Always on the driver side, against the heat shield. Underneath the engine hood, you might have to remove some plastic to get to it. Always use BMW fluid.
When is the last time you had your brake fluid flush? If you get your brake fluid flush as required, every 2 years, you should never run low. Old brake fluid will have a lower boiling point, meaning it will boil/bubble up when your brakes are hot. Air will not work as well as fluid, so it could put you in a dangerous situation.
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