Your Margin Loan statement will be available at the end of each month. You can find it under “Bills” on your Margin Loan dashboard.
Although you can pay back your loan balance when you want, provided you meet margin maintenance requirements, interest will be charged monthly.
Margin Loan interest
Margin Loan interest 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.
On the third trading day of the month, we automatically deduct last month’s interest from the account your Margin Loan is from. We do this before the morning trade window, in this order:
Cash balance: We first try to pay your interest using cash available in the account your Margin Loan is from.
Borrow additional funds: If the account’s cash balance is insufficient to cover the interest and you have available margin remaining, your Margin Loan will be increased to cover the cost of interest. This is done to help prevent investments being sold to cover the interest.
Sell investments: This is the last resort for interest repayment. If options 1 and 2 are not available, we will sell investments in the account the Margin Loan is from to cover the cost of interest.
How do I make Margin Loan payments?
You can make a payment on your M1 Margin Loan from your Margin Loan dashboard or using the “Move money” button.
Please see our article How do I pay back some or all of my M1 Margin Loan? for more detailed steps.
Can I automate Margin Loan payments?
You can create an automatic payment schedule using a recurring transfer with your Margin Loan as the destination or "To" account.
You can also use recurring transfers to make sure that your Individual/Joint Brokerage Account or Trust Account has enough cash to cover your monthly interest payments.
If you have Auto-invest turned on, you’ll need to set the minimum cash threshold higher than your monthly Margin Loan interest amount. This helps ensure your cash is not automatically invested before the Margin Loan interest is deducted.
Learn how to set your Auto-invest minimum threshold.
How is the M1 Margin Loan rate calculated?
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.
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