M1 Finance Overview
M1 Finance is a distinctive hybrid brokerage that blends automated investing tools with self-directed portfolio strategies. This model has attracted considerable interest, although prospective customers may still question the firm’s security. This article evaluates
M1 Finance’s legitimacy and financial safeguards and explains the protections available to eligible customers.
Is M1 Finance SIPC Insured?
M1 Finance LLC belongs to SIPC, the Securities Investor Protection Corporation. This membership
covers eligible cash and securities in each separate customer capacity for as much as $500,000, including up to $250,000 for cash.
SIPC does not reimburse investors for market declines. Subject to its limits, it helps return missing cash and securities when a SIPC-member brokerage firm enters liquidation.
Beyond the standard SIPC limits, certain M1 accounts maintained with its clearing partner, Apex Clearing, receive
supplemental excess SIPC coverage after the regular SIPC protection has been exhausted.
Is M1 Finance Regulated by FINRA and the SEC?
M1 Finance LLC is a member of the Financial Industry Regulatory Authority, commonly called FINRA. The firm’s CRD number is 281242, and its BrokerCheck record currently contains three final regulatory disclosure events. The profile also states that M1 Finance LLC was organized in Delaware while maintaining its principal office in Chicago. Many companies choose Delaware as their legal home because of the state’s business laws.
M1 Finance LLC is also registered with the Securities and Exchange Commission as a broker-dealer under SEC number 8-69670. Its regulatory record separately shows registrations in 53 U.S. states and territories: all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
Brian Barnes founded M1 Finance. His FINRA record shows no disclosure events, and his individual CRD number is 6546822.
M1 Finance Complaints
The Better Business Bureau maintains a business profile for M1 Finance. That profile currently assigns the company a
grade of D-, which BBB links to M1’s failure to answer multiple customer complaints.
BBB classifies M1 Finance LLC as a limited liability company. The firm is owned by M1 Holdings Inc., which FINRA lists as an organization that does not publicly report financial information. BBB states that M1 started
operating in February 2015 and that its business profile was opened in October 2016. The company is
based in Chicago.
M1 Finance does not hold BBB accreditation. Accreditation and a BBB letter grade are separate matters. A company must apply, accept BBB standards, and complete the organization’s review process to become accredited, but businesses are not obligated to participate.
See details on BBB website »
Brokerage Accounts
M1 Finance provides self-directed investment accounts that support the following asset classes:
- ETFs (exchange-traded funds)
- Stocks
- Cryptocurrencies
Stocks and ETFs must be kept separately from cryptocurrency, so customers who want both products need two accounts. The self-directed lineup is otherwise narrow: M1 does not support options, mutual funds, OTC stocks, individual bonds, or futures.
M1 does not list every cryptocurrency, stock, or ETF. Securities with limited trading activity or very small market values may be excluded from the platform.
Unlike a conventional broker, M1 does not provide continuous stock and ETF trading throughout the session. It groups orders for execution during morning and afternoon trading windows, although access to both windows depends on account eligibility. M1 customers cannot choose an exact execution time.
M1 organizes investments through Pies, which are groups of assets with assigned target percentages. An M1 portfolio can contain up to 100 slices, and a Slice can be an individual asset or another Pie. A customer can place only one security or cryptocurrency in a Pie, although that is an indirect way to trade a single holding.
Brokerage registrations include individual, joint, retirement, trust, and custodial accounts. Cryptocurrency is offered through a dedicated individual Crypto Account.
Managed Accounts
M1’s brokerage accounts remain self-directed, and the firm does not offer a conventional managed portfolio or human financial-planning service. However, its affiliated SEC-registered adviser now provides M1 Advisor, an AI-powered advisory assistant that can answer personal-finance questions and examine M1 account information after the customer opts in.
Cash Management
M1’s primary cash-management product is the M1 High-Yield Cash Account. This is a secondary brokerage account offered by M1 Finance LLC, which works with B2 Bank, N.A., to sweep eligible cash into deposit accounts at a network of FDIC-insured participating banks.
By distributing eligible deposits among multiple program banks, M1 can provide aggregate FDIC coverage of up to $4.75 million, subject to the applicable ownership and aggregation rules.
The account also pays interest on eligible cash. Its current APY is 3.1%, making it competitive with many other cash products.
On the downside, M1 Finance does not provide a debit card or checkbook with this account.
Website Technology
M1’s website keeps its design relatively simple. The primary navigation appears on the left, and the Research section provides access to supported investments. Its stock-search tool can filter securities using a limited collection of criteria.
A stock’s profile has a handful of details, including news articles and key metrics. A chart sits at the top with no analysis tools and only one plot style: a line chart. A watchlist button appears at the top next to another button for adding the stock to a portfolio.
Mobile App
Moving to the mobile app, we see the same emphasis on simplicity. Tap the Invest icon in the bottom menu and then tap the hamburger icon in the upper-left corner. Expand the Explore menu to find the research tools.
Here, there are links to the Pies that have been created for the account. There is also a list of Model Portfolios for investors who want to use one of the Pies created by M1. Here are a few we found:
- Medium-Term Bonds
- International Responsible Investing
- 2025 Aggressive
- M1’s 90/10 (90% stocks and 10% bonds)
Other Software
Because M1 is built for long-term portfolio investing rather than frequent trading, it does not provide a downloadable desktop program or another advanced trading platform.
Margin Service
Margin borrowing is available at M1. Individual and joint taxable brokerage accounts are generally opened with margin capability, while eligible trust accounts can separately request the service.
Customers can use margin to buy additional securities with borrowed funds. They may also withdraw available loan proceeds through M1’s portfolio line-of-credit feature.
M1 margin accounts do not support short sales, and option spreads are unavailable because the platform does not offer options trading.
M1 currently charges a flat margin rate of 5.65%, which is competitive with many brokerage loans.
Pricing Schedule
M1 does not charge commissions on self-directed stock and ETF transactions. Cryptocurrency purchases and sales carry a 1% fee reflected in the execution price, while a transfer to an outside crypto wallet costs $150.
M1 generally charges a $3 monthly platform fee rather than a separate fee for every securities account. The charge is waived when total eligible M1 assets reach at least $10,000 for one day during the billing cycle or the customer has an active M1 Personal Loan.
An M1 investment account worth $50 or less with no trading or deposit activity for at least 90 days may be closed. M1 then assesses a Minimum Balance Fee equal to the remaining account value, up to $50.
Added Features
Dividend Reinvestment Plan: M1 provides free dividend-handling choices, including reinvestment into the security that paid the dividend.
Fully Paid Stock Lending Program: Eligible clients can enroll in the program, after which qualifying share loans are handled automatically.
IPO Access: Missing in action.
Automatic Purchases: Recurring transfers combined with Auto-Invest can generate scheduled purchases in an M1 portfolio.
Individual Retirement Accounts: Traditional, Roth, and SEP IRAs are available, and M1 assesses a $100 IRA termination fee.
Fractional Shares: Dollar-based orders allow M1 customers to purchase fractional shares and fractional amounts of supported cryptocurrencies.
Extended Hours: Stock and ETF orders are not accepted for separate premarket or after-hours sessions, and continuous regular-session trading is unavailable.
Recommendations
Stock and ETF Trading: M1 lacks several capabilities that active equity traders commonly need, including continuous access
to the regular market session. A Schwab account using thinkorswim is a stronger alternative.
Small Accounts: Because M1 imposes monthly and low-balance charges under certain conditions, smaller investors may prefer an account
at Webull.
Beginning Investors: New investors who want a professionally constructed automated portfolio may prefer a robo account from
Charles Schwab.
Long-Term Investing and Retirement Planning: M1 includes target-date Pies among its
available portfolios. Investors seeking broader planning support may be better served by
Schwab.
Mutual Funds: M1 does not support mutual-fund trading, while Firstrade lists more than 11,000 funds.
Judgment
M1 Finance combines a handful of useful long-term investing tools with a notably restricted product lineup and trading system.
During our hands-on review, we found the Pie-based portfolio method harder to follow than expected.
Schwab offers a somewhat comparable feature called
Investing Themes, which we found easier to navigate and which does not require a monthly platform fee.
Updated on 3/25/2026.
Chad Morris has been analyzing investment firms for Brokerage-Review.com since 2015. Backed by FINRA Series 65, 66, and SIE credentials, his work reflects a deep knowledge of the retail brokerage industry and digital trading tools.
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