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M1 Finance Overview 2021


M1 Finance is a fee-free approach to make investments that permits you to be as hands-on or hands-off as you wish to be. The M1 Primary account is totally free (minus the standard charges related to investing), however you’ll be able to unlock much more potential out of M1 Plus, which is free for the primary 12 months after which $125 thereafter. Supported funding accounts embody particular person and joint taxable accounts, retirement accounts and occasion belief accounts.

Each M1 Primary 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 the annual payment waived.

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

M1 Finance Primary

Greatest for Primary Investing

Key Options

  • No annual payment
  • 1 ATM reimbursement monthly
  • $100 minimal funding

The M1 Primary account by way of M1 has no month-to-month administration payment and is nice for novices. Should you aren’t certain 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 Primary

Buying and selling commissions


Borrow price


Checking account APY


Bank card


The no-frills M1 Primary account from M1 Finance boasts $0 buying and selling commissions with an AM-only buying and selling window. With M1 Primary, you’ll be able to nonetheless open a checking account (Spend) and take out a private mortgage. You simply miss out on decrease borrowing charges, checking account rewards and the rewards bank card.

The Borrow account comes with a 3.5% price and requires a $5,000 minimal stability. The Spend account has a $0 minimal stability requirement, 0.8% to 1.0% worldwide charges and one month-to-month ATM payment reimbursement.

Should you simply go together with M1 Primary, this may serve you nicely as an funding account (the dearth of charges is the large enchantment), however it’s best to hunt down private loans and a checking account elsewhere.

M1 Finance Plus

Greatest for Account Extras

Key Options

  • $125 annual payment
  • 4 ATM payment reimbursements monthly
  • $100 minimal funding

The M1 Plus account by way of M1 might value $125 a 12 months (first 12 months is free!), however the perks that include the account are nicely value the price for individuals who will benefit from them: money again debit card, decrease rate of interest on private loans, bigger commerce window and rewards bank card.

M1 Finance Plus

Buying and selling commissions


Borrow price


Checking account APY


Bank card

Proprietor’s Rewards Card by M1

Once you improve to the M1 Plus account, you’re getting excess of a fundamental 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, fairly than simply AM. The minimal stability for the Borrow account continues to be $5,000, however the price drops to 2%.

The Spend account is way extra enticing with M1 Plus. For starters, you’ll get 1% APY in your checking, which is extra aggressive than most banks’ financial savings accounts. On high of that, you’ll pay no overseas transaction charges, get 4 month-to-month ATM payment reimbursements and might 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 could possibly get rid of a conventional financial savings account altogether.

M1 Plus members also can apply for the Proprietor’s Rewards Card by M1, a rewards bank card that incentivizes buying with retailers that you just’ve invested in. The $95 annual payment is routinely waived so long as you retain your M1 Plus account lively. Money again rewards vary from 1.5% to 10% with a most reward worth of $200 monthly (or $2,400 per 12 months). These rewards are then routinely reinvested in eligible accounts.

Signal-Up Bonus

M1 Finance is at present operating an attractive sign-up bonus. Once you open a brand new M1 account and make a qualifying deposit inside the first two weeks, you’ll get a bonus starting from $30 to $500.

M1 Finance Bonus Breakdown

Deposit Quantity Bonus Quantity
$1,000 to $4,999.99 $30
$5,000 to $9,999.99 $75
$10,000 to $29,999.99 $150
$30,000 to $49,999.99 $300
$50,000+ $500

This promotion is operating by way of the tip of 2021. It’s possible that M1 will run the same promotion in 2022, however M1 has not launched particulars on the bonus quantities for varied deposits but.

The bonus is simply out there to new M1 prospects. You probably have opened an M1 funding account beforehand, you aren’t eligible for the bonus payout.

M1 Finance Charges

The M1 Primary account has no annual payment whereas the M1 Plus account prices $125 a 12 months (the primary 12 months is 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, account transfers and account inactivity. These are all very clear on the M1 website, and it isn’t possible the standard buyer can be paying these charges.

The total rundown on M1 fees.

M1 Finance App

As a web based robo advisor, M1 Finance affords an amazing on-line platform that’s comparatively straightforward to make use of when you get used to it. Much more necessary, M1 affords a cell app that’s superb for tech-savvy buyers

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

On the time of publishing, the M1 cell app had practically 36,000 scores on the Apple App Retailer with a star ranking of 4.6. On Google Play, it has virtually 17,000 opinions and a 4.5 star ranking.

M1 Finance Buyer Assist

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

As a result of M1 is a robo advisor, you can not contact monetary advisors for funding recommendation or private finance recommendation. Should you want extra tailor-made funding recommendation, take into account an organization with bodily areas or actual human advisors.

M1 Finance Overview: Key Options

Under, we’ve spelled out the positive 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 contains automated rebalancing of your accounts, which implies the funding platform will routinely handle your investments (promoting and shopping for varied particular person shares, mutual funds, bonds, and many others.) to maintain your account proportioned the way you need it (based mostly in your threat tolerance, most popular asset allocation and funding targets). The auto rebalancing function additionally contains 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 let you 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 spend money on.

The promoting level of an Make investments account with M1 is “The Pie.” That is M1’s answer for simple portfolio administration. You may create customized pies by way of an interactive dashboard that permits you to browse 6,000+ shares and ETFs to actually customise your funding portfolio. However if you happen to don’t have the time or information to customise your portfolio, you’ll be able to choose from “Professional Pies” that the M1 Finance staff has “baked.” With greater than 80 curated Professional Pies, there’s more likely to be a number of that fits your funding technique and threat tolerance.

Some examples of Professional Pie classes embody:

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

Neighborhood Pies let you discover and share portfolios that align with private values. You may construct and spend money on pies that target publicly traded firms led by Black, feminine, or LGBTQ+ leaders.

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

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

Our Take: For individuals who need hands-off investing by way of a robo advisor, fairly than an actual human monetary advisor, M1 Finance is a superb platform. And if you happen to study extra concerning the market and wish to play a extra direct position in your funding technique, the customizable Pies permit you to take action with no need to shut your M1 account. Should you merely need the funding facet of M1 (and don’t care concerning the Spend, Borrow, or bank card parts), we suggest the free M1 Primary account.

M1 Retirement

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

These accounts share the identical advantages of a conventional funding account with M1: entry to Professional Pies, fractional shares and auto rebalancing. If you have already got an IRA or 401(ok) elsewhere and would love M1 to handle it, you’ll be able to roll over your account.

Our Take: Check out M1 Make investments first to be sure to are happy with the platform. If, after a couple of months, you discover this robo advisor is the correct match for you, roll over your retirement accounts to maintain them underneath 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 positive, albeit somewhat extra complicated, to have the accounts managed individually elsewhere.

M1 Borrow

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

You may borrow as much as 35% of your account worth. Charges are 2% for M1 Plus members and three.5% for M1 Primary members. This is a perfect state of affairs when you have high-interest loans, like pupil loans or bank card debt, that you just wish to repay; you then’d have a extra manageable mortgage to repay by way of M1.

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

Our Take: By no means borrow until you must. Don’t take out a mortgage simply to have some money to play with. That stated, if taking out an M1 Borrow mortgage can get rid of month-to-month funds on predatory loans, benefit from this feature.

M1 Spend

You can too make the most of money administration account options by way of M1, which is a newer 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 Primary.

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

  • 1% money again on debit card purchases
  • 1% APY in your money stability
  • 4 ATM payment reimbursements every month
  • 0% overseas transaction charges

Different notable options of the Spend account (for each M1 Primary and M1 Plus) embody early direct deposit entry and a $0 account stability 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 also can arrange sensible transfers; in case your money stability within the Spend account hits a sure threshold, M1 will routinely switch and make investments it.

As a result of M1 is just not a financial institution however a brokerage, it companions with Lincoln Financial savings Financial institution to service its checking account.

Our Take: This Spend account is significantly better than a whole lot of the high-interest checking accounts from other online banks. Nonetheless, you do should 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 of the M1 Plus account. You may earn money again on purchases with manufacturers that you just’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 in style manufacturers embody Apple, Amazon, Walmart, Goal, Spotify, Netflic, Peloton, Popeyes, Victoria’s Secret, Converse, Delta and Starbucks.

You may even select to reinvest this cashback into your portfolio for continued development.The bank card account comes with a contactless metallic card with tap-to-pay.

Our Take: In order for you a rewards bank card and plan to speculate with M1, this could completely be on the highest of your listing. Even when you have one other rewards bank card, the ten% money again on choose retailers is just too good to go up. Because the payment is waived for M1 Plus members, you could possibly even open this bank card and solely use it whenever you’ll get the ten% money again when you have one other rewards bank card to make the most of in different eventualities.

M1 Finance Execs and Cons

If our M1 Finance evaluation has not given you a transparent determination on whether or not to speculate fairly but, take a look at these professionals and cons of M1 Finance.


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


  • No financial savings account
  • No checking account perks for M1 Primary account
  • $125 payment for the M1 Plus account
  • No entry to human monetary advisors

Often 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/seller 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 professionals far outweigh the cons; nevertheless, we have now decided a couple of downsides to M1:

1. There is no such thing as a financial savings account.
2. There are not any checking account perks for an M1 Primary account.
3. To unlock the checking account perks, it’s essential to pay the $125 payment for the M1 Plus account.
4. There is no such thing as a entry to human monetary advisors.

Is M1 Finance Good for Learners?

Due to the Professional Pies that permit customers to decide on amongst funding portfolios curated for his or her particular wants, M1 Finance is nice for novices. Even higher, the M1 Primary account is free and has no fee charges.

Is M1 Finance Actually Free?

M1 Finance is a free automated investing platform. The M1 Primary account is free, and there are not any commissions on trades. Nonetheless, the M1 Plus account is $125 a 12 months, although the primary 12 months is free.

Should 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 12 months for an M1 Plus account makes a whole lot of sense.

M1 Finance is a brokerage account, but it surely 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 not open a financial savings account with M1, nor are you able to apply for auto loans or dwelling loans. In that sense, it doesn’t function like a conventional checking account.

Does M1 Finance Provide Tax Loss Harvesting?

Sure, M1 affords 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 dwelling base in Cincinnati. He has labored in modifying and graphic design for a advertising and marketing company, a world analysis agency and a significant print publication. He covers quite a lot of different matters, together with insurance coverage, taxes, retirement and budgeting and has labored within the area since 2012.

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

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