There are so many competing platforms out there right now offering zero-commission trading that you can easily compare and pick what’s right for you.
While the basic idea is the same – they are investing apps without minimums deposits or any hidden fees – but they can differ in several ways. Some offer fractional share access, which lets you buy small portions of stocks whose price might be out of your reach. There are some out there that give you more options when it comes to customizing your portfolio, while others give you pre-built accounts.
Many of the platforms were built for beginning investors, but there are plenty for intermediate to advanced traders. There are apps out there offering IRAs and retirement financial planning. And others have built-in banking services including savings accounts with good APRs and debit cards.
It’s well worth your time to look at the various options and see what is the best fit for the type of trading you want to do right now. Down the line, your needs could change. This may be the time to shut down one account and move to another platform.
If you tried out M1 Finance and decided it isn't for you, heres how you go about closing your M1 Finance account.
If you’ve signed on with M1 Finance, closing your account is simple but will cost you money if you decide to transfer your portfolio to another brokerage. You must first move your cash to either your bank or your choice of another broker.
If you have investments, you can either sell them for their current cash value or transfer to another broker. Then you contact M1 Finance customer service and ask them to close your account. You can call them, or you can send them an email.
M1 Finance does not charge account closure fees for both regular brokerage joint or individual accounts. However, the platform does charge $100 for full or partial outgoing account transfers.
If you have an IRA account, M1 will charge you a $100 termination fee.
You will need to allow 3-4 business days for M1 to close your account. Also, you will not receive confirmation that the account has been closed. To confirm the account has been closed, you can check in the app or contact M1 customer support.
If you are closing your M1 Finance account, it makes good sense in the longer term to transfer your balance to another investment broker. This is because chances are high that if you funnel it into your bank, you will be tempted to spend it.
One option you may want to consider is Robinhood.
Heres why:
Just like with M1, this is a 100 percent free trading platform. They do not charge any hidden fees and there are no strings attached. Even if your transferred cash isn’t enough to open a sizeable account, there is no need to worry. Robinhood doesn’t have a purchase minimum, which means you can get started investing right away.
Even though there is no minimum balance to open an account, however, you do need to have $2,000 to open a Robinhood Gold margin account. Trading on margin means you are borrowing money to make investing moves, and is very risky.
Robinhood is an easy to use, beginner friendly platform. It gives you the ability to trade stocks, ETFs, crypto and options. They have free pre-market and extended hour trading.
Now is a good time to sign up with Robinhood. The company is offering a random free share of stock valued at up to $200 for new users and another when you refer a friend during this promotion.
The shares of free stock are chosen randomly from Robinhood’s inventory of settled shares. Because the shares are chosen randomly, you and your friend are not likely to receive the same stock.
The value of the share may be anywhere between $2.50 and $200, and fluctuates based on market movements. They choose from the most popular companies on Robinhood, based on the total value and the price of each share. Keep in mind there is an approximately 98% chance of the stock bonus having a value of $2.50-$10.00.
Weighing your options when it comes to selecting an online brokerage is a wise move. While the basic premise is the same, there’s a huge variety in other bells and whistles the apps offer.
Closing an M1 Finance account is simple but will cost you $100 in transfer fees if you transfer your account. If you simply sell your positions and move your cash to the bank, it won't cost you.
Robinhood could be a smart choice if you’re looking to transfer that money, and with the free stock promotion, now is a good time.
