M1 Finance Overview
An unusual hybrid automated/self-directed brokerage firm is working to disrupt the investment industry. With a style of financial management that
blends features of both automated investing and self-directed strategies, this company is likely to draw a lot of attention. Some
investors may wonder how secure the brokerage is. This article will examine
M1 Finance’s safety and dependability, and review what protections exist for its customers.
Is M1 Finance SIPC Insured?
M1 Finance is a member of SIPC, the Securities Investor Protection Corporation. This membership
protects accounts at M1 up to $500,000.
Under SIPC rules, 50% of this amount can be applied to cash balances. SIPC does not protect
securities from market losses; it only protects the number of securities held in an account up to
the $500,000 limit.
In addition to SIPC coverage, some accounts at M1 that are held with its clearing partner (Apex) have
supplemental/excess SIPC protection if the standard SIPC limits are exhausted.
Is M1 Finance Regulated by FINRA and the SEC?
The brokerage firm we are looking at is a member of the Financial Industry Regulatory Authority, better known as FINRA. M1’s license number is 281242, which is also its CRD number. The broker’s FINRA profile page shows zero disclosures, which is a positive sign. It also shows that M1 was organized in Delaware, although it operates out of Chicago. It is fairly common for a company to be legally formed in Delaware because of the state’s business-friendly laws.
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 8-69670.
The founder of M1 Finance is Brian Barnes. His FINRA profile page shows zero disclosures. 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 F, which is the lowest rating on BBB.
The BBB site shows that M1 Finance is organized as a Limited Liability Company, which means, among
other things, that it is not publicly traded. The Better Business Bureau shows that M1 began
operations in February 2015, and the company’s BBB file was opened in October 2016. M1 is
headquartered in Chicago.
M1 Finance is not accredited by BBB. This is a special status a business must apply for. It is up to the company to seek accreditation. The Better Business Bureau has not verified whether M1 meets the minimum standards for accreditation. The issues BBB considers when deciding whether to grant accreditation include trust with customers, truthful advertising, company transparency, responding to customer questions, protecting privacy, and acting with integrity.
See details on BBB website »
Is M1 Finance Safe Recap
There is no evidence that M1 Finance is a scam or that it engages in fraudulent securities activity. The company offers a unique method of
investment management that comes with SIPC coverage. M1 Finance's SIPC coverage means customer accounts receive protection up to applicable limits if the
brokerage fails. Because the broker eliminated trading commissions, trying M1 Finance’s unique service can be very inexpensive.
M1 Finance Review
It should be clear by now that M1 is safe and can be trusted. Still, there is more to a broker than simply being reliable. 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 is helpful to know that when you open and fund a new account at M1 Finance, there is a
generous bonus offer available.
The deposit bonus pays between $75 and $500 when you add new money to a new M1 Finance brokerage
account. The bonus is paid in tiers, with each higher 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 completely free. Whether M1’s services are a good value depends on a few
factors.
M1 Finance does not charge commissions on trades,
but investors still face some exchange and clearing fees. These charges are very small and are
passed along 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 Finance are much higher than those
offered by traditional banks. M1 members can earn as much as
3.1% APY.
There are also interest charges for margin-based loans at M1. The rate is
5.65%.
Investment Approach
In terms of the investment choices available at M1 Finance, traders will find plenty to like.
One of M1 Finance’s unique features is its investment pies. Pies are portfolios of stocks and ETFs that users can build and customize however they want. Pies can be as simple or as detailed as users prefer and can be rebalanced easily.
Investors can create custom portfolios of cryptocurrencies, stocks, and ETFs or select from pre-built portfolios created by M1’s financial experts.
The platform also offers features like automatic rebalancing and fractional shares, which make it easier for users to diversify their portfolios.
Investment Windows
One distinctive feature of investing at M1 Finance is the trade-window system. Instead of traders buying and selling securities on their own whenever they want, M1’s trade desk processes orders during trade windows.
Two trade windows are available at M1: one in the morning and another in the afternoon.
Overall, M1 Finance's trade windows should be enough for most users, although investors who need more frequent trading may want to consider a different platform.
Account Types & Cash Management
One of M1 Finance’s biggest attractions, besides its distinctive investment approach, is the ability to use M1 as an all-in-one investing and cash-management platform.
With several investment account types to choose from, a range of investment strategies, dedicated cash accounts, a credit card, and personal loans, M1 customers can manage a large part of their financial lives directly inside the app.
Here is a summary of M1’s different services.
M1 Earn
M1 Finance's high-yield savings account (M1 Earn) gives users up to
3.1% APY on their savings, is FDIC-insured and has no
minimum balance requirement or monthly fees. Users can move funds easily between their M1 Invest
account and M1 Earn account, which makes it simple to manage cash alongside investments.
M1 Borrow
There are two loan products that M1 offers, and each has its own rates and terms. These 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 7.99% to 21.75%. M1 Personal Loans have no extra fees, which makes them attractive for borrowers who want to keep costs down.
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 appealing option for users who need short-term financing.
M1 Finance Review Recommendation
M1 Finance is a good fit for investors who want a flexible, easy-to-use investment platform with low fees. It is also a solid option for users who want a checking or high-yield savings account with competitive interest rates and no fees.
M1 Finance is not a good fit for investors who need frequent trading or access to more advanced research and analysis tools. It also may not be the best choice for users who prefer a traditional banking experience with physical branch locations.
Updated on 3/25/2026.
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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