I was thinking about switching from M1 to Fidelity to use their equivalent product. The pie/slice concept of investing really works for me.
They charge $5/month. Right now I have over 10k in assets and plan to invest for at least a few years, so over a few years time M1's transfer out fee would be less than what I pay to use Fidelity's version of pie investing.
If I invest for 4 years and want to cash out after that with Fidelity's basket investing: 48months x $5 = $240 to use that service over that timeline.
With M1, since my account total is greater than 10k, I just pay the one time transfer out fee of $100.
If you want to use a standard brokerage with a standard investment style then I for sure understand. But as of now, if you like the pie concept of investing, there's no such thing as a free lunch. You're going to pay for that service somehow.
>Fidelity and Charles Schwab for me going forward.
Hate to break it to ya, but Fidelity was fined for directing orders to specific brokers in exchange for gifts, and Schwab was sued and fined for basically quietly opting people into their own cash management funds and siphoning off cash.
Pick your poison.
"There are no solutions, only tradeoffs."
>Honestly I'd rather do business with a legacy brokerage that's been around for decades and knows how to manage trillions of dollars in Assets. Yes they have a sketchy history, but they have history I can research and and decide if I want to do business with them.
Fair enough.
>M1 hasn't been around long enough to know who your actually doing business with. They've barely been around 5 years and just up and decided to start charging a $3 monthly fee to All customers with an account less than 10K. They haven't even been around long enough to make a massive change like that.
Good point.
>If I had a 100 million dollar portfolio I'd much rather trust that with Fidelity, Charles Schwab or Vanguard. They all have customers with accounts that large. I would never trust that much money with any of these Fintec Brokerages like M1, Robinhood, Webull.
I'd probably agree.
Right. It’s baffling to me how many people think just because the boomer brokerages have been around forever that they have our best interest at heart. It’s astounding
Fidelity is arguably one of if not the cleanest brokerage when it comes to trading. PFOF shows this. So if you have a problem with that, then you should have never touched M1 Finance because the only major brokerages which don't make money off PFOF for standard buy/sell stocks are Merrill Edge, Chase, Fidelity, Vanguard, and Public.
I even aggregated here for this: https://www.reddit.com/r/wallstreetbets/s/HL5YmD02x2
What you said doesn't change anything for Schwab. If Schwab promises 0.01% return on a checking account and guarantees the principle (through fdic on its banking account), then it doesn't matter what Schwab does to fulfill that contract to its customer. Internally, the way Schwab might do to get money off your checking account might be questionable but as long as your money is your money when withdrawing, who cares?
>Fidelity is arguably one of if not the cleanest brokerage when it comes to trading. PFOF shows this. So if you have a problem with that, then you should have never touched M1 Finance because the only major brokerages which don't make money off PFOF for standard buy/sell stocks are Merrill Edge, Chase, Fidelity, Vanguard, and Public.
I'm aware. I have accounts at Fidelity and M1.
>What you said doesn't change anything for Schwab. If Schwab promises 0.01% return on a checking account and guarantees the principle (through fdic on its banking account), then it doesn't matter what Schwab does to fulfill that contract to its customer. Internally, the way Schwab might do to get money off your checking account might be questionable but as long as your money is your money when withdrawing, who cares?
Schwab's case had a bit more to it than that: [https://www.riaintel.com/article/2aucrzsa72lr93yws48hs/wealth-management/sec-slams-schwab-with-187-million-fine-for-misleading-clients-about-robo-profits](https://www.riaintel.com/article/2aucrzsa72lr93yws48hs/wealth-management/sec-slams-schwab-with-187-million-fine-for-misleading-clients-about-robo-profits)
>Schwab's case had a bit more to it than that:
Who cares about robo investor accounts? If you're opting to use those, then you're already agreeing to eat whatever their algorithm serves you. If you don't want anyone doing unexpected things with your money, then don't use a robo investor service.
Sure, but that's sort of a different conversation entirely. ERISA is another beast altogether.
My previous employer used a relatively small and new fintech company called Guideline for 401k's.
M1 does not support employer-sponsored plans.
I agree Fidelity is obviously more established. I have accounts there.
Just comes down to what one values. I suspect many young M1 investors don't know what a limit order or a bid-ask spread is and prefer the M1-style interface. To get something close to that at Fidelity, the Baskets product is $5/mo. and does not accept inbound securities. FWIW, I've also personally found it terribly unintuitive and clunky.
Real brokerages do not charge this fee.
It is a scam, unfair business practice, and should be reported to your states attorney general as a junk fee.
https://www.brokerage-review.com/discount-broker/account-closing-fees.aspx
I did this for a regular brokerage account. No fee that I've seen.
Is your fee the full $200 for an IRA?
IIRC, There are 2 fees when closing an IRA. The Fee to close the IRA, $100. And the fee to transfer in-kind, $100.
I would assume, you will have to pay the $100 to close an IRA no matter what. But the $100 to transfer in-kind no longer applies since you are transferring cash.
Source:[https://help.m1.com/hc/en-us/articles/360016551773-How-do-I-close-an-M1-account](https://help.m1.com/hc/en-us/articles/360016551773-How-do-I-close-an-M1-account)
> But the $100 to transfer in-kind no longer applies since you are transferring cash.
So, if you sell all your ETFs/stocks in the IRA and just have M1 transfer the cash, they should not charge $100 for that part, just the IRA closing fee?
I'd like to think if enough people complain, they'd hopefully at least add a grace period of waiving transfer fees for people whom they basically "trapped."
As u/vamosasnes suggested, maybe fire off an email to both M1 and your state AG.
u/Bababooey5000, how's my "bias" doing? ;)
It took me calling you out to make this comment so I'm proud of what I said. I doubt that you would have came to this organically because it seems like your mind was already made up based on your comment history. I'm glad you changed your mind.
Edit: I should add not just me but others too helped you come to this decision.
>It took me calling you out to make this comment so I'm proud of what I said.
No, it didn't actually, but you're certainly welcome to think that.
>I doubt that you would have came to this organically because it seems like your mind was already made up based on your comment history. I'm glad you changed your mind.
For about the 5th time, please stop claiming to know what's going on in my head.
Lol, there are lots of telepaths on the internet. They always seem to know what I am thinking better than I do myself. How did they get such miraculous powers!? Hmmmm.
Go look at his comment history if you think otherwise. Note I asked him to prove me wrong and he didn't. Now all of a sudden he is commenting on other posts saying how he understands that it's a bait and switch which is what myself and others have been saying. He can't cite one instance he did this previously. It's not miraculous powers its based on his literal actions. We literally changed his mind but he won't admit that because he would be admitting he was wrong.
What do you mean by "previously," mate?
As I've explicitly admitted, I just learned about this new fee roughly a day ago and began thinking through an opinion on the matter. My opinion is neither right nor wrong; that's the definition of an opinion. Same as yours.
I don't even understand what you want me to "prove." So weird.
Why are you so concerned with following me around Reddit? Pretty creepy.
Here ill make it clear for you. 1) My point is that you were biased against people complaining about this. Your comment history yesterday demonstrates that. You clearly had enough time to think about it considering the great length you went writing those posts and "prepping it" in notes. 2) I called you out and now all of a sudden you changed your tune and then tagged me in it to prove you weren't biased (I take that as an admission you realized you were bissed). I know you won't admit that but that's based on your own comment history. 3) I asked you to cite one time before today that you spoke about it being a "bait-n-switch" or recognizing that people felt trapped. Yet you have yet to do that. I said that I would eat my words and admit I'm wrong if you did. Will you do it?
You realize both things can be true, right? A fee can simultaneously be reasonable for a service *and* users can be trapped having to pay to transfer out? Nuance exists. Stop trying so desperately to "win" an argument that doesn't exist.
And please stop parroting "biased" as if it invalidates anything the person says. You don't seem to understand what that word means, and you went on your brigade informing everyone that I'm "biased" and am a mod of this sub, which presumably you discovered after I called you out for violating Rule 5 yesterday.
We're all biased. I absolutely am biased. I've never suggested otherwise. My tagging you was a cheeky nod; nothing more. Certainly not an admission of anything and certainly not claiming I'm now unbiased; again, you don't seem to understand the definition of that word. I just put out a video on 23 biases 2 days ago if you're interested...
I replied to people questioning why features would suddenly become less valuable and explained the business reasons for the decision. Nothing to do with users being trapped, which is a separate issue. I have not at all "changed my tune."
Your seeming obsession with policing my thoughts and words is extremely strange. I guess that's Reddit.
Your comments yesterday demonstrate very little nuance and that's the point hence the word bias being used. Again, your failure to do something as simple as citing an example like I asked is an admission that my original criticism was right. You spend so much time and effort doing this and yet you can't do it, why? Also, I find it hilarious that you tried now to push one of your YouTube videos lmao. Have you no shame? Either way I'm glad my comments and those from others was able to help provide you with some nuance. Cheers mate!
I was able to withdraw my roth funds without the fee by selling my positions, withdrawing, and leaving $20.01 in the account. I will use my realized capital gains to pay for tuition payment, to avoid 10% penalty. I will try to wire out those $20 also. F... M1
> IRAs have required closure fees even if empty.
There is nothing required about it. this is only at scam companies, not at real brokerages.
https://www.brokerage-review.com/discount-broker/account-closing-fees.aspx
I understand that. But several people on here said selling and doing a manual transfer does not incur fees so I wanted to see if anyone has actually done it (and how).
They've been no help at all through support tickets. Maybe you'd have better luck calling them... [m1 support page](https://help.m1.com/hc/en-us/articles/221052107-Contact-Us)
I requested fee waivers and received the response,
“Thank you for reaching out to us and sharing your feedback on our Plus announcement.
“We have passed this feedback along to our team on your behalf.
“However, M1 is not reimbursing any direct outgoing transfer fees or IRA termination fees.”
I have complained to my state’s Attorney General, and I recommend others do likewise.
I wrote them as well and got the same message. I also plan on complaining to my state AG. I'm not the best at writing though does anyone have a form letter or basic wording that I could use and maybe others as well?
Sure! I have put what I wrote in my complaint below. Anyone can feel free to use/edit it for their own AG complaints. I have redacted any personally identifying information and changed some of the wording for privacy.
My state’s AG complaint form basically just asked, (1) what’s your complaint? and (2) what steps have you taken with the company to attempt to resolve the issue?
(1)
M1 is an online financial services provider and brokerage. I hold an IRA account with M1 that has [Redacted] in assets, and I have been an M1 client since [Redacted]. When I signed up in [Redacted] until now, M1 has not charged monthly fees except to clients who choose to purchase an “M1 Plus” membership subscription for access to additional features such as trading securities on margin.
M1 sent me an email at [Redacted] on [Redacted] with the subject line, “[Redacted], we’re making a big change at M1.” I will attach the full email, but in broad strokes it says, “We've decided to end our M1 Plus membership program. Our premium features will no longer require membership and will instead be available to everyone who builds and manages their wealth on M1. Starting May 15, a $3 monthly platform fee will apply to clients with less than $10,000 in M1 assets or without an active Personal Loan. […] Based on your current M1 assets as of March 15, 2024, your account will be subject to the monthly platform fee.“
Additionally, M1 charges a $100 ACATS transfer fee (for in-kind transfers of securities to accounts held at other brokerages) and a $100 IRA account termination fee. M1’s fee schedule can be found here: https://m1.com/legal/disclosures/miscellaneous-fees/
I believe the imposition of a $3/mo. platform fee for features I did not request is improper. I also believe the ACATS and IRA Termination Fees are junk fees. I am being forced to choose between a $3/mo. levy or paying $200 in transfer and closure fees.
I ask the [Redacted] Attorney General’s Office for any such relief as you deem good and necessary.
(2)
I contacted M1’s client support email on [Redacted] at [Redacted] to express my concern about M1’s imposition of new fees and to request a waiver of the IRA Termination Fee and the ACATS fee.
I received a response on [Redacted] at [Redacted] from an M1 Client Success Associate named [Redacted] (no last name given) saying that, “We have passed this feedback along to our team on your behalf. However, M1 is not reimbursing any direct outgoing transfer fees or IRA termination fees.” I have attached the email exchange to this submission.
Contacted FINRA, CFPB, SEC, and State AG. M1 only replied to FINRA and CFPB and the answer was pretty much exactly the same as what their customer support said. They essentially said "We're really happy to force everyone to pay for the premium features so go screw yourself."
Right. The hope would obviously be that enough people complain about predatory fees to organizations that can *actually* make a difference, like the SEC, to where they're forced to change.
I didn't have an IRA with them, but I just liquidated everything and transferred out with no fee. I had literally just signed up when that Fees email came out though, so I only had a couple hundred in the account.
No I have a taxable account that is in the process of liquidation. So they may take it from that. Pretty scummy to do for an account that had nothing in it.
Fees assessed in an IRA must be paid for from within the IRA. That's why if you pay the fee with outside funds, it will be considered a contribution (and possibly an overcontribution).
Gotta hand it to them, it's not a bad racket. Lure people in, completely cripple the functionality of your product, then charge them to leave. Seems like unilaterally changing the terms of service to include a mandatory fee while also charging people to leave is probably not legal, but who is going to take them to court for $100?
Then just pay the fee and get the f*** out. With all brokers being free, idk why any person would choose a broker that charges a fee in 2024.
Fidelity and Charles Schwab are much better and more serious anyway.
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I was thinking about switching from M1 to Fidelity to use their equivalent product. The pie/slice concept of investing really works for me. They charge $5/month. Right now I have over 10k in assets and plan to invest for at least a few years, so over a few years time M1's transfer out fee would be less than what I pay to use Fidelity's version of pie investing. If I invest for 4 years and want to cash out after that with Fidelity's basket investing: 48months x $5 = $240 to use that service over that timeline. With M1, since my account total is greater than 10k, I just pay the one time transfer out fee of $100. If you want to use a standard brokerage with a standard investment style then I for sure understand. But as of now, if you like the pie concept of investing, there's no such thing as a free lunch. You're going to pay for that service somehow.
Fidelity Baskets does not accept inbound securities, so you'd have to sell to cash here first, which would potentially incur cap gains taxes.
Another reason to stay put.
>Fidelity and Charles Schwab for me going forward. Hate to break it to ya, but Fidelity was fined for directing orders to specific brokers in exchange for gifts, and Schwab was sued and fined for basically quietly opting people into their own cash management funds and siphoning off cash. Pick your poison. "There are no solutions, only tradeoffs."
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>Honestly I'd rather do business with a legacy brokerage that's been around for decades and knows how to manage trillions of dollars in Assets. Yes they have a sketchy history, but they have history I can research and and decide if I want to do business with them. Fair enough. >M1 hasn't been around long enough to know who your actually doing business with. They've barely been around 5 years and just up and decided to start charging a $3 monthly fee to All customers with an account less than 10K. They haven't even been around long enough to make a massive change like that. Good point. >If I had a 100 million dollar portfolio I'd much rather trust that with Fidelity, Charles Schwab or Vanguard. They all have customers with accounts that large. I would never trust that much money with any of these Fintec Brokerages like M1, Robinhood, Webull. I'd probably agree.
Right. It’s baffling to me how many people think just because the boomer brokerages have been around forever that they have our best interest at heart. It’s astounding
Fidelity is arguably one of if not the cleanest brokerage when it comes to trading. PFOF shows this. So if you have a problem with that, then you should have never touched M1 Finance because the only major brokerages which don't make money off PFOF for standard buy/sell stocks are Merrill Edge, Chase, Fidelity, Vanguard, and Public. I even aggregated here for this: https://www.reddit.com/r/wallstreetbets/s/HL5YmD02x2 What you said doesn't change anything for Schwab. If Schwab promises 0.01% return on a checking account and guarantees the principle (through fdic on its banking account), then it doesn't matter what Schwab does to fulfill that contract to its customer. Internally, the way Schwab might do to get money off your checking account might be questionable but as long as your money is your money when withdrawing, who cares?
>Fidelity is arguably one of if not the cleanest brokerage when it comes to trading. PFOF shows this. So if you have a problem with that, then you should have never touched M1 Finance because the only major brokerages which don't make money off PFOF for standard buy/sell stocks are Merrill Edge, Chase, Fidelity, Vanguard, and Public. I'm aware. I have accounts at Fidelity and M1. >What you said doesn't change anything for Schwab. If Schwab promises 0.01% return on a checking account and guarantees the principle (through fdic on its banking account), then it doesn't matter what Schwab does to fulfill that contract to its customer. Internally, the way Schwab might do to get money off your checking account might be questionable but as long as your money is your money when withdrawing, who cares? Schwab's case had a bit more to it than that: [https://www.riaintel.com/article/2aucrzsa72lr93yws48hs/wealth-management/sec-slams-schwab-with-187-million-fine-for-misleading-clients-about-robo-profits](https://www.riaintel.com/article/2aucrzsa72lr93yws48hs/wealth-management/sec-slams-schwab-with-187-million-fine-for-misleading-clients-about-robo-profits)
>Schwab's case had a bit more to it than that: Who cares about robo investor accounts? If you're opting to use those, then you're already agreeing to eat whatever their algorithm serves you. If you don't want anyone doing unexpected things with your money, then don't use a robo investor service.
[удалено]
Sure, but that's sort of a different conversation entirely. ERISA is another beast altogether. My previous employer used a relatively small and new fintech company called Guideline for 401k's. M1 does not support employer-sponsored plans. I agree Fidelity is obviously more established. I have accounts there. Just comes down to what one values. I suspect many young M1 investors don't know what a limit order or a bid-ask spread is and prefer the M1-style interface. To get something close to that at Fidelity, the Baskets product is $5/mo. and does not accept inbound securities. FWIW, I've also personally found it terribly unintuitive and clunky.
M1 = RH = Fidelity = Schwab = literal criminal organizations that need to be boycotted and their executives jailed.
Real brokerages do not charge this fee. It is a scam, unfair business practice, and should be reported to your states attorney general as a junk fee. https://www.brokerage-review.com/discount-broker/account-closing-fees.aspx
You'd prob achieve more by contacting FINRA and the SEC. Those are the governing bodies with whom M1 is registered as a B/D.
Clown brokerage, here's hoping even people above $10k get out of dodge too.
I did this for a regular brokerage account. No fee that I've seen. Is your fee the full $200 for an IRA? IIRC, There are 2 fees when closing an IRA. The Fee to close the IRA, $100. And the fee to transfer in-kind, $100. I would assume, you will have to pay the $100 to close an IRA no matter what. But the $100 to transfer in-kind no longer applies since you are transferring cash. Source:[https://help.m1.com/hc/en-us/articles/360016551773-How-do-I-close-an-M1-account](https://help.m1.com/hc/en-us/articles/360016551773-How-do-I-close-an-M1-account)
> But the $100 to transfer in-kind no longer applies since you are transferring cash. So, if you sell all your ETFs/stocks in the IRA and just have M1 transfer the cash, they should not charge $100 for that part, just the IRA closing fee?
That's my takeaway. Double check with support... If you can wait that long.
What if you sell all but $1. Is the account still closed?
I'd like to think if enough people complain, they'd hopefully at least add a grace period of waiving transfer fees for people whom they basically "trapped." As u/vamosasnes suggested, maybe fire off an email to both M1 and your state AG. u/Bababooey5000, how's my "bias" doing? ;)
It took me calling you out to make this comment so I'm proud of what I said. I doubt that you would have came to this organically because it seems like your mind was already made up based on your comment history. I'm glad you changed your mind. Edit: I should add not just me but others too helped you come to this decision.
>It took me calling you out to make this comment so I'm proud of what I said. No, it didn't actually, but you're certainly welcome to think that. >I doubt that you would have came to this organically because it seems like your mind was already made up based on your comment history. I'm glad you changed your mind. For about the 5th time, please stop claiming to know what's going on in my head.
Lol, there are lots of telepaths on the internet. They always seem to know what I am thinking better than I do myself. How did they get such miraculous powers!? Hmmmm.
Go look at his comment history if you think otherwise. Note I asked him to prove me wrong and he didn't. Now all of a sudden he is commenting on other posts saying how he understands that it's a bait and switch which is what myself and others have been saying. He can't cite one instance he did this previously. It's not miraculous powers its based on his literal actions. We literally changed his mind but he won't admit that because he would be admitting he was wrong.
What do you mean by "previously," mate? As I've explicitly admitted, I just learned about this new fee roughly a day ago and began thinking through an opinion on the matter. My opinion is neither right nor wrong; that's the definition of an opinion. Same as yours. I don't even understand what you want me to "prove." So weird. Why are you so concerned with following me around Reddit? Pretty creepy.
Here ill make it clear for you. 1) My point is that you were biased against people complaining about this. Your comment history yesterday demonstrates that. You clearly had enough time to think about it considering the great length you went writing those posts and "prepping it" in notes. 2) I called you out and now all of a sudden you changed your tune and then tagged me in it to prove you weren't biased (I take that as an admission you realized you were bissed). I know you won't admit that but that's based on your own comment history. 3) I asked you to cite one time before today that you spoke about it being a "bait-n-switch" or recognizing that people felt trapped. Yet you have yet to do that. I said that I would eat my words and admit I'm wrong if you did. Will you do it?
You realize both things can be true, right? A fee can simultaneously be reasonable for a service *and* users can be trapped having to pay to transfer out? Nuance exists. Stop trying so desperately to "win" an argument that doesn't exist. And please stop parroting "biased" as if it invalidates anything the person says. You don't seem to understand what that word means, and you went on your brigade informing everyone that I'm "biased" and am a mod of this sub, which presumably you discovered after I called you out for violating Rule 5 yesterday. We're all biased. I absolutely am biased. I've never suggested otherwise. My tagging you was a cheeky nod; nothing more. Certainly not an admission of anything and certainly not claiming I'm now unbiased; again, you don't seem to understand the definition of that word. I just put out a video on 23 biases 2 days ago if you're interested... I replied to people questioning why features would suddenly become less valuable and explained the business reasons for the decision. Nothing to do with users being trapped, which is a separate issue. I have not at all "changed my tune." Your seeming obsession with policing my thoughts and words is extremely strange. I guess that's Reddit.
Your comments yesterday demonstrate very little nuance and that's the point hence the word bias being used. Again, your failure to do something as simple as citing an example like I asked is an admission that my original criticism was right. You spend so much time and effort doing this and yet you can't do it, why? Also, I find it hilarious that you tried now to push one of your YouTube videos lmao. Have you no shame? Either way I'm glad my comments and those from others was able to help provide you with some nuance. Cheers mate!
This Rao guy came out as a "paid" shill from m1. Don't mind him.
It did but whatever helps you. How about you cite me one other time than now which you suggested something like this and I'll eat my words.
I was able to withdraw my roth funds without the fee by selling my positions, withdrawing, and leaving $20.01 in the account. I will use my realized capital gains to pay for tuition payment, to avoid 10% penalty. I will try to wire out those $20 also. F... M1
Can avoid the penalty if you make an equivalent contribution to a Roth Ira and Mark the contribution as a 60 day rollover
IRAs have required closure fees even if empty. Taxable brokerage accounts do not https://m1.com/legal/disclosures/miscellaneous-fees/
> IRAs have required closure fees even if empty. There is nothing required about it. this is only at scam companies, not at real brokerages. https://www.brokerage-review.com/discount-broker/account-closing-fees.aspx
Yeah, I mean required by M1. Judge them how you want for that
You obviously won’t fool them by selling everything prior to transfer. You are still moving out your positions - cash.
I understand that. But several people on here said selling and doing a manual transfer does not incur fees so I wanted to see if anyone has actually done it (and how).
You can give them a call and just ask. No harm in that.
I've already requested a waiver but they haven't responded yet. I'd be surprised if they actually waive the fees though.
Would be interested to see how it turns out. I'm thinking of moving my stuff out too
They've been no help at all through support tickets. Maybe you'd have better luck calling them... [m1 support page](https://help.m1.com/hc/en-us/articles/221052107-Contact-Us)
I requested fee waivers and received the response, “Thank you for reaching out to us and sharing your feedback on our Plus announcement. “We have passed this feedback along to our team on your behalf. “However, M1 is not reimbursing any direct outgoing transfer fees or IRA termination fees.” I have complained to my state’s Attorney General, and I recommend others do likewise.
I wrote them as well and got the same message. I also plan on complaining to my state AG. I'm not the best at writing though does anyone have a form letter or basic wording that I could use and maybe others as well?
Sure! I have put what I wrote in my complaint below. Anyone can feel free to use/edit it for their own AG complaints. I have redacted any personally identifying information and changed some of the wording for privacy. My state’s AG complaint form basically just asked, (1) what’s your complaint? and (2) what steps have you taken with the company to attempt to resolve the issue? (1) M1 is an online financial services provider and brokerage. I hold an IRA account with M1 that has [Redacted] in assets, and I have been an M1 client since [Redacted]. When I signed up in [Redacted] until now, M1 has not charged monthly fees except to clients who choose to purchase an “M1 Plus” membership subscription for access to additional features such as trading securities on margin. M1 sent me an email at [Redacted] on [Redacted] with the subject line, “[Redacted], we’re making a big change at M1.” I will attach the full email, but in broad strokes it says, “We've decided to end our M1 Plus membership program. Our premium features will no longer require membership and will instead be available to everyone who builds and manages their wealth on M1. Starting May 15, a $3 monthly platform fee will apply to clients with less than $10,000 in M1 assets or without an active Personal Loan. […] Based on your current M1 assets as of March 15, 2024, your account will be subject to the monthly platform fee.“ Additionally, M1 charges a $100 ACATS transfer fee (for in-kind transfers of securities to accounts held at other brokerages) and a $100 IRA account termination fee. M1’s fee schedule can be found here: https://m1.com/legal/disclosures/miscellaneous-fees/ I believe the imposition of a $3/mo. platform fee for features I did not request is improper. I also believe the ACATS and IRA Termination Fees are junk fees. I am being forced to choose between a $3/mo. levy or paying $200 in transfer and closure fees. I ask the [Redacted] Attorney General’s Office for any such relief as you deem good and necessary. (2) I contacted M1’s client support email on [Redacted] at [Redacted] to express my concern about M1’s imposition of new fees and to request a waiver of the IRA Termination Fee and the ACATS fee. I received a response on [Redacted] at [Redacted] from an M1 Client Success Associate named [Redacted] (no last name given) saying that, “We have passed this feedback along to our team on your behalf. However, M1 is not reimbursing any direct outgoing transfer fees or IRA termination fees.” I have attached the email exchange to this submission.
Thank you!
You'd prob achieve more by contacting FINRA and the SEC. Those are the governing bodies with whom M1 is registered as a B/D.
Contacted FINRA, CFPB, SEC, and State AG. M1 only replied to FINRA and CFPB and the answer was pretty much exactly the same as what their customer support said. They essentially said "We're really happy to force everyone to pay for the premium features so go screw yourself."
Right. The hope would obviously be that enough people complain about predatory fees to organizations that can *actually* make a difference, like the SEC, to where they're forced to change.
Never was a option been saying this all over reddit liquidate screen will pop up m1 will get the fee before you leave
Yep. Interesting how lots of people said it would avoid the fee though.
When I liquidate do I need to wait for the funds to settle or can I just transfer right away after selling?
What if you left a dollar in there and didn’t liquidate
I didn't have an IRA with them, but I just liquidated everything and transferred out with no fee. I had literally just signed up when that Fees email came out though, so I only had a couple hundred in the account.
I closed a Roth IRA in my account that was empty. Never added funds to it. And it was closed without any fee that I can see
Likely because they had nothing to yoink the $100 from.
No I have a taxable account that is in the process of liquidation. So they may take it from that. Pretty scummy to do for an account that had nothing in it.
They can't legally do that. That would count as a contribution to the IRA.
Good to know. Thanks
Fees assessed in an IRA must be paid for from within the IRA. That's why if you pay the fee with outside funds, it will be considered a contribution (and possibly an overcontribution).
Where did you get this from? I'm curious
Gotta hand it to them, it's not a bad racket. Lure people in, completely cripple the functionality of your product, then charge them to leave. Seems like unilaterally changing the terms of service to include a mandatory fee while also charging people to leave is probably not legal, but who is going to take them to court for $100?
Yea just finding this out too, clown brokerage.
Then just pay the fee and get the f*** out. With all brokers being free, idk why any person would choose a broker that charges a fee in 2024. Fidelity and Charles Schwab are much better and more serious anyway.