M1 Finance is a unique investment platform that allows you to buy fractional shares of stock. This means that you can invest in stocks even if you don’t have a lot of money to start with. 

In this post, we’ll take a look at how M1 Finance works and explore some of the pros and cons of this investment platform. Whether you’re just starting out or you’re looking for new options for your portfolio, M1 Finance is definitely worth checking out!

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What are fractional shares, and how do they work?

Fractional shares are simply shares of a company that are divided into smaller pieces. This allows investors to purchase partial ownership in a company, even if they don’t have enough money to buy a full share. 

M1 Finance allows you to buy fractional shares of stock for free. This means that you can invest in your favourite companies without having to come up with a lot of money upfront. You can also choose how much money you want to invest in each stock so that you can spread your risk across different companies. 

The benefits of owning fractional shares

There are a few benefits of owning fractional shares: 

1. You can invest in your favourite companies even if you don’t have a lot of money to start with.

2. You can spread your risk across different companies.

3. You don’t have to worry about buying a full share of stock. 

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The downside of owning fractional shares

There is one potential downside of owning fractional shares: you may not be able to sell them as easily as full shares. If there’s low demand for the stock, it may be difficult to find someone who wants to buy your fractional shares. However, this shouldn’t be a major issue unless the company goes bankrupt and winds up liquidating its assets.

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How to buy fractional shares with M1 finance

To buy fractional shares with M1 Finance, you first need to create an account. Then, you can browse the list of available stocks and choose which ones you want to invest in. You can invest any amount of money you want in each stock, and you can change your investments at any time. 

M1 Finance also offers a variety of tools and resources to help you make smart investment decisions. You can use the platform’s portfolio builder to create a custom portfolio that fits your needs, or you can use the recommendations engine to find stocks that match your investing goals.  

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Is M1 finance right for you?

If you’re looking for a simple way to invest in stocks, M1 Finance is definitely worth checking out. This platform is perfect for beginners, and it offers a variety of features that can help you grow your portfolio. However, if you’re looking for something more sophisticated, M1 Finance may not be the right choice for you.  

So, is M1 Finance right for you? Only you can answer that question. But, if you’re interested in investing in stocks and you’re looking for a platform that’s easy to use, M1 Finance is definitely worth considering.

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