Interactive Brokers Vs M1 Finance in Comparison 2022


When it comes to online stock trading, there are a lot of different platforms to choose from. In this article on AtoZ Markets, we will make a comparison two of the most popular options- Interactive Brokers vs. M1 Finance. We will look at the features offered by each platform, as well as the costs and benefits of using them. By the end of this article, you should have a good idea of which platform is right for you!

An Overview of Interactive Brokers

Interactive Brokers is a popular online stock trading platform that offers a wide range of features and tools for traders. The company was established in 1993 and is headquartered in Greenwich, Connecticut. Interactive Brokers has offices in more than 20 countries, and provides its services to clients from more than 200+ nations.

Interactive Brokers is a member of the Securities Investor Protection Corporation (SIPC), which safeguards accounts of customers up to $500,000. Interactive Brokers is also an affiliate of the Financial Industry Regulatory Authority (FINRA), which is an autonomous regulatory body for the industry of securities.

Interactive brokers

Interactive Brokers offers a range of options for platforms for trading and services for its customers, which include the possibility of trading options, stocks, or futures as well as forex. Interactive Brokers also offers a range of research tools and resources, along with an app for trading on mobile devices.

Interactive Brokers Pros and Cons 

Pros

√ Commissions and fees are low.

√ Fantastic platform that has lots of options

√ There are numerous investment options to choose from

√ Trade execution that is extremely reliable

√ A great library of educational and research materials

Cons

- The platform can be difficult to operate, particularly for those who are new to the platform.

- Complex tiered pricing models

- The customer service provided by telephones is sometimes poor

- The site and the client portal could be improved

- Selling order flow out of IBKR Lite accounts to put IBKR Lite users at a disadvantage

How do I open an Interactive Brokers account?

The account opening process for Interactive Brokers is accessible online. However, it can be a bit difficult to navigate.

Interactive Brokers accepts clients from almost all countries.

Click on "Start Application" to open the application via Interactive Brokers to start the process.

Make sure you have a Social Security or tax identification number and employer and bank account details.

Sign up with Interactive Brokers

Overview of M1 Finance

M1 Finance is a free online investment platform that offers an innovative method of investing. M1 lets you create an investment portfolio that includes ETFs and stocks designed to meet your needs in terms of investing. M1 provides a range of choices, like automatic portfolio rebalancing, tax loss extraction, dividend reinvestment, and other options. M1 Finance is the brand name of M1 Holdings Inc. It was founded in 2015 and headquarters is in Chicago, Illinois. 

M1 Finance

M1 is a great investment for investors of all levels. If you're just starting out or have invested for a long time, M1 makes it easy to create an investment plan that meets your needs. 

Pros and Cons of M1 Finance

Pros

√ Partial-share trading

√ Ability to make your own cash

√ A fully licensed broker that is fully regulated

√ You can make your own pie.

√ The margin rate is excellent.

√ They also offer IRAs

Cons

-There are only a few types of security that are available for trading.

-Service to customers is incredibly inadequate.

-Doesn't have enough tools 

How to open an account with M1 Finance? 

Click on the 'Get Started' button and enter the email and password. After that, you must submit an application.

You'll receive an email within a business day, either to confirm your application, or asking for more information.

If you require an official certificate to verify that you're who we claim to be We'll then send you instructions for uploading the documents you have in a safe way. We will give us up to seven days to go through the documents before allowing your account.

Get Started with M1 Finance

 

Interactive Brokers Vs M1 Finance: Regulations 

Interactive Brokers is regulated by a number of important financial authorities, which makes it a trusted application. The primary authorities with which it is registered are Investment Industry Regulatory Organization of Canada (IIROC), Securities Futures Commission (SFC), Japanese Financial Services Authority (JFSA), Financial Conduct Authority (FCA), Monetary Authority of Singapore (MAS), and the Commodity Futures Trading Commission (CFTC).

M1 Finance is an authorized company registered under Security And Exchange Commission, (SEC), and it's an independent authority within the Federal Government US.

M1 Finance is also a member of The Financial Industry Regulatory Authority. Their mission is to protect investors, and maintain market integrity. M1 Finance is also a member of the Securities Investor Protection Corporation.

M1 Finance is an American broker that is well-regulated. There is zero chance of fraud or being scammed.

Interactive Brokers Vs M1 Finance: Security

Interactive Brokers safeguards your funds by observing a range of regulations and doing a range of other actions that go above the minimum standards. These are the basic requirements:

IB customers' cash is held to a large degree in the accounts of several large bank accounts, U.S. Treasury bills as well as FDIC-backed corporate bonds. federally-approved AAA rating money market fund (less than 2percent of assets owned by customers) -- all of which are subject to periodic review by the IB's top management.

100% of customer stock that is not on margin is kept in separate depository accounts at The Depository Trust Company in the U.S. or, outside the U.S., in equivalent "good control locations" in accordance with SEC regulations. This stock is not part of any of the proprietary stock positions held by IB as well as its associates. It is not used for any purposes other than those for IB customers. It is also not susceptible to any lien.

In addition to the above, all cash and securities in IB customers' securities accounts are covered with SIPC (Securities Investor Protection Corporation) protection that can be as high as $500,000 (including $250,000 in cash) per customer. Alongside the normal SIPC protection, IB has purchased excess SIPC coverage from Lloyd's of London insurers.

Similarly, all data from M1 Finance is secured with the highest-quality 4096-bit encryption that is used by the military.

M1 Finance LLC is a licensed broker/dealer registered with FINRA and is a member of SIPC. A member of SIPC who provides security to the members' customers who purchase securities with a maximum of $500,000 (including $250,000 in demands for cash).

M1 Finance Vs Interactive Brokers: Products 

Interactive Brokers offers a wide variety of products and services, from basic stock and options trading to more complex products such as stocks, options, futures, currencies, cryptocurrencies, US Spot Gold, bonds, ETFs, funds, and more, all from a single unified platform. The company also provides research, analysis, and educational resources to help investors make informed decisions.

In addition to its online brokerage services, Interactive Brokers also offers a number of other financial services, including banking, lending, and investment management. The company is headquartered in Greenwich, Connecticut, and has offices in more than 20 countries around the world.

On the other hand, M1 Finance is an online robo-investment platform that offers a variety of products and services. M1 Finance offers investing, borrowing, and spending in one platform. Let's see how their INVEST, BORROW, and SPEND work.

Through M1 Invest, their M1 Invest, you can increase your wealth. You can choose the amount you wish to invest and determine the risk tolerance you are willing to accept.

For your own pie you can select from more than 6000 stocks as well as Exchange Traded Funds (ETFs). You can also select your pie from M1 Finance's custom-made pies. They've got over 100 ready-made "Expert Pies" based on your financial objectives.

M1 Borrow, a product of M1 Finance, gives you credit at the lowest interest rate without the need for additional documentation. M1 Borrow is only available through their margin account if you ensure that you have an initial balance of at least $5,000.

M1 Spend is part of M1 Finance, which is an insured checking account (insured by the FDIC). It comes with no monthly fees and no minimum balance to keep. Those with an M1 Plus membership, on the other hand, earn 1% APY on their balance, which is available on M1 Spend, as well as 1% cash back on debit card purchases.They also receive ATM fee reimbursements for up to four transactions.

Interactive Brokers vs. M1 Finance: Trading Platforms

Interactive Brokers Vs M1 Finance

Interactive Brokers provide a variety of platforms for trading. They offer a Client Portal, which is an online platform.

Trader Workstation is their flagship trading platform, with a variety of features. They also offer IBKR Mobile and IBKR GlobalTrader.

M1 Finance offers two different platforms to its clients that include a web-based platform as well as a mobile application.

Interactive Brokers Vs M1 Finance: Fees and Commissions

Interactive Brokers Pricing scheme for Interactive Brokers is complex. It offers three types of commissions that are applicable for U.S. equities:

Fixed price per share of shares that are $0.005 per share. This includes the obligatory $1.00 minimal and a maximum that is one percent the amount of the transaction. This covers all exchanges as well as most of the charges imposed by regulatory authorities.

- The price per share depends on the volume of monthly orders. Prices range from a minimum that is $0.0035 each share when shares are less than 300,000. It could go as high as $0.0005 per share if there greater than 100 million shares exchanged every month. The minimum amount is $0.35 every transaction. This does not include regulatory and exchange charges.

- IBKR Lite can be described as the IBKR Lite application that permits trading at no cost in the U.S.--listed ETFs and stocks (via IBKR Mobile and the Client Portal). Client Portal and IBKR Mobile). The trades are processed via IBKR Mobile to generate

One the other hand, M1 Finance account maintenance fee is zero. Their investment funds fees are 0.06% - 0.20%. M1 Spend doesn't have any fees. All-in-all investment fees are 0.06%-0.20%. 

M1 Plus subscription fee is $125/year (First year free).

Interactive Brokers Vs M1 Finance: Customer Support 

Interactive Brokers has numerous phone numbers that are accessible by a variety of different nationalities. However, it doesn't offer support 24/7 for all of its clients. There is a chat online option. Chatbots are also accessible through the IB website.

M1 Finance doesn't have any contact information as well as email contact information on the website. If you want to resolve your issue you must fill out an inquiry on M1 Finance's support site. Their support staff is accessible from 9am to 5pm ET during the times that they are open. The United States Stock Market is accessible. They typically take one business day to answer your inquiry. They also have an option to chat live, however it is run by bots. There were no human chat agents.

Is Interactive Brokers (IB) better than M1 Finance?

It depends on what you're looking for. M1 Finance is a great option for investors who want a simple, easy-to-use platform with low fees. Interactive Brokers is a good choice for experienced investors who are comfortable using a more complex platform and who are interested in accessing international markets.

Who should choose Interactive Brokers?

Interactive Brokers is a good choice for experienced investors who are comfortable using a more complex platform and who are interested in accessing international markets. If you fit this description, then Interactive Brokers may be the better choice for you.

Who should choose M1 Finance?

M1 Finance is a great option for investors who want a simple, easy-to-use platform with low fees. If this describes you, then M1 Finance may be the better choice.

Conclusion 

Both Interactive Brokers and M1 Finance offer a variety of features that can be helpful for traders. If you are an active trader who wants to save money on commissions, then Interactive Brokers may be the better choice. However, if you are a beginner who wants to learn more about the stock market, then M1 Finance may be a better choice. Ultimately, it depends on your individual trading style and preferences. Whichever platform you choose, make sure to do your research and practice with a paper trading account before putting any real money at risk!

Have you ever used either Interactive Brokers or M1 Finance? What was your experience like? Let us know in the comments below!