If you're debating the M1 Finance app, you might be wondering if it has fees and if so, how much are they?
M1 Finance Fees
Fortunately, M1 Finance is completely free to use and offers commission free trades for investors.
You won't pay an annual fee or monthly fee like some other investing apps.
They do offer additional services that do have fees, but these aren't common for everyday investors. You can learn about there entire fee schedule here.
If you choose to purchase an ETF through M1 Finance, you will have to pay the expense ratio for the fund – which goes directly to the fund manager.
Account Maintenance and Inactivity Fees
M1 Finance will charge account maintenance fees for any accounts holding less than $20 with no activity in the last 90 days.
This means as long as you have more than $20 in your account or you stay active every 90 days – you won't be charged any fees.
M1 Finance can charge several fees for bank transfers depending on your circumstance.
For example, domestic wire transfers will cost $25 and a check request will cost $25. Returned checks will set you back $30, as will amendment repairs. Finally, an ACH notice of change or correction will cost $5.
Paper Copy Fees
If you would prefer to have paper copies of your statements or tax documents, these will come with additional fees from $2 to $5. Additionally, if you need your documents mailed overnight, this will cost anywhere from $100 to $125.
M1 Finance Benefits
M1 Finance is an excellent robo advisor that offers fee-free investing for anyone. The company started in 2015 and has hundreds of thousands of users making it one of the most trusted investing platforms available.
New Account Bonus
Whenever you create a new account and make a deposit of $1,000 or more – you'll be granted a welcome bonus of anywhere from $30 to $500.
This is a great bonus for anyone looking to get started investing with a robo advisor.
Low Account Minimums
To open a new M1 Finance account, you'll only need $100. This makes investing a viable option for most people, no matter your financial circumstance.
Other platforms can requires $250, $500, or more just to open an account.
Fractional shares, or the ability to purchase small portions of a single share, is a great benefit for smaller investors who want to purchase expensive stocks.
For example, some technology stocks like Amazon can reach thousands of dollars per share. Without fractional shares, you'd need to have thousands of dollars to invest in these companies. With fractional shares, you can purchase as little as $5 worth of stock.
Commission Free Trades
While this has become the new standard for many brokerages, it's still worth mentioning. M1 Finance offers commission-free trades for all stocks and ETFs.
This means you can buy and sell as much as you want without having to worry about fees eating into your profits.
Managing your assets with M1 Finance is simple. Not liking the structure of your portfolio? You can easily rebalance it with the click of a button.
You can also purchase individual stocks with M1 Finance so if there's a certain company you're interested in, you can add it to your portfolio easily.
While M1 Finance does not currently offer cryptocurrency trading, there have been some rumors of it potentially happening. In addition, there are currently job postings that can be directly linked to the future of crypto within the app.
M1 Finance Cons
It's hard to go wrong with a platform like M1 Finance. They seem to do everything right in the eyes of many investors.
If I had one complaint, it would be that they don't have any human advisors on their team to assist you. Some M1 Finance alternatives do offer these services, but they come with an extra cost.
Because it is a robo advisor, everything is done online – without the help of humans.
Final Thoughts on M1 Finance Fees
M1 Finance is a great investing platform with zero fees for the everyday investor.
You won't find any hidden fees or annual maintenance fees, making it a great option for both new and experienced investors.
As a bonus, you can earn up to $500 in free cash when you open a new account!