Best M1 Finance Competitors

Jeremy Biberdorf Image
Updated
Jul 18, 2024
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Quick Breakdown

Best M1 Finance Competition


  • Ideal for investors seeking a combination of automated and active investing with access to human financial advisors.

  • Best suited for beginners who want to invest spare change and prefer a hands-off approach.

  • Perfect for investors who prioritize commission-free trading and a simple, intuitive app for active trading.
In the evolving landscape of online investment platforms, M1 Finance has carved out a significant niche, offering a unique blend of automated investing with a high level of customization. However, with the rise of several other platforms offering their own unique features and benefits, investors are increasingly considering alternatives.

In this article, we explore competitors of M1 Finance, examining their distinct offerings and how they stack up against M1 Finance, to guide investors in finding the platform that best suits their investment style and goals.

M1 Finance Overview

M1 Finance, a notable player in the fintech industry, offers a unique approach to investing by combining elements of robo-advisory services with traditional investment platforms. Known for its 'Pies' investment strategy, M1 Finance allows users to create custom portfolios (or pies) with a mix of stocks and ETFs, providing a tailored investment experience.

Its automatic rebalancing ensures that portfolios remain aligned with the user's target allocation. M1 Finance also stands out with its no-fee structure, making it a cost-effective choice for long-term investing. Read my full M1 Finance review for a closer look at the platform.

M1 Finance Pros & Cons

Pros

● Customizable portfolios with the 'Pies' feature.

● Automated rebalancing to maintain portfolio alignment.

● No management or trading fees.

● User-friendly interface, suitable for both beginners and experienced investors.

● Offers a borrow and spend account for a comprehensive financial solution.

Cons

● Limited investment options compared to some competitors.

● No human financial advisors available for consultation.

● Not ideal for active traders due to one trading window per day.

● Limited research tools and analytics.

● Minimum account balance required for certain features.

Why Choose Another Option?

While M1 Finance offers a unique and cost-effective investment platform, investors may seek alternatives for various reasons. Some may desire platforms with more robust trading capabilities, others might look for human financial advice or a wider array of investment options.

Learn More About M1 Finance

Top Three M1 Finance Competitors

Sofi Invest

4.5 stars
Fees $0
Best For Commission-free trading
Benefits
Overview
Company
  • Offers both active and automated investing options.
  • No management fees for automated investing.
  • Access to certified financial planners at no extra cost.
  • User-friendly platform, ideal for beginners.
  • Allows investing in cryptocurrencies.
  • Fractional share investing available.
  • Integrated with other SoFi financial products.
  • Commission-free stock and ETF trades.
SoFi Invest offers a unique combination of active and automated investing, catering to a wide range of investor preferences. The platform stands out with its zero management fees for automated investing and the inclusion of human financial advisors, offering a more personalized investment experience. SoFi's platform is particularly user-friendly, making it an excellent choice for those new to investing.
Founded in 2011 and based in San Francisco, SoFi (Social Finance Inc.) began as a student loan refinancing company and has since expanded to offer a full range of financial products. SoFi Invest, launched as part of its growing suite of financial services, reflects the company's commitment to providing accessible and innovative investment solutions.

Acorns

4.7 stars
Account Minimum $0
Best For Beginners
Benefits
Overview
Company
  • Simplifies investing by rounding up spare change.
  • Automated portfolio management based on user profiles.
  • No minimum balance required to start investing.
  • Offers retirement account options like IRAs.
  • Family plan includes investment accounts for children.
  • Easy-to-use mobile app.
  • Educational content available for financial learning.
  • Partnership with over 350 retailers for cashback into investment accounts.
  • Promo: Get $5 Sign-Up Bonus!
Acorns is tailored for individuals looking for a simple and automated way to start investing. The platform's unique feature of rounding up daily purchases and investing the spare change makes investing effortless and accessible. Acorns also provide educational content, making it an excellent platform for beginners to learn about investing while growing their portfolio.
Launched in 2014 in Irvine, California, Acorns has quickly become a popular micro-investing platform in the U.S. Its innovative approach to investing has attracted a broad user base, particularly appealing to those new to investing or with limited capital to start.

Robinhood

4 stars
Benefits
Overview
Company
  • Commission-free trades for stocks, ETFs, and options.
  • User-friendly mobile and web platforms.
  • No account minimum required to start trading.
  • Offers cryptocurrency trading.
  • Instant deposits for quick fund access.
  • Includes a cash management account.
  • Provides basic stock research tools.
  • Simplified options trading for beginners.
Robinhood is known for its commission-free trading and user-friendly interface, making it a go-to choice for new and active traders. The platform allows for trading in various assets, including stocks, options, and cryptocurrencies. It's particularly appealing to those who value simplicity and ease of use in their trading experience.
Founded in 2013 and headquartered in Menlo Park, California, Robinhood has become synonymous with commission-free trading and democratizing access to the financial markets. The company has played a significant role in changing the brokerage industry's landscape, focusing on making investing accessible to everyone.

Final Thoughts

Choosing between M1 Finance and its competitors like SoFi Invest, Acorns, and Robinhood depends on individual financial goals, investment styles, and preferred features. M1 Finance is ideal for those seeking a customizable, low-cost investing experience with automated portfolio management. Click here if it seems like the right fit for your goals.

In contrast, platforms like SoFi Invest offer a blend of automated and active investing with access to financial advisors, Acorns suits beginners and passive investors, and Robinhood appeals to active traders who prioritize ease of use and commission-free trades. Each platform offers unique benefits, and the right choice will align with the investor's specific needs and investment approach.

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Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He’s a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.