All investing apps charge a fee somewhere. They have to - it's how they make money!
Fortunately for us, though, we can often get around those fees or minimize them altogether. M1 Finance is an extremely low-cost investing platform that won't charge you a dime below $1,000 (as of this writing).
Accounts Between $100 and $1,000 are FREE!
M1 Finance requires an account minimum of $100 to get started but you can open an account for free. For account balances between $100 and $1,000, you'll be able to use the service totally for free! Again, this could change in the future so be sure to sign up for our mailing list - we'll let you know of any changes.
This is one of the things that makes M1 Finance such a perfect investing app for beginner investors or those with small account balances. Read the other reasons we rank M1 Finance as the best app for new investors with small accounts!
For accounts of $1,000+, a small annual fee will be assessed and we'll talk about that next.
Accounts Between $1,000 and $100,000
For account balances in the M1 App between $1,000 and $100,000 you'll be charged 0.25% per year. To help you see how much this is, we've added a chart of annual costs at $25,000 intervals (red). The formula, for your own use, is as follows:
Portfolio Balance * 0.0025 = Annual Fees
You'll notice the second line on the chart as well. This is what it would cost you to trade 18 times per year at a commission of $9.99 with an app such as Motif or E*Trade (yellow). Notice the drop-off at $100,000. That's because account fees drop to just 0.15% per year at balances of $100,000+.
M1 Finance App Fees
You might have picked up from the chart that even paying the M1 Finance fees is cheaper than trading a few times a year with a broker that charges commissions. With M1 you can add and remove securities from your portfolio an unlimited number of times. And, because M1 trades with a single daily window, you'll never be flagged as a Pattern Day Trader.
Don't see a chart or data that you'd like to see? Drop us a line and we'll put it together for you!
If you want the freedom and flexibility to move your money around and change assets inside of your portfolio, M1 provides that. It also allows you to buy and sell fractional shares of ETFs in small dollar amounts at a time without commission.
Accounts Above $100,000
As we mentioned above, M1 charges a flat rate of 0.15% per year of net assets. Of course, you'll be able to easily do the math on any amount you might have. Simply follow this formula to see how much you'll be charged per year to use M1 Finance:
Portfolio Balance * 0.0015 = Annual Fee
Because of this data, you'll notice that there are large breaks at the $1,000 and $100,000 points. If you have $100,000 invested, you'll actually be charged quite a bit less than someone with $99,999 invested through M1.
In fact, the break even point is $125,000 where you'll again be charged as much as the 0.25% bracket. So, if you're near that $100,000 breakpoint, make sure you tip your account over it if you want to take advantage of that breakpoint savings.
For investors with less than $1,000 invested, it's totally free! This is why we regard M1 Finance as one of the best investing apps for beginner investors.
If you found our guide to the M1 Finance fee structure helpful, please use our affiliate link to sign up. It costs you nothing and helps us keep this site running for you!