How is interest charged?

With M1 Margin Loans, you will be charged interest at the end of every month—you’ll only pay for the line of credit you borrow. 

You'll receive a statement each month that displays the range of dates covered in the bill, as well as the amount of interest accrued. 

M1 Finance Borrow billing information (next bill date, interest accrued, projected bill) in Borrow tab

The interest amount due is deducted from your cash balance (if available), or it will be added to your amount borrowed.  

1. Cash balance: We always pull from the cash you keep in your account first if there is cash available.

2. 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.


All investing involves risk, including the risk of losing the money you invest. Borrowing on margin can add to these risks, and you should review the M1 Margin Loan account risk disclosures before borrowing. M1 Margin Loan available on margin accounts with at least $2,000 invested. Not available for all account types including M1 Traditional IRA, M1 Roth IRA, M1 SEP IRA, M1 Custodial, and some M1 Trust Accounts. Margin Loan rates subject to change.

M1 disclosures here.

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