| Website |
https://www.betterment.com/ |
https://www.m1finance.com |
| Pros |
- Super-easy to setup and invest
- Lower fees (0.25%) than a traditional advisor (1%)
- Automatic rebalancing
- Tax-loss harvesting for taxable accounts
- Cash reserve account offers a competitive APY
- Joint and single accounts
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- No advisor fee, trading fee, or monthly fee.
- Concept of “Pies” - preset portfolios you can pick with a single click.
- Automatic investing enables rebalancing your portfolio as you make new contributions.
- Borrow against your portfolio with a low-interest loan.
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| Cons |
- No direct indexing of stocks
- Tax-loss harvesting’s benefits may be overstatated
- No real estate exposure
- Fees (0.25%) are higher than self-managed accounts
- Doesn’t take into account investments on other platforms
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- No tax-loss harvesting
- By adding multiple pies you can easily create an overly complicated portfolio of portfolios that duplicates investments.
- Limited trading time - On a free account, all of your transactions will happen in the morning. With an M1 Plus account, you can also trade in the afternoon.
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| Promotions |
- Up to 1 year with no advisor fee (up to $100,000)
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| Fees |
- Avg yearly expenses: 0.36%
- 0.25% yearly advisor fee for all assets under management
- 0.40% yearly advisor fee for Premium Investing
- 0.15% advisor fees for assets above $2 million
- 0.07% to 0.15% expense ratios for funds (avg 0.11%)
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- No management fee - M1 Finance changes no advisor fee.
- $125/yr fee for an M1 Plus Account.
- Additional Fees for various other one-off services like wire transfers, paperwork, or account conversions.
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