Best for: Investors who want to automate a custom portfolio without paying advisory fees
Not ideal for: Active traders who need real-time execution, complete beginners who want hand-holding, or anyone who needs tax-loss harvesting
The Quick Verdict
M1 Finance sits between a self-directed brokerage and a robo-advisor. You design your own portfolio using “Pies” with custom allocations, and M1 automates maintenance and rebalancing. No advisory fee on the standard account. For someone who knows what they want in a portfolio but wants automation without paying 0.25%/year, M1 is genuinely unique. The main weakness: trades execute once per day, not in real time.
Key Numbers at a Glance
| Feature | Details |
|---|---|
| Advisory fee | $0 (standard account) |
| M1 Premium fee | $3/month (adds afternoon trading window) |
| Stock and ETF commissions | $0 |
| Fractional shares | Yes, to the penny |
| Minimum to invest | $100 taxable, $500 IRA |
| Portfolio structure | Pies, custom percentage allocations |
| Auto-rebalancing | Yes, with new deposits |
| Trading windows | Once per day (morning only on free tier) |
How Pies Work
Create a Pie: 60% VTI, 30% VXUS, 10% BND. Every deposit allocates automatically to those percentages. As one position drifts, new money rebalances toward underweight positions. You never need to manually buy or sell. M1 also offers pre-built Expert Pies as starting points.
M1 vs Betterment
| Feature | M1 Finance | Betterment |
|---|---|---|
| Advisory fee | $0 | 0.25%/year |
| Portfolio control | Full (you design it) | Limited (preset allocations) |
| Tax-loss harvesting | No | Yes |
| Financial planning tools | Basic | Strong |
At $100,000, Betterment’s fee costs $250/year. M1 charges $0. Over 20 years that difference is roughly $15,000 in lost compounding. Betterment’s tax-loss harvesting can offset its fee in taxable accounts. For IRA-only investors or people who want full portfolio control, M1’s zero fee wins.
