How to Buy and Sell Stocks and ETFs on M1 Finance

Investing through M1 Finance is unlike traditional brokerage platforms that offer live trading throughout the day. Instead, M1 Finance uses a system based on portfolio “pies” and executes trades during scheduled windows. If you’re looking to buy and sell stocks and ETFs on M1 Finance, it’s essential to understand how the platform structures investments and how trades are executed. This step-by-step guide will walk you through the entire process of building your portfolio, buying into it, selling assets, and managing your holdings effectively.

Understanding M1 Finance’s Structure

Before diving into how to buy and sell stocks and ETFs on M1 Finance, it’s important to understand the platform’s unique investment model. M1 Finance uses a “pie-based” approach to investing. Each pie represents your portfolio and contains “slices,” which are individual stocks, ETFs, or funds.

Rather than buying or selling individual assets on a whim, M1 Finance encourages users to allocate percentages of their capital across slices within a pie. This makes diversification easier and automates much of the portfolio management.

Step 1: Creating Your Investment Pie

The first step to buy and sell stocks and ETFs on M1 Finance is to create your investment pie. Here’s how to do that:

1. Navigate to the Invest Section
   Once logged into your M1 Finance account, click on the “Invest” tab. You’ll be prompted to build your portfolio if you haven’t already.
2. Choose Securities
   Click on “Choose Securities.” This will bring up a search tool where you can look up specific stocks, ETFs, or funds.
3. Add ETFs or Stocks
   For this example, let’s say you want to add three ETFs: SCD, VTI, and VU. Simply search for each, and click “Add” to place them into your selection basket. Once you’ve added all three, click the “Add” button on the bottom of the screen.
4. Save Your Pie
   Your pie is now ready. You’ll see the ETFs distributed as slices. You can adjust their percentage allocation or keep them evenly split. Once satisfied, click “Save.”

Step 2: Buying Into Your Portfolio

Now that your pie is created, it’s time to invest money into it.

1. Click “Buy” Under the Chart
   You’ll find a “Buy” button located below the pie chart that shows your current portfolio structure.
2. Enter an Investment Amount
   Let’s say you enter $30. Because your pie has three equal slices (SCD, VTI, and VU), M1 Finance will split the $30 evenly—allocating $10 to each ETF.
3. Confirm the Buy
   If you’re comfortable with the allocation, click “Confirm Buy.” Keep in mind that M1 Finance does not support live trading. Trades are executed during a single afternoon window at around 2 p.m. Eastern Time. So if it’s 1:57 p.m. when you place your order, it will likely execute within the next few minutes.

Step 3: Selling From Your Portfolio

To buy and sell stocks and ETFs on M1 Finance, you also need to understand the selling process, which is slightly more involved due to the platform’s automation features.

1. Click “Sell” Under the Portfolio Pie
   This will open a dialogue box explaining that sales are held as cash in your portfolio until you decide what to do with the funds.
2. Disable Auto-Invest
   In order to sell assets, you must disable the Auto-Invest feature. This is necessary because otherwise, M1 Finance will automatically reinvest proceeds.
3. Enter the Sell Amount
   Suppose you enter $10. M1 Finance will sell $10 worth of your portfolio, distributed equally across your slices. If you have three ETFs, each will be sold proportionally (in this case, about $3.33 worth from each ETF).
4. Confirm the Sale
   Once confirmed, the order will be executed in the next trading window. Your proceeds will be available for withdrawal or reinvestment later.

Step 4: Editing Your Portfolio

M1 Finance allows users to modify their portfolios even after initial setup.

1. Click “Edit” on the Portfolio Pie
   This will bring up the current structure of your pie.
2. Add a New Slice
   To add a new stock or ETF—for example, QQQ (the Nasdaq 100 ETF)—click “Add Slice,” search for “QQQ,” and then add it to your basket. Don’t forget to click the “Add” button at the bottom.
3. Allocate a Percentage
   You’ll need to adjust the percentages of your existing slices to accommodate the new one. For example, if you want QQQ to take 10% of your portfolio, redistribute the remaining 90% among your other investments accordingly.
4. Save and Confirm
   Once you hit “Save,” your pie will include the new slice. Any future contributions will be distributed according to these new percentages.

Step 5: Using the Rebalance Feature

An optional but useful tool on M1 Finance is the “Rebalance” button.

• This feature realigns your current portfolio with your original target percentages.
• M1 Finance will automatically buy and sell the necessary slices to bring each holding back to its target level.
• Rebalancing can be done manually at any time, or you can simply add funds, which helps bring your portfolio back into alignment passively.

For example, if one ETF has grown faster than others, it may occupy 40% of your pie instead of the intended 33%. Rebalancing will correct this.

Key Takeaways: Buy and Sell Stocks and ETFs on M1 Finance

• M1 Finance uses a pie-based investment model rather than traditional individual asset purchases.
• To buy and sell stocks and ETFs on M1 Finance, you must first build a portfolio pie, then add funds to buy and use the Sell feature when needed.
• All trades happen in the afternoon trading window (currently 2 p.m. ET).
• Selling assets requires turning off the Auto-Invest feature.
• You can modify your portfolio anytime by editing slices or adjusting percentages.
• The Rebalance button helps maintain your target allocations with minimal effort.

Final Thoughts

Learning how to buy and sell stocks and ETFs on M1 Finance may feel unfamiliar if you’re used to conventional trading platforms. However, once you grasp the pie-based model and the scheduled trade windows, the process becomes straightforward and efficient—especially for passive investors or those looking to automate their strategy.

By carefully structuring your pie, consistently contributing, and using tools like rebalancing, you can build a well-diversified portfolio without the need to micromanage individual trades. Whether you’re investing in ETFs, stocks, or a mix of both, M1 Finance offers a simple yet powerful approach to long-term investing.