M1 Margin Loan billing

How do you calculate the interest?

When you use an M1 Margin Loan, interest will accumulate for each day that you use your portfolio line of credit.

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.


How am I billed?

Your bill will be available at the end of each month, and you will only need to pay for the line of credit borrowed.


When will I be charged?

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:

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.


Margin Loan repayment

Traditional Margin Loans use an amortization schedule that includes a percentage of principal and interest.

With M1 Margin Loans, repayment of principal and interest are independent of one another.



A benefit of M1 Margin Loans is the flexible repayment schedule. We don’t require a minimum monthly loan repayment.

You can pay back any principal amount at any time.

Recurring deposits that are scheduled into your M1 Invest account will not repay your outstanding loan.

However, you can create a payback schedule by selecting:

  1. “Move Money”
  2. “Recurring Transfer”
  3. Select “Borrow” as the "To" account.


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.




M1 disclosures here.

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