Advantages and disadvantages of M1 Finance investing. What are the good and bad features of the brokerage company? M1 Finance review, cons, and pros.

M1 Finance Rating: 

Overview of M1 Finance

M1 Finance has some strong features, but it also falls short in a few areas. Take a look at our full review before opening an account.

M1 Products and Accounts

At M1 Finance, you can open both bank and brokerage accounts. The brokerage accounts give access to these investments:

• Cryptocurrencies
• Stocks (including some penny/OTC stocks)
• ETFs
• Closed-end funds

Investments go into something called a Pie, which is a group of assets. A Pie can have up to 100 slices, and one account can hold up to 5 Pies. A single asset can be placed in a Pie, so you can trade individual securities.

You can’t trade anytime you want at M1 Finance. The broker sends orders in batches at certain times of the day.

M1 also has ready-made Pies, so you don’t have to build one if you don’t want to. In either case, you make the decisions. Accounts are fully self-directed, and there are no managed accounts.





The types of accounts available include joint, individual, IRA, custodial, and trust. You don’t have to be a U.S. citizen, but you must have a U.S. residential address and a U.S. phone number. Non-citizens must have a Green Card.

As a SIPC member, M1 Finance insures brokerage accounts (not crypto) up to $500k. Accounts cleared through Apex may get extra protection up to $37 million.

The main drawback is that the best features require the Plus membership, which costs $3 per month.

Cash Management

The Plus membership is most valuable in banking. It includes both checking and savings accounts. With Plus, the savings account earns 3.35% APY. Without Plus, the rate drops to -0.15% APY.

Both versions come with $5 million FDIC insurance through partner banks (M1 Finance itself is not a bank).

The checking account has a Visa debit card, early payday, and no monthly fees. Plus members get extras like sending checks and no foreign transaction fees.

There’s also a Visa Signature credit card with benefits such as a rewards program that earns up to 10% cash back at participating retailers.

M1 also offers personal loans with no fees and no hard credit check. Plus members get a 1.5% lower rate.

Margin Service

M1 also offers margin trading. With a brokerage account, you can borrow against your investments (unlike personal loans, which are unsecured). Margin rates are low, at 5.9%.

Individual and joint accounts include margin automatically. Custodial accounts and IRAs are not eligible. Trusts need a Margin and Short Agreement.





M1’s software shows margin details on an asset’s profile. It lists margin eligibility and the maintenance requirement. For example, large stocks like Amazon need 25%.

Customer Support

Both the website and mobile app have self-help resources under the account icon in the top-right corner. These can often answer basic questions.

Other options include a robo-chat tool, an email form for non-urgent issues, and a Help Center with detailed guides.

Phone support is available on weekdays from 9:00 am to 4:00 pm EST. The number isn’t toll-free, but you can request a call back.

M1 Finance Minimums and Fees

Trading stocks and ETFs is free. Crypto trades cost 1% of the trade amount.

Account fees include a $50 low-balance fee for investing accounts with under $50 and no activity for 90 days. Closing an IRA costs $100.

Accounts can be opened with any amount, but brokerage accounts with under $50 may face the low-balance fee.

Mobile App

The mobile app lets you manage Pies and search for investments. On the Research tab, you’ll find lists of stocks, ETFs, and cryptocurrencies. There’s no screener, so it’s easier to enter a ticker or company name.





Asset profiles include simple charts, basic trade data, and news with thumbnails from several sources.

The Home tab has tiles that link to main features of the app:





- Invest (funding accounts)
- Save (deposit accounts)
- Borrow (margin service)
- Spend (credit card)

Website and Pie Building

The website has a security screener, but it’s basic. You can search by things like market cap, P/E ratio, or dividend yield.





Clicking a result shows an asset’s profile with the same info as on the app. To add it to a Pie, click the add button, select the account, and set the percentage.





If you’re unsure what to pick, check out the Expert Pies page under the Research tab. These pre-built Pies cover areas like hedge funds and retirement.

Additional Services

Extended Hours: M1 doesn’t allow pre-market or after-hours trading. Orders go through in two daily windows: at the open and in the last hour. The afternoon window is for Plus members only. Crypto trades use the same windows every day.

IPO Access: Not available.

Securities Lending: Customers get 10% of income made from lending out their shares.

DRIP: Dividends are collected and used to buy more of the weakest slices. This is different from standard DRIP setups.

Mutual Funds: None offered.

Fractional Shares: All trades are made in dollar amounts.

IRAs: M1 offers Roth, Traditional, SEP, and Rollover IRAs.

Our Recommendations

Mutual Funds: Since M1 doesn’t support mutual funds, Firstrade is a better option.

Active Stock Trading: M1 is not recommended for frequent traders due to limited tools and order windows.

Beginners: M1 Finance is a solid choice for beginners.

Retirement & Long-Term Investing: For full retirement planning, Charles Schwab offers more services, including planning and more tax-advantaged accounts.

Small Accounts: Investors with balances above $50 will find M1 useful.

M1 Finance Pros and Cons Judgement

While M1’s banking features are strong, its brokerage side is weaker. The Pie system is not very clear and can feel clumsy on both the website and app.