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M1 Finance vs Charles Schwab | Best Commission Free Brokerage? - YouTube
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so in this video today we are going to
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be comparing two popular brokerages out
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there number one being m1 finance which
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is like the newcomer on the block here
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and the number two the old faithful
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being Schwab or Charles Schwab now in
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the past these two there was a big
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difference between them back when
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Charles Schwab was charging Commission's
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and m1 finance was obviously offering
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Commission free trading however recently
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Charles Schwab made the announcement
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that they are going totally Commission
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free to compete with a lot of these new
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up-and-coming brokerages so that being
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said now that it's a more level playing
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field what are the differences between
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m1 finance and Charles Schwab now before
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I get into the video I just want to
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mention two things really quick number
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one if at the end of the video you do
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decide to sign up for m1 Finance I am
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affiliated with them and if you do use
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my link I earn a small Commission in the
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process your use of that link is not
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required but it is certainly appreciated
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as it's a way to give back to me at no
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additional cost to you for putting this
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video together and I also just wrapped
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up a completely free 30-minute video
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training showing you step-by-step how to
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get started with m1 finance and how to
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use m1 finance as a complete beginner
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both of those are linked up down in the
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description below for your convenience
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but that being said the first biggest
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difference here between Schwab and m1
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finance is the minimum amount of money
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to begin investing so with m1 finance it
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is a $100 minimum to open a brokerage
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account or $500 minimum if you're
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looking to open up a retirement account
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while Schwab has a zero dollar minimum
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they used to have a much higher minimum
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but again because they were looking to
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be more competitive with these free and
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up-and-coming platforms they lowered
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that to a zero dollar minimum m1 finance
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is completely Commission free and so is
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Charles Schwab so you don't pay any kind
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of commissions for placing trades for
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stocks ETFs and etc the different assets
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that these offer one big difference here
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between m1 finance and Charles Schwab is
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that m1 finance only offers one trading
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window per day so if you're looking to
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place trades you have one opera
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in the given day where those traits are
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all placed in bulk and that is a way for
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them to cut down on trading costs while
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Charles Schwab has an open trading
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window so you can trade at any point in
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time during the open market hours
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another difference here is the types of
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assets you can treat with m1 finance you
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can trade stocks and ETFs and with
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Charles Schwab you can trade stocks ETFs
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as well as options contracts futures and
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mutual funds giving you a greater
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variety if you are interested in those
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particular assets beyond that they are
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pretty similar as far as what they are
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offering here m1 finance does offer over
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30 expert PI's that are built by
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investing experts that you can
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automatically invest in again fee free
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and this is open to anybody who has an
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m1 finance account Charles Schwab does
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have something similar called Schwab
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intelligent portfolios which is a free
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robo-advisor the only issue is Schwab
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intelligent portfolios is reserved for
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people with $5,000 or more invested so
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if you do want to have that kind of
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guidance with your investments with
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Schwab it is going to be a minimum of
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$5,000 to get that type of guidance from
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them or as you can invest in the m1
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finance expert PI's at any point in time
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you don't have to meet any kind of
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minimum requirement as far as dividend
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reinvestment with m1 finance you have
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that portfolio level dividend
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reinvestment
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so basically as you earn dividends those
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dividends go towards your cash balance
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and once that cash balance exceeds ten
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dollars that money is invested across
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your entire m1 finance pie or portfolio
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Charles Schwab offers stock level
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dividend reinvestment where the dividend
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earned can go right back into the
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issuing stock now one key differentiator
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between these two was the fractional
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shares as m1 finance does offer
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fractional shares however Charles Schwab
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just announced that they will very soon
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be offering fractional shares as well on
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the platform and both m1 finance and
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Charles Schwab offer tools for automated
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rebalancing of portfolios so that being
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said what are the differences here the
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main deck
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differences here are the fact that with
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m1 finance you do have access to those
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expert pies regardless of how much you
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invest in and that includes target date
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retirement funds stock and bond
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allocations and a couple of different
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categories Charles Schwab does offer
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free guidance with what to do with your
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investments through the Schwab
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intelligent portfolios but it comes at a
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$5,000 minimum you do have access to
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additional assets with Charles Schwab
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that you don't have with m1 finance
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being the options the futures and the
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mutual funds and Schwab does have a
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better research platform because they've
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been doing this for a lot longer than m1
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and there's a lot of tools and research
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data available to you as an investor and
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because of that open trading window if
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you are looking to actively trade in and
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out of stocks and you want to trade at
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certain points during the day that is an
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advantage you have whereas with m1
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finance you just have that one trading
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window now because Charles Schwab packs
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so much into their platform it may be a
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little bit overwhelming for a complete
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beginner so I would say that m1 finance
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is more beginner friendly but at the end
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of the day they're offering a very
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similar service here now which is
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completely free investing with some
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great tools to help you automate the
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investing process so it's going to come
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down to what platform you are more
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comfortable and familiar with and so I
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would even recommend taking a look at
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both of them and then you can always
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decide which one is a better fit for you
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they're both completely free so you
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don't really have much to lose if you
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wanted to tinker around with both of
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them but that being said the expert Paes
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is definitely a key differentiator right
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now that would set m1 finance slightly
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ahead of Charles Schwab by offering
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those expert portfolios regardless of
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the amount of money that you are
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investing but anyways guys that is the
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differences between Schwab and m1
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finance I hope you guys enjoyed this and
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I hope this helps you to make a decision
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as I mentioned all those links are down
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in the description below and thank you
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guys so much for watching and I will see
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you in the next video
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