M1 Finance Fees, Account Inactivity Charges, and Commission Rates (2023)

M1 Finance fees, commissions, IRA rates, hidden charges, broker investment management cost, and minimums. M1 Finance annual fee, maintenance, inactivity, and monthly charge.

M1 Finance Account Fees

Overnight Mail - Domestic (per request)$125
Overnight Mail - International/Canada (per request) $100
Paper Confirm Fee (Retail Paper Only) (per request) $2
Paper Statement Fee (Retail Paper Only), (per statement) $5
Paper Tax Statement Fee (Retail Paper Only), (per statement) $5
Return Mail (per piece) $2
ACAT (Direct Account Transfers) $100


M1 Finance Bank Fees

Wire Transfer (Domestic)$25
Wire Transfer (Foreign) $45
Returned Checks/ACH/Wires and Recalls $30
Amendment Repairs $30
ACH Notice of Change/Correction $5
ACH Return Fee $30

M1 Finance Other Fees

IRA Termination Fee (per event)$100
Escheatment Processing (per account) $75
TOD Account Transfer Fee (per transfer) $200
Mutual Fund Sales $20

M1 Finance Annual Fee

There is no monthly or annual fee at M1 Finance. This applies to all accounts.

M1 Finance Inactivity Fee

M1 Finance charges $20 inactivity fee on accounts with up to $20 balance and no activity for 90+ days.

M1 Finance Maintenance Fee

M1 Finance has $0 maintenance fee.

Margin Rates

Debit Balance Margin Interest Rates
$0,01 - $24,999 8.25%
$25,000 - $49,999 8.25%
$50,000 - $99,999 8.25%
$100,000 - $249,999 8.25%
$250,000 - $499,999 8.25%
$500,000 - $999,999 8.25%
$1,000,000 + 8.25%

M1 Finance Plus Margin Rates

Debit Balance Margin Interest Rates
$0,01 - $24,999 6.75%
$25,000 - $49,999 6.75%
$50,000 - $99,999 6.75%
$100,000 - $249,999 6.75%
$250,000 - $499,999 6.75%
$500,000 - $999,999 6.75%
$1,000,000 + 6.75%

Regulatory Fees at M1 Finance

Regulatory expenses are mandated fees passed on to the consumer. These occur when users sell a stock or ETF, and often cost only a few pennies. For example, if you sell ten shares of Apple stock at $150 per share, you would pay a total of 4 cents in regulatory expenses — 3 cents in SEC fees and 1 cent in TAF fees. These costs are calculated as follows:

SEC (Securities Exchange Commission) Fee* = total price of transaction x 13.00 / 1,000,000
TAF (Trading Activity Fee) Fee* = shares sold x 0.0001119 with a maximum of $5.95

M1 Finance Commissions, Account Minimums, and Fees

Although M1 Finance doesn’t require any amount to open an account, it does require $100 to make an investment. However, there are NO COMMISSIONS or FEES to invest your money - it's incredible!

There is no annual account fee, and no commissions are charged on trades for either stocks or ETF’s. Amazingly, the broker allows an unlimited number of trades and still doesn’t charge any commissions.

The company also lets customers borrow up to 35% of their margin account value at the incredibly low rate of just 8.25% APR.

How do they make money? M1’s back-end services generate revenue, and the addition of new services in 2023 will further contribute to earnings.


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M1 Finance Hidden Fees

M1 Finance does not have hidden fees. All company's charges are clearly listed with very little fine print.

Tax Considerations

M1 tax documents can be sent electronically to an H&R Block account. The request must be initiated from the H&R Block platform. Tax information and security transactions can also be imported into Turbo Tax from a Turbo Tax account.

M1 Finance does not conduct tax-loss harvesting in its clients’ Pies. The result of this is that securities in the portfolios aren’t bought and sold in a tax efficient manner.

Although M1 does not provide traditional tax-loss harvesting, it did recently launch a new withdrawal method that considers tax implications. When a client makes a withdrawal request, M1 has an algorithm that determines which specific securities should be sold, incorporating not just target allocations, but also tax issues. The computer program will sell securities in this order:

1. Shares that don’t create a tax liability
2. Shares that produce long-term capital gains
3. Shares that create short-term gains (which are taxed at a higher rate than long-term gains)

About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for, Chad can usually be found managing his portfolio or building a new home computer.