how’s it going everybody welcome back to the channel my name is jay and today we need to talk about m1 Finance as most of you know i’m a big fan of the m1
Finance platform i have two Portfolios at m1 none;">Finance that are linked in the description of every one of the CashNews.cos i make on this channel but m1 Finance isn’t without its problems and
today i wanted to take the time to address one of those problems with you and this is a problem that could be costing every m1 Finance customer thousands of dollars over the
long run you see i spent a fair bit of my free time on the m1 Finance subreddit because you know that’s what all the cool kids do with their free time and the issue
we’re going to talk about today has been brought up numerous times over there lately as a major defect of the m1 Finance platform and that has to do with how m1
Finance executes your trades when they’re placed for those of you unfamiliar with how m1 #1a73e8; text-decoration: none;">Finance works it’s a little different than your traditional Brokerage where you simply log in place your trade and see it executed regardless of when during the trading day you do that m1 href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance
all the other trades placed by people on their platform groups them all together and executes them all at the same time within a window starting at 9 30 a.m every day usually that window is about an hour but according to m1 it officially closes once m1 has executed all of the orders they have
there’s also an afternoon window that works exactly the same way so if i want to buy Shares of tesla and i put my order in at noon during the trading day it’s not going to execute right at noon it will get grouped with all the other trade orders placed on m1 during the
day and m1 will then execute those orders in their afternoon window which starts at 3 pm and lasts till the market closes at 4. but the crux of the issue with these major complaints people have about m1 isn’t necessarily with the trading window feature it’s about the price that these
people feel their orders are executed at they claim that within m1 Finance’s trading windows the trades always seem to execute around the highest possible prices that
the Shares trade at during those times now it’s important to note none of these people have provided any hard data or real proof so i decided to take just a quick look at some of my recent m1 #1a73e8; text-decoration: none;">Finance trades and see if there was anything there the first trade was my normal 500 monthly deposit into my m1 Finance account
that holds all my index funds and this 500 went into buying Shares of vti the vanguard total Stock Market index etf this trade was executed during the afternoon 3 pm window and my trade bought the Shares of vti at 223.89 so did i get a good price
for my Shares of vti or is m1 screwing me over well you can see here that exactly 3 pm when that trading window opened vti was trading for 223.97 and when the market closed an hour later at 4 pm vti closed at 2 24 17. so my order which got filled at 223.89 seems like a pretty good
price for the activity within that hour but one trade does not a trend make so in my zero to one hundred thousand dollar passive Income account that i have m1 none;">Finance i had some Dividends that got reinvested today and there were three trades that were made during m1 Finance’s morning
trading window and first up i got some Shares of sphd my trade filled at a price of 49.16 at the opening of that 9 30 a.m trading window sphd was trading for 49 and 12 cents and at 10 30 a.m roughly when the trading window would have closed sphd was trading for 49.18 so my 4916
order seems to be right in the middle of that range where sphd was hanging out during the window next up i got some Shares of devo divo i got those at 37.92 cents per share at 9 30 a.m devo was 37.91 cents per share and by 10 30 a.m it had steadily risen to 37.99 per share so my
3792 is pretty darn close to the lowest price during that trading window and my final trade was for some Shares of schy that trade filled at 25.58 cents per share at 9 30 am s-c-h-y was trading for 25.55 cents at the close of the window an hour later it was trading for 25 and 60
cents so i know that’s just a small sample size but i really don’t see any evidence that m1 is filling any of its trade orders artificially high but the price the m1 none;">Finance is filling trade orders at isn’t really my problem with this so-called issue this deficiency that these people claim m1 Finance has because
they claim m1 Finance is filling my order’s artificially high i’m not getting the best price when i place a trade i’m leaving for another
Brokerage that does it better my question is oh yeah how exactly are you going to make that work where is this paradise that you always get the lowest price when you place an order for stock i don’t care if you’re at m1 style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance
Shares of stock now if you need a refresher on the different ways you can place orders check out my market order versus limit order CashNews.co which i’ll have linked down below but take for instance that i’m placing a market order during the same time frame that m1
Finance would be executing its trades i’m not guaranteed to get a better price than i am on m1 color: #1a73e8; text-decoration: none;">Finance when i place that order it all comes down to what the going price on the market is in the nanosecond i hit submit on that trade and it gets sent out the price of those Shares can and will jump higher and lower within the
seconds and minutes before and after my order actually executes okay jay but screw market orders what about a limit order what about when i set the exact price i want my trade to execute at okay great so let’s set a limit order with a limit order i am going to get those
Shares at my set price but again who says the price that i type in is going to be any better or worse than what those Shares could have been had for in the seconds or minutes before i execute that trade this whole complaint people are raising really takes timing
the market to a whole new level but maybe i’m wrong if you know of a way where you can always get the best possible price when you place an order please let me know in the comments below the other major issue i have with these complaints is that these people always claim to be long-term
investors and these differences in price are costing them thousands or tens of thousands of dollars over the long term i can’t even state how laughable of a statement that is if you are truly a long-term investor the minor fluctuations within any given day are absolutely irrelevant to the
bigger picture even if i was absolutely guaranteed to get the lowest possible price a stock was trading for today when i placed my order it could go lower tomorrow are you still going to be wringing your hands over the thousands and tens of thousands of dollars that’s costing you over the
long run of course not and that’s because if you’re deciding to buy a stock today that means that stock is already within a range you feel is a good value to buy at right i can’t imagine a scenario where you’re placing an order for Shares of tesla and you
think that at 977 tesla is a fantastic buy you were absolutely happy with but at 979 dollars oh my god how much money am i costing myself give me a break for instance when i first bought Shares of apple back in 2013 i got them for a now split adjusted price of 15 dollars and 13
cents per share do you think that even for a minute that i know or even care that i could have gotten those Shares for 25 or 50 cents per share cheaper than what i actually did no not a chance it makes no difference to my current returns on the stock so you can rest easy there is
no major problem with investing at m1 Finance or having your accounts there m1 text-decoration: none;">Finance is not going to cost you thousands or tens of thousands of dollars in lost returns because of the prices your orders get filled at that does not mean there aren’t problems with m1 bold; color: #1a73e8; text-decoration: none;">Finance though and in a CashNews.co i will have coming soon it will be right up here when i actually make it i will go over what i think actually is the biggest problem with m1 style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance
CashNews, your go-to portal for financial news and insights.
WATCH NEXT -> 2023 Updated M1 Finance Review https://youtu.be/K87WfeWG5vc
Is M 1 Finance causing you to lose $1,000's of dollars and the answer is? YES I saw nvda stock dropped $80 before the stock split around $695, so I knew it was a good time to buy, so I BOUGHT 2 SHARES I was happy and waited for the market to open, nvda stock took off 9:30am In the morning I WAS FEELING GOOD, NVDA SHOT UP TO $780, then when I looked at my account, it said I had 1.8 something shares and M 1 Finance had priced me in at $727 I was hot!!!!!! Now the market started cooling off and since m 1 finance doesn't have a trailing stop loss NVDA Closed at $760 so I gained $66 instead of close to $200, so not only do you lose on the entry of a stock, but you lose on the back end when the stock is cooling off and you can't stop it when it's falling. And the last thing is,, you can't pick your price. If a stock is $500 and you think the market is going to drop some. You can't set a limit order to $485 and get in at a great price, once I found that out I got another account at Robinhood, I set my limit orders, trailing stop loss orders and I can buy shares anytime I want through out the day. I was introduced to the stock market through m1 finance and they had a beneficiary and Robinhood didn't, Robinhood and other platforms under stood this and now they do, they adapted and changed for the better, M1 is good but without these features, yes they are costing you thousands of dollars, how do I know, cause they cost me thousands of dollars already, I hate every entry price I get, it's a retirement account, so I'm only adding 10 or 25 dollars every other week, but in my robinhood account I drop $500 in that account cause I can control how my money works. If M1 Finance added these features they would be 90% better If not there going to miss out on a lot of customers. I hope this helps and I hope M1Finance change and add these features, I'm not a day trader or options trader, but know being in the stock market over 3 years you know where your money should be and how it works for you, Thanks S. Carter 🔥👍🙏
M1 is not meant for day trading. M1 is a set it and forget it broker. Its slow growth on cruise control
I been a client of m1 from the beginning. I loved their features untill i compared my other 2 accounts growth. I been trying for a few days to transfer out of m1 , but no reply whatsoever. They might be better for. Retired people . Or other
It's no big deal. Just adjust your trade strategy for a 1% variant. I buy and sell at 11% I stead of 10%. Still make a 10% profit.
They should have an option to let you buy the close.
They do set your buy price higher and it’s frustrating. I bought a share of Northrop today and they priced it dollars above what the opening price was. In fact by the end of the day I will lose money….
M1 Bought PRU stock for me today $ 85.37, amazing the high of day was $ 85.34 How can that be, they said looking into, and would call back or send email, I got neither. Lady called me 2 months ago asked why I stopped sending money. I told her ya'll always buy my shares near high of the day. Today they cold buster themselves. It finally went barely over $ 85.40 at 1pm. I know they gonna come back and say $ 85.34 wasn't high of day. I took pictures of times to prove. Calling first thing in morning to see why no one called me back.
Don't trade thinly traded stocks.
Man I just wonder why my money didn't auto invest in my m1 accounts on this friday when I executed my transactions before the morning window around 5ish this morning. This was a first
If the M1 finance don't execute their trade at the highest spread possible, then, how else would they make money then?
M1 or Mt4 is removed from iPhone. Mt4 allowed in the laptop cause ??
Can't stand M1. They are extremely slow in releasing your dividends, constant security login hassles and quick time out. No DRIP, awful customer service and I even had a couple of instances where I had auto invest turned OFF but they went ahead and bought the crappiest stock in my portfolio that I didn't want to put money into. Miserable experience all around. Oh, and it'll cost you $200 to move your IRA from them and another $100 for regular brokerage.
Why does M1 not allow to place limit orders? I find that highly suspect. I moved my account to Fidelity.
so would u say Fidelity or M1 finance is better I am looking for long term savings for when I am older currently 23 just I am very conflicted on which app I want too use and would like some help I guess because I don't want to put money in fidelity and then use M1 at the same time just confused and if you could give me ur thoughts Jay?
Dude the point is ppl want to place limit order in M1
M1 Finance has let it be known that it is not for day/swing traders it’s for Long Term investments
M1 is worst broker by far. Should only be used by people that know nothing about stocks.
Very well explained 🙂
Excellent
The peace of mind not worrying about placing orders is priceless
M1 is strictly for novice investors who have a long term buy and hold strategy. It's a small niche. Not for me.