M1 Finance / Self Directed Investing for Long-Term Goals

M1 Finance review quick take: A hybrid self-directed and robo-like investing app with intelligent tools, expert portfolios, and a DIY approach for long-term investors.

What is M1 Finance?

M1 Finance is an online brokerage that offers investors a pie-based approach to long-term investing. The mission that drives M1 Finance is giving you a hands-free investment strategy for long-term investors. It offers the following:

• Brokerage accounts: individual, joint, and custodial.
• Retirement accounts: traditional, Roth, and SEP IRAs.
• Other accounts: Crypto and Trust

If you’re the type who wants guidance and control over your investments, then M1 Finance is the investment app for you. It’s simple to use and offers a good balance of personal customization and expert advice through Pies.

Brokerage products and services are offered by M1 Finance LLC, an SEC-registered broker-dealer and member of FINRA and SIPC. Securities in M1 Invest accounts are insured up to $500,000 by the SIPC.

Get started with M1 Finance with no trading fees or account minimums.

How M1 Finance Works

M1 is a comprehensive platform, but we’ll focus on the online brokerage account for long-term wealth building. With M1 Finance, you can create a portfolio consisting of Pies that contain low-cost ETFs, individual stocks, or a mixture of both. The curated Pies are designed to meet different financial goals, risk tolerance, and investment objectives.

M1 Portfolio, Pies, and Slices

With M1, you can build your portfolio made up of “Slices.” A “Slice” can be an individual stock or a Pie (a group of stocks or ETFs). Pies allow you to visually create a custom portfolio containing low-cost exchange-traded funds (ETFs), individual stocks, and fractional shares. You can also copy the expert Pies built by M1.

Custodial Accounts

You can open an M1 Finance custodial account for any child in your life. These are UTMA/UGMA accounts that allow you to invest on a child’s behalf and help prepare for future financial needs. These funds can be used for anything benefiting the child.

As the custodian of the account, you control the investment strategy until the beneficiary reaches the appropriate age (18 to 25, depending on your state).

Open an account with M1 Finance and create your first Investment Pie.

Key Feature

• Account Minimum: $500 with the ability to set up an automatic deposit.
• Zero-commission: Zero commission for buying and selling stocks and ETFs.
• Customization: Choose the stocks, ETFs, and fractional shares to create your custom Pie
• Model portfolios: Diversify and use one of the 60+ ready-made Pies.
• Auto-Invest: Set up and enable automatic deposits for consistent investment.
• Rebalancing: You can actively rebalance your portfolio to remain within your asset allocation target. And with Dynamic Rebalancing, every new cash in your portfolio is balanced into underweight assets.

Fees

M1 Finance does not charge any fees typically associated with online brokerages.

• Trading fee: $0
• Commissions: $0
• Management fee: $0

M1 charges a $3 monthly platform fee to clients with less than $10,000 in M1 assets or without an active personal loan. You must have an aggregate balance of $10,000 or more for at least one day during the 30 days prior to having the program fee waived. Also, keep in mind that other fees may apply,

Pros and Cons

Pros

• No trading fees and no asset management fees
• Visually appealing interface
• Ability to copy ready-made pies

Cons

• Limited trading windows with trades not done in real-time
• Goals aren’t linked to investments
• No financial advisors

Who is it best for?

M1 Finance best suits people who are focused on the long term and want investing automation. It is a good option for passive investors, not active stock traders.

M1 Finance Review

M1 Finance is a legitimate company and not a scam. The brokerage service is not for day traders or active investors trying to beat the market. It is best for investors with a long-term focus on building wealth who want the simplicity and convenience of automation and robo-advisor-like guidance.

In researching M1 Finance reviews, we learned that the app has over 61,000 reviews with a 4.7 out of 5-star rating in the App Store. However, it has a bad rating of 1.9 out of 5 on Trustpilot, with about 160 reviews, mostly from users upset with the lack of customer service support.

In our review of M1 Finance, we learned it’s a great app for the DIY investor who wants more control and some guidance. You get a robust investment platform with no management fees, trading fees, and access to investment pies like responsible investing.

Whether you’re new to investing or an experienced investor, M1 Finance has a lot to offer. With many free services, no minimum balance, and commission-free trades, you can’t go wrong trying out the app. Just be aware of the platform fee.

You can get started with M1 Finance here.

How to Start with M1 Finance

Minimum Requirements

• Must be 18+ years old 
• Current US residential address 
• Have a US phone number 
• A United States citizen or permanent resident (green card holder)  

Step-by-Step to Open M1 Investing Account

The time needed: 5 minutes.

1. Get started
   • Create an account by clicking on the link here.
2. Enter your information
   • Provide your first and last name, social security number, and address.
3. Link your external bank account.
   • Fund with a link bank account.

M1 Finance Alternatives

There are M1 Finance alternatives such as similar apps like Stash Invest and Acorns. If you’re looking for more guidance, consider Betterment and Wealthfront, both of which are full-service robo-advisors.

If you want to actively trade, consider Public.com, Robinhood, or Webull.

For more M1 alternatives, check out online brokerages in the marketplace.

M1 Finance FAQs

How can I talk to a live M1 customer service agent?

M1 Finance Client Success team is available on days when the U.S. stock market is trading, which is usually Monday-Friday. You can contact support via chat, email, and phone. Client Success team members will help answer questions about the platform, not provide financial advice.

You can send M1 an email, or for urgent requests, give them a call at 312-600-2883.