M1 Finance vs Robinhood in Comparison 2022 | Which One is Better?


Undoubtedly, M1 Finance and Robinhood are the biggest names in the trading industry. However, both platforms offer a variety of features, making it difficult to decide which one is the best for you.

If you want to achieve the maximum benefit from your investment, it would be a brilliant idea to know about the trading platform and its features. And, there is nothing better than comparing popular trading platforms to pull out the best one.

Therefore, here is the comparison of M1 Finance vs. Robinhood.

It's going to be an unbiased comparison. AtoZ Markets is in no way responsible for any information given by the writer.

About M1 Finance

M1 finance vs robinhood

image credit: M1 Finance

M1 Finance is a free, online investment platform that offers a unique investment approach. With M1, you can create a portfolio of stocks and ETFs tailored to your specific investment goals. M1 also provides various features, including automated portfolio rebalancing, tax-loss harvesting, and dividend reinvestment.

M1 is perfect for investors of all experience levels. Whether you're just starting or you've been investing for years, M1 makes it easy to create a portfolio that meets your needs. Plus, M1 is always free to use.

Read our full review of M1 Finance

About Robinhood

About Robinhood

Robinhood is a commission-free stock brokerage. This means that you can buy and sell stocks without having to pay a commission.

Robinhood was founded in 2013 by two Stanford graduates, Vladimir Tenev and Baiju Bhatt. The two were inspired to create Robinhood after they experienced how expensive it was to trade stocks on their own.

Since its launch, Robinhood has gained a large following. The app has been downloaded over 5 million times and has over $1 billion in transactions.

M1 Finance vs. Robinhood: Trading Experience

Both apps offer a great trading experience. However, M1 Finance is the better option for more experienced traders. This is because it provides more features and flexibility. On the other hand, Robinhood is perfect for beginner investors who want to invest in stocks and ETFs without paying commission fees.

Let's compare the two apps and help you decide which is the best for your trading experience.

Desktop Platforms

Trading platforms

Both of these platforms have an excellent desktop trading experience. And that makes it hard to do Robinhood vs. M1 Finance comparison. Yet, there are some key differences that you should take a look at.

M1 Finance offers more features and customization options, while Robinhood is geared towards more experienced traders.

For example, with M1 Finance, you can create custom portfolios of stocks and ETFs or choose from one of the platform's pre-made portfolios. You can also set up automatic rebalancing and dividend reinvestment and choose from various charting and analysis tools.

On the other hand, Robinhood offers a broader range of order types: market, limit, stop, and stop-limit orders. Also, it provides detailed historical data and multiple trading options.

Mobile

There is no question that mobile trading apps have revolutionized the investment landscape. You can now do it all from the palm of your hand.

With that in mind, let's take a look at two of the most popular mobile trading apps on the market today: M1 Finance and Robinhood.

User Interface

One of the primary considerations for mobile trading apps is the user interface. How easy is it to use the app? How intuitive is it?

M1 Finance's user interface is very user-friendly. The app is easy to navigate, and all of the vital information is easy to find.

Robinhood's user interface is also very user-friendly. The app is easy to navigate, and all of the vital information is easy to find. However, Robinhood's user interface is a bit more cluttered than M1 Finance's. This can make it a bit more challenging to find specific information.

Trading Features

M1 Finance and Robinhood are both quite comparable when it comes to trading features. Both apps offer a wide variety of tradable assets, and both apps offer real-time trading.

Where M1 Finance does have an advantage over Robinhood is in terms of order types. M1 Finance offers more order types than Robinhood, which can be helpful for more advanced traders.

Overall, both M1 Finance and Robinhood are excellent mobile trading apps. They both offer a user-friendly experience, and they both provide a wide variety of trading features.

Where M1 Finance does have an advantage over Robinhood is in terms of order types. M1 Finance offers more order types than Robinhood, which can be helpful for more advanced traders.

M1 Finance vs. Robinhood: Usability

M1 Finance and Robinhood are both user-friendly platforms, but M1 Finance has a slight edge. The overall layout is immaculate and intuitive on both platforms, but some users may find Robinhood's menus a bit more confusing. For example, to add a stock to your watchlist on Robinhood, you have to go to the "Investing" tab, click on "Futures & Options," and then select the "Stocks" tab. With M1 Finance, you can just click on the "Add to Watchlist" button on the stock's page.

M1 Finance also offers more customization options. For example, you can choose how many stocks you want to see on each page and how many columns to display. You can also hide or show the prices and change the text size. Robinhood doesn't offer as much flexibility.

M1 Finance also has a neat feature to create custom portfolios. You can choose the stocks, ETFs, and mutual funds that you want to include, and you can even set up automatic rebalancing and dividend reinvesting. Robinhood doesn't have this feature, but it does offer fractional shares, which can come in handy if you're investing a small amount of money.

Overall, M1 Finance is a bit more user-friendly than Robinhood, but both platforms are easy to use.

M1 Finance vs. Robinhood: Fees

When you are looking to invest, you want to make sure that you are getting the best bang for your buck. This is especially important when it comes to trading fees, as these can quickly add up and eat into your profits.

Trading Fees

M1 Finance offers a unique platform that allows you to invest in both individual stocks and ETFs. The platform has no account minimum, and there are no trading fees for stocks and ETFs. However, there is a $10 monthly fee for using the platform.

In contrast, Robinhood is a commission-free stock trading app that allows you to buy and sell individual stocks and ETFs. The app has no account minimum and no trading fees. However, there is a $6 monthly fee for using the platform.

Trading Commission

Both offer low trading commissions, but there are some differences between the two.

M1 Finance offers free trading commissions for all investors. In addition, there are no limits on the number of trades that you can make.

Robinhood offers free trading for investors who make less than $5,000 in trades per year. For investors who make more than $5,000 in trades per year, the commission is $5 per trade.

Inactivity Fees

An inactivity fee is a charge assessed to customers who do not make any trades within a specific time frame. For example, M1 Finance charges $5 per month for customers who do not make any trades within a 6-month period. This fee is waived for customers who have a balance of at least $10,000.

Robinhood does not charge an inactivity fee. This is a big draw for customers, as it means they can invest without worrying about being charged extra for not making trades.

Non-Trading/Other Fees

M1 Finance charges an annual fee of $0 for accounts with a balance of less than $10,000 and $45 for accounts with a balance of $10,000 or more. There is also a $2 per month fee for accounts that have between $2,000 and $10,000.

Robinhood does not charge any annual or monthly fees. However, they do charge a $2 fee for each ACH transfer (when you move money in or out of your account) and a $10 fee for each wire transfer.

M1 Finance vs. Robinhood: Investment Options

Both platforms offer individual and joint taxable accounts, Roth and traditional IRAs, and SEP and SIMPLE IRAs. In addition, M1 Finance also offers a retirement account for businesses.

M1 Finance offers a wider range of investment options than Robinhood. For example, M1 Finance offers over 80 ETFs, while Robinhood provides only 26. M1 Finance also offers individual stocks, while Robinhood does not.

M1 Finance offers more customization options than Robinhood. For example, investors can choose the individual stocks and ETFs they want to invest in on M1 Finance, while Robinhood automatically builds a portfolio for investors.

M1 Finance vs. Robinhood: Account Types

M1 offers a wide variety in terms of account types. However, Robinhood is a simple and easy option.

M1 Finance Account Types

  • Individual Taxable accounts
  • Joint taxable accounts
  • Roth IRA accounts
  • Traditional IRA accounts
  • SEP IRA accounts
  • SIMPLE IRA accounts.
  • Trust accounts
  • Custodial accounts

Robinhood Account Types

  • Instant
  • Cash
  • Gold

Overall, M1 Finance is a more comprehensive online brokerage platform than Robinhood. If you are looking for a platform that offers a wide range of account types and investment options, M1 Finance is a good choice. On the other hand, if you are only looking for an individual taxable account, Robinhood is a good choice.

M1 Finance vs. Robinhood: Security

One of the main differences between M1 Finance and Robinhood is security. M1 Finance is FDIC insured, which means that your money is insured up to $250,000. Robinhood is not FDIC insured, so your money is not guaranteed if something happens to the company.

Another difference is that M1 Finance offers a variety of account types, including individual and joint accounts, retirement accounts, and trusts. Robinhood only offers individual accounts.

M1 Finance vs. Robinhood: Support

Cost

M1 Finance also offers account management services. For a fee, M1 Finance will help you create and follow a custom investment plan, rebalance your portfolio, and more. Robinhood does not offer these services.

Availability

M1 Finance offers customer support through email, phone, and chat. In addition, the company has a comprehensive frequently asked questions (FAQ) section on its website, which may help you find the answer to your question without having to speak to a customer service representative.

On the other hand, Robinhood offers customer support through email and phone. Unfortunately, the company does not have a comprehensive FAQ section on its website, which may make it challenging to find the answer to your question without speaking to a customer service representative.

Speed

Robinhood offers quick response and fastening solutions to your problem in terms of speed. So that is a good piece of positivity.

Quality

In overall quality, Robinhood has expert customer support staff that can solve your problem quickly and in a professional way. However, M1 Finance also has a pretty impressive support team with top-notch quality.

Regulations of M1 Finance and Robinhood

Broker regulation comparison

M1 Finance is a registered company registered under Security And Exchange Commission (SEC) and is an independent agency that is part of the Federal Government US.

M1 Finance is also a part of The Financial Industry Regulatory Authority (FINRA). Their mission is to safeguard investors as well as ensure market integrity. M1 Finance is also a part of the Securities Investor Protection Corporation (SIPC).

Robinhood is a no-cost stock brokerage application that permits users to purchase and sell ETFs as well as stocks. Robinhood's license is issued and is regulated through the Securities and Exchange Commission (SEC) as well as the Financial Industry Regulatory Authority (FINRA).

M1 Finance vs. Robinhood: Research and Tools

M1 Finance offers a library of research reports from Morningstar and other providers. You can also create your own custom research screens and save them for future use. The platform also offers interactive charts with dozens of technical indicators and social sentiment data.

Robinhood offers a limited selection of research reports, mainly from Morningstar. You can also create your own custom research screens, but they can't be saved for future use. The platform offers interactive charts with a limited number of technical indicators.

Overall, M1 Finance offers more research and tools than Robinhood. So if you're looking for a comprehensive research platform, M1 Finance is a better option. On the other hand, if you're primarily interested in primary stock data and charts, Robinhood may be sufficient.

Enter the Blog section title for the introduction

Why Should You Choose M1 Finance?

M1 Finance is a unique investment platform that offers a wide range of features and benefits that are not available with other investment platforms. Some of the key elements that make M1 Finance an excellent choice for investors include:

Free investing: M1 Finance offers free investing for all users, regardless of account size or investment amount. This makes it an excellent choice for investors of all experience and investment knowledge levels.

Wide range of investment options: M1 Finance offers a wide range of investment options, including individual stocks, ETFs, and mutual funds. This allows investors to build a custom portfolio that meets their specific investment needs.

Automated portfolio management: M1 Finance offers automated portfolio management, which helps investors to automatically rebalance their portfolios and minimize risk. This allows investors to stay on track with their investment goals and can help to improve their overall returns.

Easy to use interface: M1 Finance has a user-friendly interface that makes it easy for investors to manage their portfolios. This makes it an excellent choice for investors who want a simple and easy-to-use investment platform.

If you are looking for a unique and innovative investment platform that offers a wide range of features and benefits, M1 Finance is a great choice.

Why Should You Choose Robinhood?

Robinhood is a commission-free trading platform. In addition, the app has a user-friendly interface and offers in-app educational content to help users make informed investment decisions.

The app does not charge commission fees, and users can invest in various assets.

Robinhood also offers a variety of features that make it easy for investors to stay informed and make informed investment decisions. For example, the app provides real-time market data, educational content, and a user-friendly interface.

Also, it supports cryptocurrency investment. The app offers a variety of cryptocurrencies, and users can buy and sell cryptocurrencies in real-time.

Overall, Robinhood is an excellent option for investors who are looking for a low-cost, user-friendly way to invest in the stock market and cryptocurrencies.

Conclusion

M1 Finance and Robinhood are both online brokerages that allow you to invest in stocks, ETFs, and mutual funds. They are both free to use, but Robinhood does not offer mutual funds, and M1 Finance does not offer individual stocks.

M1 Finance offers more features than Robinhood, including the ability to buy partial shares, automatic portfolio rebalancing, and tax-loss harvesting. M1 Finance also has a more user-friendly interface.

Robinhood is better for investors who want to trade individual stocks, while M1 Finance is better for investing in ETFs and mutual funds.

So, M1 Finance vs. Robinhood: Which is for you? You should decide according to the above factors.

FAQs

Faq

Is M1 Finance trustworthy?

M1 Finance is a relatively new player in the online investing space, but they have quickly become one of the most popular options among investors. The company has a strong focus on providing an easy-to-use platform that makes it simple for investors to create and customize their investment portfolios.

M1 Finance is also one of the most affordable options available, with no account minimums and no commissions on trades. This makes it an excellent option for investors of all experience levels and investment amounts.

Overall, M1 Finance is a trustworthy and affordable option for investors looking for an easy-to-use platform for building their own investment portfolios.

Can you day trade with M1 Finance?

M1 Finance does not have a real-time stock trading platform, so you cannot day trade stocks on M1 Finance. If you are looking for a day trading platform, we recommend checking out Robinhood or TD Ameritrade.

Is M1 Finance good for long-term investing?

M1 Finance is a good choice for long-term investors who want a combination of commission-free investing, automated portfolio rebalancing, and a wide variety of investment options.

Can you invest in crypto on M1?

M1 allows you to invest in a range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. You can also invest in other digital assets, such as Tether, Golem, and Augur.