Withdrawing Money From M1 Finance
M1 Finance provides two primary ways for investors to take money out of their accounts. An automated account transfer system handles withdrawals, and you can also use the wire transfer method.
The automated system uses ACH to move money to and from outside banks, and all withdrawal requests are
routed through M1 Finance itself.
Read on for more details.
M1 Finance ACH Withdrawals
The simplest way to withdraw money out of your M1 Finance account is to use the automated system. M1 provides a smart transfer solution that takes many details into account, including account balance vs. pending stock sale orders, settlement periods, etc.
Any withdrawal order that you put in will become a ‘resting order’ until all the conditions are met.
Withdraw Money by ACH at M1 Finance
To withdraw money by ACH, navigate to the ‘Move Money’ page. You can find the link on the home page, the invest page, and even the mobile app.
Once there, you are presented with several transfer options. You can deposit or withdraw funds from an outside financial institution, set up scheduled deposits, move money between your M1 accounts, and even start an ACAT transaction. For most withdrawals, you will want the first option, ‘One-time cash transfer.’
A very simple transfer request screen will pop up, allowing you to define the conditions of your withdrawal.
You can choose the bank your funds will go to (the account must belong to you) and the M1 Finance account you are transferring money from. Then, you define the amount of money you want to move.
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M1 Limits to Money Withdrawals by ACH
Transfers from M1 using the ACH method (automated transfer tool) have some limitations to them that investors should be aware of.
For standard M1 users, there is a daily transfer limit of $10,000 and a monthly transfer limit of $50,000. For M1 Plus users, the limits are much higher. M1 Plus account holders enjoy daily limits of $50,000 and monthly limits of $500,000.
Besides transfer limits, it is good to keep settlement periods in mind (more details below).
How Long Does it Take at M1 to Withdraw Money by ACH?
To withdraw money from your M1 Invest account, you should expect the process to take about three business days. M1 sends the withdrawal request to its clearing firm, Apex, which then initiates the transfer to your bank.
Be aware that it can take a bit longer if unsettled funds are included in the amount you send.
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M1 Finance Wire Withdrawals
If you do not like the automated transfer system built into M1’s app or website, a wire transfer is another option available to you. You will not see any tools on the site related to this option, but it is possible. Here’s how you can do it.
Withdraw money at M1 Finance by wire transfers
The first step is to contact M1 and give them the information they need to get things moving.
Some of the information they need includes the amount of money you want to move out of your account, your bank account numbers, and a reason for choosing the wire transfer method.
The M1 team can be contacted here.
M1 limits to money withdrawals by wire transfers
One of the reasons that you would consider using the wire transfer method is that you can take out a larger amount of money than you can with ACH transfers. There is no upper limit on how much your withdrawal is.
Still, there are some other limitations to consider.
The main one is that funds must be fully settled before they are transferred. Another is that new deposits have a 6-day holding period before you can take the money back out. If you are trying to withdraw funds you recently deposited, you will need to wait a while.
The fee for outgoing wire transfers is $25.
How long does it take to withdraw money at M1 by wire transfers?
Wire transfers are swift. You can expect a wire transfer to go through and land in your bank account within two days from sending your request.
Factors that Stop You from Withdrawing Money
If you try to make a withdrawal and M1 does not allow it, there are only a few factors that could cause that. Not being able to take your money out usually comes down to unsettled funds and your destination account choice.
Here’s how you might be able to solve any withdrawal issues you are experiencing.
Trade and Deposit Settlement Periods
First, you can look at settlement periods for the funds you take out. Did you recently make a deposit or liquidate a position? If so, M1 could limit your withdrawal to settled funds only.
Trade settlement usually takes about three business days to complete (M1 uses a settlement period of ‘T+1’, which is trade date + one additional trading day). When you liquidate a position, the funds show up in your trading account immediately, but they are not yet yours. The broker needs some time to ‘settle’ the transaction. Once that process completes, you are given complete access to your funds.
Settlement also affects any deposits you make. The time it takes for funds to settle into your account depends on the deposit method. Wires settle immediately, and ACH transfers can take up to 5 days.
New deposits are also affected by the ‘Holding Period.’ M1 uses a holding period of 6 business days for all new deposits. After that time, you can take the money back out of the account.
Money Laundering Rules
You can also look at the bank account you are trying to send money to. Is it the same bank account used to fund your brokerage account? If not, M1 will stop the withdrawal. Here’s why.
All U.S.-based brokers comply with AML rules (anti-money laundering). The rule says that the same account must be used for withdrawals and deposits. However, there is a 60-day window that AML rules apply to. If you fund your account with one bank account, you can withdraw money to another account if enough time has elapsed.
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