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M1 Finance vs. Robinhood
The best platform depends on whether or not you prefer to pick and choose your own securities.
Both platforms offer commission-free trades, but are designed to attract two very different types of investors.
Which one is better?
- Choose M1 Finance if you’d like to have a robo-advisor manage your portfolio for you.
- Choose Robinhood if you prefer to buy and sell your own securities.
M1 Finance and Robinhood are two of the best-priced investment platforms on the market. It’s tough to compete with free, and that’s what these platforms provide: trades free from commissions and account management fees. But outside their rock-bottom pricing, these platforms have little in common. And that’s because they’re designed to serve different types of investors.
For investors who want a robo-advisor for hands-off investing, M1 Finance stands at the ready. Among its perks are entirely customizable portfolios, automatic rebalancing and a healthy lineup of account options, including individual, retirement, joint and trust accounts. But the platform lacks tax-loss harvesting options and doesn’t offer portfolio recommendations.
Investors who want to execute their own trades and perform their own research will want to explore Robinhood. This beginner-friendly platform offers an intuitive user interface, access to the cryptocurrency market and instant deposits of up to $1,000. But investors must be wary of service outages and limited analysis software.
How do M1 Finance and Robinhood compare?
A look at fees, features, pros and cons for these two investment platforms:
|Overview||M1 Finance is a robo-advisor that puts you in the driver’s seat with fully-customizable portfolios. It strikes a balance between automated investing and personalization, making it a good fit for hands-on, long-term investors.||Robinhood is a trading platform for beginners that offers easy-to-navigate software, no account minimums and no commission fees. Research and analytics tools are somewhat limited, but investors can bump up their brokerage account to Robinhood Gold for $5 monthly to receive Morningstar research reports, Nasdaq Level II Market Data and instant access to deposits of $5,000 to $50,000.|
|Minimum deposit to open||$100||$0|
|Tools and research|
|Reputation and customer reviews|
|Apple App Store reviews|
|Google Play Store reviews|
M1 Finance and Robinhood cater to two very different investors. Traders looking to buy and sell their own securities may benefit from Robinhood’s commission-free trades, but will need to be wary of service outages. Those ready to have their assets managed by a robo-advisor will want to explore M1 Finance’s offerings, but should be prepared to devise their own asset allocation strategy.
Review your platform options with numerous providers to find the account best suited to your investment goals.
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