About
M1 Finance is a comprehensive wealth-building platform founded in 2015, now serving over 1 million users with more than $12 billion in client assets. It is designed for investors who want automation and control without the friction of active trading. Users build 'Pies' — customizable portfolio allocations across stocks, ETFs, and crypto — and M1's automation engine handles recurring contributions and dynamic rebalancing to keep holdings aligned with user-defined targets. The platform supports individual, joint, custodial, and retirement (Traditional IRA, Roth IRA, SEP IRA) brokerage accounts, all with zero trading commissions. M1 High-Yield Cash Accounts offer 3.10% APY on uninvested cash and are FDIC-insured up to $4.75 million in aggregate through partner banks. For liquidity needs, M1 Margin Loans let users borrow up to 50% of their portfolio value at 5.65%, without liquidating investments. Personal loans are also in development. The platform is available on web, iOS, and Android, and has been recognized by Investopedia, Forbes, and NerdWallet for its portfolio customization, retirement account options, and suitability for sophisticated investors. M1 Finance is best suited for self-directed, long-term investors who want a hands-off yet personalized approach to wealth building.
Key Features
- Automated Investing with Pie Portfolios: Users design custom 'Pies' of stocks, ETFs, and crypto with target allocations, and M1 auto-invests deposits according to those targets on a set schedule.
- Dynamic Portfolio Rebalancing: M1 intelligently prioritizes underweight holdings when deploying new cash, gradually bringing portfolios back to target without triggering unnecessary sell orders.
- High-Yield Cash Account (3.10% APY): Uninvested cash earns 3.10% APY in FDIC-insured cash accounts with up to $4.75M aggregate deposit insurance through M1's partner bank network.
- M1 Margin Loans: Borrow up to 50% of portfolio value at 5.65% interest with no fixed repayment schedule, allowing users to access liquidity without selling investments.
- Comprehensive Account Types: Supports individual, joint, and custodial brokerage accounts plus Traditional IRA, Roth IRA, and SEP IRA retirement accounts, all commission-free.
Use Cases
- Long-term investors who want to automate regular contributions into a diversified, custom-built portfolio without paying trading commissions.
- Retirement savers looking to consolidate IRA accounts (Traditional, Roth, or SEP) under one automated, commission-free platform.
- Individuals who want their idle cash to earn a competitive yield while keeping funds accessible and FDIC-insured.
- Investors who need liquidity without liquidating positions, using M1 Margin Loans to borrow against their portfolio at low rates.
- Beginners and sophisticated investors alike who want a simplified, app-based wealth management experience with intelligent rebalancing.
Pros
- Commission-Free & Automated: No trading commissions and fully automated investing reduce friction and cost for long-term, buy-and-hold investors.
- All-in-One Financial Hub: Combines investing, high-yield savings, and borrowing in a single platform, eliminating the need for multiple financial apps.
- Strong Regulatory Protections: SIPC membership protects securities up to $500,000, and cash accounts are FDIC-insured up to $4.75M in aggregate.
- Highly Rated Mobile Apps: Rated 4.7 on the Apple App Store and 4.5 on Google Play, indicating a polished, well-maintained mobile experience.
Cons
- Not Suited for Active Traders: The platform is optimized for long-term, automated investing and lacks real-time trading tools, charting, and features needed by active or day traders.
- Platform Fees Apply: While trading is commission-free, M1 does charge a platform fee and other account-related fees that users must review in the fee schedule.
- Personal Loans Not Yet Available: The personal loan product is listed as 'coming soon,' limiting borrowing options to margin loans tied to investment portfolios.
Frequently Asked Questions
Is M1 Finance free to use?
M1 Finance does not charge commissions or trading fees for self-directed brokerage accounts. However, a platform fee and other fees (such as account closure or regulatory fees) may apply. Review M1's Fee Schedule for full details.
How does the M1 High-Yield Cash Account work?
The High-Yield Cash Account earns 3.10% APY on your balance, requires a minimum initial deposit of $100, and is FDIC-insured up to an aggregate of $4.75 million through M1's partner banks.
What is an M1 Pie?
A Pie is M1's term for a custom portfolio allocation. Users select which stocks, ETFs, or crypto they want to hold and assign target percentage weights. M1 automatically invests and rebalances toward those targets.
Can I open a retirement account on M1?
Yes. M1 supports Traditional IRA, Roth IRA, and SEP IRA retirement accounts, all with commission-free investing and the same automated portfolio features as standard brokerage accounts.
How do M1 Margin Loans work?
M1 Margin Loans let you borrow up to 50% of your investment portfolio's value at a 5.65% interest rate. There is no fixed repayment schedule, and funds can be used for investing or withdrawn as cash.
