M1 Finance

Active

Country: United States (US)
Founded: 2015
Developer: M1 Holdings Inc. (with affiliates M1 Finance LLC, M1 Spend LLC, M1 Digital LLC)
Pricing: Commission-free trading; high-yield cash accounts at 3.10% APY
Open source: No
Platforms: iOS, Android, Web

Indexes

Investing/Portfolio

Overview

M1 Finance is a platform for automated investing in stocks and ETFs using customizable portfolios called Pies, where each slice represents a target percentage allocation. It supports account types like individual brokerage and retirement accounts, with features for auto-investing, recurring transfers, dynamic rebalancing, and borrowing. Targeted at investors seeking hands-off portfolio management, it stands out with fractional shares and Pie-based customization for maintaining target allocations.

Key Features

Pies - Customizable portfolios where slices represent stocks or ETFs with target percentages.
Auto-Invest - Automatically invests available cash above a set minimum into the Pie.
Dynamic Rebalancing - Distributes deposits to underweight slices to maintain target allocations.
Automatic Recurring Transfers - Schedules deposits from linked bank accounts.
Fractional Shares - Allows investment in whole or partial shares of stocks and ETFs.
Performance Benchmarking - Compares portfolio performance against custom Pies, stocks, or ETFs.
Multiple Account Types - Supports individual brokerage, retirement, and other accounts.
Margin Borrowing - Provides low-rate borrowing options.

Pricing

Plan	Price	Includes
Standard Investing	Commission-free	Trading stocks/ETFs, Pies, automation, fractional shares.
High-Yield Cash	3.10% APY	Cash accounts for uninvested funds.
Borrow	Low rates	Margin loans against portfolio.

Platforms & Requirements

Available as mobile apps on iOS and Android, and via web at m1.com. iOS supports widgets for account balances and net worth. No desktop native apps; web platform handles full account management without specified minimum requirements.

Integrations & Ecosystem

Bank account linking (e.g., Capital One) for transfers
Plaid for account connections
Brokerage transfers in/out
API access not mentioned

Alternatives

App	Difference
Robinhood	Offers commission-free trading but lacks Pie-style automated portfolio rebalancing.
Wealthfront	Robo-advisor with automated management; less emphasis on user-customized pies.
Betterment	Goal-based robo-advising; M1 provides more direct control over stock/ETF slices.
Vanguard	Traditional brokerage with low-cost ETFs; no dynamic pie automation.

Reputation

M1 is perceived as user-friendly for automated, long-term investing with over $12 billion in assets under management. Strengths include commission-free trades, Pie customization, and automation tools. Criticisms may involve limited advanced trading options compared to full-service brokers.

Sources (8)