How M1 Finance Takes Advantage of Investors
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- Опубліковано 29 чер 2024
- M1 Finance profits from it's users in somewhat sneaky ways, like most investing brokerages. We check the box to ok the terms and conditions and move on without getting an adequate understanding of what we are agreeing to and it can have negative consequences.
⏱Handy Timeline:
0:00 What they are doing
1:56 Problems with Stock Lending
2:57 Problem 2
3:21 Problem 3
4:49 Problem 4
7:02 How to unenroll
8:05 Will this destroy our returns?
Link to unenroll:
help.m1.com/hc/en-us/articles...
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Thanks for the update video
Thanks for this update!! Nice job!
Thank you for the info. Keep up the great work!
Thanks for sharing this information, I've been using M1 for years now and I wasn't aware they were doing this, I just emailed them asking to be unenrolled and they replied within minutes acknowledging my request and mentioning they will send a confirmation email in the following days.
Again, thanks for sharing this!
Thank you for the M1 videos. Keep us updated
Thank you for being here!
Good video 👍 unenrolling for sureee! The concerns over the loss of insurance is low key mind blowing and barely even sounds legal haha
I saw this posted on Reddit a week ago and made sure to send M1 an email. If M1 is looking for ways to make money, it is strange that they ended M1+. Maybe it didn’t provide enough of a revenue stream, but I fail to see how defaulting to stock lending is a good look. It seems like FINRA took notice too and levied a hefty fine, so we might see some financial restitution at some point.
Well, I just subscribed. Great video. Thank you for teaching me, Sensei
Thanks so much!!
Just a guide not a guru!
Thank you for informing me about this. You are awesome.
Thanks for watching!
Im thankful for attentive, helpful people like you. I just joined M1 cuz I didn't find the $10,000 thing a big deal but further explanation of this securities lending thing and how to opt out was much appreciated🙏🏿
Thank you!
Thanks more people should know this. I subbed thank you
Thank you for this insightful information
Thanks for information 👍
Thanks you bro. W mans
Great explanation on stock lending, learned something new. Also most borrow the stock to short it so the price of your stock will go down. I always opt out of stock lending, not beneficial to me.
It doesn't necessarily cause the stock to go down. When people short, there is also someone buying it. Its just the shorter has a bet it will go down.
M1 could have been the perfect app… they were that close but they gotta fuk it up
Brendan, your comments or insight on the M1 FINRA fine for the 1700 internet promoters? Maybe another video? Thanks for this update, I put on my walking shoes due to the $3 monthly fee and started digging, found the FINRA fine and this topic on lending last week. They won't miss me as I am small potatoes, but the noise seems unending.
going to unroll right now thanks for the video
.....AND they charge you $100 minimum to close a brokerage. $200 for a tax advantaged account.
I'm getting out.
Hi. Thanks for sharing this video. I just have a question. Regarding the stock lending. Is there a tab like in Robinhood that we can see if they really opted us out in stock lending? Did you check it yourself?
After making this I did see that in some accounts I got a stock lending referral or something like that. So it’s definitely happening. But I didn’t see a specific tab
With all these "fun" and hidden changes M1 is doing to customers, do you recommend using M1 or should i consider a different brokerage?
Does this work for holdings in crypto on Robinhood?
Is this going to affect somehow my dividend profits? I am about to hit $10000 to be out of the fee, but I was wondering if M1 is still a great app to invest with or should move to another. Thank you!
Is it only stocks?
Does this includes Roth IRA's?
Are we at risk of needing SIPC insurance if M1 finance goes out of business? Or is APEX clearing more important since they're the custodian? I'm over the SIPC insurance limit with M1 finance and considering moving excess stock to other brokerages, but this is complicated because I don't want the tax consequences from selling
It doesn't matter if any of them shut down, at the end of the day you still own the shares in the companies and your assets would just transfer somewhere else. And its also very likely SIPC is going to honor a full refund over the limit if something happened.
Has anyone actually been lending shares out since m1 took over the accounts from apex?
Just use fidelity
Fidelity has this too but thankfully you have to choose to enroll plus the account minimum for eligibility is $25k
www.fidelity.com/trading/fully-paid-lending
AND this is why you don't just 'accept' all the add-on features your brokerage account is constantly advertising to you.
Big thumbs up and new subscriber here.
Thanks for this insight.
M1 could’ve been the perfect investment app but, seems like greed is getting to them.
Is a roll over to fidelity posable
Yup!
What am I supposed to do with my stock in M1 now? How do I opt out?
7:02 how to unenroll
@@BrendanEvan I got there eventually , I was thinking oot loud as your video was playing ha. Thanks for the videos!
I mean you can still use their platform, but you have to opt out if you don't want to participate in securities lending.
@@arturoescorcia yeah I opted oot. I still use m1
Opted Out, New Follower, also new to M1 finance! Im hitting the ground running with a good foundation with M1 Finance. I love the PIEs and will be over $10k to avoid the $3/monthly fee when the Plus benefits become free on 5/1/24. Now to find out what to allocate my roth ira funds into!!
So I can opt out and still enjoy M1?
Yup!
I want to see you learn spoon carving. I mean what else are you going to do with those axes
I was wondering the same thing 😂
Are we automatically opted ‘in’ to this when we sign up?
As far as I understand yes
That is what he said in the beginning of the video.
Is this something new I should worry about? This is pretty important.. and I do occasionally (sometimes I miss them) see emails to vote for things in a few of my company investments. Also doesn’t it say FDIC insured?!! (Only halfway through the video)
It’s not new, just something to be aware of and opt out of if you don’t want to participate.
Edit: or if you don’t like the direction they’re going you can transfer out
FDIC insurance is for banks.
SIPC insurance is for brokerages.
@@BrendanEvan Okay, thank you for raising awareness since most of us were not tracking this. We really have to keep an eye on these brokerages.
In other words, it is M1 that is the bad guy rather than the people opening accounts having no agency and not reading the terms and conditions / account agreement?
Um k.
Yes. They are the bad guys because it isn't standard practice when you open a brokerage account to 'default' to something that is critically bad for your investment portfolio..
WTF
I saw shady things happening in my account especially with my dividends. I asked them about it and they gave me crap reasons. Now I see. I already sold everything and now in liquidation. Already put in my closure notice. Plus they are gonna charge $3 a month on accounts under $10,000.
what kind of shady things related to the dividends? i did get my tax documents and turns out i made less in dividends than what was shown on my account.
Only stupid people lending out their stocks.😂
to only get 10% of the revenue is also ridiculous.. M1 has none of the liability and is getting 90% of the profit from lending it.
Webull does this by default too