M1 Finance Evaluate 2023: Professionals and Cons

M1 Finance is a fee-free strategy to make investments that allows you to be as hands-on or hands-off as you wish to be. The M1 Fundamental account is totally free (minus the standard charges related to investing), however you possibly can unlock much more potential out of M1 Plus, which is free for the primary three months after which $125 thereafter. Supported funding accounts embody particular person and joint taxable accounts, retirement accounts and occasion belief accounts.

Each M1 Fundamental and M1 Plus transcend conventional funding accounts with money administration choices like Borrow (mortgage) and Spend (checking) accounts that slot in properly with the portfolio. M1 Plus members even have entry to the particular Proprietor’s Rewards Card by M1, with as much as 10% money again.

In our M1 Finance evaluate, we’ll begin with a fast comparability of M1 Fundamental and M1 Plus, then dig into every of the elements of an account: investing, retirement, checking, loans and the bank card.

M1 Finance Fundamental

Greatest for Fundamental Investing

Key Options

  • No annual charge
  • 1 ATM reimbursement per 30 days
  • $100 minimal funding

The M1 Fundamental account by way of M1 has no month-to-month administration charge and is nice for inexperienced persons. In case you aren’t positive that M1 is best for you long run, begin with this account and improve to M1 Plus down the highway if you happen to’re happy.

M1 Finance Fundamental

Buying and selling commissions


Borrow fee


Checking account APY


Bank card

$0 a yr (if you happen to open one)

Extra Info About M1 Finance Fundamental

The no-frills M1 Fundamental account from M1 Finance boasts $0 buying and selling commissions with an AM-only buying and selling window. With M1 Fundamental, you possibly can nonetheless open a checking account (Spend) and take out a private mortgage by borrowing on margin (Borrow). You simply miss out on decrease borrowing charges, checking rewards and the rewards bank card.

The Borrow account comes with a 6.25% fee and requires a $2,000 minimal steadiness. The Spend account has a $0 minimal steadiness requirement, 0.8% to 1.0% worldwide charges and one month-to-month ATM charge reimbursement.

You will get the Proprietor’s Rewards Card, a rewards bank card for M1 clients, with simply the fundamental account, and as of August, 2022 the cardboard has no annual charge. In case you simply go together with M1 Fundamental, this can serve you nicely as an funding account (the dearth of charges is the massive enchantment), however you must search out a checking account elsewhere. We virtually all the time advise in opposition to margin buying and selling and loans, so the excessive mortgage fee on the Borrow account shouldn’t be a priority.

M1 Finance Plus

Greatest for Account Extras

Key Options

  • $125 annual charge
  • 4 ATM charge reimbursements per 30 days
  • $100 minimal funding

The M1 Plus account by way of M1 could price $125 a yr (first three months are free!), however the perks that include the account are nicely price the associated fee for individuals who will benefit from them: money again debit card, excessive APY on checking, decrease rate of interest on margin loans, bigger commerce window and rewards bank card.

M1 Finance Plus

Buying and selling commissions


Borrow fee


Checking account APY

3.30% APY

Bank card

Earn as much as %10 money again

Extra Info About M1 Finance Plus

If you improve to the M1 Plus account, you’re getting excess of a primary funding platform; you’re getting a banking expertise that rewards you for spending (plus extra aggressive borrowing choices).

For starters, M1 Plus will get you AM and PM commerce home windows, somewhat than simply AM. The minimal steadiness for the Borrow account continues to be $2,000, however the fee drops to six.25%. Once more, we sometimes advise in opposition to margin buying and selling for the typical investor, although you may also use the mortgage to pay for different bills.

The Spend account is much extra enticing with M1 Plus. For starters, you’ll get 3.30% APY in your checking, which is extra aggressive than most banks’ financial savings accounts. On prime of that, you’ll pay no international transaction charges, get 4 month-to-month ATM charge reimbursements and may ship paper checks from the M1 app. And did we point out 1% money again on debit card purchases? With checking rewards this good and your personal funding account, you possibly can get rid of a standard financial savings account altogether.

M1 Plus members can additionally apply for the Proprietor’s Rewards Card by M1, a rewards bank card that incentivizes buying with retailers that you simply’ve invested in. Whereas M1 Fundamental members additionally pay no annual charge for this card, M1 Plus members entry greater  money again rewards starting from 2.5% to 10% with a most reward worth of $200 per 30 days (or $2,400 per yr). These rewards are then mechanically reinvested in eligible accounts.

M1 Finance Evaluate: Key Options

Beneath, we’ve spelled out the wonderful print of every a part of an M1 Finance account. Search for Our Take on the finish of every part for a faster learn.

M1 Make investments

The M1 Make investments platform consists of automated rebalancing of your accounts, which implies the funding platform will mechanically handle your investments (promoting and shopping for varied particular person shares, ETFs, bonds, and so forth.) to maintain your account proportioned the way you need it (primarily based in your threat tolerance, most popular asset allocation and funding targets). The auto rebalancing function additionally consists of tax loss harvesting.Whereas automated rebalancing is a standard function amongst robo advisors like M1 Finance, the choice for fractional shares is a bit more distinctive and a tough promote. Fractional shares permit you to purchase into half (i.e., a fraction) of shares and ETFs (exchanged-traded funds) which may in any other case be too costly so that you can put money into.

The promoting level of an Make investments account with M1 is “The Pie.” That is M1’s answer for simple portfolio administration. You possibly can create customized pies through an interactive dashboard that allows you to browse 6,000+ particular person shares and ETFs to really customise your funding portfolio. However if you happen to don’t have the time or information to customise your portfolio, you possibly can choose from “Skilled Pies” that the M1 Finance crew has “baked.” With greater than 60 curated Skilled Pies, there may be prone to be a number of that fits your funding technique and threat tolerance.

Some examples of Skilled Pie classes embody:

  • Normal Investing
  • Plan for Retirement
  • Accountable Investing
  • Earnings Earners
  • Hedge Fund Followers
  • Industries & Sectors
  • Simply Shares & Bonds

M1 Neighborhood Pies

An enormous motive we love M1 is the power to select from Neighborhood Pies. These permit you to discover and share portfolios that align along with your private values. For instance, you possibly can construct and put money into pies that target publicly traded corporations led by Black, feminine, LGBTQ+, AAPI or Latine executives. You may as well discover a Neighborhood Pie centered on sustainable companies.

You may make your portfolio as numerous as you’d like with M1, with entry to shares, bonds, index funds and exchange-traded funds. If most of this goes over your head, nonetheless, you’ll profit from the Skilled Pies already recent out of the oven and served up for you.

Be aware: There’s a $100 funding minimal for M1 Make investments.

M1 not too long ago launched cryptocurrency buying and selling to its platform. With the brand new interface, you possibly can entry fee free buying and selling, customized portfolio Pies, and even weekend and on-demand choices. In case you’re concerned with including crypto to your funding technique head to the web site and search for the M1 Crypto web page for up-to-date particulars.

Our Take: For individuals who need hands-off investing by way of a robo advisor, somewhat than an actual human monetary advisor, M1 Finance is a superb platform. And if you happen to be taught extra in regards to the market and wish to play a extra direct position in your funding technique, the customizable Pies permit you to take action without having to shut your M1 account. In case you merely need the funding side of M1 (and don’t care in regards to the Spend and Borrow parts), we suggest the free M1 Fundamental account.

M1 Retirement

The M1 Make investments platform is designed for investing within the inventory marketplace for targets of any size, however you may also particularly open tax-advantaged accounts to your retirement. M1 has choices for an IRA, a Roth IRA and even a SEP IRA.

These accounts share the identical advantages of a standard funding account with M1: entry to Skilled Pies, fractional shares and auto rebalancing. If you have already got an IRA or 401(okay) elsewhere and would really like M1 to handle it, you possibly can roll over your account.

Our Take: Check out M1 Make investments first to be sure to are happy with the platform. If, after just a few months, you discover this robo advisor is the appropriate match for you, roll over your retirement accounts to maintain them below one roof. However in case you are pleased with how your retirement account portfolio is being managed elsewhere (and the charges are negligible), it’s completely wonderful, albeit a bit of extra complicated, to have the accounts managed individually elsewhere.

M1 Borrow

M1 Finance is a portfolio line of credit score, that means it provides its clients a versatile line of credit score that’s borrowed in opposition to their very own investments. Use it to begin a enterprise, fund a marriage or as a down cost on a home. There is no such thing as a software concerned and no cost schedule, and it takes simply three clicks to borrow.

You possibly can borrow as much as 40% of your account worth. Charges are 6.25% for M1 Plus members and seven.75% for M1 Fundamental members. This is a perfect state of affairs if in case you have high-interest loans, like pupil loans or bank card debt, that you simply wish to repay; then you definitely’d have a extra manageable mortgage to repay through M1.

This might additionally turn out to be useful if you happen to would not have the means to save lots of towards an emergency financial savings fund. As an alternative, take out a low-interest private mortgage by way of M1 Borrow to keep away from high-interest medical debt or bank card funds.

Nonetheless, margin loans could be harmful. M1 has its personal margin account threat disclosure that everybody ought to learn earlier than opting in.

Our Take: By no means borrow except it’s important to. Don’t take out a mortgage simply to have some money to play with. That mentioned, if taking out an M1 Borrow mortgage can eradicate month-to-month funds on predatory loans, benefit from this selection. Simply know the dangers of margin accounts and the way they differ from conventional private loans.

M1 Spend

You may as well make the most of money administration account options through M1, which is a more moderen addition to the platform. The M1 Spend account is right in case you are an M1 Plus member due to the additional perks. We don’t suggest the Spend account as a checking account various to these utilizing M1 Fundamental.

M1 Plus clients with a Spend account will get the next money administration options:

  • 1% money again on debit card purchases
  • 3.30% APY in your money steadiness
  • 4 ATM charge reimbursements every month
  • 0% international transaction charges

Different notable options of the Spend account (for each M1 Fundamental and M1 Plus) embody early direct deposit entry and a $0 account steadiness minimal. Each accounts include the M1 Spend Visa debit card, however once more, solely M1 Plus members get the 1% money again perk.

M1 Plus members may arrange good transfers; in case your money steadiness within the Spend account hits a sure threshold, M1 will mechanically switch and make investments it.

As a result of M1 isn’t a financial institution however a brokerage, it companions with Lincoln Financial savings Financial institution to service its checking account. This implies it will get the standard $250,000 Federal Deposit Insurance coverage Company (FDIC) insurance coverage.

Plus, with a high-yield financial savings choice rolling out later this yr, M1 Plus members get 4.50% APY with no minimal deposit. Verify the M1 web site for extra data.

Our Take: This Spend account is significantly better than plenty of the high-interest checking accounts from different on-line banks. Nonetheless, you do need to pay to get these perks. If the money again and APY will greater than cancel out the price of the account, it is a must-have for M1 Plus members.

M1 Credit score Card

The Proprietor’s Rewards Card by M1 is a standout function if you’ve gotten the M1 Plus account. With the cardboard, you possibly can earn money again on purchases with manufacturers that you simply’re invested in; the usual money again is 1.5%, however choose manufacturers supply 2.5%, 5% and even 10% money again.

A few of these common manufacturers embody Apple, Amazon, Walmart, Goal, Spotify, Netflix, Popeyes, T.J. Maxx, Converse, Delta and Starbucks.

You possibly can even select to reinvest this money again into your portfolio for continued progress.

The bank card account comes with a contactless metallic card with tap-to-pay.

Our Take: If you need a rewards bank card and plan to take a position with M1, this could completely be on the highest of your record. Even if in case you have one other rewards bank card, the ten% money again on choose retailers is simply too good to cross up. You can even open this bank card and solely use it if you’ll get the ten% money again if in case you have one other rewards bank card to make the most of in different eventualities.

What Property Can You Put money into with M1 Finance?

M1 Finance is a various buying and selling platform with a variety of securities out there. With M1, you possibly can put money into:

  • Shares
  • Trade-traded funds
  • Bonds
  • OTC securities

Proper now, M1 Finance has over 6,000 shares and ETFs on the New York Inventory Trade and NASDAQ to select from and even offers M1 clients the prospect to recommend new securities be added to the platform. Now that M1 Crypto has launched, members are capable of commerce cryptocurrency on-demand.

M1 doesn’t permit you to put money into mutual funds and choices. If that is essential in your funding technique, you could wish to deal with your retirement accounts elsewhere.

M1 Finance Charges

The M1 Fundamental account has no annual charge whereas the M1 Plus account prices $125 a yr (the primary three months are free). Whereas different funding platforms usually cost you commissions on trades, M1 Finance is actually fee-free.

Nonetheless, you’ll pay charges for some much less frequent duties, like paper statements, outgoing account transfers and account inactivity. These are all very clear on the M1 web site, and it’s not seemingly the standard buyer could be paying these charges.

The total rundown on M1 charges:

M1 Finance App

As an internet robo advisor, M1 Finance provides an ideal on-line platform that’s comparatively straightforward to make use of when you get used to it. Much more essential, M1 provides a cellular app that’s superb for tech-savvy buyers.

Inside the app, you should purchase and promote particular person shares and ETFs; arrange good transfers (guidelines that mechanically transfer cash inside your account); and handle your Borrow and Spend accounts.

On the time of publishing, the M1 cellular app had over 50,000 rankings on the Apple App Retailer with a star ranking of 4.7. On Google Play, it has greater than 21,000 opinions and a 4.5 star ranking.

M1 Finance Buyer Help

M1’s shopper success crew is offered from 9 a.m. to 4 p.m. ET on any day the U.S. inventory market is open. The restricted entry to buyer assist brokers could be troublesome, particularly for these accustomed to 24/7 customer support.

As a result of M1 is a robo advisor, you can’t contact monetary advisors for funding recommendation or private finance recommendation. In case you want extra tailor-made funding recommendation, contemplate an organization with bodily places or actual human advisors.

M1 Finance Security

M1 Finance gives numerous reassurances to clients. The checking account is insured by the FDIC, and the corporate is a member of the Securities Investor Safety Company (SIPC), which protects securities in your account as much as $500,000. Lastly, M1 Finance is a technology-first firm, that means you possibly can count on the most recent data security measures on the app.

M1 Finance Professionals and Cons

If our M1 Finance evaluate has not given you a transparent resolution on whether or not to take a position fairly but, take a look at these execs and cons of M1 Finance.


  • Automated rebalancing for most popular asset allocation
  • Fractional shares
  • Arms-off investing for inexperienced persons
  • Extra customization for superior buyers
  • Money again debit and bank cards
  • Excessive-interest checking account
  • Low-rate loans


  • No checking account perks for M1 Fundamental account
  • $125 charge for the M1 Plus account
  • No mutual funds or choices
  • No entry to human monetary advisors

Steadily Requested Questions (FAQs) About M1 Finance

Nonetheless have some questions on M1? Right here’s what different readers like your self are asking—and the solutions to these questions:

Is M1 Finance Reliable?

M1 is a reliable automated funding platform. M1 is a registered dealer/vendor with FINRA (Monetary Trade Regulatory Authority) and a member of SIPC (Securities Investor Safety Company).

As well as, your funds within the Spend account are insured by the FDIC (Federal Deposit Insurance coverage Company).

What are the Cons of M1 Finance?

M1 Finance’s execs far outweigh the cons; nonetheless, now we have decided just a few downsides to M1:

  • There’s at present no financial savings account, however M1 has introduced a launch for later in 2023.
  • There aren’t any checking account perks for an M1 Fundamental account.
  • To unlock the checking account perks, you need to pay the $125 charge for the M1 Plus account.
  • You possibly can’t put money into mutual funds or choices.
  • There is no such thing as a entry to human monetary advisors.

Is M1 Finance Good for Rookies?

M1 Finance is a free automated investing platform. The M1 Fundamental account is free, and there aren’t any commissions on trades. Nonetheless, the M1 Plus account is $125 a yr, although the primary three months are free.

Is M1 Finance Actually Free?

M1 Finance is a free automated investing platform. The M1 Fundamental account is free, and there aren’t any commissions on trades. Nonetheless, the M1 Plus account is $125 a yr, although the primary three months are free.

In case you plan to benefit from the M1 Borrow mortgage, the perks of the M1 Spend checking account and/or the money again from the M1 bank card, paying $125 a yr for an M1 Plus account makes plenty of sense.

M1 Finance is a brokerage account, nevertheless it additionally operates a digital checking account with money administration account options like a checking account. The checking account is curiosity bearing if you happen to pay for an M1 Plus account. Nonetheless, you can’t apply for auto loans or residence loans. In that sense, it doesn’t function like a standard financial institution.

Does M1 Finance Supply Tax Loss Harvesting?

Sure, M1 provides tax loss harvesting. Tax efficiencies are constructed into the M1 robo advisor platform.

Timothy Moore covers financial institution accounts for The Penny Hoarder from his residence base in Cincinnati. He has labored in enhancing and graphic design for a advertising and marketing company, a world analysis agency and a serious print publication. He covers a wide range of different subjects, together with insurance coverage, taxes, retirement and budgeting and has labored within the subject since 2012. Freelancer Veronica Matthews contributed to this report. 

Investing in securities entails dangers, together with the chance of loss. M1 Finance LLC is an SEC registered broker-dealer. Member FINRA/SIPC.

Borrow fee could fluctuate. Borrowing entails extra dangers, together with the chance to lose greater than deposited. Not out there for retirement, custodial, or belief accounts.

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