How To Use M1 Finance

M1 Finance is a unique investment platform that blends automation with customization, offering users the ability to build and manage their own investment portfolios with ease. Whether you’re a complete beginner or someone looking to diversify with ETFs, learning how to use M1 Finance effectively is essential. This guide will walk you through everything from account creation to buying and selling stocks or ETFs, and managing your portfolio efficiently.

Getting Started: Creating Your M1 Finance Profile

Before you can start investing, the first step is to create your M1 Finance profile. This involves entering your personal details, confirming your identity, and agreeing to the platform’s terms.

1. Email Verification: Check your email inbox and confirm your identity by clicking “Yes, it’s me.”
2. Basic Information: Enter your full name, residential address, and date of birth.
3. Citizenship & Financial Details: Provide your citizenship status, annual income, current cash and investment holdings, and your Social Security Number (SSN).
4. Review & Confirm: Double-check the information you’ve provided, accept the terms and conditions, and click “Confirm.”

At this stage, your M1 profile is created, but not your brokerage account. That comes next.

Opening a Brokerage Account

To fully activate your investing capabilities, you’ll need to open a brokerage account.

Choosing the Account Type

When you click “Invest,” M1 will prompt you to select between two account types:

• Individual Brokerage Account
• Retirement Account (IRA)

For the purpose of this tutorial, we’ll proceed with the individual brokerage account.

Answering Compliance Questions

You’ll be asked questions similar to other brokerage platforms:

• Are you affiliated with a broker-dealer?
• Do you own over 10% of a public company?
• Are you or your family a politically exposed person?
• Are you subject to IRS backup withholding?

Choose answers that apply to your situation. Most users will select “No” to all.

Employment & Financial Profile

You will also need to provide:

• Employment status
• Estimated net worth
• Investment experience level
• Time horizon and liquidity needs

Lastly, you have the option to add a trusted contact—someone like a spouse or close friend—who M1 can reach out to in case of suspicious activity.

Funding Your Account

Once your brokerage account is ready, you’ll need to fund it before making any investments.

Bank Connection via Plaid

M1 Finance uses Plaid, a secure third-party service, to connect your bank account.

1. Enter your mobile number to receive a verification code.
2. Choose your bank (e.g., Capital One).
3. Log in with your banking credentials.
4. Grant access and authorize M1 to connect.

Once connected, choose the account to transfer from and input the amount—$100 is the minimum required to start investing.

You can also disable recurring transfers if you want to make a one-time deposit.

Building Your First Investment Portfolio

M1 Finance allows you to build a custom portfolio, referred to as a “Pie.” Each Pie consists of different slices, which are individual stocks, ETFs, or funds.

Adding Stocks or ETFs

1. Click “Build Portfolio.”
2. Search and select stocks or ETFs you want to include.
3. Allocate percentages to each slice (the total must equal 100%).
4. Click “Save” to finalize your Pie.

For example, you could include ETFs like SCD, VTI, and VU. If each gets 33.3%, your Pie is evenly distributed.

How to Use M1 Finance to Buy Stocks and ETFs

Buying Assets

Once your Pie is built:

1. Click “Buy” under your portfolio.
2. Enter the dollar amount (e.g., $30).
3. Click “Confirm Buy.”

M1 Finance will divide the amount according to your Pie allocations. If you invested $30 across three ETFs, each would get $10.

Note: M1 executes trades once per day during its afternoon trading window—usually around 2:00 p.m. ET.

How to Use M1 Finance to Sell Stocks and ETFs

Selling is also simple but slightly different.

1. Click “Sell” under your portfolio.
2. M1 will notify you that sales are held aside unless Auto-Invest is disabled.
3. Turn off Auto-Invest if needed.
4. Enter the dollar amount to sell (e.g., $10).
5. Click “Confirm.”

The sale will be executed during the same trading window later in the day.

Managing and Editing Your Portfolio

You can always modify your portfolio as your investment strategy evolves.

Adding or Removing Slices

1. Click “Edit” in your portfolio.
2. To add a new asset (e.g., ETF like QQQ), search for it and click “Add Slice.”
3. Allocate a percentage (ensuring the total remains at 100%).
4. Click “Save” and confirm changes.

Rebalancing Your Portfolio

If your portfolio drifts from its original target allocations, use the Rebalance feature.

• This adjusts your investments automatically by buying or selling slices to return them to target percentages.
• Alternatively, you can manually add funds to underrepresented slices.

Additional Features on M1 Finance

Earn Program

M1’s Earn Program offers a 4% APY through its high-yield cash account. Funds in this account are FDIC-insured up to $4.75 million through partner banks.

Credit Card

M1 offers a credit card with tiered cash-back rewards:

• 10% on select services like Netflix
• 5% on brands like McDonald’s and Starbucks
• 2.5% on select retail and gas stations

This program allows you to enhance your investments with everyday spending.

Loan Services

M1 also provides:

• Personal loans with interest rates starting at 7.99%
• Margin loans as low as 6.25% if your brokerage account has at least $2,000

These features can be useful for experienced investors, though caution is always advised when borrowing against investments.

Final Thoughts: How to Use M1 Finance Effectively

Now that you know how to use M1 Finance—from setting up your profile and account, to building portfolios, buying/selling, and managing assets—you’re well-equipped to begin your investing journey.

Here are a few key takeaways on how to use M1 Finance:

• M1’s Pie-based structure makes it easy to diversify your investments and automate your strategy.
• The once-per-day trading window encourages long-term investing and reduces the temptation for frequent trades.
• Features like Auto-Invest, Rebalancing, and Pie editing provide flexibility and control.
• The platform’s banking and loan tools offer additional financial management options under one roof.

Whether you’re a beginner aiming to buy your first ETFs or an experienced investor wanting more control, knowing how to use M1 Finance will help you get the most from this modern investing platform.