Withdrawing Money From M1 Finance
M1 Finance offers two main ways for investors to withdraw money from their accounts. You can use an automated system or opt for a wire transfer.
The automated system uses ACH to move money between M1 Finance and other banks, and all withdrawal requests go through M1 Finance.
Read on for more details.
M1 Finance ACH Withdrawals
The easiest way to withdraw money from your M1 Finance account is through the automated system. M1 provides a smart transfer solution that considers various factors, including account balance, pending stock sale orders, settlement periods, and more.
Any withdrawal order you place becomes a ‘resting order’ until all conditions are met.
Withdraw Money by ACH at M1 Finance
To withdraw money via ACH, go to the ‘Move Money’ page. You can find the link on the homepage, the invest page, and even on the mobile app.
Once there, you’ll see several transfer options. You can deposit or withdraw funds from an external bank, set up scheduled deposits, move money between your M1 accounts, and start an ACAT transaction. For most withdrawals, choose the ‘One-time cash transfer’ option.
A simple transfer request screen will appear, allowing you to set the conditions of your withdrawal.
You can select the bank account where the funds will go (it must belong to you) and the M1 Finance account you’re withdrawing from. Then, specify the amount you want to transfer.
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M1 Limits to Money Withdrawals by ACH
There are some limits on ACH transfers from M1 Finance that investors should be aware of.
M1 account holders have daily limits of $50,000 and monthly limits of $500,000.
In addition to these limits, be mindful of settlement periods (more details below).
How Long Does it Take at M1 to Withdraw Money by ACH?
Withdrawing money from your M1 Invest account typically takes about three business days. M1 sends the withdrawal request to its clearing firm, Apex, which then initiates the transfer to your bank.
Keep in mind that it may take longer if unsettled funds are part of your withdrawal.
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M1 Finance Wire Withdrawals
If you prefer not to use M1’s automated transfer system, you can also withdraw money using a wire transfer. You won’t find tools for this on the site, but it’s still an option. Here’s how you can do it.
Withdraw money at M1 Finance by wire transfers
The first step is to contact M1 and provide them with the necessary information to initiate the transfer.
You’ll need to provide the amount you want to withdraw, your bank account details, and a reason for choosing the wire transfer method.
M1 limits to money withdrawals by wire transfers
One advantage of using a wire transfer is that you can withdraw more money than with ACH transfers. There’s no upper limit on the amount you can withdraw.
However, there are other limitations to consider.
The main one is that funds must be fully settled before they can be transferred. Additionally, new deposits have a 6-day holding period before they can be withdrawn. If you’re trying to withdraw recently deposited funds, you’ll need to wait.
The fee for outgoing wire transfers is $25.
How long does it take to withdraw money at M1 by wire transfers?
Wire transfers are fast. You can expect the money to arrive in your bank account within two days of sending the request.
Factors that Stop You from Withdrawing Money
If you’re unable to make a withdrawal from M1, there are a few potential reasons. The most common issues involve unsettled funds or your chosen destination account.
Here’s how you might resolve any withdrawal problems.
Trade and Deposit Settlement Periods
First, consider the settlement periods for your funds. Did you recently make a deposit or sell a position? If so, M1 may restrict your withdrawal to settled funds only.
Trade settlement typically takes about three business days to complete (M1 uses a settlement period of ‘T+1,’ which means trade date plus one additional trading day). When you sell a position, the funds appear in your trading account immediately, but they aren’t fully available until the settlement process is complete.
The same applies to deposits. The time it takes for deposits to settle depends on the method used. Wire transfers settle immediately, while ACH transfers can take up to 5 days.
New deposits are also subject to a 6-day holding period. After that time, you can withdraw the money.
Money Laundering Rules
Also, check the bank account you’re trying to transfer money to. Is it the same one you used to fund your brokerage account? If not, M1 will block the withdrawal. Here’s why.
All U.S.-based brokers follow AML (anti-money laundering) rules. These rules require that the same account be used for both deposits and withdrawals. However, after 60 days, you can withdraw money to a different account.
Updated on 8/21/2024.
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