Finally, when you're done with all your files and settings, you can upload your video to Magisto's servers for editing.
The biggest drawback of Magisto is that the app requires an active Internet connection to use. That's because all of the editing is done in the cloud, on Magisto's servers, and not locally on your device. In turn, the final edit is saved on Magisto's servers as well, which limits your ability to move and share your movie, unless you upgrade to a paid premium account.
If you're a free user, Magisto limits you in a number of ways. First, you can only upload a maximum of 600MB, or 16 video files, and 5 photos to be used in your final movie. Also, your final edit can only be a maximum of about a minute in length. Finally, and perhaps most importantly, as a free user, you won't be able to download your edited movie for local storage. To do so, you'll have to upgrade to a premium account or you can pay on a per-download basis. So, if you don't shell out any cash, you'll only be able to share a link to your video via YouTube, Twitter, Facebook, Google+, and e-mail.
Also worth mentioning is that you can tag people in your videos if you connect your Facebook account. Overall, video quality is good, and you can even optimize for either faster upload or higher quality.
If you have a bunch of footage saved on your device and no editing skills to speak of, I suggest giving Magisto a try. It may have some snags in its workflow (video picker) and a lack of flexibility, but it does a great job of picking out interesting clips to include in your final edit, and it really is effortless. Other than picking source clips, a theme, and music, all you have to do is wait while Magisto's servers do all the work. Fortunately, processing takes only a few a minutes, and the app even lets you work on other videos while you wait.