M1 Finance Review (2026)
M1 suits long-term investors who want to set target percentages for a list of stocks and ETFs, a "pie", and let each deposit be invested in fractional shares automatically. The one thing to know: trades run in set daily windows with no limit orders, no extended hours and no options. Trading is $0 commission, but M1 charges $3 a month in any month you hold less than $10,000 there and have no M1 Personal Loan.
By Wealthy Pot Editorial · Facts checked October 19, 2026
Facts checked October 19, 2026 against M1 Finance's own fee schedules, rate pages, disclosures and regulator records (16 sources, listed below). We re-check prices about once a month. We do not earn a commission from M1.
M1 Finance at a glance
| Stocks and ETFs | $0 commission; 6,000+ US-listed stocks and ETFs [1] |
|---|---|
| Options, futures, mutual funds | Not offered; short selling is not available either [1] |
| Monthly fee | $3 platform fee (or a $3 IRA fee for IRA-only clients, never both), waived in any month with $10,000 in total M1 assets or an active M1 Personal Loan [3] |
| Minimum | $100 for individual, joint and custodial accounts; $500 for IRAs; $5,000 for trusts [5] |
| Fractional shares | Yes, on every stock and ETF in a pie, so holdings match your target percentages [1] |
| Trading | Daily trade windows, morning (about 9:30 AM ET) and afternoon (about 3:00 PM ET); both windows only for accounts with $25,000+ invested. No limit orders, no extended hours, no day trading [7] |
| Account types | Individual, joint, custodial, trust, Traditional, Roth and SEP IRAs, inherited Traditional and Roth IRAs; no SIMPLE or spousal IRA [6] |
| Cash | Uninvested cash in the brokerage account earns no interest; the separate High-Yield Cash Account paid 3.35% APY (September 2026), opt-in [10] |
| Margin | One rate for every balance: 5.90% (as of September 17, 2026); taxable accounts with $2,000+ invested, borrow up to 50% [8] |
| Transfer out and IRA fees | $100 outgoing account transfer; $100 IRA termination fee [2] |
| Other fees | $25 domestic wire; $50 to sell a transferred-in mutual fund; $50 to sell a security traded on a foreign exchange; Bakkt crypto 1% per trade [2] |
| M1 Advisor | AI-generated, non-discretionary advice from M1 Advisory Services LLC, with no human review of accounts; no advisory fee through December 31, 2027 [14] |
| SIPC | Member SIPC; excess coverage for taxable accounts, which M1 now clears itself, is not confirmed [12] |
| Payment for order flow | Yes; M1 says it receives payment or rebates from the venues it routes orders to [11] |
| Company | M1 Finance LLC (CRD 281242), owned by M1 Holdings Inc., Chicago; self-clears taxable accounts, IRAs clear through Apex Clearing [15] |
What a year at M1 Finance costs
| Situation | Cost or interest | How we got it |
|---|---|---|
| Open and close a 10-contract options trade, twice a month for a year | Not offered | M1 Finance does not offer options trading. |
| $10,000 left uninvested for a year | $0 earned | Uninvested cash in the brokerage account at 0% APY, if the rate held all year. Choosing the separate M1 High-Yield Cash Account (3.35% APY) would earn $335. |
| Borrow $10,000 on margin for a year | About $590 | 5.9% a year on a $10,000 balance. Interest accrues daily, so the exact figure varies a little. |
| Move the whole account to another broker | $100 | Full outgoing transfer (ACATS). Closing an IRA costs $100. |
M1 platform fee: $3 a month. Charged in any month you hold less than $10,000 at M1 and have no M1 Personal Loan; IRA-only clients pay a $3 IRA fee instead, never both.
Hypothetical examples, our arithmetic from M1 Finance's published fees, cash rate (as of October 19, 2026) and margin rates (as of October 19, 2026), read on October 19, 2026. Broker commissions and the broker's own per-contract fees only: the small SEC, FINRA, OCC and exchange fees passed through on sales and option trades are left out. Cash and margin rates move with the Federal Reserve's rate.
How M1 Finance works
At M1 you build a "pie": a list of stocks and ETFs, each with a target percentage. Deposits, including scheduled ones, are queued and invested across the pie in the next trade window, in fractional shares, so you do not place individual trades. M1 says it is not a robo-advisor: you choose what goes in the pie. Its separate M1 Advisor service, run by M1 Advisory Services LLC, gives AI-generated, non-discretionary advice with no human review of accounts, and charges no advisory fee through December 31, 2027.
A hypothetical: your new pie is on target at 70% in a stock ETF and 30% in a bond ETF, and you deposit $500. M1 splits it by the targets: $500 x 0.70 = $350 into the stock ETF and $500 x 0.30 = $150 into the bond ETF, in fractional shares. With less than $25,000 invested in that account the buys run in one trade window that day, the morning one by default, at whatever the prices are then. You cannot set a limit price, so this suits regular deposits into index funds more than timing trades. See ETF vs index fund for what to put in a pie.
The cost structure is unusual. There is no commission and no subscription, but M1 charges $3 a month in any month your total M1 assets stay under $10,000 and you have no M1 Personal Loan; an IRA-only client pays the same $3 as an IRA fee. The cost block on this page shows that fee. Cash left in the brokerage account earns nothing. To earn interest you move it to the High-Yield Cash Account, which paid 3.35% APY in September 2026 and needs a taxable brokerage account. M1's premium plan, M1 Plus, ended in May 2024, and its features became standard.
Margin (M1 Borrow) is one flat rate, 5.90% as of September 17, 2026, with no balance tiers. You need $2,000 invested in an individual, joint or trust account and can borrow up to 50% of eligible securities; IRAs and custodial accounts cannot borrow. New clients who opt in by December 31, 2026 get 1.66 points off for 12 months, which M1 listed as 4.24%.
Pros
- Pies invest each deposit across your target weights automatically
- Margin at a flat 5.90%, with no higher rate for small balances
- High-Yield Cash Account at 3.35% APY (September 2026)
- Custodial, trust, SEP and inherited IRA accounts
- No advisory fee on M1 Advisor through 2027
Cons
- $3 a month under $10,000 in M1 assets
- No limit orders, no extended hours, trades only in daily windows
- No options, mutual funds or short selling
- $100 to transfer out and $100 to close an IRA
- Brokerage cash earns nothing unless moved
Who M1 Finance fits, and who should skip it
A good fit if
- You invest a set amount on a schedule and want it spread across fixed target percentages without placing trades.
- You hold $10,000 or more at M1, so the $3 monthly fee does not apply.
- You want a margin loan at one published flat rate (5.90%) regardless of balance.
- You want a custodial, trust or inherited IRA account next to your own.
Look elsewhere if
- You trade options: M1 has none; Public charges $0 on stock and ETF options.
- You want limit orders or trading outside market hours: SoFi trades from 8:00 AM to 8:00 PM ET with limit orders.
- You are starting under $10,000 and want no account fee: Fidelity has no platform fee and no fee to transfer out.
- You want mutual funds: M1 does not sell them.
Limitations to know
- Trades run only in trade windows. An account with less than $25,000 invested (cash not counted) gets one window a day, the morning one unless you choose the afternoon. [7]
- There is no day trading, no extended-hours trading and no limit orders. [1]
- An investment account worth $50 or less with no trades or deposits for 90 days or more is closed, and the remaining balance, up to $50, is charged as a Minimum Balance Fee. [3]
- Margin is not available in IRAs or custodial accounts and needs $2,000 invested. [9]
- Mutual funds transferred in can be sold for $50 each but not bought; securities on foreign exchanges cost $50 to liquidate. [2]
- Crypto is held in a separate Bakkt account, and Bakkt takes 1% on every buy and sell through the execution price. [2]
M1 Finance compared with alternatives
| Broker | Options per contract | Default cash rate | Transfer out | Fractional shares |
|---|---|---|---|---|
| M1 Finance | n/a (no options) | 0% | $100 | Yes |
| Fidelity | $0.65/contract | 3.48% 7-day yield if you pick SPAXX (no default named) | $0 | Yes |
| Public | $0 stock/ETF options (rebate program); index options $0.35 | Not published | $100 | Yes |
| SoFi Active Invest | $0 | Not published | $100 | Yes |
| Stash | n/a (no options) | Not published | $100 | Yes |
- Pick Fidelity if you want no account fee at any balance and $0 to transfer out.
- Pick Public if you want options at $0 per stock or ETF contract next to stocks and a high-yield cash account.
- Pick SoFi Active Invest if you want limit orders, extended hours and $0 options in an app.
- Pick Stash if you want managed portfolios and a retirement account under one flat monthly price.
Security and privacy
- M1 Finance is a SIPC member, which covers up to $500,000 including $250,000 in cash if the firm fails. An older M1 SIPC disclosure describes excess insurance bought by its clearing firm; M1 now clears taxable accounts itself, so we could not confirm excess coverage for them. [12]
- High-Yield Cash Account balances are swept to partner banks with FDIC insurance up to an aggregate $4.75 million. [1]
- M1 lends out fully paid securities and pays 10% of the revenue to your account; you can opt out. [4]
- In May 2024 FINRA fined M1 Finance $400,000 and censured it over Regulation SHO violations, sell orders marked long that were short. In March 2024 FINRA fined it $850,000 because communications by paid social-media influencers were not fair and balanced and were not supervised or kept. [16]
- In December 2023 FINRA fined M1 Finance $500,000 for not reasonably supervising its fully paid securities lending program, into which more than 1.5 million customers were automatically enrolled. [16]
- We did not confirm M1's two-factor login options or privacy policy terms for this review.
Recent changes
| Date | What changed |
|---|---|
| Sep 17, 2026 | New-client promotions: margin 1.66 points below the base rate for 12 months (opt in by December 31, 2026), and 4.50% APY for a year on a new High-Yield Cash Account funded with $10,000+ from another bank within 30 days. [8] |
| Sep 2026 | The September 2026 Form CRS shows M1 now self-clears taxable accounts (IRAs still clear through Apex) and offers the M1 Advisor AI adviser. [4] |
| May 15, 2024 | M1 Plus ($125 a year) ended; its features became standard and the $3 monthly platform fee began, waived at $10,000 in assets or with a personal loan. [13] |
M1 Finance FAQ
Is M1 Finance safe?
M1 Finance LLC is a FINRA-registered broker-dealer and a SIPC member, so securities and cash are covered up to $500,000 (including $250,000 cash) if the firm fails; SIPC does not cover market losses. FINRA fined M1 $850,000 in March 2024 over influencer marketing, $400,000 in May 2024 over short-sale marking and $500,000 in December 2023 over securities lending supervision.
Does M1 Finance charge fees?
No commissions. The main fee is $3 a month in any month you hold under $10,000 at M1 without an M1 Personal Loan. Leaving costs $100 for an outgoing transfer and $100 to terminate an IRA, and a domestic wire is $25.
What does M1 pay on cash?
Nothing on cash left in the brokerage account. The separate High-Yield Cash Account paid 3.35% APY in September 2026; you have to open it and move money in. Compare it with <a href="/high-yield-savings/">high-yield savings accounts</a>.
Is M1 good for beginners?
It is built for regular deposits into a fixed mix: you set target percentages and M1 invests each deposit in fractional shares. The trade-offs are a $100 minimum ($500 for an IRA), the $3 monthly fee under $10,000 and no control over the exact trade time or price. Our guide to <a href="/micro-investing-on-small-budget/">investing with little money</a> covers small starting balances.
M1 vs Fidelity?
M1 automates target-weight pies, charges $3 a month under $10,000 and $100 to transfer out, and lends on margin at 5.90%. Fidelity has no platform fee, charges $0 to transfer out or close an IRA, offers options and mutual funds, and starts margin at 12.075% under $25,000. See <a href="/brokers/fidelity/">our Fidelity review</a>.
How much does it cost to leave M1?
$100 for an outgoing account transfer and $100 per IRA termination, per M1's fee schedule updated October 2026.
How we researched this review
We did not get paid or receive a free account for this page. We read M1 Finance's own pricing page, help center, security and privacy pages and app-store listing on October 19, 2026, quoted each fact from those pages, and link every one below. We did not run a long-term hands-on test, so we do not score the app; where a point rests on what the company says rather than something we can check, we attribute it to M1 Finance. Cost figures are our own arithmetic. We re-check prices and plans about once a month and log changes in the table above.
Sources
- M1, Home page and FAQ, checked October 19, 2026.
- M1, Miscellaneous fees schedule (last updated October 2026), checked October 19, 2026.
- M1, Platform fee disclosure (updated May 2026), checked October 19, 2026.
- M1 Finance LLC, Form CRS (September 2026), checked October 19, 2026.
- M1 Help, Investment account types available at M1, checked October 19, 2026.
- M1, Retirement accounts, checked October 19, 2026.
- M1 Help, How trade windows work at M1, checked October 19, 2026.
- M1, Margin rate promotion (rates as of September 17, 2026), checked October 19, 2026.
- M1, Margin loans, checked October 19, 2026.
- M1, High-Yield Cash Account (rates current as of September 2026), checked October 19, 2026.
- M1, Rule 606 and 607 disclosures, checked October 19, 2026.
- M1, SIPC disclosure, checked October 19, 2026.
- M1 Help, Historical M1 Plus billing, checked October 19, 2026.
- M1 Advisory Services LLC, Form CRS, checked October 19, 2026.
- FINRA BrokerCheck, M1 Finance LLC (CRD 281242), checked October 19, 2026.
- FINRA BrokerCheck, M1 Finance LLC detailed report (disclosures), checked October 19, 2026.
This review is for general information, not investment advice. Investing involves risk, including loss of principal; margin and options can lose more than you put in. Fees and rates change; check the broker's own pages before you open or move an account.