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M1 Finance Assets Under Management in 2025
M1 Finance total assets under management (custody). M1 Finance AUM: client assets and number of customers (user accounts).
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M1 Finance: Number of Users and Assets Under Management
M1 Finance offers a unique way of managing money that appeals to many customers. Since M1 doesn’t charge any commissions on transactions, it’s a great option for most investors. So, how many customers and how much in total assets does M1 Finance manage? Here are the numbers:
M1 Finance Assets Under Management
| Client assets |
$5 billion |
| Number of customers |
700,000 |
| Number of employees |
300 |
| Parent |
M1 Holdings Inc. |
| Headquarters |
200 N LaSalle St Ste. 800, Chicago, Illinois, United States |
| Founded |
2015 |
M1 Finance Review
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Overview of M1 Finance
If you’re considering opening an account with a robo-advisor, you might want to check out this review of M1 Finance (member of SIPC). While it may not be the most well-known brokerage, it excels in several key areas. Plus, it offers some features typically found only at self-directed brokerage firms. Warning: this hybrid broker-dealer might win you over.
Customer Support
An M1 Finance customer service representative is available from 9:00 am to 5:00 pm CST during the weekday. The company is closed on weekends. They offer a support email address, but there’s no online chat feature, which is a bit disappointing.
While we weren’t overly impressed with these options, we did like the extensive FAQ section on the M1 Finance website. The questions cover a wide range of topics, such as how to invest with M1, how to access monthly statements, how to connect an external bank account, and how to open a retirement account.
After logging into our test account, we found an AI chatbot that provided a list of questions after we typed in a query. It seemed odd that the program would respond to a question with more questions, and they weren’t always related to what we asked. A ‘contact us’ button allowed us to send a message to the broker if we weren’t satisfied with the chatbot’s answer. The contact form even allowed for attachments, which was a nice touch.
Cash Management Tools
M1 offers a debit card that you can use anywhere Visa is accepted. You can earn 1% when you spend and 1% when you don’t.
One feature we also liked was the ability to automatically invest cash balances over $10. M1 will automatically move your cash into investments once your balance reaches the $10 threshold.
Another popular feature M1 offers is M1 Borrow. With this service, M1 allows its customers to borrow up to 35% of their account value. The interest rate for this loan is tied to the Federal Funds Rate. Currently, the APR is 6.25%, one of the best deals in the industry. To qualify for this program, an account must have at least $25,000 in assets. M1 automatically enrolls accounts that meet this minimum. The service costs nothing unless you actually borrow.
There’s no charge for receiving or sending an ACH. To connect an external bank account, M1 Finance accepts login credentials from certain institutions. For other banks, the broker requires micro-deposits.
The Pie Method of Investing
The broker-constructed Pies are built using Modern Portfolio Theory. This investment approach assumes that for any given level of return, there is an unavoidable level of risk. MPT tries to maximize return while minimizing risk.
The M1-built Pies are rebalanced every quarter. This is necessary because, over time, Pies can drift from their original asset allocations. Pies created by individual investors are not automatically rebalanced, but they can be adjusted at any time.
One nice feature that M1 Finance offers is the ability to put just one stock or ETF in a single Pie. This makes it possible to trade individual stocks and ETFs with the broker.
Cash dividends paid by an underlying security are deposited as cash in an account’s core cash position. There’s no DRIP service. But remember, M1 Finance automatically invests any cash balance above $10.
Because of M1’s unique investment style, the brokerage doesn’t offer trading in options, bonds, or mutual funds. This is a significant downside, as many traders are interested in these products. However, bond ETFs are available.
We really like M1’s combination of robo-management (for company-built Pies) and self-directed Pies, where customers can try to capture profits using their own strategies.
Pie Example
We found an oil, gas, and coal Pie on the M1 website. This one is constructed by the broker and invests in the stocks of large energy companies. Besides exploration and production, the portfolio includes businesses that refine and transport energy.
There are 16 holdings. They are all stocks, which means there are no management fees paid on this Pie. The average dividend yield is 3.78%, and M1 Finance rates the risk level as medium-high.
ExxonMobil is the largest holding, making up 16%. Next is Shell at 13%, while Chevron comes in third at 11%. Petrobras is the smallest holding at 3%.
Updated on 8/21/2024.
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