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M1 Finance Review
The hybrid between a brokerage and a robo-advisor — build your own portfolio, automate the investing
Last reviewed: 2026-05-25 · By GBBR Editorial Team
Affiliate disclosure: We earn a commission on qualifying purchases. Rankings are never for sale.
Our Top Pick · Silver Tier
M1 Finance
Free plan available
The Bottom Line
M1 Finance earns Silver with a genuinely unique approach: you design your own portfolio using 'pies' (visual allocation charts of stocks and ETFs), and M1 automatically invests, rebalances, and reinvests dividends to maintain your exact target allocation. It bridges the gap between DIY brokerage (you choose the holdings) and robo-advisor (automation handles the execution). Zero trading fees, fractional shares from $1, and a $3/mo premium (M1 Plus) that adds a 1% cash-back debit card and lower borrowing rates. The affiliate program pays among the highest in fintech — $100 per funded account on some affiliate networks.
What is M1 Finance?
M1 Finance was founded in 2015 by Brian Barnes in Chicago, Illinois. It raised $300M+ in venture funding and manages $8B+ in assets. The 'pie' portfolio model is M1's core innovation: a visual, circular chart where each slice represents a holding's target allocation. When you deposit money, M1 automatically buys fractional shares to maintain your pie percentages. M1 has expanded from just brokerage into banking (M1 Spend checking account), borrowing (M1 Borrow — portfolio margin loans), and premium services (M1 Plus).
What does M1 Finance offer?
M1 Invest is free with no trading commissions, no management fee, and no minimum (though $100 recommended to start). Fractional shares mean $1 buys a piece of any stock or ETF. Expert pies: pre-built portfolios curated by M1 for specific strategies (dividend, growth, retirement). Dynamic rebalancing: deposits and dividends go to underweight positions first. M1 Premium ($3/mo) includes an FDIC-insured checking account, 1% APY on savings, portfolio line of credit (M1 Borrow at portfolio% rate), and a 1% cash-back card. Traditional and Roth IRA available.
M1 Basic (free)
$0
/month
M1 Premium
$3
/month
Is M1 Finance worth the price?
Free brokerage with automated rebalancing and fractional shares — M1 Premium at $3/mo adds banking and borrowing for a complete financial platform
M1 Free vs. Betterment 0.25%/yr: on a $50K portfolio, M1 costs $0 while Betterment costs $125/yr — you trade Betterment's tax-loss harvesting and CFP access for M1's DIY portfolio control
Unique value for DIY-automated investingHow we scored it
Overall score: 80/100
Zero management fee, zero commissions — free brokerage with automated rebalancing. M1 Premium $3/mo adds banking and borrowing.
6,000+ stocks and ETFs, fractional shares, Expert Pies (pre-built strategies), custom pie creation — no bonds, mutual funds, or options
Individual and joint taxable, traditional IRA, Roth IRA — no SEP-IRA, 401k, or 529 coverage
Automatic fractional share purchasing, dynamic rebalancing, dividend reinvestment — all maintaining your exact pie allocation without manual trading
Expert Pies provide curated strategies, but independent research tools are minimal — no third-party research, no screeners
SIPC-insured up to $500K, FDIC-insured on M1 Checking, regulated broker-dealer since 2015
Why M1 Finance is Silver Tier
M1 earns Silver for a genuinely differentiated product that outperforms pure robo-advisors on cost and outperforms pure brokerages on automation. The pie model is intuitive and powerful for passive investors who want to maintain a specific allocation strategy without managing individual trades. It falls short of Gold because tax-loss harvesting is absent, the trading window is limited (one daily window, two on Premium), and the platform is less suitable for active trading.
Pros & Cons
Pros
- ✓Zero management fee and zero commissions — free automated investing
- ✓Pie portfolio model: build custom allocations, M1 automates everything
- ✓Fractional shares from $1 in any stock or ETF
- ✓Dynamic rebalancing: new deposits go to underweight positions automatically
- ✓M1 Premium adds 1% cash-back card and portfolio margin borrowing for $3/mo
- ✓$100 CPA affiliate commission — one of the highest in fintech
Cons
- ✗No tax-loss harvesting (unlike Betterment and Wealthfront)
- ✗One trading window per day (two on Premium) — not for active traders
- ✗No mutual funds, bonds, or options
- ✗No CFP or human advisor access
Ready to try M1 Finance? Free plan available — no credit card required.
Get M1 Finance →Frequently Asked Questions
Is M1 Finance worth it in 2026?
Free brokerage with automated rebalancing and fractional shares — M1 Premium at $3/mo adds banking and borrowing for a complete financial platform Overall verdict: Unique value for DIY-automated investing.
What is M1 Finance best for?
M1 Finance is best for: Passive investors who want to maintain a specific stock/ETF allocation without active trading, Index fund investors who want more control than a robo-advisor but more automation than a traditional brokerage, Investors building a dividend portfolio (the pie model makes DRIP allocation maintenance easy).
Does M1 Finance have a free plan?
Yes — M1 Finance offers a free tier: Free forever — no management fee, no trading commissions; $100 minimum recommended to start.
Who should NOT use M1 Finance?
M1 Finance is not the right fit for: Active traders who need real-time execution windows; Investors who need tax-loss harvesting (Betterment or Wealthfront).
What are the best M1 Finance alternatives?
Top alternatives to M1 Finance include betterment, wealthfront, fidelity.
M1 earns Silver for a genuinely differentiated product that outperforms pure robo-advisors on cost and outperforms pure brokerages on automation. The pie model is intuitive and powerful for passive investors who want to maintain a specific allocation strategy without managing individual trades. It falls short of Gold because tax-loss harvesting is absent, the trading window is limited (one daily window, two on Premium), and the platform is less suitable for active trading.
Get M1 Finance →Free tier available — no credit card required
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