What Stocks Can I Buy with M1 Finance?

Bob HaegeleBy: Bob Haegele

July 28, 2021July 28, 2021

Robo-advisors have taken the world by storm. By bringing automation to the world of investing, novice investors can invest effortlessly. There are some drawbacks, however. Some of these platforms have limits on what you can invest in.


M1 Finance is one of the leading robo-advisors on the market today and in our M1 Finance review, we highly recommend it. But what stocks are available to buy on the platform?


In this guide, we discuss some of the stocks investors can buy through the service and whether its spread will suit the majority of traders.

What Stocks Can You Buy with M1 Finance?

M1 investing features more than 6,000 securities listed on NYSE, BATs, and NASDAQ. There is also a huge number of exchange-traded funds (ETFs) available which is ideal for passive investors.


Some investors may discover that their favorite stock isn’t available on the platform. This is because M1 has strict pricing and volume thresholds to protect the integrity of its users' portfolios. For example, you will never find any penny stocks on the platform.


Currently, it isn’t possible to invest in options, bonds, or mutual funds. That said, it is possible M1 could add these to the platform in the future. It is always making improvements and you never know what could be in the works.

Does M1 Finance Offer Fractional Shares?

Fractional shares have existed as a concept for a long time, but robo-advisors have marketed them to their users to make low-cost investing more viable. Even if you only have a few dollars, you can invest in big-name stocks.


For example, the  Amazon stock price currently rests north of $3,000 in 2021. Even if you only have $50 to invest, you can still purchase a fractional share in Amazon.


At Modest Money, we are big supporters of fractional shares because you can put every dollar to work from day one, whereas in the past you would have to save just to own a single full share of your preferred stock.

Why Fractional Share Investing is So Powerful

Time in the market is always superior to timing the market. If you have to save up to own a full share of a stock you could be missing out on that next big market swing.


Owners of  fractional shares make the same gains as holders of whole shares. There are no strings attached. Making every cent work for you lets you to maximize your long-term gains.


M1 empowers investors to purchase fractional shares, which is why it can provide a service with no account minimums, no trading fees, and no commissions.

Auto-Invest – The Best Way to Buy M1 Stock

The most powerful investing feature M1 Finance offers is its auto-invest setting. It’s the most popular investment option used by M1 Finance investors.


When you turn on auto-invest, M1 Finance will automatically throw your cash balance into your existing portfolio, whether you have created your own pie or utilized one of more than 30 pre-built portfolios.


The minimum balance required to invest automatically is $25.

Can I Invest in an Individual Stock?

While we don’t recommend using all your money to buy individual stocks, as diversity is critical to a successful portfolio, some investors may want to invest in an individual stock separate from their portfolios.


With M1 Finance, you’re not locked into certain securities like with other robo-advisors. You do have the option to invest in just a single stock.

To do it, follow these steps:


  • Step One – Select your chosen stock and make sure you have your desired investment amount already in your account.
  • Step Two – Create a separate M1 Finance pie and add that stock as an individual slice.
  • Step Three – Save your pie and select the amount you want to invest.

While it may feel a tad more cumbersome to invest in an individual stock using the M1 pie system, there are no defined limits on how many pies an individual investor can have on their account. This offers flexibility and can also allow two-stock or three-stock pies, depending on your strategy.

Is M1 Finance Right for Every Investor?

There are certain drawbacks to M1 Finance’s selection of available assets. Day traders, penny stock traders, and traders of high-risk, high-volatility assets will not get any value from M1.


The fact is M1 is aimed at investors who want a conservative, low-risk portfolio designed for the future. M1 is a platform that minimizes risk on behalf of its users, which is why tens of thousands of investors put their trust in it.

The Bottom Line

As far as all the major robo-advisors go, the 6,000+ selection of securities on offer will be more than enough for the majority of investors. While penny stock investors won’t be able to trade with M1, the average trader will have everything they need to build a strong portfolio for the future.


If you want to create an account with M1 Finance and begin investing in stocks for free,  click on this link now.



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Bob Haegele

About the Author:

Bob Haegele is a personal finance writer, entrepreneur, and dog walker. He's a money management expert and investing connoisseur. Bob has been writing about personal finance for three years and now manages several personal finance sites, including The Frugal Fellow and Modest Money. You can also find him contributing to popular websites such as GOBankingRates, Bankrate, and Insurance.com. You can see more of his work on Muck Rack and Contently, or connect with him on LinkedIn.

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