M1 Finance
Overview
M1 Finance occupies a unique middle ground between a traditional brokerage and a robo-advisor. Built around the concept of "Pies," it is designed for long-term investors who want to build a diversified portfolio and then put it on autopilot. Unlike active trading platforms, M1 does not encourage frequent buying and selling; instead, it uses sophisticated automation to rebalance your portfolio dynamically with every deposit. It is the ultimate "set it and forget it" tool for self-directed investors.
Key Specifications
| Account Minimum | $100 ($500 for Retirement Accounts) |
|---|---|
| Platform Fee | $3/month (Waived if assets > $10,000 or with active Personal Loan) |
| Stock & ETF Trade Fee | $0 |
| Options Fee | N/A (Options trading not supported) |
| Fractional Shares | Yes (Automatic for all "Pie" holdings) |
| Margin Rates | ~5.65% (Variable) / Promo rates often lower |
Trading Platforms
1. M1 Mobile App
The app is visually distinct from any other broker. Your portfolio is represented as a "Pie," where each "Slice" is a stock, ETF, or even another sub-Pie. The interface focuses on target allocations rather than daily price changes. There are no streaming charts or Level 2 data, reinforcing the long-term focus.
2. M1 Web Dashboard
The web platform offers a larger canvas to build and edit your Pies. It includes a "Research" tab to find stocks and ETFs, and pre-built "Expert Pies" (like "Hedge Fund Followers" or "Retirement" mixes) that you can copy with one click.
Investment Features
- The Pie System: Allows you to build highly complex portfolios with ease. You can create a "Tech Pie" with 10 stocks, and then make that Tech Pie just one slice (e.g., 20%) of your main portfolio.
- M1 Borrow: Offers one of the lowest margin rates in the industry. Users with over $2,000 invested can instantly borrow against their portfolio (up to 50% of value) for any purpose, often at rates lower than a HELOC or personal loan.
- Trading Windows: To discourage day trading, M1 only executes trades during specific "windows" (usually 9:30 AM ET). This is a feature, not a bug, designed to keep investors focused on the long term.
- Smart Transfers: An automation tool that lets you set rules like "If my checking account has over $2,000, sweep the excess into my Roth IRA until maxed, then into my taxable brokerage."
Account Types
M1 supports a solid range of account types:
- Individual & Joint Brokerage
- Traditional, Roth, & SEP IRAs
- Custodial Accounts (UTMA/UGMA)
- Trust Accounts
- Crypto Accounts (via Bakkt)
- High-Yield Cash Accounts
*Note: SIMPLE IRAs and 401(k) accounts (other than rollovers) are not currently supported.