Which M1 account types can use margin?
All M1 Individual and Joint Brokerage Accounts come with a margin feature by default, while Trust Accounts are eligible for an M1 Margin Loan if the Margin and Short Agreement are signed at account opening.
Traditional, Roth, and SEP IRAs and Custodial Accounts are not eligible for Margin Loans. Trust Accounts without a Margin and Short Agreement are not eligible for Margin Loans.
What requirements must I meet before using margin?
Any M1 client who has $2,000 or more invested in an M1 Individual Brokerage Account, Joint Brokerage Account, or eligible Trust Account can take out an M1 Margin Loan.
A portfolio line of credit is automatically available to you the next business day after you meet the eligibility requirements.
How much margin can I use?
M1 allows you to take a Margin Loan of up to 50% of the total value of your investments held in an Individual/Joint Brokerage or eligible Trust Account with at least $2,000 in equity. You cannot borrow an amount on margin that would reduce your equity, or amount invested, below $2,000.
Example: With $2,500 in equity, you are eligible to withdraw $500 on margin, not
50% of the total value of your investments ($1,250), as you must maintain $2,000 in equity in the account to use margin.
Some securities (like leveraged ETFs or highly volatile stocks) have higher margin requirements and may reduce how much credit is available to you.
Learn how to find maintenance requirements for positions on M1.
Why could my Margin Loan request be denied?
Your portfolio is not diversified. For example, your entire portfolio is invested in a single stock.
You request to borrow above 50% of your invested portfolio value.
You have already borrowed the maximum amount.
M1 will not allow withdrawals that would make your account’s equity, or amount
invested, less than $2,000.
M1 will not allow withdrawals that make your Margin Loan amount greater than 50% of your account value.
Can I turn off M1 Margin Loans in my M1 account?
You cannot turn off the ability to take out an M1 Margin Loan at this time. However, you’re not obligated to use the margin available to you.
To ensure you don’t unintentionally use margin in your account, make sure any buy orders are for an amount that is equal to or less than your cash.
If your buy order is less than or equal to your cash, the order will not use margin.
If your buy order is greater than your cash, you’ll see the amount that will be borrowed below the trade value.
All examples above are for informational purposes and should not be considered an offer to buy or sell certain securities. 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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