M1 Finance vs. Betterment

• Zero commissions. There are no fees to use the platform. And you can trade almost any security, except mutual funds, for free.
• Customizable portfolios. Unlike other robo-advisors that force you to choose prebuilt portfolios, M1 Finance gives you the choice to build your own or choose from 80 preset options.
• Dynamic rebalancing. As you deposit money into your account, M1 allocates the funds towards more underweighted items to help keep your investment targets on track.
• Low minimum deposit. Start investing with an initial deposit of $100, which is relatively low compared to other robo-advisors. Retirement accounts have a $500 minimum.

• Tax benefits. A fully automated service that scans your portfolio daily for losses that you can then sell to realize a capital loss, potentially reducing your tax exposure.
• Customizable portfolios. Choose from a set of recommended portfolios and make adjustments that better fit your investment goals.
• Automatic rebalancing. Your portfolio adjusts daily so that it is never more than 3% off its target ratios (or 5% off if your portfolio has mutual funds). Your risk level stays the same, whether you deposit or withdraw cash or reinvest dividends.
• No minimum deposit. No minimum balance to open a Betterment Digital account. But its premium plan requires a balance of at least $100,000.

• No tax-loss harvesting. No feature to help you minimize taxes on capital gains or taxable income by selling investments that have experienced a loss.
• Limited customer service. Support is only available by email or phone, and limited to weekdays from 9:30 a.m. to 4 p.m. ET.
• Lacks financial goals. Most robo-advisors ask a series of questions to determine your risk tolerance and the timeline to reach your financial goals. M1 Finance doesn’t offer any financial planning or guidance.
• Withdrawal fee. While it’s free to put money into your account, it’ll cost you $100 to transfer your money out.

• Advisory fee. While Betterment charges only 0.25% in commissions, which is lower than the industry standard of 1%, M1 Finance doesn’t charge any advisory fees.
• No direct indexing. Although Betterment uses tax-loss harvesting to help offset taxes on gains and income, it doesn’t offer direct indexing.

• Trade windows. M1 makes trades on your account once or twice a day, depending on your service tier. Only M1 Plus members can make changes to their account two times per day to take advantage of another trading opportunity.
• Stock quotes. When the market is open, M1 displays quote information that’s 15 minutes delayed.
• Article library. Its website has a financial glossary and other educational financial articles on investing.

• Online financial planning tools. When you sign up, you’ll choose a financial goal, such as saving for retirement or general investing. Betterment will then ask you a series of questions to match you to a recommended portfolio to achieve your goal.
• Certified financial planners. Get personalized, one-on-one advice from a financial advisor on Betterment’s premium plan or buy a one-time advice package.
• Educational resources. Betterment has a rich collection of free financial articles, interactive quizzes and financial planning calculators for its customers.

• Reviews are mixed.

• Customers praise its low fees and the ability to customize their portfolio.

• Customers complain about the lack of customer service, which can take a few days to get a response.

• Reviews are mostly negative.

• Customers praise its user interface and tax-loss harvesting feature.

• Customers complain about delays withdrawing funds from their accounts.

★★★★★ 4.6/5

★★★★★ 4.7/5

★★★★★ 4.4/5

★★★★★ 4/5

• Phone. Call 312-600-2883
• Email. Fill out the request form on its website

• Phone. Call 646-600-8263
• Email. Send a request to Betterment’s customer service Monday through Friday, 9 a.m. to 6 p.m
• Live chat: Available Saturday and Sunday, 11 a.m. to 6 p.m. ET.

Read our review

Read our review