November 24, 2021 Last updated November 23rd, 2021 2,394 Reads share

M1 Finance Vs. Robinhood; Which One is Right for You?

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In the new world of finance management, investing is as easy as checking your Facebook or Twitter. Investments apps like M1 Finance and Robinhood have taken millennials by storm and opened a new door to wealth building.

But I’m New to Investing…

Even if you’re new to brokerage accounts, you’ve likely heard of these two top-rated mobile apps. That’s because they pride themselves on showing newcomers the ropes.  With little to no money down, you can get started with the click of an iPhone (or android).

But which app should start your investment journey? Let’s take a look at what each of these apps has to offer to an amateur investor.

M1 Finance; A Hybrid Super App

Often referred to as M1, M1 Finance is your one-stop-shop for all things money management. This hybrid approach to cash management merges your financial services like debit or credit cards access with your lines of credit and investment portfolio.

Utilizing an easily understandable interface, M1 shapes your investments into a pie structure. You can create your own pie portfolio or choose from expert pies designed by top brokerages and investors.

Robo-Advisor for the Technological Savy Pioneer

Newcomers are dropping live financial advisors to adhere to computerized data-driven advice. This means that computer applications utilize algorithmically generated portfolios based on a modern portfolio theory.

A robotic automation system streamlines M1’s advice through numbers. They even take it a step further by automatically rebalancing financial accounts. Automatic rebalancing keeps your portfolio on track for the long haul with no conditions or management fees.

No-Commission Investing Platform

You heard that right. M1 and Robinhood are both no-commission investing platforms. Another reason why live investment advisors are not available on this platform is to keep prices low for first-time investors.

Unlike M1’s Robo-advisor capabilities, Robinhood does not offer any financial or investment advice. Although Robinhood does offer investment learning modules, it’s your responsibility to educate yourself on investing. You’ll need to carve out your own motivators to shape financial goals for your future.

Robinhood; Silicon Valley’s Darling

Popular with Reddit users, this app exploded during the pandemic. With performance-driven emojis and push notification animations showcasing news within the market, newcomers have given this app their stamp of approval.

Robinhood’s easily navigatable interface comes off like a game but with hard-earned money at play.


Investing in Your Future

If playing a game with your investments gives you a headache, M1 might be your best bet. M1 philosophy for investing curtails its portfolio options around long-term investments. Robinhood admittedly focuses on short-term investing like day-trading. See how M1 vs. Robinhood compare through a financial expert’s perspective.

Day Trading; Which is Better, M1 or Robinhood?

Both M1 and Robinhood offer day trading through their mobile app platforms. The simplistic dashboards full of color and creative styling incline the user to engage.

How you employ each investment portfolio defines each app. So are M1 and Robinhood different by superficial features, or is there significance in one over the other? Walk the fine line between investing through M1 and Robinhood with this expert review.

Robinhood and M1; the New Vanguard?

As a disruptive force, Robinhood has taken the king Vanguard by storm by placing investment opportunities into the masses for little to no fees. Robinhood’s mantra has always been to bring investing to a state of the commonplace.

M1 Finance quickly followed suit by bridging the inclusivity gap even further with their free services. So, how has Vanguard held up?

As of now, Vanguard is still the most prominent provider of mutual funds, making it the choice of most high-net-worth investors.  But are we on the precipice of change? Regulators can guess just as much as you or I can about where new investors will lie in the marketplace.

To Invest or Not to Invest?

Most expert financial advisors will say that investing is a must. Working the stock market is a great way to build wealth, but it doesn’t go without risk.

Jumping into a brokerage app like Robinhood, with little to no knowledge of investing, isn’t just careless. It can be downright dangerous. Even with a Robo-advisor app like M1, you need to understand your investments and be responsible for your risk management.

You don’t need to hire a financial advisor or purchase an expensive brokerage account. Take advantage of online resources like this complete guide to investing.

M1 vs Robinhood; The Final Recap

Robinhood offers a free platform to day trade, which is excellent for active investors. They specialize in cryptocurrency and have a fierce ideology of bridging the wealth gap. However, as a new investor, you are basically thrown to the wolves and must learn how to manage an investment portfolio on your own responsibly.

M1 integrates the entirety of your financial services into one organization. This hybrid Robo-advisor works for passive investors that want to sit back and watch their money work for them. While also allowing day traders to work their money during

As the shiny new veneer starts to fade away from the allure of Robinhood, apps that are more ethically conscious (like M1) are popping up to manage money better. Learn all you need to know about what M1 is before starting your investing journey today.

Dmitry Kozlov

Dmitry Kozlov

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