If you’re here, you probably already know Motif Investing is closing and you’re probably researching alternatives. M1 Finance is probably the best one. Here’s why.
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Contents
Motif Investing Closing Announcement
Motif Investing announced in an email to retail investors on April 17 that it would suddenly be closing after 10 years, a shock to members of Motif.
No specific reason has been given for its sudden closure.
Consider M1 Finance as a Motif Alternative
I actually wrote a comprehensive review of M1 Finance here. But below are the specifics on why I think M1 Finance is a perfectly suitable – and perhaps objectively superior – alternative to both Motif Investing.
M1 gives you full control.
Just like Motif, M1 Finance was built for the sophisticated investor. M1 actually won Investopedia’s Best for Sophisticated Investors award, while Motif got 2nd place. With the pie interface, you can custom-build your portfolio with diversification and specific asset allocation in mind.
M1’s features are similar to Motif, at a lower cost.
Like Motif, M1 Finance lets you construct custom portfolios of stocks and ETF’s in a visual pie-based interface. If you prefer to be hands-off, M1 has pre-made Expert Pies based on time horizon (target date funds), risk tolerance, hedge fund followers, and more. Basically, Motif’s “Motifs” are M1’s “Pies.” You can create as many pies as you want and have pies within pies. M1 offers expert-built “Expert Pies” for free, and people construct pies for “lazy portfolios.”
Because M1 doesn’t offer investing advice (it’s completely self-directed), they cut out any extraneous fees. Investing is completely free. There are no trade commissions or markups. There are no monthly account fees. Also, M1 has the cheapest margin rates around.
M1 does offer a premium option called “M1 Plus” that gets you access to a second trading window and a lower margin rate, but you don’t have to opt for that. The basic version is still free and unlimited.
Specifically, below is how M1 Plus stacks up with Motif:
M1 Finance Account Transfer Promotion
M1 happens to be running a promotion right now through May 31 where they’ll pay you to bring your account over:
Disclaimer: While I love diving into investing-related data and playing around with backtests, I am in no way a certified expert. I have no formal financial education. I am not a financial advisor, portfolio manager, or accountant. This is not financial advice, investing advice, or tax advice. The information on this website is for informational and recreational purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. Do your own due diligence. Past performance does not guarantee future returns. Read my lengthier disclaimer here.
Don't want to do all this investing stuff yourself or feel overwhelmed? Check out my flat-fee-only fiduciary friends over at Advisor.com.
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