US automated investing platform M1 Finance, has abolished all fees for investors, regardless of the size of their accounts.
The move enables investors to buy stocks and exchange- traded- funds (ETFs) for the first time, free of charge.
M1 Invest’s founder and CEO Brian Barnes, said: “The future of finance is free.
“What Robinhood created for the modern trader, M1 is now doing for the modern investor.”
The robo advisor used to have three pricing categories:
- Zero fees for accounts with less than $1000
- A 0.25% fee for accounts between $1000 and $100,000
- A 0.1% fee for accounts more than $100,000
Barnes said: “If you’re an investor who wants to add to your portfolio over time, there has never been a better platform than M1. And now that we’re free, there’s no reason to invest anywhere else.”
By Wednesday, had about 25,000 accounts, and their assets under management were almost $100m, WealthManagement.com reported.