| Website |
https://www.m1finance.com |
https://robinhood.com |
| Pros |
- 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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- Simple Signup and account creation.
- Very large platform with millions of active users.
- Allows for investing while transferring money from your bank.
- Unlimited free trades.
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| Cons |
- 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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- Signing up is simple, but creates a brokerage (taxable) account.
- Gamification features may encourage you to trade more often.
- No retirement account options.
- Trades go through an intermediary – resulting in longer trade times.
- They can shut off access to individual stocks at any time.
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| Promotions |
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- 1 random free stock when you sign up and make a deposit valued between $3 and $225.
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| Fees |
- 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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- No fees are charged directly to you.
- Due to Robinhoods payment flow order, your trades go through an intermediary that allows Robinhood to make money when you trade.
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