If you’re borrowing money through an M1 Margin Loan, you need to be aware of your maintenance requirement.
Maintenance margin is the minimum amount of equity that must be maintained to hold positions on margin.
FINRA requires a 25% minimum on all positions, but M1 may require a higher maintenance requirement on specific stocks.
Higher maintenance requirements are the result of a position’s potential volatility. Owning positions with high maintenance requirements can reduce the amount of credit you can borrow.
You can find the maintenance requirement for a stock in the Holdings tab or your portfolio slice, in the stock details section.
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.