M1 Finance Pricing: What You Actually Pay in 2026
M1 Finance pricing is straightforward on the surface — there is a free tier and a paid tier called M1 Plus. But the details underneath each plan matter a lot depending on your portfolio size, how often you trade, and whether you use margin.
M1 built its platform around the “pie” concept: you create a portfolio as a pie chart of stocks and ETFs, set your target allocations, and M1 automatically routes deposits and rebalances toward those targets. No per-trade commissions. No advisory fee percentage. That makes it unusual compared to traditional robo-advisors like Betterment or Wealthfront that charge a percentage of assets under management.
The question is whether the free tier gives you enough, or if M1 Plus at $125 per year is worth the upgrade. This guide covers every cost — visible and hidden — so you can figure that out. None of this is investment advice. Just a plain breakdown of the numbers.
M1 Finance Pricing Overview
| Feature | Free Tier | M1 Plus ($125/year) |
|---|---|---|
| Annual fee | $0 | $125 |
| Trading commissions | $0 | $0 |
| Stocks and ETFs | Full access | Full access |
| Fractional shares | Yes | Yes |
| Auto-invest | Yes | Yes |
| Trading windows | 1 per day (morning) | 2 per day (morning + afternoon) |
| M1 Borrow rate | Varies (higher) | Varies (lower — typically 2% less) |
| Smart Transfers | No | Yes |
| Custodial accounts | No | Yes |
| Cash back (Owner’s Rewards) | Limited | Enhanced |
| SIPC protection | $500K | $500K |
What the Free Tier Includes
M1’s free plan covers the core investing features that most people need:
Commission-free trading. You can buy and sell stocks and ETFs without paying per-trade fees. M1 does not charge spreads or markups on trades either.
Fractional shares. You can own slices of expensive stocks. If you want $50 worth of a stock that trades at $3,000 per share, M1 handles that automatically through its pie system.
Auto-invest and rebalancing. When you deposit money, M1 distributes it across your pie based on your target percentages. If your portfolio drifts from those targets, new deposits are directed toward underweight positions. You can also trigger a manual rebalance at any time.
One trading window per day. Free accounts get a single morning trading window (typically around 9:30 AM ET when the market opens). All buy and sell orders placed before this window are batched and executed together.
Retirement accounts. Traditional IRA, Roth IRA, and SEP IRA are all available on the free plan.
Expert pies. M1 offers pre-built portfolios assembled by their research team — sector-based, hedge fund follower pies, and target-date-style allocations. These are available for free.
For someone who deposits money regularly and does not need intraday flexibility, the free tier covers a lot. The single trading window is the biggest limitation — you cannot react to afternoon market moves, and you have no control over exact execution timing within that window.
What M1 Plus Adds ($125/Year)
M1 Plus costs $125 annually (billed upfront, not monthly). Here is what the upgrade gets you:
Second trading window. Plus members get an afternoon trading window in addition to the morning one. This matters if you want faster execution or need to react to news that breaks midday. Still not real-time trading — but twice the opportunity.
Lower M1 Borrow rates. M1 Borrow lets you take a margin loan against your portfolio (available once your taxable account reaches $5,000). Free tier rates vary but tend to run higher. Plus members get a discount — typically around 2 percentage points lower. On a $20,000 margin loan, that rate difference saves roughly $400 per year, which more than covers the Plus subscription.
Smart Transfers. This feature automatically moves money between your M1 accounts — checking, savings, invest — based on rules you set. For example, you can tell M1 to sweep anything above $1,000 in your checking account into your investment pie every Friday.
Custodial accounts. If you want to open an investment account for a minor, you need Plus. Free tier does not offer custodial accounts.
Enhanced Owner’s Rewards. M1’s cash-back credit card (Owner’s Rewards) gives better rates on stocks you own through M1. Plus members get a higher base cash-back percentage.
Hidden Costs and Fee Gotchas
M1 does not charge an advisory fee or trading commissions, but there are a few costs that catch people off guard:
Inactivity fee: $50/year. If your account balance is under $50 and you have not made a trade or deposit in 90 days, M1 charges a $50 annual inactivity fee. This mostly affects people who opened an account, deposited a small amount, and forgot about it. The fix is simple — either keep your balance above $50 or close the account if you are not using it.
Regulatory fees. When you sell securities, FINRA and the SEC charge tiny regulatory fees (fractions of a penny per share). Every brokerage passes these through — M1 is no different. On a typical sell order, you might see a charge of $0.01 to $0.10. Not meaningful for most people, but they do show up on your statements.
Account transfer fee: $100. If you want to transfer your M1 account to another brokerage via ACATS, M1 charges $100. This is on the higher end — some brokerages charge $50 to $75, and a few charge nothing. Worth knowing before you commit.
No tax-loss harvesting. Unlike Wealthfront or Betterment, M1 does not offer automatic tax-loss harvesting on either plan. You would need to handle this manually by selling losing positions and buying replacements yourself. For taxable accounts with significant balances, this is a real cost of choosing M1 over a platform that automates it.
ETF expense ratios still apply. M1 does not charge its own management fee, but the ETFs inside your pies carry their own expense ratios. These range from 0.03% for broad-market index funds to 0.50% or more for specialized or thematic ETFs. You control this by choosing low-cost funds for your pies.
M1 Finance vs Competitors on Price
How does M1 stack up against other platforms? Here is a quick comparison:
| Platform | Annual Fee | Account Minimum | Tax-Loss Harvesting | Trading Style |
|---|---|---|---|---|
| M1 Finance (Free) | $0 | $100 | No | Pie-based, 1 window/day |
| M1 Finance Plus | $125/year | $100 | No | Pie-based, 2 windows/day |
| Betterment Digital | 0.25%/year | $0 | Yes | Fully automated |
| Wealthfront | 0.25%/year | $500 | Yes | Fully automated |
| Fidelity | $0 | $0 | No | Self-directed, real-time |
M1’s pricing model is fundamentally different. Betterment and Wealthfront charge a percentage of your balance, which means their fees scale with your portfolio. At $50,000, you are paying $125/year to either platform — the same as M1 Plus. At $100,000, those platforms cost $250/year while M1 Plus stays at $125.
That makes M1 increasingly cost-effective as your balance grows. On the other hand, Betterment and Wealthfront include automated tax-loss harvesting, which can save more than the fee itself on larger taxable accounts. If you want a deeper look at how those fees compare, our Betterment fees breakdown and Wealthfront fees guide cover both in detail.
Fidelity offers $0 commissions with real-time trading and fractional shares, but no automated pie-based investing. You would manage everything yourself. If you want the best robo-advisor for taxable accounts, Fidelity is not in that category — it is a self-directed brokerage.
Is M1 Plus Worth It? A Break-Even Analysis
The $125 annual fee for M1 Plus needs to pay for itself. Here is where the math lands for the most common use cases:
If you use M1 Borrow: This is the clearest break-even scenario. If you carry a margin loan and Plus saves you 2 percentage points on the interest rate, you only need a $6,250 loan balance for the savings to cover the $125 fee ($6,250 x 0.02 = $125). Borrow more than that, and Plus pays for itself with room to spare.
If you just want the second trading window: Harder to quantify. The afternoon window gives you more flexibility, but M1 is still batch-processing orders — you are not getting real-time execution. For long-term buy-and-hold investors, one trading window per day is usually enough. For people who contribute to their portfolio multiple times per week or who want faster reactions to rebalancing triggers, the second window adds convenience worth paying for.
If you want custodial accounts: Plus is the only way to get them on M1. If that feature matters, the $125 is straightforward.
If you are comparing against a percentage-based robo-advisor: At portfolio sizes above $50,000, M1 Plus is cheaper than Betterment or Wealthfront on pure management fees. At $200,000, you are saving $375/year compared to a 0.25% platform. But again — those platforms include tax-loss harvesting, which may offset or exceed the fee savings depending on your tax situation.
Our M1 Finance vs Acorns comparison covers another angle — how M1 stacks up against a micro-investing app for smaller portfolios.
Frequently Asked Questions
Does M1 Finance charge a management fee? No. M1 does not charge a percentage-based advisory or management fee on either the free tier or M1 Plus. The only recurring fee on Plus is the flat $125/year subscription. You still pay underlying ETF expense ratios, but those go to the fund providers, not M1.
Can I cancel M1 Plus and keep my account? Yes. If you cancel Plus, your account reverts to the free tier. You lose access to the second trading window, lower borrow rates, smart transfers, and custodial accounts, but your investments remain untouched.
Is there a monthly payment option for M1 Plus? No. M1 Plus is billed as a single annual payment of $125. There is no monthly billing option.
What happens if my balance drops below $50? If your account balance falls below $50 and you do not trade or deposit within 90 days, M1 charges a $50 annual inactivity fee. To avoid it, either deposit enough to stay above $50 or close the account.
Does M1 Finance charge for cryptocurrency? M1 added crypto access through its platform. Crypto trades may carry additional spread costs compared to stock and ETF trades. Check M1’s current crypto fee schedule, as terms have changed multiple times.
Bottom Line
M1 Finance’s free tier is genuinely free for the core investing experience — no commissions, no advisory fee, no account maintenance fee (as long as you stay above $50 and remain active). The pie-based system handles fractional shares and automated deposits without charging a percentage of your assets.
M1 Plus at $125/year makes sense in specific situations: you borrow on margin and the lower rate saves you more than $125, you need custodial accounts, or your portfolio is large enough that $125 flat beats a 0.25% annual fee elsewhere. For a long-term investor who deposits once a month and does not use margin, the free tier covers it.
The biggest gap in M1’s offering — regardless of which tier you choose — is the lack of automated tax-loss harvesting. For taxable accounts above $50,000, that feature alone could save more per year than the difference in management fees. Factor that into your comparison when deciding between M1 and a platform like Wealthfront or Betterment.