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M1 Finance vs Robinhood : Which One to Choose

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When it comes to investing there are numerous options available today . Two popular choices in the world of commission free trading are M1 Finance and Robinhood . But which platform suits you best ? Let’s dive into the differences between M1 Finance vs Robinhood to help you make an informed decision without all the financial jargon.

M1 Finance: Building Portfolios and Automating Investments

M1 Finance founded in 2015 aims to help people develop their own investing strategies and automate them . The best part no commissions . Of course you still have to pay those pesky regulatory fees that come with any investment but there are no sign up or ongoing fees for using the basic service . That’s a win . With M1 you can build your own portfolio of ETFs and stocks or you can choose from 80 ready to go expert portfolios . And here’s the cool part you don’t need a ton of money to invest because M1 lets you buy fractional shares . Fancy lingo aside it means you can invest in just a piece of a share making it affordable for everyone . Plus M1 offers automation features like investing schedules and dynamic rebalancing to keep your portfolio on track.

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Robinhood: Empowering Users with Commission-Free Trading

Now let’s talk about Robinhood the platform that shook up the investing world by introducing commission free trades in 2016 . Robinhood is all about giving you control . You can trade stocks , ETFs , options and even cryptocurrency without worrying about additional fees except for those regulatory ones . It’s designed to be beginner friendly with an easy to understand interface and a quick onboarding process . Here’s the best part there’s no minimum investment required so you can start with as little as you want . They even offer fractional shares so you can buy a piece of those expensive stocks without breaking the bank . However unlike M1 Robinhood doesn’t offer prebuilt portfolios or fancy features like automated rebalancing . You’re in charge of picking and trading individual positions.

Pros and Cons: Comparing M1 Finance and Robinhood’s Features

Now that we know the basics let’s highlight the pros and cons between M1 Finance vs Robinhood . M1’s got some cool features like dynamic rebalancing which means it helps you maintain a balanced portfolio by buying more of the positions that are underrepresented . And with 80 expert portfolios to choose from you have plenty of options . Plus M1 offers various account types so you can invest in a taxable account , a joint account , an IRA or even a trust . On the other hand Robinhood shines with its access to options and cryptocurrency trading . It’s a playground for those who want to dip their toes into these exciting investment realms . And let’s not forget that Robinhood is super beginner friendly with no minimum balance requirements and an interface that won’t make your head spin.

Considerations: Limitations and Target Audience for M1 Finance and Robinhood

Of course there are a few downsides to consider . With M1 the investment options are a bit limited with around 6,000 securities available and no options or cryptocurrency trading . Also , depending on the account type you may have only one or two trading windows per day . So if you’re someone who wants full control over individual positions M1 might not be the best fit . On the flip side Robinhood’s focus on frequent trading might not be the best strategy for long term investors . It’s like going for quick wins instead of playing the long game . And remember there’s no robo advisor help here so you’ll need to make your own investment decisions.

Conclusion: Selecting the Ideal Platform Based on Your Investment Goals

To sum it up between M1 Finance vs Robinhood both are solid investing platforms with their own perks and quirks . They both offer commission free trades and access to a decent range of investment options . M1 caters more to long term investors who prefer a portfolio based approach and some automation features . On the other hand Robinhood is a great choice for beginners who want to trade individual positions explore options and cryptocurrency and enjoy a user friendly experience . So take some time to understand your investing goals and preferences and you’ll be able to pick the platform that suits you best . 

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