M1 Finance Review 2026: Free Automated Investing

M1 Finance is an automated investing platform designed for long-term wealth building, offering a blend of automated portfolio management and customization. Established to provide investors with greater control over their investments while benefiting from automation, M1 Finance distinguishes itself in the robo advisor space by allowing users to create highly personalized portfolios, referred to as 'Pies'. Unlike traditional robo advisors that typically offer a limited selection of pre-built portfolios, M1 Finance enables users to choose individual stocks, exchange traded funds (ETFs), or even other expert-created Pies to construct their investment strategy.

This platform targets investors who desire more control than a fully hands-off robo advisor but prefer not to actively manage their portfolios daily. It caters to those who understand their investment goals and wish to implement specific strategies such as dividend investing, sector-specific exposure, or socially responsible investing. Based on our review, M1 Finance's unique 'Pie' structure facilitates this level of customization, allowing for precise allocation and automated rebalancing to maintain target percentages. The company's market position is centered on democratizing sophisticated investing strategies, making them accessible to a broader audience without the high fees often associated with traditional financial advisors or brokerages.

M1 Finance also integrates banking and borrowing features, aiming to be a comprehensive financial hub for its users. This integration provides a holistic approach to personal finance, allowing users to manage investments, spending, and credit within a single ecosystem. The platform's focus on automation extends to deposits and rebalancing, ensuring portfolios remain aligned with the investor's chosen strategy without constant manual intervention. This approach is particularly beneficial for investors who prefer to set their investment strategy once and let the system handle the execution and maintenance. The platform's offering stands out by combining the benefits of automation with a significant degree of investment personalization, a combination not commonly found among its direct competitors in the robo advisor category.

Customizable investment pies

• M1 Finance's core feature is the ability to create 'Pies', which are visual representations of an investment portfolio. Users can select individual stocks, ETFs, or even other M1 expert Pies to form their own custom investment strategy. Each slice of the Pie represents a specific security or sub-Pie, with a percentage allocation determining its weight in the overall portfolio. This allows for granular control over asset allocation, enabling investors to implement highly specific investment theses.
• The platform supports an unlimited number of Pies and slices, providing extensive flexibility. This feature is particularly valuable for investors who have strong convictions about certain assets or sectors and wish to build a portfolio reflecting those views, rather than relying solely on pre-defined options.

Automated rebalancing

• M1 Finance automatically rebalances portfolios to maintain the target asset allocation defined by the user's Pie. When new funds are deposited, they are intelligently directed to underperforming or underweight slices to bring the portfolio back to its target percentages. This 'dynamic rebalancing' ensures that the investment strategy remains consistent over time without manual intervention.
• This automation helps investors stay disciplined and avoid emotional trading decisions. It also optimizes for tax efficiency where applicable, as rebalancing is primarily achieved through new cash inflows rather than selling existing positions, minimizing potential capital gains events.

M1 borrow

• Eligible M1 Finance users can access a flexible line of credit against their investment portfolio. This feature, known as M1 Borrow, allows users to borrow money at a competitive interest rate using their diversified investment portfolio as collateral. This can be used for various purposes, such as refinancing debt, making a large purchase, or covering unexpected expenses.
• The availability of M1 Borrow eliminates the need to sell investments to access liquidity, potentially avoiding capital gains taxes and keeping assets invested for long-term growth. The interest rates are generally lower than traditional personal loans or credit cards, making it a cost effective borrowing option for qualified users.

M1 spend

• M1 Spend is an integrated banking account that offers a checking account and a debit card. It provides seamless integration with the investment platform, allowing for easy transfers between banking and investing accounts. This feature aims to consolidate financial management within a single platform.
• Users can set up direct deposits, pay bills, and manage their daily spending. The integration with investing accounts streamlines the process of funding investment portfolios, making it easier to automate regular contributions.

Expert pies

• For users who prefer less customization or are new to investing, M1 Finance offers a selection of 'Expert Pies'. These are professionally designed portfolios tailored to various financial goals, risk tolerances, and investment themes, such as general investing, retirement planning, income generation, or specific sector exposure.
• These pre-built portfolios provide a convenient starting point for investors, offering diversified and professionally managed strategies without the need for individual stock or ETF selection. Users can invest in these Pies with confidence, knowing they are constructed by financial professionals.

Mobile application support

• M1 Finance provides robust mobile applications for both iOS and Android platforms. These apps offer full functionality, allowing users to monitor their portfolios, make deposits, manage M1 Spend and M1 Borrow, and even create or modify their investment Pies on the go.
• The mobile experience is designed for intuitive navigation and easy access to all platform features, ensuring users can manage their finances from anywhere. Based on our testing, the mobile interface is user friendly and mirrors the desktop experience effectively.

Pros

• ✔ Free automated investing: M1 Finance offers automated investing and portfolio management without charging management fees, which is a significant advantage for long-term investors.

• ✔ Highly customizable portfolios: The 'Pie' system allows users to select individual stocks and ETFs, providing a level of personalization beyond many traditional robo advisors. This is ideal for investors with specific investment philosophies.

• ✔ Automated rebalancing and tax efficiency: Portfolios are automatically rebalanced with new deposits, helping to maintain target allocations without incurring capital gains from selling, contributing to tax efficiency.

• ✔ Integrated financial ecosystem: M1 Spend and M1 Borrow provide banking and lending services within the same platform, creating a convenient all-in-one financial management solution.

• ✔ Fractional shares investing: Investors can invest in fractional shares of stocks and ETFs, allowing for full diversification even with smaller investment amounts and ensuring all capital is put to work.

Cons

• ✖ Limited trading window: M1 Finance offers only one or two trading windows per day, which may not suit active traders who require immediate execution of trades. This platform is designed for long-term investing.

• ✖ Minimum investment requirement: While there are no management fees, a minimum deposit is required to open an investment account and to use certain features, which might be a barrier for some new investors.

• ✖ Not suitable for active trading: The platform's design and trading schedule are optimized for buy and hold strategies. It lacks advanced trading tools, real-time data, and rapid execution capabilities found in brokerage platforms for day traders.

• ✖ Customer support primarily digital: While support is available, it is mainly through email and help articles. Phone support options may be limited for some users, which can be a concern for urgent issues.

• ✖ Complexity for novice investors: While customizable, the level of choice in building Pies might be overwhelming for absolute beginners who prefer a simpler, fully managed solution without any input.

M1 Finance operates on a freemium model, offering its core automated investing services without charging management fees. This is a significant differentiator in the robo advisor market, where many competitors charge an annual advisory fee based on assets under management (AUM). The absence of AUM fees means that investors' returns are not eroded by recurring charges, which can compound over time and significantly impact long-term wealth accumulation. This fee structure is particularly attractive to investors with larger portfolios, as the savings on management fees can be substantial.

While the basic investing platform is free, M1 Finance offers a premium subscription called M1 Plus. This enhanced service provides additional benefits, including a second trading window each day, lower interest rates on M1 Borrow, and higher APY and cashback rewards on M1 Spend. The value proposition of M1 Plus depends on an individual's specific needs and usage of the M1 ecosystem. For users who frequently utilize M1 Borrow or M1 Spend, the subscription cost may be offset by the financial benefits received. For those primarily using the investment platform, the free tier remains a highly competitive option.

Compared to other robo advisors, M1 Finance's free tier for automated investing stands out. Competitors like Betterment and Wealthfront typically charge an annual advisory fee, often a percentage of AUM. While these platforms may offer more advanced financial planning tools or tax loss harvesting, M1 Finance's fee-free approach to portfolio management presents a compelling alternative for cost conscious investors. The ability to customize portfolios with individual stocks without incurring trading commissions further enhances its value proposition. Based on our analysis, the pricing model is designed to attract long-term investors who prioritize low costs and personalized investment control. The M1 Plus tier serves as an upsell for users seeking integrated banking and borrowing benefits, effectively segmenting the user base by their demand for additional financial services.

M1 Finance is an excellent choice for investors seeking a highly customizable and automated investment platform without recurring management fees. It is particularly well suited for long-term investors who have a clear understanding of their investment strategy or wish to follow expert-designed portfolios with a high degree of control. The 'Pie' system allows for unparalleled personalization, making it ideal for those who want to invest in specific stocks, ETFs, or themes and have their portfolio automatically rebalanced to their target allocations.

Users who will benefit most from M1 Finance include those transitioning from self directed brokerage accounts but desire automation, or investors looking to consolidate their banking, borrowing, and investing activities into a single platform. The M1 Spend and M1 Borrow features create a cohesive financial ecosystem, offering convenience and potential cost savings.

Conversely, M1 Finance may not be the best fit for active traders who require real-time trading capabilities and multiple daily trading windows. Its design prioritizes long-term, passive investing over frequent trading. Absolute novice investors who prefer a completely hands-off approach with minimal decision making, or those seeking extensive human financial advisory services, might find more comfort with traditional robo advisors offering simpler, pre-packaged solutions or platforms with dedicated financial planners. However, for the investor who values customization, automation, and a fee free core investing experience, M1 Finance represents a robust and compelling option in the robo advisor landscape.