After you set your portfolio, M1 handles the rest with our automated trading system.
M1 aggregates all trades and executes them during a trade window. All trading activity for the day will be completed during this window, and your portfolio will update after the window has closed.
There are distinct events that cause your account to trade, such as:
Your first deposit
Future deposits and withdrawals
Rebalances
Cash
Orders
You can learn all about what how your account will trade with the descriptions below.
Your first deposit
It’s time to begin investing!
Your first deposit will be invested in alignment with the targets you set for your portfolio during the next trade window.
Check out our video to learn more about building your first portfolio and making your first deposit.
Future funding and withdrawals
Following your first trade, all trades will be completed to return your portfolio to your targets. This is called Dynamic Rebalancing.
M1 automatically rebalances your portfolio little by little as money moves in and out.
Deposits will prioritize money into underweight securities, while withdrawals will prioritize money out of overweight securities.
Editing your portfolio and liquidating a slice
When you make changes to your targets (ex. adjusting the percentage or adding a new slice)
Your portfolio won’t automatically buy and sell holdings to return your portfolio to your new targets. These changes will occur over time with M1's Dynamic Rebalancing.
When you remove a slice from a Pie
M1 will liquidate the holdings and reinvest the money in that same Pie. This will happen regardless of whether Auto-Invest is turned on/off.
Manual Rebalancing
When the market moves, your actual percentages of holdings can drift away from your target percentages.
You can get these holdings back to your ideal percentage by requesting a manual rebalance. Rebalance requests can be completed for your entire portfolio or for a single Pie within your portfolio.
Cash Balance Control
We include all cash deposits in our Auto-Invest by default. However, you can choose to leave your cash uninvested or choose to leave a specific amount of cash uninvested. This way you have more control over when and how your money is invested.
Learn more about Auto-Invest in our short how-to videos:
Orders
In addition to M1's Auto-Invest, you can also place individual orders to buy or sell slices within your portfolio.
Order requests will be prioritized ahead of automated trades.
You can use the following to complete the order request:
Existing cash in your account
Cash from a pending sell order
Request a deposit
Circuit Breakers
If a circuit breaker is triggered in a stock or ETF you own or want to own, we may not be able to fulfill your order in the window you want.
Depending on whether the trigger is a Level 1, 2 or 3, we may not be able to execute your trade on the day you requested it. Regardless of what happens, we will communicate with you and inform you on the conditions that kept us from trading.
Learn more about circuit breakers and trade halts.
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.