M1 Finance Review 2026: Is It the Best App for Beginner Investors?

M1 Finance positions itself as the investing app for people who want more control than a robo-advisor but less complexity than a traditional brokerage. With its “pie” portfolio system, automatic rebalancing, and fractional shares, it’s attracted millions of investors since launching. But is it actually the best choice for index fund beginners? This honest 2026 review answers that question.

What Is M1 Finance?

M1 Finance is a brokerage app launched in 2015 that combines automated investing features with manual control. Its core concept is the “pie” — a visual representation of your portfolio where each investment is a “slice.” You set target percentages for each slice, deposit money, and M1 automatically buys shares to maintain your target allocation. When your portfolio drifts from targets, automated rebalancing brings it back.

M1 Finance Key Features

Portfolio Pies

The pie system makes portfolio construction intuitive. You can create a pie with 70% VTI, 20% VXUS, 10% BND — and M1 will automatically maintain those allocations as you deposit money. No manual rebalancing required. You can create up to 100 “slices” in a pie and use expert pies (pre-built portfolios) as starting templates.

Fractional Shares

M1 offers fractional shares on all stocks and ETFs — you can invest exact dollar amounts regardless of share price. $100 buys exactly $100 worth of VOO, even though a full VOO share costs ~$500.

Automated Investing

Set up automatic deposits and M1 handles the rest — buying, allocating to your pie percentages, and maintaining your target allocation. This implementation of dollar cost averaging is seamless and requires no ongoing decisions.

M1 Plus (Premium) — $3/month or $36/year

M1 Plus adds: afternoon trading window (basic has only morning), higher interest on cash, 1% cash back on M1 credit card, and lower rates on M1 Borrow. For most buy-and-hold index fund investors, the basic free tier is sufficient.

M1 Finance Costs

• Account fee: $0 (free basic account)
• Trading commissions: $0
• Fund expense ratios: whatever the underlying fund charges (buy VOO at 0.03%, not an M1 fee)
• M1 Plus: $3/month or $36/year
• Account transfer out fee: $100 (worth noting before opening)

The key cost insight: M1 Finance is free to use, but you pay the expense ratios of whatever funds you buy. Buying VOO on M1 costs the same as buying VOO on Fidelity — both charge VOO’s 0.03% expense ratio. M1’s differentiation is its UX features, not lower fund costs.

M1 Finance vs Fidelity for Index Fund Investing

Who Should Use M1 Finance

M1 Finance is ideal for: Investors who want automatic rebalancing without paying robo-advisor fees. People who want a customizable portfolio of multiple ETFs maintained automatically. Investors attracted to the visual pie interface who find traditional brokerage UIs overwhelming.

M1 Finance is NOT the best choice for: People who want the lowest possible fund expense ratios (Fidelity’s FZROX at 0.00% beats anything on M1). Investors who may need to transfer their account to another brokerage (the $100 transfer fee is a real consideration). People who need sophisticated research tools or trading capabilities beyond buy-and-hold index investing. For a full brokerage comparison, see Vanguard vs Fidelity vs Schwab.

FAQ

Is M1 Finance safe for my investments?

M1 Finance is SIPC-insured for up to $500,000 in securities. Your investments in ETFs like VOO or VTI are held in your name — if M1 Finance as a company failed, your securities would be transferred to another custodian. SIPC protects against brokerage failure, not market losses.

Can I use M1 Finance for a Roth IRA?

Yes — M1 Finance offers Traditional IRA, Roth IRA, and SEP-IRA accounts at no additional cost beyond the M1 Plus subscription for premium features.