M1 Basic (the standard tier) has no advisory fee — $0 per year for portfolio management, rebalancing, and fractional share investing. M1 Premium costs $3/month and adds lower borrowing rates, higher-yield cash account APY, and additional features. Unlike Betterment and Wealthfront, M1 Finance does not charge a percentage of assets.

What are M1 Finance Pies?

Pies are M1 Finance's portfolio system. You create a Pie by selecting investments (stocks, ETFs, or other Pies) and assigning each a target percentage. When you deposit cash, M1 automatically buys each holding in proportion to your targets. M1 offers 60+ expert Pies as starting templates, or you can build a custom Pie from scratch.

Does M1 Finance offer tax-loss harvesting?

No. M1 Finance does not offer automatic tax-loss harvesting. This is a meaningful disadvantage for investors in high tax brackets with taxable accounts. Betterment and Wealthfront both offer daily automatic tax-loss harvesting; M1 does not.

Can I open an IRA at M1 Finance?

Yes. M1 Finance offers Roth IRA, Traditional IRA, and SEP-IRA accounts with the same Pie-based automation as taxable accounts. The minimum to open a retirement account is $500. There is no advisory fee on IRA accounts.

M1 Borrow is a portfolio margin loan that lets you borrow against your taxable M1 account at a variable interest rate (lower than most personal loans). The minimum account balance to access M1 Borrow is $2,000. You can borrow up to 35% of your taxable portfolio value. This does not trigger a taxable event since no securities are sold.

M1 Finance Review 2026 — Fees, Pies, and Who It Is Best For

M1 Finance charges $0 in advisory fees, lets you build custom portfolio “Pies” from any combination of stocks and ETFs, and automates investing through fractional shares and automatic rebalancing on new deposits. It sits between a traditional robo-advisor (no control, full automation) and a self-directed brokerage (full control, no automation). For investors who want to specify their own allocations — including individual stocks — while getting automated deposit and rebalancing, M1 Finance is a unique option. The key trade-off: no automatic tax-loss harvesting.

M1 Finance at a Glance (2026)

Feature	Details
Annual advisory fee	$0 (M1 Basic) / $3/month (M1 Premium)
Account minimum	$100 (taxable) / $500 (IRA)
Tax-loss harvesting	No
Portfolio control	Full — you choose every holding and target %
Fractional shares	Yes
Accounts offered	Taxable, Roth IRA, Traditional IRA, SEP-IRA, Trust
M1 Borrow	Yes — up to 35% of taxable portfolio ($2,000 min)
Expert Pies	60+ pre-built portfolio templates
Trading window	Once daily (M1 Basic) / twice daily (M1 Premium)

M1 Finance Fees

M1 Basic: $0

No advisory fee, no trading commissions, no minimum balance fee. You pay only the underlying expense ratios of the ETFs you hold — typically 0.03–0.20% depending on your selections.

M1 Premium: $3/month ($36/year)

Unlocks:

A second daily trading window (afternoon)
Lower M1 Borrow rate (variable; typically 1.5% lower than Basic)
Higher M1 High-Yield Savings Account APY
Smart transfers and other automation features

At what balance does M1 Premium break even vs. Betterment?

Betterment charges 0.25%/year. M1 Premium costs $36/year flat.

At $14,400 → $36/year = 0.25% → break-even
Above $14,400 → M1 Premium is cheaper than Betterment on a percentage basis
Above $100,000 → M1 Premium ($36/year) vs Betterment ($250/year) — M1 saves $214/year

For larger portfolios, M1’s flat fee structure is significantly cheaper.

The Pie Portfolio System

M1 Finance’s Pie system is its defining feature:

Create a Pie — select any mix of stocks, ETFs, and sub-Pies
Assign target weights — allocate each holding a target percentage (e.g., VTSAX 60%, VXUS 30%, BND 10%)
Deposit cash — M1 automatically buys fractional shares to hit your targets
Dynamic rebalancing — new deposits flow to under-weight positions; no forced selling

Expert Pies — 60+ pre-built portfolios created by M1’s team covering:

General investing (e.g., “Responsible Investing,” “Hedge Fund Followers”)
Retirement targets (target-date style by decade)
Income-focused (dividend stocks and REITs)
Sector-specific (healthcare, technology)

You can use an Expert Pie as-is, modify it, or build entirely from scratch.

Fractional Shares

M1 Finance allows fractional share purchases for virtually all holdings, including high-price stocks:

A $10 deposit into a Tesla or Amazon position buys the exact fractional amount
No rounding — every dollar is invested
Fractional shares include full dividend rights

This eliminates the problem of expensive stocks requiring large minimum purchases.

No Tax-Loss Harvesting: The Key Limitation

M1 Finance does not offer automatic tax-loss harvesting. For investors in the 22%+ federal tax bracket with taxable accounts, this is a meaningful cost.

Estimated annual value of tax-loss harvesting on a $100,000 taxable portfolio:

Betterment/Wealthfront: 0.1–0.5% per year in estimated after-tax return improvement
M1 Finance: $0

For a $100,000 portfolio, that’s potentially $100–$500 per year in forgone tax savings.

If tax-loss harvesting matters to you, Betterment or Wealthfront are better choices for your taxable account.

M1 Borrow: Portfolio Line of Credit

M1 Borrow lets you borrow against your taxable M1 portfolio:

Minimum portfolio: $2,000
Maximum loan: 35% of portfolio value
No credit check, no application
Variable interest rate (lower than credit card or personal loan rates)
No taxable event (no securities sold)

Useful for short-term needs — bridging a home purchase, paying a tax bill, or covering an emergency — without liquidating investments.

M1 Finance IRA Accounts

Account Type	2026 Contribution Limit	Minimum to Open
Roth IRA	$7,000 ($8,000 age 50+)	$500
Traditional IRA	$7,000 ($8,000 age 50+)	$500
SEP-IRA	Up to $70,000	$500

IRAs at M1 Finance use the same Pie system as taxable accounts — you control the allocation. There is no advisory fee on M1 IRA accounts.

M1 Finance vs. Betterment vs. Wealthfront

	M1 Finance	Betterment	Wealthfront
Advisory fee	$0 / $3/mo	0.25%	0.25%
Minimum	$100	$0	$500
Tax-loss harvesting	No	Yes	Yes
Portfolio control	Full (you choose)	Limited (risk score)	Limited (risk score)
Individual stocks	Yes	No	Direct indexing ($100K+)
Fractional shares	Yes	Yes	Yes
Human advisor	No	Premium ($100K+)	No

Who M1 Finance Is Best For

Strong match:

Investors with $14,400+ who prefer a flat fee over a percentage fee
Those who want to hold specific stocks or ETFs within an automated framework
Buy-and-hold investors who don’t need tax-loss harvesting
FIRE community investors who want dividend stock Pies or factor-tilt portfolios
IRA investors who want $0 advisory fees and portfolio control

Consider alternatives if:

You want automatic tax-loss harvesting → Betterment or Wealthfront
You’re a complete beginner who wants guidance → Betterment
You need daily tax-loss harvesting at scale → Wealthfront (direct indexing at $100K+)
You want a $0-fee robo with no portfolio decisions → Fidelity Go or Schwab Intelligent Portfolios

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy