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

True to its name, M1 Finance offers some strong financial tools. But it also falls short in a few important areas. Be sure to read through our review before opening an account.

M1 Products and Accounts

At M1 Finance, it’s possible to open a variety of cash and brokerage accounts. The investing side gives access to the following list of investment vehicles:

• Cryptocurrencies (through a separate crypto account)
• Stocks
• ETFs
• Crypto-related assets

Any asset will need to be placed in something called a Pie. This is a basket of holdings. A portfolio can have up to 100 Slices in total. It’s still possible to place a single asset inside its own Slice, which means individual assets can be traded.

But it’s not possible to place a trade whenever you want at M1 Finance. The brokerage firm sends its customers’ orders in batches during scheduled trade windows.

M1 also offers some built-in Model Portfolios, so customers don’t actually have to create their own Pies if they don’t want to. In either case, investment decisions are still directed by M1 clients, so the service remains self-directed rather than a traditional managed account.





The available tax structures for investing include joint, individual, IRA, custodial, and trust. U.S. citizenship is not always required, although the company generally requires a current residential address in the United States, a U.S.-based phone number, and qualifying U.S. residency documentation.

Because M1 Finance is a member of SIPC, securities accounts (but not crypto accounts) are insured up to $500k. Some accounts that clear through Apex are eligible for additional protection up to $37.5 million for securities and $900,000 for cash, subject to the policy’s terms and aggregate limits.

Although these services certainly have their advantages, one major downside at M1 Finance is the platform’s monthly fee structure. Clients who do not meet waiver requirements can be charged $3 per month.

Cash Management

The company’s cash tools are now centered on High-Yield Cash Accounts and High-Yield Savings Accounts rather than a traditional checking product. On this site, the displayed yield is 3.1% APY. Another yield figure shown in the site’s variables is -0.4% APY.

Depending on the product, FDIC coverage can be substantial. The High-Yield Cash Account can provide up to $4.75 million in FDIC insurance once funds are swept to partner banks, while the High-Yield Savings Account can offer up to $5 million through B2 Bank’s deposit network.

M1’s older checking-style setup is no longer the main focus. Today, the company emphasizes its cash and savings products, with transfers and cash management features built into the broader platform.

M1 Finance has a Visa Signature credit card, although it is no longer accepting new applications. Existing card materials still reference a rewards program that earns up to 10% cash back for shopping at participating retailers.

And finally, there are personal loans. Available through M1 with no origination, prepayment, or late fees, loans come with a variety of terms and interest rates. New applications are currently paused.

Margin Service

M1’s platform has one more service: margin borrowing. With an eligible brokerage account, it’s possible to borrow funds using securities as collateral (personal loans are uncollateralized). The advantage of using margin is that the interest rates are often lower than unsecured borrowing. Clients pay 5.65% for margin debits. These rates can change over time.

Individual and joint accounts come with margin features by default. Custodial accounts and IRAs are not eligible. Trusts must have a Margin and Short Agreement on file.





M1’s software displays brief margin details on an asset’s profile. There are two data points: margin eligibility and maintenance requirement. Big stocks like Amazon will have a 25% maintenance requirement.

Customer Support

The M1 Finance website and mobile app both have a moderate amount of self-help features, which obviously reduce the need to actually obtain customer assistance through other means. On either platform, these useful resources will be found through the account icon that appears in the upper-right corner of the screen.

If these self-help tools don’t suffice, both platforms have a variety of other resources. One is a chat assistant that we found moderately helpful. There is a contact form for less-urgent issues. Another resource is a Help Center, which delivers lots of answers on the ins and outs of investing at M1.

Then there is old-fashioned human support over the phone. M1 associates are available during the week from 9:00 am, ET, until 4:00 pm. The broker’s phone number is 312-600-2883. It is not toll free, although it is possible to request help through the platform.

M1 Finance Minimums and Fees

Trades of securities cost nothing at M1 Finance. Trades of cryptocurrencies cost 1% of trade value.

Then there are the account fees. A minimum-balance fee of $50 applies to investing accounts with up to $50 in assets and no trading or deposit activity during the previous 90 days. M1 also has an IRA termination fee of $100. In addition, the platform can charge a $3 monthly platform fee and a $3 monthly IRA fee in some situations.

Opening minimums depend on account type. Most investing accounts can be opened with $100. Trust accounts generally require $5,000. Some cash accounts have no minimum, while others do.

Mobile App

To manage Pies and find something to put into them, M1 Finance clients can use the broker’s mobile app. The Research tab at the bottom of the app is where the platform’s research tools will be found. There is no actual screener, though. The app delivers just a list of stocks, ETFs, and cryptocurrencies. We found it easier to simply enter a ticker symbol or company name.





Asset profiles have simple charts, brief trade data, and news articles with thumbnails from a variety of sources.

A good place to visit on the app, not surprisingly, is the Home tab. Here, there are tiles that lead to various functions of the app. These include:





- Invest (for funding an account)
- Save (deposit accounts)
- Borrow (margin service)
- Spend (the credit card)

Find a Financial Advisor

If you are looking for a professional financial advisor in your area, you can find top Financial Advisors on the Wiser Advisor website.

Visit Wiser Advisor

Website and Pie Building

Although we didn’t find a security screener on the mobile app, there is one on the website. Unfortunately, there aren’t many search criteria. Market cap, P/E ratio, and dividend yield are a few of the variables that can be specified.





Clicking on one of the assets in the search results brings up its profile. Here, assets have the same information that we saw on the mobile app. To add an asset to a Pie on either platform, website or mobile app, simply click or tap on the button to add it to the portfolio. On the next screen, you’ll need to specify the account the asset should go into and the percentage of the Pie.





If you really have no clue what to add to a Pie, there is a page with pre-built portfolios (look for the section for Model Portfolios under the Research tab). Here, there are a variety of portfolios created by M1 Finance. There are portfolios for retirement, income, and general investing.

Additional Services

Extended Hours: M1 Finance does not offer pre-market or after-hours trading. As a matter of fact, M1 customers can’t even trade throughout the entire day session. There is one morning trade window around the opening bell, and a second one around 3:00 pm ET. Accounts with less than $25,000 in invested assets must choose one window, while accounts with $25,000 or more can use both. Crypto accounts can trade on weekends and also have limited on-demand trading.

IPO Access: Not available at M1 Finance.

Securities Lending Income Program: M1 customers are able to earn 10% of the income generated by loaning out their shares.

DRIP Service: Cash dividends of at least $1 can be reinvested back into the same security that paid them. M1 also offers other dividend-routing choices.

Automatic Mutual Fund Investing: No mutual funds are available.

Fractional-share Trading: All trades at M1 Finance are placed in whole dollars.

Individual Retirement Accounts: M1 Finance offers Roth, Traditional, and SEP IRAs.

Our Recommendations

Mutual Funds: Although M1 Finance doesn’t offer trading in any mutual funds, Firstrade does.

Active Stock Trading: Because M1 Finance doesn’t offer advanced software or even the entire trading day, we don’t recommend it for frequent equity trading.

Beginners: M1 Finance is a good broker for beginner investors.

Retirement Planning & Long-Term Investing: IRAs really are not enough to create a holistic financial roadmap to retirement. Charles Schwab has much more than M1 Finance has. These resources include financial-planning services and a larger list of tax-advantaged accounts.

Small Accounts: Small account holders (above $50) will do well here.

M1 Finance Pros and Cons Judgement

Although we do really like its cash tools, M1 Finance doesn’t perform spectacularly well in the brokerage category. Its Pie method of investing, which it specializes in, can feel a bit muddled on either software platform.