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M1 Finance Fee Calculator

Compare M1 Finance's standard $0 commission with the optional M1 Plus subscription costs.
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Luis GonzalezCreated by Luis GonzalezLast updated:

How to Use This Calculator

  1. 1

    Enter Account Balance

    Input your current investment account balance with M1 Finance to see its context within their fee structure.

  2. 2

    Review Standard Plan Fee

    The calculator will display the fee structure for M1 Finance's standard, commission-free plan.

  3. 3

    Review M1 Plus Plan Costs

    The calculator will show the monthly cost for the optional M1 Plus subscription.

  4. 4

    Consult Important Notes

    Read the provided note regarding M1 Finance's commission-free trading and the optional nature of M1 Plus.

Example Calculation

An investor has an M1 Finance account with a balance of $100.

Account Balance ($)

100

Results

$100.00

Tips

Evaluate M1 Plus Benefits

Carefully assess if the benefits of M1 Plus, such as lower borrowing rates or a second trading window, justify the $3/month fee for your specific investment strategy and account size.

Monitor Platform Changes

Investment platform fees and features can change. Periodically review M1 Finance's official announcements to ensure you're aware of any updates to their fee structure or subscription benefits.

Compare with Other Brokerages

Before committing, compare M1 Finance's fee structure, including M1 Plus, against other commission-free brokerages. Some may offer similar features without a subscription, depending on your account balance.

Understanding M1 Finance's Investment Cost Structure

Navigating investment platform fees is a critical aspect of maximizing returns. The M1 Finance Fee Calculator clarifies the cost structure for investors, highlighting their $0 commission standard plan and the optional M1 Plus subscription. For an investor with a $100 account balance, the key takeaway is that standard stock/ETF trading remains commission-free in 2025, with M1 Plus being a distinct, optional upgrade.

In the modern investment landscape, understanding platform fee structures is paramount for maximizing long-term returns. Brokerages employ various models, from traditional per-trade commissions to subscription-based services and asset-under-management (AUM) fees. These fees, even seemingly small percentages, can significantly erode portfolio growth over time. For instance, a 1% annual fee on a $100,000 portfolio can cost $1,000 per year, compounding to tens of thousands over a decade. Investors must scrutinize not only trading costs but also account maintenance fees, transfer fees, and the value proposition of any premium subscriptions, ensuring that the services received justify the expense.

M1 Finance's Fee Logic Explained

M1 Finance distinguishes itself by offering a commission-free trading model for stocks and ETFs on its standard platform. This means that the number of trades or the size of your account balance (beyond minimums) does not directly incur a trading fee.

The core fee structure is simplified:

Standard Plan Fee = $0/month (commission-free for stocks/ETFs)

For users seeking additional benefits, M1 Finance offers a premium subscription:

M1 Plus Plan = $3/month (or formerly $125/year)

This calculator's logic essentially presents these fixed fee statements, alongside your account balance, to provide a clear overview of the costs associated with using the platform.

💡 To compare M1's approach with other platforms, our Wealthfront Fee Calculator provides insights into their automated investment fees.

Comparing M1 Finance Costs for an Investor

Let's consider an investor with an M1 Finance account holding a balance of $100.

  1. Account Balance: The primary input, showing the current value of the portfolio: $100.00.
  2. Standard Plan Fee: M1 Finance clearly states its standard plan is commission-free for stocks and ETFs. This means there are no monthly or per-trade fees for basic investing activities. Result: $0/month commission-free for stocks/ETFs.
  3. M1 Plus Plan: The optional M1 Plus subscription, offering advanced features, costs $3 per month (or was $125 annually). Result: $3/month (formerly $125/yr).
  4. Note: The calculator also provides a general note: "M1 Finance has no per-trade commissions; M1 Plus is optional with extra perks."

For this investor, with a $100 balance, the core investing experience is free from trading commissions, with the $3/month M1 Plus fee being an elective upgrade.

💡 For another brokerage comparison, our Webull Fee Calculator details their specific fees and offerings.

The Competitive Landscape of Online Brokerage Fees

The online brokerage industry has largely shifted towards commission-free trading for stocks and ETFs, a trend that accelerated around 2019. Firms like Charles Schwab, Fidelity, and Robinhood now offer $0 commissions, making it essential for platforms like M1 Finance to maintain competitive fee structures. While direct trading commissions have disappeared, investors should be aware of other potential costs, including expense ratios on ETFs, margin interest rates (which can range from 8-13% in 2025 depending on the broker and loan size), and fees for premium services or specialized transactions (e.g., wire transfers, paper statements). A comprehensive fee analysis, often found in a brokerage's Client Relationship Summary (CRS) or fee schedule, is crucial for informed decision-making.

Regulatory Scrutiny of Investment Platform Fees

Investment platform fees, particularly for services like M1 Finance, fall under the purview of regulatory bodies such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). These organizations mandate transparency in fee disclosures, requiring brokerages to clearly communicate all costs to investors. For instance, the SEC's Regulation Best Interest (Reg BI) requires broker-dealers to act in the best interest of their retail customers when making recommendations, which implicitly includes considering the impact of fees. Furthermore, FINRA rules address issues like excessive trading and unsuitable recommendations that could generate unnecessary fees. The shift to "commission-free" trading has also led regulators to examine how platforms generate revenue (e.g., payment for order flow) and whether these practices align with investor best interests, ensuring that the absence of direct commissions doesn't mask other, less transparent costs.

Frequently Asked Questions

Does M1 Finance charge commissions for stock and ETF trades?

No, M1 Finance operates on a commission-free model for stock and ETF trades, meaning investors do not pay a per-trade fee. This approach aligns with the industry trend towards zero-commission trading for standard investment products. Their revenue model primarily relies on interest income, premium subscription services, and other ancillary fees, rather than direct trading commissions on individual transactions.

What is M1 Plus and what does it cost?

M1 Plus is an optional premium subscription service offered by M1 Finance, which costs $3 per month (as of 2025, formerly $125/year). This subscription provides enhanced benefits such as lower interest rates on M1 Borrow (portfolio lines of credit), a second daily trading window, and higher APY on M1 Spend checking accounts. It caters to users seeking more advanced features and financial flexibility within the M1 ecosystem.

Are there any hidden fees with M1 Finance?

M1 Finance aims for transparency, stating they do not have hidden fees, especially regarding trading commissions. However, like most financial institutions, they may have fees for specific services such as wire transfers, inactivity (under certain conditions), or paper statements. It's always advisable to review their detailed fee schedule, often found in their Client Relationship Summary (CRS) document, to understand all potential costs.