can you buy individual stocks on m1 finance

Slice and Dice Your Portfolio: Can You Buy Individual Stocks on M1 Finance?

M1 Finance has been making waves in the investment world, known for its intuitive platform and automated investing features. But for those who love the power of customization and want to build a portfolio tailored to their exact liking, a common question arises: can you buy individual stocks on M1 Finance?

The short answer is yes! While M1 Finance is famous for its “pies” – pre-built portfolios of ETFs – it also allows you to purchase individual stocks. This gives you the best of both worlds: the convenience and diversification of pre-made pies combined with the flexibility to invest in companies you believe in.

How It Works:

Buying individual stocks on M1 Finance is surprisingly straightforward. You simply create a “custom pie” and add the specific stocks you want. M1 Finance doesn’t charge trading commissions, so every dollar you invest goes towards purchasing those shares.

Here’s a breakdown of the process:

1. Create a Custom Pie: Navigate to the “Portfolio” tab and select “New Pie.” Choose the option for a “Custom Pie” instead of a pre-built one.
2. Add Your Stocks: Use M1 Finance’s search bar to find the individual stocks you want to include in your pie. Enter the desired percentage allocation for each stock within the pie. For example, if you believe strongly in Apple (AAPL) and want it to make up 30% of your portfolio, allocate 30% to AAPL.
3. Automate Your Investments: Once your custom pie is complete, you can set up automatic investments on a schedule that suits you. M1 Finance will purchase the stocks in your pie according to your chosen percentages whenever you fund your account.

Benefits of Buying Individual Stocks on M1 Finance:

* Customization: Tailor your portfolio precisely to your investment goals and beliefs.
* Control: Choose specific companies you want to support, whether it’s innovative tech giants, sustainable energy providers, or local businesses.
* Potential for Higher Returns: While individual stocks carry more risk than diversified ETFs, they also offer the potential for higher returns if you pick winners.

Things to Keep in Mind:

While buying individual stocks offers advantages, remember that it comes with increased responsibility:

* Research is Key: Before investing in any stock, thoroughly research its financials, management team, industry outlook, and competitive landscape.
* Risk Management: Individual stocks are inherently riskier than diversified ETFs. Spread your investments across different sectors and companies to mitigate potential losses.

M1 Finance vs. Traditional Brokers:

Compared to traditional brokerage accounts, M1 Finance simplifies the process of buying individual stocks. Its user-friendly interface and fractional share investing make it accessible even for beginners. However, M1 Finance doesn’t offer the same breadth of research tools and real-time market data as some other platforms.

Is It Right for You?

Buying individual stocks on M1 Finance is a great option for investors who:

* Want to build a personalized portfolio aligned with their specific goals and beliefs.
* Appreciate the convenience and automation offered by M1 Finance’s platform.
* Are comfortable conducting their own research and understanding the risks associated with individual stock investing.

If you’re looking for a hands-off approach or prefer broader diversification, sticking with M1 Finance’s pre-built “pies” of ETFs might be a better fit.

Ultimately, the decision depends on your individual investment style and risk tolerance. M1 Finance empowers you to choose the path that best suits your needs – whether it’s building a diversified pie or crafting a custom portfolio of individual stocks.