M1 Finance occupies a unique space in the investing world—part brokerage, part robo-advisor, and part banking platform. Founded in 2015 in Chicago, M1 lets you build custom portfolios using a visual “pie” interface, then automates the investing, rebalancing, and reinvestment process. It’s designed for investors who want more control than a traditional robo-advisor offers but less hassle than managing a conventional brokerage account. With over $7 billion in assets under management, M1 has clearly found its audience. But is it right for you?
What Is M1 Finance?
M1 Finance is a financial platform that combines self-directed investing with automation. You create a “Pie”—a visual portfolio allocation—by selecting individual stocks, ETFs, or pre-built expert portfolios and assigning percentage weights to each. M1 then automatically invests your deposits according to those percentages, rebalances your portfolio to maintain your target allocation, and reinvests dividends. The platform also offers M1 Borrow (margin lending), M1 Spend (checking account), and M1 Plus (premium tier).
The Pie System
M1’s Pie system is its most distinctive feature. You build your portfolio visually as a circle divided into slices, where each slice represents a stock, ETF, or nested sub-pie. You set percentage targets for each slice, and M1’s automation handles the rest. When you deposit money, M1 uses dynamic rebalancing to invest in whichever holdings are most underweight relative to your targets. This approach gives you the control of a self-directed account with the convenience of automation.
Investment Options
M1 offers access to over 6,000 stocks and ETFs, plus more than 80 pre-built Expert Pies designed by M1’s investment team. Expert Pies cover categories like general investing, retirement planning, income strategies, and specific sectors. You can use Expert Pies as-is, customize them, or build entirely custom portfolios. M1 supports fractional shares, so you can own pieces of expensive stocks regardless of your account size. The platform does not offer mutual funds, bonds, options, or cryptocurrency.
Fees
M1’s standard plan is free—no commissions, no advisory fees, no account minimums for taxable accounts ($500 minimum for IRAs). M1 Plus costs $125 per year and adds a second daily trading window, lower borrowing rates, higher APY on the checking account, and additional perks. The absence of advisory fees is notable: unlike Wealthfront or Betterment, which charge 0.25% annually, M1 provides its automation at no cost on the standard plan.
M1 Borrow
M1 Borrow allows you to borrow against your investment portfolio at competitive interest rates—significantly lower than personal loans, credit cards, or many HELOC rates. You can borrow up to 40% of your eligible portfolio value with no application process, no credit check, and no fixed repayment schedule. The M1 Plus rate is even lower. This feature can be useful for accessing cash without selling investments and triggering taxable events.
M1 Spend
The M1 Spend checking account integrates directly with your investment account for seamless transfers. The standard account earns a modest APY, while M1 Plus members earn a significantly higher rate. The account comes with a debit card, no monthly fees, and ATM access. The tight integration between spending, saving, and investing accounts is one of M1’s key advantages as an all-in-one financial platform.
Trading Windows
One important limitation: M1 processes trades in designated trading windows rather than allowing real-time trading. The standard plan gets one morning trading window, while M1 Plus adds an afternoon window. This means you can’t execute trades at specific prices or react immediately to market movements. For long-term investors, this is a non-issue. For anyone who wants to trade actively, it’s a dealbreaker.
Pros and Cons
M1’s strengths include its unique Pie portfolio system, zero advisory fees, automated rebalancing and dividend reinvestment, competitive margin borrowing rates, and integrated banking. Weaknesses include limited trading windows, no real-time trading, no mutual funds or options, a $500 IRA minimum, and limited research tools compared to full-service brokerages.
Who Should Use M1 Finance?
M1 is ideal for long-term investors who want to build custom portfolios with automated management, people who want the control of self-directed investing combined with robo-advisor convenience, investors who want to borrow against their portfolio at low rates, and anyone seeking an integrated invest-borrow-spend platform. It’s not suitable for active traders, options enthusiasts, or investors who need real-time trade execution.
The Bottom Line
M1 Finance fills a genuine gap in the market by offering the customization of a self-directed brokerage with the automation of a robo-advisor—all for free. The Pie system is intuitive and powerful, and the integrated borrowing and banking features create a compelling all-in-one financial platform. If you have a clear investment thesis and want automation to execute it, M1 Finance is a uniquely appealing option.