M1 Finance Review

Our Verdict

M1 Finance is the best free automated investing platform.

GetASearch Score: 7.9/10

Rating: 4.2/5 (1120 reviews)

Score Breakdown

What is M1 Finance?

M1 Finance is a modern investing platform that combines automated portfolio management with self-directed control, creating a unique hybrid approach the company calls "Finance in One." Founded in 2015 and based in Chicago, M1 serves over 500,000 clients and manages billions in assets, offering investing, borrowing, and spending from a single integrated account. The platform's signature innovation is the "Pie" system - a visual portfolio builder where you create a pie chart of your desired asset allocation using individual stocks, ETFs, or M1's 80+ pre-built Expert Pies designed for specific goals (retirement, income, hedge fund strategies). Once you set your target allocation and fund your account, M1 automatically invests deposits, reinvests dividends, and rebalances your portfolio to maintain your chosen allocation - all with zero commissions and zero management fees. Fractional shares enable investment in expensive stocks with as little as $1, ensuring every dollar is fully invested rather than sitting as idle cash. Dynamic Rebalancing automatically directs new deposits toward underweight holdings, keeping your portfolio aligned without triggering unnecessary sells and tax events. One-click rebalancing is available when you want to fully realign. M1 Plus ($36/year or $125/year for premium) unlocks additional features: 4.25% APY on cash balances, 1% cash back on the M1 Owner's Rewards credit card, a second daily trading window, and custodial accounts for kids. M1 Borrow lets you take portfolio loans at rates as low as 6.25%, using your investments as collateral without selling - useful for accessing liquidity without triggering capital gains. The M1 Spend checking account integrates directly with your investment account, allowing instant transfers between spending and investing. Smart Transfer rules can automatically sweep excess checking balances into your investment portfolio. M1 supports individual and joint taxable accounts, traditional and Roth IRAs, SEP IRAs, and trust accounts. The platform is SIPC-insured and regulated by the SEC and FINRA. For investors who want a hands-off experience with more control than a pure robo-advisor, M1 Finance occupies a distinctive position in the market.

Interface & Usability

M1 Finance combines automated investing with self-directed portfolio construction through its unique "Pie" system. Each pie is a visual circle divided into slices representing individual stocks, ETFs, or nested sub-pies, with each slice assigned a target allocation percentage. Building a portfolio feels intuitive: search for stocks or ETFs, add them to your pie, and set target percentages. M1 handles the rebalancing automatically when you deposit funds, buying underweight positions to bring allocations back to targets. You can also choose from 80+ Expert Pies built by M1's team covering strategies like "Hedge Fund Followers," "Income Earners," and "Responsible Investing." The dashboard clearly shows total portfolio value, individual holdings, gains/losses, and pending activity. The "Activity" tab tracks every trade M1 executes on your behalf. One important limitation: M1 uses a single daily trading window (9:30 AM CT for free users, plus a 3:00 PM window for M1 Plus subscribers), so you cannot execute trades at specific prices or times. The mobile app is well-designed with pie visualization, quick deposit, and portfolio monitoring. However, research tools are minimal compared to Fidelity or Schwab, as M1 expects users to do their research elsewhere and use M1 for execution and allocation.

The M1 Ecosystem: Invest, Borrow, Spend

M1 Finance differentiates itself by offering three integrated financial products: - **M1 Invest**: The core brokerage with automated pie-based investing, fractional shares, and dynamic rebalancing. No commissions on stocks and ETFs - **M1 Borrow**: Portfolio line of credit at competitive rates (currently around 6.5-7.5%). Borrow up to 40% of your portfolio value without selling assets or triggering capital gains. No application, credit check, or fixed repayment schedule - **M1 Spend**: A checking account with a debit card earning 1% cashback (M1 Plus) and early direct deposit. The account integrates directly with M1 Invest for seamless transfers M1 Plus ($95/year) adds the afternoon trading window, lower borrow rates, higher Spend APY, and cashback on the debit card. For users who utilize all three products, the integration creates genuine value that standalone services cannot match. The "Smart Transfer" feature automatically moves excess cash from Spend to Invest or pays down Borrow balances based on rules you set, creating a hands-off financial system.

Security & Trust

M1 Finance is a registered broker-dealer (M1 Finance LLC) and member of FINRA and SIPC, providing up to $500,000 in securities protection. The lending product is offered through M1 Spend LLC. The company has raised over $300 million in venture funding and manages $7+ billion in assets. Security measures include 256-bit encryption, two-factor authentication, and biometric login on mobile. M1 does not engage in payment for order flow (PFOF) for its single-window trading model, though order execution quality is difficult to evaluate given the batch trading approach. The company has operated since 2015 without reported security incidents. Account transfers from other brokerages are supported through ACATS, typically completing within 5-7 business days.

Customer Support

M1 Finance provides support through: - **Email support**: Available to all users with typical 1-2 business day response times - **Phone support**: Available to M1 Plus subscribers during business hours - **Help center**: Comprehensive articles covering pies, trading, borrowing, and account management One common criticism is that free-tier users have limited support access, particularly during market volatility when questions are most urgent. M1 Plus subscribers receive priority routing and phone access, which creates a meaningful difference in support experience. The community is active on Reddit (r/M1Finance) and provides peer support for portfolio construction and platform questions. M1's blog and educational content are helpful but less extensive than Betterment's or Fidelity's learning resources.

M1 Finance Features

M1 Finance Pricing

Free (M1 Plus: $125/yr)

Best For

• DIY investors wanting free automation
• Portfolio builders

Not Ideal For

• Day traders
• Tax-loss harvesting seekers

Final Verdict

M1 Finance is the best free automated investing platform.

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Frequently Asked Questions