Your bill will be available at the end of each month, and you will only need to pay interest for the M1 Margin Loan.
Daily interest accruals are grouped by calendar month and charged on the third trading day of the following calendar month.
You can view your payment due date in the Borrow Tab.
How do I make my monthly payments?
You will be charged on the due date of your bill before the daily trade window. Here’s the order in which we automate interest repayment:
Cash balance: We always pull from the available cash balance in the account your Margin Loan is from.
Borrow additional funds: If your cash balance is insufficient and you have not maxed out your available credit, we will borrow more to cover the cost of your interest. We do this so you avoid having to sell securities from your portfolio and avoid taxable events. This also helps keep your loan on your schedule so you can repay it when it’s most convenient for you.
Sell securities: This is our last resort for interest repayment. If options 1 and 2 are not available, we will sell securities to cover the cost.
How do I pay back the principal?
While interest is charged monthly, M1 Margin Loans do not have a fixed repayment schedule, and you can repay the principal on your terms (except in the case of a maintenance call).
To make a payment, visit Borrow and select "Pay Back."
You will be shown your current amount borrowed. Enter the amount you would like to pay back and select whether you would like to pay back the amount from your external bank, your Individual/Joint Brokerage Account or Trust Account the Margin Loan is from.
If you select your Individual/Joint Brokerage Account or Trust Account the Margin Loan is from, your cash will be used first, but if your cash balance is lower than the amount you want to pay back, we will sell from your portfolio to make up the difference.
After you review and confirm your changes, you will be able to view the payback schedule under Transfers.
Can I automate my payments?
You have the option to create an automatic payback schedule by going to the home screen, selecting "Move Money," selecting "Recurring Transfer," and inputting your transfer details with Borrow as the "To" account.
You can also use recurring transfers to make sure that your Individual/Joint Brokerage Account or Trust Account is funded with sufficient cash to take care of your monthly interest payments.
You can set your auto-invest minimum threshold to be higher than your monthly M1 Margin Loan interest amount to make sure your Invest cash balance is not automatically invested before your Margin Loan interest is billed.
Learn how to set your auto-invest minimum threshold.
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.
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.