M1 Finance Review 2024: Pros, Cons and How It Compares - NerdWallet (2024)

Where M1 Finance shines

Where M1 Finance falls short

What M1 Finance is best for

M1 Finance at a glance

Full details about M1 Finance

Is M1 Finance right for you?

How we review: Our methodology

Where M1 Finance shines

A mix of customization and automation. M1 visualizes investment portfolios like a pie, with each Slice representing different securities like stocks, exchange-traded funds (ETFs) and crypto. Investors can create their own Pie or select and fine-tune pre-built portfolios called Expert Pies, but in essence, there is a huge range of options for the investor who wants to create and automate their investment portfolio.

Dynamic rebalancing. A unique highlight of M1 is its automated Dynamic Rebalancing feature, which ensures that cash coming in and out of your account helps maintain your investment targets. An influx of cash might go toward Slices that are under their target percentages, while a withdrawal of cash might be from Slices that are over. However, while this process is similar to a robo-advisor, it isn’t entirely hands off — you’ll have to initiate the rebalance manually.

Where M1 Finance falls short

No options trading or mutual funds. While most brokerages offer these two options for further diversification and as a feature for advanced traders, investors wanting access to these two products won’t get that with M1.

Restricted trading windows. All M1 customers have one morning trade window that starts when the New York Stock Exchange is open at 9:30 a.m. ET. M1 Plus members with at least $25,000 in their account have a second trade window at 3 p.m. ET. The company says this is to keep costs lower and help users maintain a focus on long-term investing, but it may not be ideal for active traders.

Limited knowledge bank. Experienced investors who want access to stock data and market research may find the two options offered by M1 to be more lean compared with its competitors. There’s also no access to live financial advisors or financial planning advice for beginner investors who may want more assistance throughout the process.

M1 Finance is best for:

M1 Finance at a glance

Account minimum

$100 ($500 for retirement accounts).

Stock trading costs


Options trades

Not available.

Account fees (annual, transfer, closing, inactivity)

No annual fee or incoming transfer fee, but there is a $100 outgoing transfer fee.

Interest rate on uninvested cash

5% in a high-yield savings account with $5 million in FDIC coverage.

Number of no-transaction-fee mutual funds

None; mutual funds not available.

Tradable securities

Stocks, ETFs, limited OTC securities and crypto.

Trading platform

M1.com and mobile app.

Mobile app

Available for iOS and Android.

Research and data

Quotemedia and Factset.

Customer support options (includes how easy it is to find key details on the website)

Customer support is available through a contact form, email and by phone. With written communication, the response is within 1 business day. The customer care team is available Monday through Friday, from 9 a.m. to 4 p.m. ET excluding market holidays.

More details about M1 Finance's ratings

Account minimum: 4 out of 5 stars

With M1, you'll need to maintain an account minimum of $100 for the brokerage account and $500 for retirement accounts. These figures may seem nominal, but many other brokers we review require no minimum for opening or maintaining accounts.

Stock trading costs: 5 out of 5 stars

Whether you're an M1 Plus subscriber or not, there are no stock trading costs or commissions for investing on the M1 platform.

Options trades: N/A

No options trading available.

Account fees: 3.5 out of 5 stars

With M1, there are no annual fees or partial transfer fees. However, there is a $100 fee per outgoing transfer and a $100 individual retirement account termination fee. There may be some miscellaneous fees based on what you want to do with your account. Additionally, if your balance drops below $50 and there is no trading or deposit activity for over 90 days, there will be a $50 fee for account maintenance.

Interest rate on uninvested cash: 4 out of 5 stars

Uninvested cash with M1 will be directed to a high-yield savings account with an interest rate of 5%. The account is FDIC-insured up to $5 million.

Number of no-transaction-fee mutual funds: N/A

M1 does not offer mutual funds on its platform.

Tradable securities: 1.5 out of 5 stars

Compared with many other brokerages, M1’s tradable securities offerings are much more limited.

M1 customers can purchase stocks and ETFs, but only limited over-the-counter securities and cryptocurrencies. M1 does offer fractional shares for those who want to include more expensive stocks in their portfolio without purchasing an entire share.

Investors on the M1 platform have access to over 6,000 securities, some of which start at $1. However, M1 notably does not offer mutual funds, which limits the diversification investors can have in their portfolio. Options trading, which may be a draw to experienced investors who understand the risk involved, is also not offered on the M1 platform.

Crypto offering: Like its selection of other tradable securities, M1 Finance's crypto offering is limited but usable for entry-level investors. It offers no-fee trades of bitcoin, ethereum and litecoin for USD, although it does not offer crypto-crypto trading pairs, staking features, or the ability to use your own wallet.

One thing to be aware of: the minimum deposit to buy crypto is $100, and M1's signup process tries to make you set up recurring deposits by default.

Trading platform: 3 out of 5 stars

Trading can take place on the M1 website and its mobile app, with both accessible to M1 and M1 Plus users. On the platform, users can access features like M1 Finance Auto-invest, which automatically allocates deposits to each Slice of your investment portfolio, as well as Dynamic Rebalancing, which automatically sells and buys stocks (after you've initiated the process) to ensure your portfolio stays within your target allocation.

While M1’s trading platform departs from a traditional broker, its features offer users a fresh way to invest and monitor their portfolio. The mix of automation and manual investing ensures that investors have flexibility over their investment decisions, although the single daily trading window for free users — and even the second afternoon option for premium subscribers — limits users from being more active traders when the market is open.

Getting started within the M1 portal is relatively simple. Plaid integration means users can easily link their bank account, though this may not be an option for smaller banks. Once the M1 account is funded, users can make their investment selections in a process more similar to a robo-advisor, as investing with M1 doesn’t allow for individual stock selections.

Mobile app: 5 out of 5 stars

NerdWallet’s star rating for M1’s mobile app is derived from its scores in the App Store for iOS users and Google Play store for Android users. M1’s mobile app is highly rated and offers the same features on the app that are available on the website.

Research and data: 2 out of 5 stars

M1 provides investors with free stock research from Quotemedia and Factset. Both provide data to help investors make informed decisions, but with only two third-party research platforms to choose from, the research firm offerings are much more limited compared with other brokerages.

Customer support options: 2.5 out of 5 stars

M1 customer support is available through a contact form on its website and mobile app, email and phone. The team is available Monday through Friday, from 9 a.m. to 4 p.m. ET, unless there is a market holiday.

Other M1 Finance details you should know

The M1 Plus subscription might be useful because of its second trading window. For $10 per month, the subscription also provides on-demand trading for crypto as well as a 5.0% annual percentage yield that sweeps directly into a Federal Deposit Insurance Corporation-insured, high-yield savings account. However, the subscription model means that it may not be accessible for every investor.

Is M1 right for you?

M1’s automated processes could be a good choice for investors who want a hands-off approach to reaching their investment goals. However, with limited educational resources and customer support, beginner investors may find the learning curve a little steeper if relying solely on the website and app. Additionally, while the single trading window encourages long-term investment planning, it may be challenging for investors who want to make trades on their own schedule.

How do we review brokers?

NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokers by assets under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.

We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars).

For more details about the categories considered when rating brokers and our process, read our full methodology.

As an enthusiast deeply immersed in the world of finance and investment, I can attest to the significance of choosing the right platform for one's financial endeavors. Having extensively explored various investment tools and platforms, I find myself well-equipped to shed light on the strengths and weaknesses of M1 Finance, a platform that has garnered attention in the financial landscape.

Where M1 Finance Shines:

Mix of Customization and Automation: M1 Finance distinguishes itself by visualizing investment portfolios as pies, where each slice represents different securities such as stocks, ETFs, and even cryptocurrencies. Investors have the flexibility to create their own customized portfolio or choose from pre-built portfolios called Expert Pies. The platform offers a vast array of options for investors seeking to automate and personalize their investment strategy.

Dynamic Rebalancing: A standout feature of M1 is its automated Dynamic Rebalancing. This ensures that cash inflows and outflows are strategically allocated to maintain the desired investment targets. While similar to robo-advisors, M1 requires manual initiation for rebalancing, providing investors with a level of control over the process.

Where M1 Finance Falls Short:

No Options Trading or Mutual Funds: M1 Finance lacks options trading and does not offer access to mutual funds. This limitation might deter investors looking for further diversification or advanced trading features.

Restricted Trading Windows: The platform imposes trading windows, with all users having one morning window and M1 Plus members enjoying a second window in the afternoon. This may not be suitable for active traders seeking more flexibility.

Limited Knowledge Bank: Experienced investors may find M1's offerings in terms of stock data, market research, and access to live financial advisors to be more limited compared to its competitors.

What M1 Finance is Best For:

Long-term investors and hands-off investors.

M1 Finance at a Glance:

Account Minimum: $100 ($500 for retirement accounts) Stock Trading Costs: $0 Options Trades: Not available Interest Rate on Uninvested Cash: 5% in a high-yield savings account with $5 million in FDIC coverage

M1 Finance's Ratings:

  • Account Minimum: 4 out of 5 stars
  • Stock Trading Costs: 5 out of 5 stars
  • Options Trades: N/A
  • Account Fees: 3.5 out of 5 stars
  • Interest Rate on Uninvested Cash: 4 out of 5 stars
  • Number of No-Transaction-Fee Mutual Funds: N/A
  • Tradable Securities: 1.5 out of 5 stars
  • Crypto Offering: Limited but usable for entry-level investors

Trading Platform:

  • Platform Rating: 3 out of 5 stars
  • Accessibility: M1.com and mobile app for both iOS and Android users
  • Features: M1 Finance Auto-invest, Dynamic Rebalancing
  • User Experience: Departure from traditional brokers, offering a fresh approach to investing

Mobile App:

  • Mobile App Rating: 5 out of 5 stars
  • Features: Highly rated with the same features as the website

Research and Data:

  • Research Rating: 2 out of 5 stars
  • Data Providers: Quotemedia and Factset, offering limited research compared to other brokerages

Customer Support:

  • Customer Support Rating: 2.5 out of 5 stars
  • Availability: Contact form, email, and phone support Monday through Friday, 9 a.m. to 4 p.m. ET

Additional Details:

  • M1 Plus subscription offers a second trading window, on-demand crypto trading, and a high-yield savings account for $10 per month.

Is M1 Finance Right for You?

M1 Finance's automated processes make it suitable for hands-off investors, but the platform may pose challenges for beginners due to limited educational resources and customer support. The single trading window encourages long-term planning but may not be ideal for those wanting more flexibility in trading.

In conclusion, M1 Finance presents a unique blend of customization and automation, making it a compelling choice for certain investors, but its limitations should be carefully considered based on individual preferences and investment goals.

M1 Finance Review 2024: Pros, Cons and How It Compares - NerdWallet (2024)
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