At M1, your security and peace of mind are our highest priorities. We employ rigorous compliance practices, advanced security measures, and provide industry-standard insurance coverage to protect your assets and your personal information.
How M1 keeps your money and data safe
Regulatory compliance
SEC registered: M1 is registered with the U.S. Securities and Exchange Commission (SEC).
FINRA member: We are a member of the Financial Industry Regulatory Authority (FINRA).
Regular audits: We undergo frequent audits by independent third parties and regulators to maintain the highest standards of compliance.
Advanced security measures
Encryption: All data transferred and stored within M1 systems is protected using modern, proven, and trusted security practices, standards, and technologies.
Authentication: M1 supports two-factor authentication (2FA) and multi-factor authentication so only you can access your account.
Continuous monitoring: Our systems are monitored around the clock for suspicious or unauthorized activity.
Regular security reviews: We conduct proactive security audits and updates to stay ahead of emerging threats.
What happens if there’s a security breach?
If M1 ever discovers that your information or assets could be at risk due to an unauthorized breach, we will:
Promptly notify you via your registered email address and (where applicable) your mobile number.
Clearly explain the nature of the breach, what data or assets might be affected, and what steps to take next.
Provide resources and direct support to help secure your account.
We recommend enabling 2FA and using strong, unique passwords for every financial service.
How M1 account insurance works
SIPC Protection
What is SIPC?
SIPC (Securities Investor Protection Corporation) protects your securities and cash in brokerage accounts up to $500,000 (including a maximum of $250,000 for cash) in the event your broker-dealer fails.
Covers: Stocks, ETFs, and most cash in M1 Invest accounts.
Does NOT cover: Declines in market value, crypto assets, or losses due to your own trading decisions.
Who’s covered: All M1 Invest accounts (Individual, Joint, IRA, Trust) held at M1 Finance LLC.
Extra Protection: Some accounts held with our clearing partner, Apex Clearing, have supplemental excess SIPC coverage if the standard coverage is exhausted.
Learn more at SIPC.org.
FDIC Protection
What is FDIC?
FDIC (Federal Deposit Insurance Corporation) is a government agency that protects your bank deposits if a bank fails.
FDIC Insurance at M1
M1 High-Yield Cash Accounts:
Uninvested cash is swept into a network of FDIC-insured program banks, giving you up to $4.75 million in total coverage (subject to aggregated bank limits).
Until your funds leave your account and are received by a program bank, they are covered by SIPC, not FDIC.
Cash may sit briefly in your brokerage account before being transferred to partner banks.
M1 High-Yield Savings Accounts:
High-Yield Savings deposits are FDIC-insured up to $5 million through a deposit network at B2 Bank, N.A. and other partner banks.
How does the deposit network work?
Your funds are swept from your M1 account into several partner banks, so no single bank exceeds the standard FDIC insurance limit.
You can see the program bank list at Participating Program Banks.
FDIC insurance is applied at the customer profile level, so you are responsible for monitoring your total deposits at program banks (including any held outside M1).
Important:
Once funds are swept to partner banks, SIPC no longer applies.
Crypto Accounts are not FDIC or SIPC-insured.
Awards and recognition
M1 manages over $10 billion in client assets
Named “Best for Sophisticated Investors” (Investopedia, 2024)
Listed in CB Insights’ 2024 Top Wealth Technology Fintechs
Rated 4.5+ stars in Google Play Store and 4.7+ stars in Apple App Store
Frequently asked questions (FAQs)
What’s the difference between SIPC and FDIC coverage?
SIPC: Covers investments (stocks, ETFs, and some cash) in brokerage accounts if your broker-dealer fails. Limit is $500,000 per account (up to $250,000 in cash).
FDIC: Covers cash deposited at banks if a bank fails. Standard FDIC limit is $250,000 per bank, but via program banks, M1 can offer expanded coverage for eligible accounts (up to $4.75 million or $5 million, depending on account type).
Is my data protected from hackers?
Yes. All sensitive data is encrypted and stored per industry best practices. 2FA and system monitoring provide layers of defense.
What happens to my money if M1 goes out of business?
Your investments and cash remain protected by SIPC (for brokerage assets) and by FDIC insurance (for eligible Cash or Savings Account balances received by partner banks).
Are cryptocurrencies in my M1 Crypto Account insured?
No. Crypto assets are not protected by SIPC or FDIC insurance.
How do I turn on Two-Factor Authentication (2FA)?
Log in, go to Settings, then Security, and follow prompts to enable 2FA. See Two-Factor Authentication on M1.
How do I change my statement delivery (paper or electronic)?
Visit your account settings and update your communication preferences, or contact M1 Client Success for help.
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.
^M1 Finance, LLC does not charge commission, trading, or management fees for self-directed brokerage accounts. You may still be charged other fees such as M1’s platform fee, regulatory fees, account closure fees, or ADR fees. For a complete list of fees M1 may charge visit M1’s Fee Schedule.
1The cash balance in your Cash Account is eligible for FDIC Insurance once it is swept to our partner banks and out of your brokerage account. Until the cash balance is swept to partner banks, the funds are held in a brokerage account and protected by SIPC insurance. Once funds are swept to a partner bank, they are no longer held in your brokerage account and are not protected by SIPC insurance. FDIC insurance is not provided until the funds participating in the sweep program leave your brokerage account and into the sweep program. FDIC insurance is applied at the customer profile level. Customers are responsible for monitoring their total assets at each of the sweep program banks. A complete list of participating program banks can be found here.
2 M1 High-Yield Savings Accounts are furnished by B2 Bank, NA, Member FDIC (“B2”). M1 is not a bank. B2 Bank is a member FDIC institution and does not itself provide more than $250,000 of FDIC insurance per legal category of account ownership as described in FDIC regulations. Additional FDIC insurance coverage is provided through B2’s Insured Deposit Network Program involving other FDIC insured depository institutions. Deposits may be insured up to $5,000,000 through B2’s Insured Deposit Network Program. Full terms of the Program can be found at m1.com/legal/agreements/hysa_agreement and a complete list of participating banks in the program can be found at m1.com/legal/agreements/depositnetwork
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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