer of security offers peace of mind to investors, knowing that their investments are safeguarded in the event of any unforeseen circumstances.
Pros
- Free ETF purchases
- Low account management fees
- Registered and non-registered accounts
Cons
- Fees for stocks, ETFs selling, mutual funds, stocks, bonds and other trades
- $1000 minimum account balance
Read this Questtrade review to learn more about Questrade.
3. Moka
Moka, formerly known as Mylo, is a highly acclaimed automated savings and investment platform founded in 2017. This Canadian-based app offers a range of account options and stands out as one of the most cost-effective trading platforms in the country, boasting zero minimum balance requirements.
One of the key features that set Moka apart and make it immensely popular is its unique automated “round-up on purchases” mechanism. This innovative approach makes investing effortless by automatically rounding up your everyday purchases and directing the spare change towards building your investment portfolio. By doing so, Moka enables you to invest more effectively, even with small amounts and encourages disciplined saving and investing practices.
Moka offers various account types to cater to your specific needs. Whether you’re looking for a personal non-registered account, a Registered Retirement Savings Plan (RRSP), or a Tax-Free Savings Account (TFSA), Moka has got you covered.
When it comes to fees, Moka is impressively affordable, charging only $3 per month. This transparent fee structure ensures that your investment journey is not marred by excessive costs, making it an attractive option for beginners and seasoned investors.
Furthermore, security is a top priority for Moka. Your investment account is protected and insured by the Canadian Investor Protection Fund (CIPF), safeguarding your investments against any potential insolvency issues.
Pros
- Hands-off investing
- Automated savings
- Zero account minimum
- Round-ups on investment
- Excellent Monthly perks
Cons
- Few account options
- Not ideal for large investments
What is M1 Finance?
M1 Finance is a highly regarded robo-advisor headquartered in Chicago, US, providing an automated investing platform for investors to build customized portfolios comprising ETFs, stocks, and fractional shares, among other options. With over 80 pre-designed portfolios available, investors have diverse investment choices.
Founded by Brian Barnes in 2015, M1 Finance distinguishes itself from traditional brokerages by offering fee-free trades and ETFs, making it an attractive option for many investors seeking cost-effective solutions.
Due to its user-friendly interface and accessibility, M1 Finance has experienced rapid growth, amassing a user base of over 500,000 and managing assets worth more than $2 billion in just six years since its inception. It competes with other popular platforms like Robinhood and Webull, catering to novice and experienced investors.
To accommodate various investor preferences, M1 Finance offers two types of accounts: M1 Basic and M1 Plus, providing competitive offers tailored to different investor needs.
1. M1 Basic Account
M1 Basic is a free account with three key offerings: invest, borrow, and spend.
- M1 Borrow: M1 Borrow allows you to borrow money through a flexible line of credit, leveraging your investment portfolio as collateral. This service offers a competitive interest rate, providing you with financial flexibility while keeping your investments intact.
- M1 Spend: M1 Spend functions as an online banking arm, offering a debit card and earning interest on your checking account balance. Additionally, purchases made using the debit card may qualify for cashback benefits, particularly if you have an M1 Plus membership.
- M1 Invest: M1 Invest is the foundation of M1 Finance, offering robo-advisor and brokerage services. Upon joining and depositing a minimum of $100, you can open various accounts, including personal taxable accounts, joint investment accounts, IRAs (traditional, Roth, and SEP), trust investment accounts, and individual and joint brokerage accounts.
Here are the features of this account:
- One trade per day during the AM trade window.
- No trading commissions, saving you costs on trades.
- A 3.5% loan rate with a minimum deposit of $5,000 makes borrowing more accessible.
- Reimbursement for one monthly ATM fee, reducing transaction costs.
- Free digital checking for convenient banking.
- International transfer fees range from 0.8% to 1%, ensuring seamless global transactions.
2. M1 Plus Account
M1 Plus is a premium account that offers enhanced features compared to the M1 Basic account. However, it comes at $125 annually, although there is a free offering for the first year.
Here are the features of the M1 Plus account:
- Two trades per day, available during both AM and PM trade windows, provide more trading flexibility.
- No trading commissions, enabling you to make trades without incurring extra fees.
- Access to custodial accounts, ideal for managing finances for minors.
- Smart Transfers feature for automated and efficient money management.
- A 2% loan rate with a minimum deposit of $5,000, offering better borrowing terms.
- Free digital checking for hassle-free banking services.
- 1% cash back on purchases, rewarding you for using the account for everyday expenses.
- 1% APY (Annual Percentage Yield) to grow your savings.
- Five debit card design options allow you to personalize your card.
- Reimbursement of all international fees, making global transactions cost-effective.
- Reimbursement for up to four monthly ATM fees, further saving on transaction costs.
- Ability to send checks for added convenience.
Benefits and Drawbacks of M1 Finance Canada
Pros
- No trading fees
- Zero commissions on ETFs
- Automatic portfolio rebalancing
- Wide range of accounts
- Fractional shares investment option
- Ease of use
Cons
- No mutual funds
- $100 account minimum
Is M1 Financial Legit?
M1 Finance can be confidently considered a legitimate platform. M1 Finance is a registered member of the US Securities and Exchange Commission (SEC), an authoritative body responsible for safeguarding the interests of investors.
Additionally, it is regulated by the Financial Industry Regulatory Authority (FINRA) and covered by the Securities Investor Protection Corporation (SIPC), ensuring compliance with industry standards and protecting customers.
M1 Finance also holds an impressive A+ rating on the Better Business Bureau (BBB). This recognition signifies high trustworthiness and reliability, reassuring potential users of the platform’s commitment to customer satisfaction.
Final Thoughts on M1 Finance Canada
While there’s no M1 Finance specifically tailored for Canada, there are several excellent M1 Finance alternatives available to Canadians. Wealthsimple, Questrade, and Moka are just a few examples of the diverse options you can explore.
For the best trading platform in Canada, consider Wealthsimple, especially if it aligns with your investment objectives. However, don’t forget to thoroughly compare the trading costs, account types, automation features, and accessibility of the alternatives before making your decision.
Take charge of your financial journey today and choose the robo-advisor that suits you best. Explore the exciting possibilities these M1 Finance alternatives offer in Canada and set yourself on the path to financial success.
FAQs on M1 Finance Canada
Does M1 Finance Have an App?
Yes, M1 Finance has a mobile app available for download on Google Play Store and App Store.
Why You Shouldn’t Use M1 Finance?
You shouldn’t use M1 Finance if you’re trying to invest in mutual funds or cryptocurrencies. M1 Finance does not offer these options at the moment.
Is M1 Finance Good for Beginners?
Yes. M1 Finance has pie charts and an intuitive interface with more than 80 pre-designed portfolios, making it easy for beginner investors to build a diversified portfolio hands-off.
Can You Have 2 M1 Finance Accounts?
Yes. You can have up to 5 M1 Finance under the same login. This could be a mix of registered, unregistered and trust accounts.
