M1 Finance uses a single morning trading window per day, with an optional afternoon trading window. Here we’ll discuss the details surrounding this characteristic of the modern broker.
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M1 Finance, being a platform specifically designed for long-term, buy-and-hold investing, has one single trading window per day. This means any orders you put in are executed the following day at market open. All trades for users’ accounts are made during this daily window. This “batching” of orders allows M1 to cut costs and pass those savings on to the investor. M1 has no account fees or transaction fees.
Any long-term investor should not be concerned about intraday price changes. Over one’s investing horizon of 30+ years, the result of these intraday differences will be negligible. I view this single trading window as a benefit. It prevents the investor from making any emotional, short-term trades, thereby curbing behaviors like market timing, which is usually more harmful than helpful. Traders wanting to attempt to capitalize on short-term market movement should not be using M1.
The daily trading window for M1 is at 9:30am EST every day, when the NYSE opens. This window stays open until all orders for the day have been executed. Any orders placed after that window will be executed during the following day’s trading window. Changes made to portfolios before 9:30am EST will be executed that same day.
M1 Finance has a premium member option called M1 Plus that gets you access to a second afternoon trading window at 3pm EST, as well as cheaper margin and Smart Transfers. This allows you to make any deposits or changes between 9:30am EST and 3pm EST that will be executed the same day. For those M1 Plus members with less than $25,000 in their account, they can use either trading window. Those with an account value of at least $25,000 can use both trading windows, as outlined below:
They also have a transfer bonus promotion for up to $4,000 when transferring an existing account from another brokerage through May 31, 2021, as outlined below:
Disclaimer: While I love diving into investing-related data and playing around with backtests, I am in no way a certified expert. I have no formal financial education. I am not a financial advisor, portfolio manager, or accountant. This is not financial advice, investing advice, or tax advice. The information on this website is for informational and recreational purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. Do your own due diligence. Past performance does not guarantee future returns. Read my lengthier disclaimer here.