If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
As of February 2024, M1 Finance has temporarily paused signups to their high-yield savings account. If you would like an all-in-one brokerage account that includes a high-yield savings account, consider another robo-advisory platform.
M1 Finance is a low-cost robo-advisor for self-directed investors. In addition to no commission or account management fees, this financial services app includes integrated investing, borrowing, and banking. This allows investors to get a fuller picture of their finances in one place and leverage their investments through borrowing. Read our full M1 Finance review to find out whether it's right for you.
A solid robo-advisor pick with standout offerings to integrate your investing and banking needs in one app.
$0 commissions and no management fee. M1 Plus membership costs $3 per month.
$100
On M1 Finance's Secure Website.
M1 Finance is one of our favorite robo-advisors. It ranks among the best we've seen in these categories:
This robo-advisor is a good fit for: Self-directed investors looking for an easy-to-use app to manage investing, banking, and borrowing in one place.
M1 Finance gives you access to a variety of investment products and a high-yield savings account. With the Owner's Rewards Card by M1, you can earn between 2.5% and 10% cash back and automatically invest the money to grow your portfolio. The platform offers personal loans for up to $50,000, as well as margin loans at competitive interest rates. That said, the platform does not offer checking accounts as of February 2024. Look elsewhere if you want your all-in-one account to include debit cards.
M1 Finance watches costs at every turn: no commission fees, no account management fees, and no application or origination fees for borrowing. It even reimburses ATM fees.
That doesn't mean M1 is completely fee-free, though. You'll pay a $50 account maintenance fee if your account balance is less than $50 and there's no trading activity for 90 days. Other fees include a $100 outgoing transfer fee and $100 IRA termination fee, along with various charges if you request paper copies of documents.
M1 Finance lets you open joint brokerage accounts with partners and custodial accounts for minors. Like individual brokerage accounts, they're commission-free. However, only paying M1 Plus members get access to UTMA/UGMA custodial accounts.
When you deposit money into your account, M1 Finance's algorithm identifies the segments of your portfolio that are underweight and puts money there first to help you stay on target with the allocation you chose. And when you withdraw money, the algorithm sells the portions of your portfolio that are overweight first.
In addition to traditional stock brokerages and trust accounts, M1 Finance offers traditional, Roth, SEP IRAs, and rollover IRAs.
M1 Finance frequently offers promotions available to new users for things like transferring a brokerage account or making a first-time deposit. Check our M1 Finance promotions page to keep tabs on current offers.
Unlike other online brokerages, M1 doesn't provide investment advice or recommendations. It also doesn't provide access to human advisors.
M1 has two trading windows. The morning window, which is available to all customers, begins at 9:30 a.m. ET every day the New York Stock Exchange (NYSE) is open. The afternoon trading window begins at 3 p.m. ET and is only available to M1 Plus customers. To use both trading windows in a single day, you need to have at least $25,000 in your account.
Essentially, what this means is you can only trade once daily, or twice per day if you're an M1 Plus customer with the $25,000 account minimum. This shouldn't matter to long-term investors, but if you're a frequent trader, M1 isn't a good fit.
Mutual funds are a popular investment choice with hands-off investors. But M1 doesn't currently offer mutual fund access.
Investors in high tax brackets or with large investment accounts will miss out on tax-loss harvesting, which could reduce their tax liability by offsetting taxable capital gains.
M1 Finance's Dynamic Rebalancing helps to maintain your target asset allocation using the funds flowing into and out of your account. However, M1 Finance will not automatically reallocate the funds you've already invested; you must instruct the app to do so. That means you have to keep an eye on your asset allocation and ask for a rebalance if your portfolio starts to get out of whack.
This brokerage isn't as hands-off as some competing robo-advisors, though its design makes it easy to see how your portfolio's allocation compares with your target so you know when to ask for a rebalance.
M1 has a $100 minimum to open an account (or $500 for retirement accounts). That's a drawback, considering that many competitors have no minimum to open an account.
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
Investing is at the core of your M1 Finance account. The M1 Spend Credit Card integrates with the investment account to automatically reinvest rewards into your portfolio. M1 Margin Loans allow you a line of credit of up to 40% of your investment account balance of at least $2,000.
M1 Finance's investment account is built for self-directed investors, so you start by customizing your portfolio with stocks and ETFs, including fractional shares, or choosing from among expert-designed portfolios. You can answer questions about your financial goals and use M1's tools to make more informed investment choices.
M1 lets you visualize the balance of your portfolio with its "Pie" interface, which helps you easily see the weight and performance of each stock or ETF.
A minimum initial investment of $100 is required to get started. After that, you can fund your account with just $10 at a time. Retirement accounts require a minimum initial investment of $500.
M1 Finance offers individual and joint brokerage accounts; traditional and Roth, SEP, and rollover IRAs; trust accounts; a savings account; and a line of credit.
The premium membership, M1 Plus, gives members perks on the following products for $36 per year or $3 per month, though the first three months are free
SERVICE/ITEM | M1 FINANCE COST |
---|---|
Account management fee | $0 |
Commission fees | $0 |
M1 Earn account fees | $0 |
M1 Spend account fees | $0 |
M1 Plus annual fee | $36/year |
There are two types of support that clients of a robo-advisor could need: investment advice and help with technical issues. For product support, M1's customer success team is available via email between 9 a.m. and 5 p.m. ET on days when the U.S. stock market is open. It has also published a library of FAQs and customer support articles
The company doesn't provide individual investment advice or stock recommendations. It provides personal finance education through its blog, Taking Stock.
TIP
Once you’ve chosen one of our top-rated brokers, you need to make sure you’re buying the right stocks. We think there’s no better place to start than with Stock Advisor, the flagship stock-picking service of our company, The Motley Fool. You’ll get two new stock picks every month, plus 10 starter stocks and best buys now. The average stock pick inside Stock Advisor is up 661% — more than 4x that of the S&P 500! (as of 4/15/2024). Learn more and get started today with a special new member discount.
RELATED: See The Ascent's comparison of M1 Finance vs. Robinhood.
Wondering how M1 Finance stacks up to the competition? Check out our reviews:
At The Motley Fool Ascent, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and account types; however, we also take into account features like research, education, tax-loss harvesting, and highly rated mobile apps. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.
See our full methodology here: Ratings Methodology
M1 Finance is geared toward long-term investors, since it doesn't allow for multiple trades. Unlike Robinhood, it doesn't offer options trading. Active traders will probably prefer Robinhood's platform, which makes trading easy for beginners.
Yes. Any customer who has funded a brokerage account can create a crypto account. You can use M1 Finance's Pie system to create your own crypto portfolio. The company also offers expert, ready-made crypto Pies built on themes like DeFi and large-cap
M1 Finance doesn't have account maintenance fees, management fees, or commissions. But some things, like outgoing transfers, will cost you. Also, many of the platform's most appealing features are only available to clients who pay for M1 Plus, which costs $36 annually.
Our Brokerages Experts
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Fidelity disclosure
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)