How M1 trades
M1 makes managing your personalized investment portfolio simple. Once your portfolio is set up, you can make deposits manually, schedule recurring deposits, or use Auto-invest for hands-off investing. This article explains how trades are processed (including timing, dynamic rebalancing, and order priority), and what to expect for both automated and manual orders.
Trade Windows: timing and eligibility
All trades at M1 are executed in scheduled trade windows rather than instantly.
Morning window: Begins around 9:30 AM ET
Afternoon window: Begins around 3:00 PM ET
Accounts with less than $25,000 in equity:
The default is the morning trade window. You can choose to participate in the afternoon window instead, but not both on the same day.
Accounts with $25,000 or more in equity:
Eligible for both the morning and afternoon trade windows each day.
Note: Trade windows and eligibility may be affected by holidays or market conditions. Orders submitted after the start of a trade window will be processed in the next available window.
Your first deposit
When you fund your portfolio for the first time with Auto-invest enabled, your deposit is invested according to your Pie’s target allocations during the next available trade window.
Example:
Portfolio: 5 Slices, each targeted at 20%
First deposit: $100
Each Slice receives $20 (20% of $100) during the next trade window
Dynamic Rebalancing with deposits and withdrawals
As you continue to fund your account or withdraw money, M1 uses Dynamic Rebalancing to buy underweight securities or sell overweight ones.
Deposit Example:
Portfolio value: $10,000
Allocation targets: 20% in each of 5 Slices ($2,000 each)
Deposit: $2,500
How Dynamic Rebalancing works:
New money is first invested in the most underweight Slices.
In this example:
M1 automatically allocates deposit to bring all Slices as close to your target percentage as possible after the trade.
Example: A portfolio valued at $10,000 adds $2,500. The most underweight Slices are funded to return the portfolio to balance.
Withdrawal example:
Portfolio value: $10,000
You withdraw $2,500
M1 sells from the most overweight Slices first, helping restore your portfolio to your target allocations.
Editing your portfolio and Slice liquidations
If you edit targets or add/remove Slices:
M1 does not immediately buy or sell to reach new targets unless you specifically remove a Slice.
Adjustments happen gradually as you deposit or withdraw (Dynamic Rebalancing in action).
Removing a Slice:
When you delete a Slice, M1 immediately liquidates (sells) the holdings in that Slice during the next available trade window and reinvests cash according to your Pie’s target percentages.
Example: Slice X removed. $20 of holdings sold. That $20 is allocated to the remaining Slices in accordance with new targets.
Manual Rebalancing
If your portfolio drifts away from targets and you want immediate realignment:
Manual Rebalance:
From your Pie menu, select Rebalance.
All positions are adjusted to match targets during the next trade window.
Individual Pie Rebalancing:
You can choose to rebalance just a sub-Pie without impacting the entire portfolio.
Example: Clicking “Rebalance” when Pie targets are 40% Stock A and 60% Stock B, but actual values are 45% and 55%. M1 will sell some of Stock A and buy Stock B to restore the original 40/60 split.
Cash Control
You have options for how uninvested cash in your account is handled:
Auto-invest On: All available cash is automatically invested in the next trade window.
Minimum cash balance set: Only excess over your chosen minimum is invested.
Auto-invest Off: Cash remains uninvested until you make a manual investment.
Example:
Set minimum cash to $500.
Deposit $1,000.
Only $500 (amount above your set minimum) is automatically invested.
Note: A cash balance of at least $25 is required for auto-invest to trigger.
Manual orders
You can place manual buy or sell orders for any Pie, Slice or security in your portfolio.
Order priority:
Manual orders are executed before scheduled automated (Auto-invest) trades in the next trade window.
If you place multiple manual trades before the window, they are executed in the order submitted.
Manual buy order requirements:
You need available cash (from uninvested funds, pending sell orders, or new deposits).
If you request a buy larger than available cash, M1 prorates the order.
Manual sell orders:
Specify the dollar amount to sell from a Slice.
If you sell 95% or more of a position, the system processes this as a full liquidation.
Proceeds:
Sell order proceeds can be used to:
Place additional buys
Hold as cash
Auto-invest in other Slices (depending on your settings)
Trade execution timing & order priority
Trade Cut-off: Orders must be created before the start of a trade window (morning: ~9:30 AM ET, afternoon: ~3:00 PM ET) to execute that day.
Multiple Orders: Manual buy/sell orders execute first, followed by Auto-invest trades.
Frequently asked questions (FAQs):
Why didn’t my deposit invest right away?
All trades are executed during scheduled windows. Deposits made after a window cutoff will be invested in the next available window.
My manual buy/sell didn’t execute in full—why?
You may not have had enough available cash. M1 will prorate manual orders if cash is insufficient.
The requested sell may have been for a security that was halted or subject to market restrictions.
Why did my withdrawal take money from specific holdings?
Withdrawals are distributed from overweight holdings first to maintain your target allocations.
Can I change which trade window is used for my orders?
Account equity under $25,000: The default is the morning window, but you can choose your preferred trade window.
Account equity over $25,000 or above: You are eligible to participate in both trade windows within a single day.
How do I make sure a manual order happens before automated trading?
Manual orders always have priority if submitted before the trade window opens.
What happens if multiple manual orders are submitted?
They are handled in the order you submitted them, ahead of scheduled Auto-invest trades
All examples above are for informational purposes and should not be considered an offer to buy or sell certain stocks. M1 does not provide investment advice.
Brokerage accounts on the M1 platform are either fully disclosed to APEX Clearing or cleared through M1 Finance LLC. Please look at your account statement to determine how your account is cleared.
All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future performance. Using margin can add to these risks. Users utilizing APEX cleared margin accounts should review the APEX margin account risk disclosure before borrowing. Users utilizing M1 cleared margin accounts should review the M1 margin account risk disclosure before borrowing. M1 Margin Loans are available on margin accounts with at least $2,000 invested per account. Not available for Retirement or Custodial accounts. Margin rates may vary.
Brokerage products and services are offered by M1 Finance LLC, Member FINRA / SIPC, and a wholly owned subsidiary of M1 Holdings, Inc.
This content was generated using artificial intelligence and is intended for informational and educational purposes only. While reasonable efforts are made to ensure accuracy, AI-generated outputs may omit key context; and should not be construed as financial, investment, legal, or tax advice. Users should independently verify all information and consult a qualified professional before making any financial decisions.
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