M1 Finance vs. Robinhood — Which One is Better For You?

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Robinhood pioneered commission-free inventory buying and selling that modified how traders commerce perpetually. Since then, nonetheless, different brokers have adopted go well with with extremely aggressive choices. One such competitor is M1.

Each brokers provide a variety of funding choices appropriate for various kinds of traders past zero-commission buying and selling and the shopping for and promoting of shares. Though the 2 brokerage corporations provide intuitive and easy-to-use platforms, it ‘s essential to contemplate their options earlier than you make investments your cash.

This evaluate compares M1 vs. Robinhood that will help you determine which commission-free inventory buying and selling platform most closely fits your funding wants.

The Brief Model

  • M1 Finance is finest for long-term or passive traders interested by investing and going about their lives.
  • Robinhood is nice for energetic traders preferring cryptocurrency buying and selling, choices buying and selling, and day buying and selling.
  • M1 presents automated investing, borrowing, a bank card, banking, and retirement funding accounts multi function platform.
  • Robinhood has an easy-to-use platform, making it best for newbie traders who need to discover ways to purchase and promote particular person shares, choices, ETFs, or cryptocurrency.

M1 vs. Robinhood: Overview

What Is M1?

M1 (previously M1 Finance) is a U.S.-based monetary providers firm that gives commission-free inventory buying and selling and a number of other different funding choices. Based in 2015 by Brian Barnes, M1 Holdings Inc. (together with its associates, M1 LLC and M1 Spend LLC), M1 is widespread amongst traders who need a wider vary of economic merchandise.

The all-in-one private cash administration firm offers customers entry to borrowing, investing, and spending providers. The platform gives good cash administration and automatic investing for the passive investor, making it an all-around private finance software.

Learn our evaluate of M1 >>>

What Is Robinhood?

In 2013, Vladimir Tenev and Baiju Bhatt disrupted the best way People commerce shares by introducing Robinhood – the free inventory buying and selling app. As an alternative of charging commissions on trades, the monetary service firm makes cash from margin lending, order move, pursuits, rehypothecation, and upgraded service charges.

The U.S.-based dealer has a user-friendly platform that permits traders to entry the inventory market to commerce shares and ETFs. It additionally presents choices buying and selling.

With Robinhood Crypto, any investor on the platform can faucet into the cryptocurrency market. Nevertheless, solely seven cryptocurrencies are at present listed on the Robinhood funding platform.

Learn our full Robinhood evaluate >>>

M1 vs. Robinhood: Key Options

M1’s Distinctive Options:

  • M1 Spend. M1 Spend is checking account with an accompanying debit card that permits customers to get cashback on their purchases. Normally, when traders join an M1 Make investments account, additionally they get entry to M1 Spend. You’ll be able to simply and shortly switch funds between accounts with M1 Spend with out charges or a minimal stability.
  • M1 Borrow. M1 Borrow is the dealer’s portfolio lending program for traders who need to use margin. With M1 Borrow, customers get among the lowest margin charges within the trade. All customers can get pleasure from a 3.75% margin charge. Customers on the M1 Plus membership get a 2.25% margin charge. Buyers can borrow as much as 40% of their invested stability utilizing the M1 Borrow characteristic.
  • M1 Plus. M1 Plus is a premium account choice that gives 1% cashback in your purchases and 1% APY in your stability. With M1 Plus, traders have entry to the Good Transfers characteristic that permits computerized money transfers between M1 Make investments and M1 Spend.
  • Robo advisor. M1 Finance presents an inexpensive robo advisor service that gives funding steering and portfolio administration providers. It additionally permits traders to automate portfolio administration.
  • M1 Pie. One of many distinctive options of M1 is the best way it trades shares, ETFs, and close-ended funds. It permits customers to commerce in pies, that are basically a collection of securities. Buyers can construct their very own pies or commerce one already provided by the dealer. Every pie can encompass as much as 100 slices of shares, ETFs, and close-ended funds.

From this M1 overview, it is clear that the dealer’s philosophy hinges on three predominant pillars: investing, borrowing, and spending. This might make the platform a superb selection for traders who need an all-in-one private administration dealer.

Robinhood’s Distinctive Options:

  • Robinhood Gold account. Buyers can improve to a Robinhood Gold account to commerce on margin (at a low 2.5% margin charge), entry unique market analysis, and obtain Degree II knowledge. Nevertheless, it’s essential to have at the least $2,000 to qualify.
  • Low-cost buying and selling. Robinhood presents low-cost and commission-free inventory buying and selling. Buyers interested by day buying and selling will discover the low charges fairly enticing.
  • Digital library: One of many causes newcomers discover Robinhood extra appropriate is as a result of they’ve entry to a digital library. The library is a wealthy useful resource containing varied subjects on choices buying and selling and investing typically.
  • Prolonged hours. Merchants can get pleasure from extra buying and selling hours on the Robinhood buying and selling platform. Not like M1 Finance, which lacks this characteristic, Robinhood presents pre-market and after-hours buying and selling. Pre-market opens at 9:00 a.m. ET – half-hour sooner than the standard market hours on common enterprise days. After-hours buying and selling ends at 6:00 p.m. ET – two further hours after the same old market hours on common enterprise days.
  • Self-directed buying and selling. Robinhood permits merchants to put money into varied asset courses, together with shares, ETFs, choices, and cryptocurrencies.

Robinhood is appropriate for newcomers interested by day buying and selling as a result of it permits traders to commerce with out worrying about excessive charges. It is also a very good match for margin buying and selling.

M1 vs. Robinhood: Obtainable Funding Choices

Most brokers provide shares and ETFs and M1 isn’t any completely different. Even in case you are a small investor, you may leverage the fractional shares investing accessible on the platform to purchase massive shares. Nevertheless, traders on M1 are restricted to investing in particular person shares and ETFs.

Then again, Robinhood helps cryptocurrency buying and selling and permits traders to purchase fractional shares. Customers can purchase shares, ETFs, ADRs, and the dealer permits choices buying and selling with out charging a fee.

Sadly, each brokers don’t assist a couple of different funding choices, together with CDs, mutual funds, futures, foreign exchange, and bonds.

M1 vs. Robinhood: Buying and selling Platform and Usability

Each platforms are very user-friendly and provide a streamlined expertise. M1’s web site offers customers clear efficiency metrics with a number of tabs that present portfolio holdings and actions. The platform is simple to navigate, with easy buttons to allow you to promote, purchase, or rebalance. Buyers have entry to an in depth breakdown of their allocation utilizing graphs.

Then again, Robinhood is understood for its excessive simplicity, demonstrated within the platform’s design. Even a beginner can shortly navigate and discover their means on the intuitive platform. The platform gives IPO bulletins, transaction stories, Robinhood updates, and a newsfeed of customizable shares lists.

M1 vs. Robinhood: Account Sort

M1 Finance presents custodial and joint accounts, which permits the straightforward switch of account possession between traders. Clients can open an all-in-one checking account, which mixes borrowing, investing, and banking into one account sort. The dealer additionally presents bank card and margin accounts.

Along with all of those, M1 presents a couple of various kinds of particular person retirement accounts, together with Conventional IRAs, Roth IRAs, and SEP IRAs.

Robinhood clients, in the meantime, have fewer account choices. You’ll be able to solely entry a margin account for borrowing when you have a Robinhood Gold account as an investor. And Robinhood would not at present assist any retirement accounts.

Discover out extra >>> How you can Get Wealthy From Shares

M1 vs. Robinhood: Charges

Robinhood is legendary for its commission-free buying and selling. The dealer doesn’t cost a payment for buying and selling shares, ETFs, cryptocurrencies, and choices. Plus, there is not any cost for account upkeep, making it among the finest low-cost brokers within the trade.

Nevertheless, traders who select a Robinhood Gold account for margin buying and selling pays a $5 month-to-month account upkeep payment.

Like Robinhood, M1 additionally presents a commission-free inventory and ETF commerce. And whereas it doesn’t cost clients for account upkeep, traders with zero exercise for greater than 90 days pays a payment for account inactivity.

Fee / Price M1 Finance Robinhood
Inventory $0 $0
ETF $0 $0
Choices N/A $0
Cryptocurrency N/A $0
Account upkeep payment $0 $0 ($5 month-to-month for Robinhood Gold account)
Account switch payment $100 $75 
Mutual funds N/A N/A

Total, each brokerage corporations provide decrease transaction charges than many different brokers. Nevertheless, closing out your account attracts fees. Robinhood fees a $75 payment for account transfers, whereas M1 fees $100 for a similar transaction.

M1 vs. Robinhood: Buyer Service

M1 gives good customer support with a number of choices. These embrace:

  • Telephone assist
  • Electronic mail assist with a most of 24 hours response time
  • Immediate chatbox

Along with all of those, M1 has a strong assist middle on its web site with loads of useful articles that present easy-to-understand solutions to the commonest investment-related questions.

Prior to now, Robinhood was infamous for providing very restricted customer support. But it surely’s just lately made some strides to enhance on this space. In October 2021, it announced the launch of 24/7 telephone assist. Customer support calls could be requested from proper contained in the Robinhood app.

M1 vs. Robinhood: Cell App

M1 has a highly-rated cell app, significantly for its ease of use. The app is out there for Android and iOS units and comes with nearly each characteristic you can find on the web site.

Robinhood additionally has a full-featured cell app for Android and iOS units. The app is particularly designed with the brand new investor in thoughts, so there aren’t too many superior options. Nevertheless, it’s simple to make use of and permits fast and simple buying and selling.

M1 vs. Robinhood: Safety

Each brokers take safety very significantly and have a number of measures in place to stop fraud and hacks. In addition they defend traders’ funds in case any of the brokers go below.

M1 security measures embrace two-factor authentication and military-grade 4096-bit encryption. Buyers’ investments are coated by SIPC insurance coverage, and deposits are FDIC insured.

Robinhood’s security measures embrace biometric recognition and two-factor authentication. Buyers’ inventory, money, funds, and ETFs are insured. Additionally, traders can disconnect any unknown units from their crypto buying and selling account.

Professionals and Cons of M1


  • Dynamic rebalancing: The dealer can rebalance your portfolio utilizing your new purchases to purchase positions the place your portfolio is underperforming.
  • Supplies entry to many accounts: An investor can open and put money into varied accounts, together with a taxable account, particular person retirement account, joint account, or belief.
  • Helps many account sorts: Along with checking, margin, and bank card accounts, M1 permits traders to open and put money into a number of particular person retirement account sorts, together with SEP IRAs, Roth IRAs, and Conventional IRAs.
  • Low margin charges: M1 presents one of many lowest margin charges within the trade with the M1 Borrow characteristic.


  • No cryptocurrency buying and selling. M1 doesn’t assist cryptocurrency buying and selling, making it unsuitable for any investor seeking to commerce that asset class.
  • No mutual funds, bonds, and CDs. Having a very diversified portfolio could also be troublesome with M1 as a result of it limits traders to shares and ETFs. The dealer doesn’t provide funding choices corresponding to bonds, mutual funds, and CDs.
  • Not for the energetic investor. M1 is basically constructed to satisfy the wants of passive traders. So it won’t be a very good match for those who’re interested by short-term buying and selling.
  • Doesn’t give traders whole management. M1 could not work nicely for you if you need a dealer that helps investing in particular person positions as a substitute of a portfolio. Whereas you should buy and promote shares, they have to be from particular slices of your portfolio.

Professionals and Cons of Robinhood


  • Permits for a very diversified portfolio. Merchants can commerce with Robinhood crypto or put money into shares, choices, and ETFs.
  • No fess or minimums. Robinhood merchants don’t have to take care of a minimal stability on their buying and selling accounts and Robinhood Gold accounts. Buying and selling is commission-free for crypto, shares, choices, and ETFs.
  • Margin buying and selling accessible. Merchants can carry out margin buying and selling and have entry to fractional shares investing. Additionally, there is no such thing as a per-contract choices payment on the Robinhood platform.
  • Simple-to-use platform. Each the web site buying and selling platform and the Robinhood app are simple to grasp, navigate, and use. This makes it an amazing selection for any newbie investor.


  • No retirement accounts, bonds, and mutual funds investing. Robinhood doesn’t provide bonds, mutual funds, and IRAs. You’ll have to seek out one other dealer in case you are interested by these funding choices.
  • Restricted crypto choices. Whereas Robinhood helps investing in cryptocurrencies, traders could discover having solely seven crypto choices listed on the buying and selling platform fairly limiting.
  • Customers can’t withdraw crypto funds. Investing in crypto is feasible, however getting your funds out of Robinhood generally is a problem. To withdraw your crypto funds, you may should promote them first to transform them to fiat cash.

M1 vs. Robinhood: Which Dealer Is Higher for You?

This is our last verdict: Contemplate selecting M1 for those who’re an investor with advanced possession or tax state of affairs. Additionally, the platform’s account sorts and funding choices make M1 work higher for the passive investor interested by long-term investing.

Robinhood, however, works finest for the energetic dealer interested by day buying and selling. It is also a greater choice if you wish to purchase and promote crypto (regardless of the restricted variety of currencies that it presents) since M1 doesn’t assist cryptocurrency buying and selling in any respect as of writing.

In different phrases, in case you are interested by borrowing and investing, M1 could also be a better option.

Lastly, take into account that one dealer isn’t essentially higher than the opposite. They merely differ from one another and are appropriate for various kinds of traders.

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