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About
M1 Finance is a comprehensive financial super app that simplifies sophisticated wealth building for everyday investors. Founded in 2015 and trusted by over 1 million users managing $12B+ in client assets, M1 offers a powerful suite of tools covering investing, cash management, and borrowing. At its core, M1's automated investing feature lets users define their ideal portfolio—called a 'Pie'—composed of stocks, ETFs, or crypto, and set target allocations. The platform then handles all trade execution automatically, including dynamic rebalancing that prioritizes underweight holdings to keep portfolios aligned with your goals without manual intervention. The High-Yield Cash Account earns 3.10% APY on uninvested cash, keeping your money working even when not in the market. For liquidity needs, M1 Margin Loans allow borrowing up to 50% of your portfolio's value at competitive rates, with no need to liquidate positions. M1 supports individual, joint, custodial, and retirement accounts (Traditional IRA, Roth IRA, SEP IRA), making it suitable for a wide range of financial goals. All accounts are commission-free for self-directed trading. Securities are SIPC-protected up to $500,000, and cash deposits are FDIC-insured up to $4.75 million. Rated 4.7 on the App Store and 4.5 on Google Play, M1 is ideal for passive investors, retirement savers, and anyone seeking a disciplined, automated approach to building long-term wealth.
Key Features
- Automated Investing with Pies: Build a custom portfolio ('Pie') with your chosen assets and target allocations, then let M1 auto-invest on your schedule—commission-free and hands-off.
- Dynamic Portfolio Rebalancing: M1 intelligently queues trades to buy underweight holdings first, keeping your portfolio balanced with your targets without manual math or effort.
- High-Yield Cash Accounts: Earn 3.10% APY on uninvested cash held in M1 High-Yield Cash Accounts, FDIC-insured up to $4.75 million in aggregate.
- M1 Margin Loans: Borrow up to 50% of your portfolio's value as a flexible line of credit at 5.65%, without liquidating your investments.
- Multi-Account Support: Manage individual, joint, custodial, and retirement accounts (Traditional IRA, Roth IRA, SEP IRA) all within a single unified platform.
Use Cases
- Long-term passive investors who want to automate a diversified stock and ETF portfolio without daily management.
- Retirement savers looking to automate contributions to Traditional IRA, Roth IRA, or SEP IRA accounts with automatic rebalancing.
- Individuals who want to keep uninvested cash earning a competitive 3.10% APY while maintaining liquidity.
- Investors seeking a low-cost portfolio line of credit to access funds without liquidating their positions.
- Dividend investors building income-generating portfolios that auto-reinvest distributions to compound growth over time.
Pros
- Truly Hands-Off Investing: Once your Pie and schedule are configured, M1 handles all investing, rebalancing, and cash deployment automatically—ideal for passive, long-term investors.
- Commission-Free Trading: No commissions, trading fees, or management fees on self-directed brokerage accounts, making it cost-effective for regular automated contributions.
- All-In-One Financial Hub: Combines investing, high-yield cash savings, and portfolio-backed borrowing in one app, reducing the need for multiple financial accounts.
- Strong Account Protections: SIPC protection up to $500,000 on securities and FDIC insurance up to $4.75 million on cash deposits provide strong safety nets for users.
Cons
- Not Built for Active Traders: M1's automation-first model lacks real-time trading, options, or advanced order types, making it unsuitable for day traders or tactical investors.
- Platform Fees Apply: While trading is commission-free, M1 charges platform fees and other account-related fees that can reduce overall returns.
- US-Only Availability: M1 Finance is only available to US residents, limiting access for international investors looking for a similar automated investing experience.
Frequently Asked Questions
What is M1 Finance and how does it work?
M1 Finance is an automated investing platform where you build a custom 'Pie' portfolio of stocks, ETFs, or crypto with target allocations. You set your investment schedule and M1 automatically invests and rebalances your portfolio to match your goals—commission-free.
How much APY does M1 offer on cash accounts?
M1's High-Yield Cash Accounts earn 3.10% APY on your balance, with a minimum initial deposit of $100 required to obtain the stated APY. These accounts are FDIC-insured up to $4.75 million in aggregate.
Can I borrow money against my M1 investment portfolio?
Yes. M1 Margin Loans let you borrow up to 50% of your portfolio's value at a 5.65% rate, using your portfolio as collateral. This provides liquidity without requiring you to sell your investments.
Is M1 Finance free to use?
M1 does not charge commissions, trading fees, or management fees on self-directed brokerage accounts. However, a platform fee and other account-related fees (e.g., regulatory fees, account closure fees) may apply. Check M1's Fee Schedule for full details.
What types of accounts does M1 Finance support?
M1 supports individual and joint brokerage accounts, custodial accounts, Traditional IRA, Roth IRA, and SEP IRA retirement accounts, as well as crypto accounts offered by Bakkt Trust—all manageable within one platform.
