Cost Basis FuckUps: this is how I leave M1?

  1. Following because I'm hoping there's some kind of reasonable explanation for this. Was planning to switch everything over to M1 for easier auto-investing. I do remember there being posted threads about getting multiple revisions for tax documents from Apex earlier this year. Maybe this is how this starts.

  2. Well needless to say I contacted support with screenshots and all. In my experience they’re often polite but not super knowledgeable when it comes to tricker problems. I’ll report back on whether they can do anything about this.

  3. Not that this excuses the cost basis issue, and I could be totally wrong, but didn’t someone or some thread mentions errors in cost basis during the trade windows?

  4. When I transferred my taxable from Robinhood to TD Ameritrade, my cost bases were wildly different than what they should have been. Considering Apex played a central role in January supposedly and the cost basis errors from two separate brokers that use them, I don't trust them at all. I like M1 spend, but as an options trader, the ability to sell calls on my IRA positions with a trustable cost basis would almost certainly yield more than 1% annually on my spending while I can use a service like Fold to accumulate more Bitcoin from my spending which could easily yield far more than 1% in the long run. I think I'ma call it quits. Sorry M1.

  5. Yes I really worry that if the problem is Apex it means that no matter how well intentioned M1 is, it may not be something they can control. Apex stinks, that’s for sure.

  6. I know Fidelity made some strides in offering the free-free ETFs and fee-free buys. Have they implemented partial shares?

  7. Curious that nobody in all these comments suggested contacting the SEC. They would force M1 to get their act together or shut them down. So here is the suggestion: send your evidence to the SEC. They will get it squared away if there is truly a problem one way or the other.

  8. I agree, it’s scary to think that this is a problem on Apex’s side. I don’t believe RobinHood uses Apex as their clearing for them anymore. However, many other brokerages that just started up do.

  9. literally decided against M1 today bc of concerns about long-term cost basis tracking and then i see this. priors confirmed

  10. In theory (that is, unless Apex cocks it up) when you transfer a lot of fractional shares you can transfer the whole shares and only liquidate the fraction. In other words, if you bought lots of increments of 0.1 shares of ABC and end up with 24.6 shares when you want to transfer, Apex should create 24 whole shares for you, assign them a cost basis that is matched to the one that you had on your many small buys, and then only liquidate 0.6 shares. This requires a good amount of trust in their ability to do their job.…

  11. It's an odd occurrence.. basically they flipped the purchase price into the share price. I looked into my own apex account, out of the hundreds of small purchases over the past year, I don't see any inconsistencies in share price. I have to wonder what the odds are that you'll open an account to test for this and make those two trades and have that kind of mistake.

  12. Oh, I certainly did not open an account just to test for this. It’s just that because the account was brand new I could see the error immediately, whereas in any of my 4 other accounts at M1 it may have been much more difficult to spot.

  13. I’m having issues as well. Over contributed to my Roth’s this year (can contribute 0$) due to income and they cannot figure out how to transfer my base 6k + Net Attributable Income back to me. Apex Clearings keeps declining it. They don’t seem to understand complicated financial scenarios. My post can be found here:

  14. That’s the question. I think people‘s needs will be different. If I move, I think I’d be looking primarily for good long term portfolio analysis and a website I find visually pleasing. I don’t care for fractional shares — I sort of hate them actually — so for my main account I could see myself going somewhere that gives you the option of buying whole shares.

  15. I've got a similar issue, but I really don't see it as a big deal. The dollar amount and number of shares is correct.

  16. It's a BIG DEAL when you go to sell - although the error the OP related would actually benefit him as the higher basis would calculate to less gain, which would translate to less tax.

  17. I left M1 at the beginning of this year and the process of doing so made me SO grateful I left, and seeing the issues on this subreddit only perpetuates that feeling. I used to have 2 portfolios - one I managed for my mom and another that I managed for myself. Well, one day, I got locked out of MY portfolio and a few days later I got locked out of my mom’s. I emailed multiple times and it took about 2 weeks and multiple references to FINALLY get a solid answer that they apparently closed my accounts because they were deemed “fraudulent” since you can’t manage an account for someone else. “Fine,” I thought, “I’ll just liquidate my accounts and move to a more established broker.” Only problem was that this process of liquidated my accounts entailed me getting ghosted multiple times and taking multiple months to finally get both balances deposited into my bank. And the most aggravating part was that there were certain recovery stocks and medical stocks that began slipping so I was forced to take large losses on positions that I was unable to touch. TLDR; never using M1 again

  18. It's unfortunate that you had this issue and the brain death it caused to resolve, but what you were doing was illegal and M1 was just exercising their fiduciary responsibility. Managing another persons account requires a signed, notarized power of attorney. If you are trying to do the same thing at Schwab you'll eventually have the same thing happen.

  19. It’s next to impossible. once you have your Apex login set up, go to Apex and examine the cost basis for your open and also your closed positions. Because of the damned fractional shares, you’ll see that you have A LOT of positions: I had well over a thousand closed positions and I only ever owned about 80 different tickers.

  20. Thank you for the updates. I hope those who were throwing everything against M1 come back to read the updates because to me it at least seems like they are trying to fix it and there is some good news.

  21. Hey! Thanks so much for flagging. I’m sorry to hear you had an experience that didn’t match your expectations. We take issues like this very seriously.

  22. Thanks for the heads up! How do you suggest that we cross check for errors? I haven’t been too happy with some things . I just couldn’t put my finger on it. What platform would you move to if you no longer use M1? I’m a new investor.

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