M1 Finance vs Robinhood 2018

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M1 Finance and Robinhood are both redefining what modern-day investing looks like.

Both online brokerages offer free trades and excellent mobile applications to manage portfolios. However, there are some key differences with M1 Finance vs Robinhood. For starters, M1 offers automated investing in the form of “pies” where users can decide where they’d like their funds to be invested. In terms of tradable products, Robinhood offers limited options trading, where as M1 Finance does not. However, M1 offers bond trading, and Robinhood does not offer bond trading.

Both brokers offer a browser-based platform as well as a very popular mobile app. With that said, if we have to choose between M1 and Robinhood, we will pick M1 Finance every time. Neither M1 nor Robinhood offer super advanced trading capabilities (like futures trading), so both brokers are best for passive long stock and bond investing.

However, since this is what both M1 and Robinhood are best used for, M1 offers way more for the traditional passive investor than Robinhood, and M1 does it entirely for free.

The level of service offered at M1 is should not be free, but it is.

See the key differences and similarities below.

M1 Finance vs Robinhood 2018

Company Ratings

 M1 Finance

 Robinhood

Overall

Commissions & Fees

Customer Service

Trading Platforms

Mobile App

Overall Ease of Use

Promotion Value

 N/A

N/A

Fees

 M1 Finance

 Robinhood

Minimum Deposit

 $100

$0

Stock Trade Fee

 FREE

 FREE

Options Ticket Charge

 N/A

 FREE

Options per Contract Fee

 N/A

 FREE

Mutual Fund Fee

N/A

 FREE

Market Data Fee

 FREE

 FREE

Wire fee (outgoing)

 $25

 $25

Inactivity fee

 NONE

 NONE

Investments

M1 Finance

 Robinhood

Stocks

Options

 (not available to everyone)

Futures

Forex

Bonds

OTC Stocks

Penny Stocks

Options on Futures

Forex

Mutual Funds

0

0

International Trading

Advisor Services

Trading Platforms

M1 Finance

Robinhood

Web-based

Mobile App

Downloadable (Mac)

Downloadable (PC)

Real-time Level II data

Real-time Charting

Historical Option Data

Options Analysis

iPad App

Company Info

M1 Finance

Robinhood

In-person Branches

Customer Service hours

9-5 CT, M-F

Email Only

Sum of Client Balances

$100m+

$100m+

Member SIPC

Savings Account

Checking Account

Free Online Banking

Margin Rates

M1 Finance

Robinhood

Under $25K

N/A

N/A

$25K-$50K

N/A

N/A

$50K-$100K

N/A

N/A

$100K-$250K

N/A

N/A

$250K-$500K

N/A

N/A

$500K-$1M

N/A

N/A

Above $1M

N/A

N/A

Robinhood vs Other Popular Brokers

Online Brokers
Rating
Account minimum
Commissions
Promotions
Review
2/5

No minnimum

$0 per stock

$0 per option

5/5

No minnimum

$4.95 per stock
$4.95 + $0.65 per option

When using both M1 and Robinhood, one thing became abundantly clear, Robinhood is full of hidden fees and M1 isn’t. To trade options or trade on margin (or to use basic features that virtually all other online brokers offer for free), Robinhood charges monthly fees based on account size. Read more about these fees here. Plus, M1’s take on offering a robo-advisor service mixed with the flexibility of DIY investing is just awesome, and it comes at no charge to the user.

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