M1 Finance Review 2026: Pies, Fees, and Is It Worth It?
M1 Finance sits in an unusual spot: it’s not quite a robo-advisor and not quite a traditional brokerage. It lets you build a custom portfolio of stocks and ETFs, then automates the buying and rebalancing the way a robo-advisor would. This M1 Finance review covers how the “Pies” system actually works, the fee structure that changed this year, and whether the hybrid model is right for you.
Short version: M1 is excellent for hands-on investors who want a specific allocation managed automatically, but the 2026 fee change means small accounts now pay a monthly fee they didn’t before. Here’s the detail.
Not financial advice. Investing involves risk, including the possible loss of principal. Past performance doesn’t guarantee future results.
What Is M1 Finance?
M1 Finance is a brokerage that blends self-directed investing with automation. You build a “Pie” — a visual portfolio where each slice is a stock or ETF with a target percentage — and M1 automatically directs new deposits to keep your allocation on target. You get the control of picking your own holdings with the convenience of automatic rebalancing. It’s a different philosophy from a pure robo-advisor like Betterment, which picks the portfolio for you.
Key Features
The Pie system
Pies are M1’s signature feature. You set target percentages — say 60% VTI, 30% VXUS, 10% BND — and every time you add money, M1 buys to move you toward those targets. You can build your own Pie from scratch or start from one of M1’s pre-built “Expert Pies.” For investors who know the allocation they want, it’s the cleanest way to maintain it automatically.
Fractional shares
M1 supports fractional shares on thousands of stocks and ETFs, so every dollar gets invested rather than sitting as cash waiting for a whole share. That matters most for smaller accounts and higher-priced stocks.
Automatic rebalancing
As you contribute, M1 rebalances by directing new money to underweight slices. It doesn’t sell to rebalance by default (which helps avoid taxable events), making it tax-aware in a way that suits long-term buy-and-hold investors.
M1 Borrow
Once your account crosses a balance threshold, M1 Borrow lets you take a low-rate margin loan against your portfolio. It’s a useful flexibility feature, though margin always carries risk and isn’t something beginners should reach for.
M1 Finance Pricing and Fees (2026)
This is the part that changed. M1 discontinued its old “M1 Plus” membership and moved to a single structure with a monthly platform fee for smaller accounts.
| Item | Cost |
|---|---|
| Platform fee (under $10k assets) | $3/month |
| Platform fee ($10k+ or active personal loan) | $0 (waived) |
| Trading commissions | $0 |
| Brokerage minimum | $100 |
| Retirement account minimum | $500 |
| Outgoing account transfer | $100 |
The headline: M1 no longer charges management fees or trading commissions, but the new $3/month platform fee applies until you reach $10,000 in total M1 assets. On a small starter account that fee is a meaningful percentage drag — $36/year on a $1,000 balance is 3.6%. Watch also for an inactivity fee on tiny dormant accounts and the $100 outgoing transfer fee if you ever leave.
What We Like
- Full control over your own ETF/stock allocation
- Automatic rebalancing on contributions
- Fractional shares — every dollar invested
- No trading commissions or management fees
- Pre-built Expert Pies for a quick start
What Could Be Better
- New $3/mo fee hits small accounts hard
- No tax-loss harvesting
- Single daily trading window for most users
- $100 outgoing transfer fee if you leave
Who Should Use M1 Finance?
DIY investors who want automation. If you know the allocation you want and want it maintained automatically without picking a pre-set robo portfolio, M1 is the best tool for that specific job.
Investors with $10k+ to invest. At that level the platform fee is waived and M1’s value proposition is strongest — control plus automation at no ongoing cost.
Who should look elsewhere: If you’re just starting with a small balance, that $3/month fee is a real drag — a zero-fee option may suit you better. Compare the field in our best investing apps for beginners guide, and if you want a fully hands-off portfolio rather than building your own, see our best robo-advisors roundup.
Our Verdict
If you want control over your holdings and plan to fund the account past $10k, M1’s combination of automation and flexibility is genuinely hard to match. If you’re starting small or want tax-loss harvesting, a traditional robo-advisor or a zero-fee brokerage is the better first move. Either way, read our guide on how to invest in index funds before you build your first Pie.
📚 Books to read before you build a portfolio
- The Simple Path to Wealth — the clearest case for low-cost index investing, which is exactly what M1 makes easy.
- A Random Walk Down Wall Street — why passive beats active over the long run.
- The Psychology of Money — the behavior side of investing that no app can automate for you.
As an Amazon Associate we earn from qualifying purchases. This article is for information only and is not financial advice.
