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How does M1 execute orders? 
How does M1 execute orders? 
Updated over a week ago

At M1 Finance, we will always make our best attempt to execute all buy and sell orders.

M1's automated trading includes all buy and sell orders during the first trade window after submission.

You can always see your pending trades by following these steps:

  1. Click “View Details”

M1 Finance mobile account screen showing upcoming trades

You will be able to see information for all your upcoming buys and sells.

M1 Finance web account screen showing upcoming trades

When will buy/sell orders be fulfilled?

All trade orders are executed in the next available trade window.

What can cause a buy/sell order not to be fulfilled completely?

1. Lack of cash available to complete buys

If you don’t have enough cash available to trade for all buy orders, M1 will prorate the orders to match the available cash.

Example: You submit a $100 buy order for Stock A and a $100 buy order for Stock B and have $100 in available cash. M1 will prorate these orders to $50 for Stock A and $50 for Stock B.

2. Fractional Share Limitations

A fractional share is any equity in a security that is less than one full share.

M1 splits every share into 1/100,000th of a share so you can trade exact amounts of each based on the targets set in your portfolio.

While this allows us to trade in small increments, there is a limitation to precision.

Example: If Stock A is selling for $900 per share, we can purchase Stock A in $.09 increments because 1/100,000 of a share of Stock A is $.09. If a user has a $100 buy order of for Stock A, the closest we can get to $100 using a $.09 increment is $99.99.

3. Sell orders not receiving enough to make buy orders

When you submit buy and sell orders during the same trade window, our system will sell first and then buy using the received funds.

If the received funds from the sale are less than expected, the buy orders will be prorated to the funds available.

More information on M1's Trading System and Auto-invest.

Price Received for Trades

You will receive the market price at time of execution.

M1 and all other broker dealers have a duty of best execution. This legally requires brokers to seek the best execution reasonably available for all customer orders.

To comply with this requirement, brokers evaluate the orders they receive from customers and assess which competing markets, market makers, or electronic communications networks (ECNs) offer the most favorable terms of execution.

Some of the factors a broker must consider when seeking best execution of customers' orders include:

  • Opportunity to get a better price than what is currently quoted

  • Speed of execution

  • Likelihood that the trade will be executed

All information shown in the above portfolio is for informational purposes only.

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.

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