M1 Finance Review
M1 Finance occupies a unique position in the brokerage landscape: it is not quite a traditional broker and not quite a robo-advisor, but something in between that gives investors the best of both worl...
Based on our rigorous 8-step testing methodology
Platform Overview
M1 Finance occupies a unique position in the brokerage landscape: it is not quite a traditional broker and not quite a robo-advisor, but something in between that gives investors the best of both worlds. Founded in 2015 and headquartered in Chicago, M1 lets you build a completely customized portfolio — called a "pie" — by selecting individual stocks and ETFs and assigning target allocation percentages to each. Once set, M1 automatically invests new deposits, reinvests dividends, and dynamically rebalances your portfolio back to your target allocations, all for free. This is the key differentiation: Betterment charges 0.25% annually for similar automation, and Wealthfront charges the same. On a $100,000 portfolio, that is $250/year in savings. M1 also offers Expert Pies — over 100 pre-built portfolio templates designed around popular strategies (dividend growth, ARK-style innovation, Warren Buffett-style value) that users can deploy in one click. For leverage, M1 Borrow provides portfolio-backed loans at rates starting around 3.5% APR — dramatically cheaper than standard margin rates. M1 serves over 500,000 accounts and manages more than $6 billion in assets. The platform is designed for long-term, automated wealth-building — it intentionally does not support day trading, options, or active short-term speculation.
Key Features
Pie Investing System
Build a custom portfolio "pie" by assigning target percentage weightings to individual stocks and ETFs — M1 auto-invests to maintain your exact allocation
Dynamic Rebalancing
M1 automatically keeps your portfolio at target allocations by directing new deposits and dividends to underweight positions — no advisory fee charged
100+ Expert Pie Templates
Pre-built portfolios designed around strategies like dividend growth, responsible investing, aggressive growth, or individual investor styles
Fractional Shares
Every deposit is deployed fully — M1 buys fractional shares to ensure 100% of your cash is always working in your target allocations
M1 Borrow
Borrow against your portfolio at ~3.5% APR (requires $10,000 minimum portfolio value) — far cheaper than traditional margin rates of 8–13%
Scheduled Deposits
Set automatic recurring deposits on any frequency — M1 deploys the cash immediately on arrival, maintaining your target allocations without manual action
Fees & Costs
| Stock & ETF Commissions | $0 for stocks and ETFs |
| Options Fees | Not available (options not supported) |
| Account Minimum | $100 for taxable accounts ($500 for IRAs) |
| Margin Rates | ~3.5% APR via M1 Borrow (portfolio-backed, requires $10K portfolio) |
Pros & Cons
Pros
- Free automated rebalancing saves 0.25%/year vs Betterment — $250/year on a $100K portfolio
- Pie system gives full customization control that pure robo-advisors do not allow
- M1 Borrow rates at ~3.5% APR are the cheapest borrowing in the retail brokerage industry
- 100+ expert pie templates make it easy to get started with proven allocation strategies
- Every dollar is invested via fractional shares — no cash drag sitting uninvested
Cons
- No options trading, futures, or active trading — built exclusively for long-term investing
- One trading window per day (morning for standard accounts, afternoon for M1 Plus) — not for active traders
- Minimum $100 to open a taxable account, $500 for IRA — slightly higher barrier than competitors
- No tax-loss harvesting (Wealthfront and Betterment offer this; M1 does not)
- M1 Premium ($3/month) required for afternoon trading window and some banking features
Who It's Best For
M1 Finance is ideal for long-term passive investors who want the customization of choosing their own stocks and ETFs combined with the automation and rebalancing convenience of a robo-advisor — without paying an advisory fee. It is perfect for buy-and-hold investors building toward retirement or financial independence who want a hands-off system that stays aligned with their target allocations.
Passive Index Investors
Want to hold a custom mix of ETFs that auto-rebalances without paying 0.25%/year to a robo-advisor
Dividend Growth Investors
Building a dividend income portfolio that auto-reinvests into target allocation weightings
Low-Cost Borrowers
Need portfolio-backed loans at 3.5% APR for real estate, business, or large purchases without selling investments
Final Verdict
Our Verdict on M1 Finance
M1 Finance is the best platform for investors who want robo-advisor-style automation without robo-advisor fees and without giving up portfolio customization. The free dynamic rebalancing alone saves serious money over time, and M1 Borrow at ~3.5% APR is genuinely the cheapest borrowing option in retail investing. The trade-off is intentional: M1 does not support active trading, options, or same-day order flexibility. If you are building long-term wealth on autopilot and want to choose your own holdings, M1 Finance is a standout choice.