On the M1 Invest platform, there are a few simple requirements that enable trades to be executed. If the requirements are not met you may see a screen like this:
Minimum buy amount per stock or fund
For M1 to complete a trade, the minimum purchase amount for each security is $1.00. The purpose of this minimum is to reduce costs and keep fractional investing affordable. If a buy order or an auto-invest setting would execute orders under $1.00 for a security, the order is not executed and the cash will remain in your Invest account.
How to avoid excluded buys
The easiest way to avoid excluded buys is to ensure any buy order for any slice in your portfolio is over $1.00. You can always submit a buy order for any slice in your portfolio to be at least $1.00. Any buy orders for a holding in your portfolio that is over $1.00 will be executed as long as the cash is in your account. To learn more about submitting a buy order you can click here.
For more information...
These requirements are implemented to reduce costs and efforts for both you and the M1 platform. By eliminating many unnecessary micro-transactions, we minimize regulatory fees and concentrate on improving the M1 platform.
For more information on minimum balance requirements and why they are implemented, please visit our blog post here.