Is M1 Finance Safe & Legit? How Good Are They Really?

An Honest Overview of M1 Finance’s Legitimacy

Upfront summary: Is M1 Finance worth it?

M1 Finance is a legitimate fintech product that allows users to self-direct or automate investing and trading. This combination is a truly unique offering, making M1 stand out from the crowd. M1 does not charge commissions or markups for any of its services. You will need at least a minimum initial deposit of $100 after opening an account. M1 is insured and regulated, with high performance regarding little to no scams, data leaks, or security breaches. Investing with M1 is practically as safe as your traditional bank. M1 Finance is an LLC, which means it is not a publicly traded company.

M1 Finance proudly claims its 100% free platform and transparent fee schedule. Is it too good to be true? Is a “free” platform truly safe and legit? We have analyzed M1 Finance’s website, app, user reviews, and business ratings to offer you a holistic view of the truth behind M1. Keep reading to see what we discovered.

M1 Finance Company Info

Official Website	https://www.m1finance.com/
Founded	2015
Owner	Brian Barnes
Number of Employees	300
Revenue	$4.5 Billion USD
Location	Chicago, Illinois USA
Customer Service Contact	Phone: +1 312 600 2883 Email: support@m1finance.com
Social Media	Twitter Instagram Facebook LinkedIn

What is M1 Finance?

M1 Finance is a safe, secure, and legitimate fintech company available online and through iOS and Android compatible apps. M1 offers various investment services such as individual stocks, exchange-traded funds, dividend reinvestment, automated deposits, two tiers of checking accounts, physical debit cards, retirement accounts, and more. M1 is a Robo-advisor, so there are no human financial advisors to offer advice on investments. Users can invest, buy fractional shares, and automate portfolio rebalancing with no hidden fees and a minimum initial deposit of $100. Investing with M1 finance allows the user to tap into predetermined portfolios or choose a more “DIY” approach. M1 offers freedom of choice when it comes to making investment decisions.

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How Does M1 Finance Work?

M1 Finance offers self-directed trading or automated investing through their website and their iOS and Android compatible apps. It is currently only available in the United States and approved territories. There are no fees to start an account with M1, as well as zero charges for trading. However, there is a minimum $100 deposit for anyone opening an account. If you’re looking to open a retirement account, like their IRA, for example, it is a minimum of $500 to begin. Through investing, borrowing, and spending, M1 users can participate in fractional shares, custodial accounts, margin lending, and digital banking. M1 Finance is highly transparent regarding expected fees and how the business profits on its website.

Is M1 Finance Safe or a Scam?

M1 Finance is safe and legitimate. It is not a scam. M1 is a registered broker-dealer, and all deposits are insured. Any account opened with M1 Finance is safely protected. M1 Finance secures user data with “military grade 4096-bit encryption.” Two-factor authentication and biometric login options are also available. M1 states that they do not store user bank credentials but use secure electronic keys, or “tokens,” to access your account in creating a connection to your bank. Sensitive data is protected well, so the potential of any risk is low.

The Better Business Bureau has scored M1 with an A- based on “how the business interacts with customers, filed complaints, and information received from public data or the company itself. M1 currently has 59 filed complaints, with all of them closed within the last three years.

Upon our review, no fake sites were pretending to be M1. There were no malware reports found on the company’s site.

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Is M1 Finance Trustworthy and Reliable?

Yes, M1 Finance is trustworthy and reliable. The most unreliable factor about M1 seems to be its customer service. You will get the service you need, but it may take longer than one prefers. Overall, the web ratings on M1 finance are strong, maintaining a 4.5-star average across multiple platforms. A review of M1’s website showed the only direct mention of “refunds” is regarding subscription costs for M1 Plus membership cards. M1 Finance offers a money-back guarantee within the first 30 days of signing up. A search using their help tool yielded less than helpful results when seeking “refund protection.”

Who Should Choose M1 Finance?

M1 Finance best serves those who want more control over portfolio decisions than other platforms offer or those interested in passive investing. While the low minimum deposit and the no-fee platform are great for beginners, a learning curve when starting with M1 Finance. Not all terms and account types provide the most user-friendly definitions for use. There is only one trading window each day, so it is not a good option for those looking for extended opportunities.

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M1 Finance App Review

How does the app work?

M1 Finance’s mobile app is currently rated well across platforms with an average 4.5-star rating and is available for iOS and Android. The app has a quick-view dashboard summarizing your investments and the ability to sign up for various account types.

App features

M1’s mobile app offers wide-ranging services. On the app, you can open an account. Currently, users can invest in over 6,000 stocks or exchange-traded funds. These investment opportunities can be self-selected or automated. M1 Finance offers various “pies” to choose from if you do not want to customize your portfolio personally. These “pies” are portfolios created by M1 and include a summary describing risk, time frame, investing style, and dividend yield. There are approximately 60 pre-made “pies.” Choosing a pre-made “pie” is helpful to beginners needing extra guidance as they get started. Once you have built or selected your investments, M1 Finance’s app will automate the management of your accounts through the “Smart Rebalancing” function based on your preferences. In addition to these “pies,” you can sign up for retirement, custodial, and trust accounts. Lastly, the app also allows you to sign up for a debit card which offers rewards, cashback, and easy integration into M1’s services.

Is the app safe and legit to use?

Yes. The M1 Finance App safely protects user data with “military grade 4096-bit encryption.” Two-factor authentication and biometric login options are also available. M1 states that they do not store user bank credentials but use secure electronic keys, or “tokens,” to access your account in creating a connection to your bank.

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Is M1 Finance Insured and Regulated?

M1 Finance is a broker-dealer registered with the Financial Industry Regulatory Authority (FINRA) and the Security and Exchange Commission (SEC). The Securities Investor Protection Corporation (SIPC) insures M1 for up to $500,000. The Federal Deposit Insurance Corporation (FDIC) insures all accounts for up to $250,000 and further insured by Lincoln Savings Bank.

M1 Finance Fees and Costs

In general, M1 Finance is a free service. Once you’ve signed up, the initial deposit minimum for an individual account is $100 and $500 for a retirement account. After these initial deposits, the minimum reduces to $10. If you want to upgrade to their premier services called “M1 Plus,” you will be charged $125 per year after your first free year of use.

M1 Finance proudly claims that its users “will never be charged commissions or fees.” However, some of their add-on services come with a price as listed on their website. The transparency of any potential fees helps to avoid any risk of hidden fees. The general umbrella categories of potential extra costs are as follows:

M1 Invest Fees

Paper Copy Requests	$2-$125
Account Maintenence	$20-$75
Direct Account Transfers	$0-$115
Miscellaneous Bank Fees	$5-$30

M1 Spend Fees

ACH Return or Wire Transfer Fee	$30
M1 Plus Subscription Fee	$125

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Does M1 Finance Have Good Customer Service?

M1 Finance’s customer service is accessible via chat, email, or phone. On their website, click the blue icon at the bottom of the page to access their chat function and follow the automated steps to seek help. If you prefer to email or call, you will not receive a response via email for at least one business day, and their call center is only available Monday-Friday from 9:00 AM-4:00 PM ET. As a last option, they have a comprehensive help center with answers to frequently asked questions. While at first glance it appears M1 has strong customer service, 44 out of the 59 filed complaints about the company reflect problems with the product or customer service.

Supported Countries

Currently, the United States is the only country that has access to M1 Financial’s services. 53 US states and territories can use M1’s services. To sign up, you must be a US citizen or permanent resident over 18 with a US phone number and residential address.

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Pros and Cons of M1 Finance

Pros	Cons
$100 startup cost No management fees Automated or customized portfolios Fractional shares	Does not offer mutual funds Trade only one time per day Automated advisors only (no humans) Inactive accounts charged fees

M1 Finance Careers

Is M1 Finance a good company to work for?

The company offers a positive work culture, supportive management, transparent communication, and frequent cross-team collaboration, according to anonymous employee reviews. However, some reviews report mediocre benefits, unclear remote work policies, and struggles to maintain their positive work culture due to fast growth.

Is it difficult to get a job at M1 Finance?

Despite their rapid growth, an employee shared that M1 Finance is often slow to hire.

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Best M1 Finance Alternatives

In general, M1 Finance may not be the best selection for everyone. If you prefer an alternative to M1 Finance, turn to these platforms to seek a better fit for your financial needs:

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Additional FAQ

Is M1 Finance Good for Beginners?

M1 Finance is a good place for beginners to start their investing journey. However, not everything is in easy-to-understand terms, which may lead some beginners into a bit of a learning curve.

Is M1 Finance Truly Free?

To open a standard account with M1 Finance is entirely free. However, there is a minimum initial deposit of $100 to start investing.

What Happens if M1 Goes Out of Business?

As an adequately insured broker-dealer, there is little risk in the user experiencing a negative financial impact if M1 Finance goes out of business. All users have ownership over the funds used throughout their M1 account, so each person should receive what is rightfully theirs if the company were to go out of business. If M1 somehow breaks the law, this rightful return would be at risk depending on the company’s violation.

What Bank Does M1 Use?

If you open a checking account with M1 Finance, they are all furnished by Lincoln Savings Bank.

Can I Buy Bitcoin with M1?

M1 Finance does not offer services such as mutual funds or cryptocurrency.

Can You Day Trade on M1 Finance’s App?

No. There is only one trading window each day due to M1 Finance’s optimization toward long-term investing.

Does M1 Have a Savings Account?

If you opt into M1 Finance’s “M1 Spend” account, the cashback on your debit card goes into a savings account.