M1 Finance

M1 Finance Commissions for 2020


M1 Finance commissions on stocks, exchange traded funds (ETFs), options, mutual funds, crypto and bond trades.



M1 Finance Commissions


InvestmentsCommissions
Stocks and ETFs $0
Options not offered
Mutual funds not offered

Investments stocks and ETFs
Minimum deposit to open account $0 for cash account, $2,000 for margin account
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Pay $0 commissions. Transfer account to get up to $2,500 bonus at M1 Finance.

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M1 Finance $0 Commission


Major thing that sets M1 Finance apart from other firms and makes it the best broker for investing in fractional shares, is that there are no commissions to pay for investing. That's right - you pay $0 commission at M1 Finance. The broker makes money on optional services, such as lending funds and credit cards.


How M1 Finance Handles Dividends


M1 Finance doesn’t offer a traditional Dividend Reinvestment Plan. Instead, it takes dividends from all securities that pay them and deposits the cash in a separate position. Once this position reaches $10, the broker invests the cash into the Pie, using preset target percentages. Thus, fractional shares will be purchased each time the cash position reaches $10. That’s the default setup anyway.

An alternative you can choose is auto reinvest when the cash position breaches a certain level. For instance, you could set $800 as the trigger. If you deposit $900, exactly $100 will be invested in the Pie. Or you can just turn off this feature and make additional purchases whenever you’re ready. There is a $10 minimum on the M1 platform.


M1 Finance Commissions


Substitutes


If for any reason you decide that M1’s Pie method of investing isn’t for you, there are alternatives out there. However, as we already mentioned, there aren’t many brokerage houses that permit the purchase of fractional shares of stocks, closed-end funds, or ETF’s. Stash Invest is one exception, but it only offers a small selection of stocks and ETF’s for fractional investing. At M1 Finance, all stocks and ETF’s that trade on major exchanges are eligible. Stash Invest also charges a monthly fee, while M1 is completely free.

A second alternative would be to open an account with a broker that has a traditional DRIP service (such as WellsTrade or TD Ameritrade), and add fractional shares whenever a dividend is paid. Adopting this approach, however, means you will have to buy at least 1 share upfront; and as we pointed out this can be quite expensive with some stocks. Plus, you will not be able to make additional purchases besides the dividends. At M1, this is possible.


M1 Finance Commisions Disclaimer


M1 Finance commissions on stocks, exchange traded funds (ETFs), options, mutual funds, crypto and bond trades are subject to change. For the most recent information on M1 Finance charges go to their website.


Open M1 Finance Account


Pay $0 commissions. Transfer account to get up to $2,500 bonus at M1 Finance.

Open M1 Finance Account



Alternatives


You can also invest in partial shares of stocks and ETF's by using a $0-commission brokerage firm called Public.com.


Open Public Account


Get FREE stock and $0 commission stocks/ETFs/partial shares.

Open Public Account