M1 Finance Overview
An interesting hybrid automated/self-directed brokerage firm is trying to shake up the investment industry. With a style of financial management that
incorporates features of both automated investing and self-directed strategies, this company is sure to attract a lot of interest. Some
people may have concerns about the safety of the brokerage house, especially given the fact that it’s been in business for just a few
years. This article will look at the M1 Finance trustworthiness and reliability, and see what safeguards are in place for its customers.
Is M1 Finance SIPC Insured?
M1 Finance is a member of the SIPC or Securities Investor Protection Corporation. This membership
insures accounts at M1 up to $500,000.
Under SIPC guidelines, 50% of this amount can be used to protect cash balances. SIPC does not protect
securities against market decline; it only insures the number of securities held in an account up to
the $500,000 maximum.
Beyond SIPC protection, M1 Finance does not offer any additional insurance. Some brokers do actually
purchase private insurance to help protect some of its larger clients in case SIPC insurance were ever
exhausted in the event of the bankruptcy of the brokerage firm.
Is M1 Finance FDIC Insured?
M1 Spend checking accounts are insured up to $250,000 by FDIC insurance.
Is M1 Finance Regulated by FINRA and the SEC?
Our brokerage firm under investigation is a member of the Financial Industry Regulatory Authority, also known as FINRA. M1’s license number is 281242, which is also called a CRD number. The broker’s FINRA profile page shows zero disclosures, a very good sign. It also shows that M1 was formed in Delaware, although it operates from Chicago. It is a fairly common practice for a company to be legally formed in Delaware due to the state’s business-friendly policies.
M1 is also registered with the Securities and Exchange Commission, which means it is registered in all 50 states and the District of Columbia. It is also licensed in Puerto Rico and the Virgin Islands. The company’s SEC registration number is 69670.
The founder of M1 Finance is Brian Barnes. His FINRA profile page shows zero disclosures, but just one year of experience. His CRD number is 6546822.
M1 Finance Complaints
M1 Finance has a profile page on the Better Business Bureau’s (BBB) website. The profile shows a grade of A+, which is the highest rating on BBB. There is one complaint on the company’s profile, which was resolved to the customer’s satisfaction in December of 2016. BBB does not reveal the details of this incident other than classifying it as a problem with a product or service.
The BBB site reveals that M1 Finance is structured as a Limited Liability Company, which means, among other things, that it isn’t publicly traded. The Better Business Bureau shows that M1 started operations in February of 2015, and the company’s BBB file was opened in October of 2016. M1 is headquartered in Chicago.
M1 Finance is not accredited by BBB. This is a special status that a business must pay for. It is up to the company to apply for accreditation. The Better Business Bureau has not verified whether M1 meets minimum standards to be accredited. The issues BBB analyzes when deciding to grant accreditation include trust with customers, truthful marketing, corporate transparency, responding to customer queries, safeguarding privacy, and embodying integrity.
See details on BBB website »
Is M1 Finance Safe Recap
There is no evidence that M1 Finance is a scam or engages in fraudulent securities activities. The company provides a unique method of
investment management that comes with SIPC insurance. M1 Finance's SIPC insurance guarantees that customer's money is safe and protected by the
U.S. government. Because the broker eliminated all broker commissions, trying the M1 Finance’s unique service costs nothing.
M1 Finance Review
It should be clear now that M1 is safe and can be trusted. There is more to a broker than simply being trustworthy. Should you use M1 Finance for your brokerage and cash management needs?
Let’s take a closer look at M1’s features and services.
M1 Finance Bonus Offer
First, it’s good to know that when you open and fund a new account at M1 Finance, there is a
generous bonus offer to take advantage of.
The deposit bonus pays between $75 and $500 when you deposit new money into a new M1 Finance brokerage
account. The bonus is given out in tiers, with each new level unlocked by a specific deposit amount.
Qualifying deposits range from $10,000 to $100,000.
Fees and Commissions
M1 Finance has low fees, but it is not free. Whether M1’s services are a good deal depends on a few
factors.
M1 Finance doesn’t charge any commissions on trades,
but investors still have some exchange and clearing fees. These fees are extremely small and are
charged by all brokers.
M1 Finance does charge a $3 monthly fee for accounts with under $10,000 balance.
Interests Rates
Interest rates on banking products at M1 (M1 Save and M1 Spend) are significantly higher than those
offered by traditional banks. M1 members get a 1.8% APY
for funds deposited into the M1 Spend account and as much as 3.15% APY on funds deposited into the relatively new M1 Save account.
There are also interest rates paid to M1 for margin-based loans. The rate is
5.65%.
Investment Approach
In terms of the investment opportunities on offer at M1 Finance, traders will find a lot to be attracted to.
One of the unique features of M1 Finance is its investment pies. Pies are portfolios of stocks and ETFs that users can create and customize to their liking. Pies can be as simple or complex as users want and can be easily rebalanced.
Investors can create custom portfolios of cryptocurrencies, stocks, and ETFs or choose from pre-built portfolios curated by M1’s financial experts.
The platform also offers features such as automatic rebalancing and fractional shares, which makes it easier for users to diversify their portfolios.
Investment Windows
One unique aspect of investing at M1 Finance is the trade window concept. Instead of traders buying and selling securities independently, M1’s trade desk completes all within trade windows.
Two trade windows are available at M1: one in the morning and another in the afternoon.
Overall, M1 Finance's investment windows should be sufficient for most users' needs, but users who require more frequent trading may want to consider other platforms.
Account Types & Cash Management
One of the most attractive features of M1 Finance, other than the unique investment approach, is the ability to use M1 as an all-in-one investment and cash management platform.
With multiple investment accounts to choose from, a variety of available investment strategies, dedicated accounts for banking, a credit card, and personal loans, M1 customers can take care of a large portion of their financial lives right from the app.
Here is a summary of M1’s various services.
M1 Save
M1 Save is M1 Finance's high-yield savings account. It offers users up to 3.15% APY on their savings, is FDIC-insured and has no minimum balance requirement or monthly fees. Users can easily transfer funds between their M1 Invest account and M1 Save account, making it easy to manage their cash holdings alongside their investments.
M1 Spend
M1 Spend is a checking account offered by M1 Finance. It provides up to 1.8% APY on cash balances within the account. M1 members can earn up to 1% cash back on certain purchases made with the debit card. The account has no minimum balance requirement or monthly fees and is FDIC-insured. M1 Spend is an excellent choice for users seeking a fee-free checking account with competitive features and benefits.
M1 Borrow
There are two types of loans that M1 offers, each with its own rates and specifications. There are personal loans and margin loans.
M1 Personal Loans are lines of credit provided by M1 Finance. Loan amounts range from $2,500 to $50,000, and rates range from 7.49% to 21.75%. M1 Personal Loans have no extra fees, making them quite attractive to borrowers on a budget.
M1 Margin Loans use the M1 Invest account balance as collateral for the loan amount. Users can borrow
up to 40% of the value of their portfolio at a low interest rate (5.65%), making it a potentially attractive option for users who need short-term financing.
M1 Owner’s Rewards Credit Card
The M1 Owner's Rewards Credit Card is a credit card offered by M1 Finance. It offers 2.5% cash back on all purchases and up to 10% cash back on purchases made with M1 Finance's partners. Users can redeem the cash back earned from the card into their M1 Finance account or use it to pay down the balance on the card.
Additionally, the card has no annual or foreign transaction fees, making it an ideal choice for users who frequently travel or make purchases from international retailers.
M1 Finance Review Recommendation
M1 Finance is suitable for investors looking for a flexible, user-friendly investment platform with low fees. It is also a good option for users looking for a checking or high-yield savings account with competitive interest rates and no fees. M1 Finance is also a good option for users looking for a credit card with cash-back rewards and no annual or foreign transaction fees.
M1 Finance is unsuitable for investors requiring frequent trading or access to more advanced research and analysis tools. Additionally, users who prefer a traditional banking experience with brick-and-mortar branches may not find M1 Finance to be the best option for their needs.
Updated on 9/9/2025.
I work in investment analytics and have been investing in the market since I was in high school. I enjoy anything that involves lots of strategy (i.e. a good game of chess), which is why I was naturally drawn to investing and researching companies. Outside of investing, I’m a big fan of the outdoors. In summer, you’re most likely to find me kayaking, camping, and hiking in the mountains.
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