M1 Finance

What Is M1 Finance?

M1 Finance is a self-directed investing platform that brands itself as a "Finance Super App." Founded in 2015 and headquartered in Chicago, M1 combines investing, borrowing, and high-yield cash accounts in a single platform. What sets M1 apart from other brokerages is its proprietary Pies system — a portfolio-based approach to investing where you set target allocations and let M1 handle the rebalancing automatically.

M1 is a registered broker-dealer with the SEC and a member of FINRA and , meaning your securities are protected up to $500,000 (including $250,000 for cash claims). If you're comparing platforms, see our picks for the .

M1 Finance at a Glance

How M1 Finance Works: The Pies System

The Pies system is M1 Finance's core differentiator. Instead of buying individual stocks one at a time, you build a "Pie" — a portfolio where each holding is assigned a target percentage. When you deposit money, M1 automatically distributes it across your Pie to maintain your target allocations.

Each Pie can hold up to 100 "slices," where each slice is an individual stock, ETF, or even another Pie (called a sub-Pie). This nesting allows you to build complex, diversified portfolios — for example, a top-level Pie with 60% in a US stock sub-Pie and 40% in a bond sub-Pie, each with their own individual holdings.

M1 also offers dozens of pre-built Expert Pies organized by category — general investing, retirement, responsible investing, and more. You can use these as-is, customize them, or build entirely from scratch. All investing uses fractional shares, so every dollar you invest is put to work regardless of individual share prices.

Trades execute during one or two daily trading windows rather than in real time. This is by design — M1 is built for long-term investors, not day traders. The trading window approach allows M1 to batch orders and optimize execution, but it means you can't react to intraday price movements.

M1 Finance Fees

M1 Finance charges $0 commissions on stock and ETF trades. The main cost is the $3/month platform fee, which is automatically waived if you maintain at least $10,000 in total M1 assets or have an active M1 Personal Loan. For smaller accounts, that $36/year fee is worth considering against potential returns.

For a $5,000 portfolio, the $3/month fee translates to a 0.72% annual cost drag. At $10,000, the fee is waived entirely. This makes M1 most cost-effective for investors with $10,000 or more in assets.

Account Types

M1 Finance supports a wide range of account types, making it suitable for both taxable and tax-advantaged investing. Whether you're building a general brokerage portfolio or saving for retirement through a , M1 has you covered.

M1 Earn (High-Yield Cash Account)

M1 Earn is the platform's high-yield cash account, designed to hold uninvested cash while earning interest. The account currently offers [MANUAL: verify current APY] APY with no minimum balance requirements, no withdrawal limits, and no hidden fees.

Cash deposited into M1 Earn is swept to partner banks and is FDIC-insured up to $4.75 million through M1's banking partners — significantly higher than the standard $250,000 FDIC limit at a single bank. Until funds are swept, they remain in a brokerage account protected by SIPC insurance.

To open an M1 Earn account, you need an existing M1 investment account. There's no separate sign-up process — it integrates directly into the M1 app alongside your investment Pies.

M1 Finance vs Robinhood

M1 Finance and Robinhood are both commission-free platforms, but they serve different investing styles. Robinhood is designed for active traders who want real-time execution, options trading, and cryptocurrency access. M1 is built for long-term investors who prefer a set-it-and-forget-it approach with automated rebalancing.

If you want more control over individual trades and access to options, Robinhood is the better fit. If you want hands-off, automated portfolio management with percentage-based allocation, M1 Finance is the stronger choice. Read our full for a deeper comparison.

Who Is M1 Finance Best For?

M1 Finance is ideal for long-term, buy-and-hold investors who want to automate their investing strategy without paying advisory fees. The platform works best for people with $10,000 or more in investable assets (to avoid the platform fee) who prefer a hands-off approach to portfolio management.

M1 is not the best choice for active day traders, options traders, or people who want professional financial advice. If you prefer micro-investing with spare change round-ups, consider instead. For a platform that combines investing with student loan refinancing and banking, may be worth considering.

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