Your Margin Loan statement is generated at the end of each month. You can find the statement under the “Bills” section within your Margin Loan dashboard. Interest on your M1 Margin Loan is calculated daily and billed to your account monthly. This article covers how interest accrues, how billing works, and payment methods.
How margin loan interest works
Interest on your Margin Loan accrues daily and is billed monthly.
The daily interest calculation utilizes the highest amount borrowed on any specific day as part of the interest accrual.
This means if you borrow multiple times within the same day or make a payment on your Margin Loan, the highest total borrowed amount for that day will be used.
Interest payment process:
M1 deducts the previous month’s interest automatically on the third trading day of the following month, before the morning trade window, in this order:
Cash balance: Interest is taken from your available cash in the account associated with your Margin Loan.
Increase Margin Loan: If cash is insufficient and you have available margin, your Margin Loan balance will increase to cover the interest charge.
Sell Investments: If steps 1 and 2 aren't possible, M1 will sell investments in your account to cover the interest payment.
How is the M1 Margin Loan rate determined?
The M1 Margin Loan rate is based on short-term interest rates and is subject to change if and when the Federal Reserve changes its target for the federal funds rate.
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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