Robinhood’s real-time trading ability might make it an attractive option for investors who are interested in making trades frequently. The tax-advantaged accounts come in the form of Robinhood Retirement, which gives you access to traditional and Roth IRAs and offers qualified deposits a 1% match. The crypto account enables the buying, selling, and trading of cryptocurrencies. The margin account offers the ability to borrow money for stock purchases but requires Robinhood Gold and a minimum of $2,000 in the account. The brokerage account allows for investing in US stocks, ETFs, and ADRs in a taxable account. The taxable accounts can be brokerage, margin, and crypto accounts. Robinhood offers taxable and tax-advantaged accounts. And like M1 Finance, Robinhood offers fractional-share investing, so you don’t necessarily need a lot of money to start investing. With its free version, you can choose to trade individual stocks, ETFs, options, and cryptocurrency in real time. Robinhood offers two tiers of investment accounts: a free version and a premium version. Robinhood was a pioneer in the world of commission-free stock trading when it launched in 2013, and since then, many companies have chosen to follow Robinhood’s example. You also get additional cash management account benefits with an upgraded account, such as 1% cash back on qualifying debit card purchases and an interest-bearing checking account that earns 3.30% (as of May 23, 2023) annual percentage yield (APY). To keep costs low, M1 Finance offers a single trading window with its basic account, but you get a second afternoon trading window with M1 Plus. You also get access to expanded trading with M1 Plus. With M1 Plus, the rate for borrowing funds to trade on margin is 2%, which is 1.5% lower than what you would get with a basic M1 account. An M1 Plus account costs $125 per year and offers some added benefits. Investors have the option to upgrade to M1 Plus. The platform also offers educational materials to help you learn about investing. When you sign up for an account, M1 offers the option to pick an expertly built portfolio, referred to as an expert pie, or you can choose to build your own. In addition to making investing more accessible, M1 Finance also focuses on making investing easy for beginners with pre-built portfolios and automatic rebalancing. The option to invest in fractional shares can make investing more accessible because buying a portion of a share of stock can be much less expensive than buying a whole share. With its free version, you can invest in stocks and ETFs with virtually any amount thanks to fractional-share investing. ![]() M1 Finance is a money management tool that offers an investing component with two account tiers. Investors who want to pick individual investments and trade in real time. Investors looking for the convenience of pre-built portfolios and automatic rebalancing. No tax-loss harvesting, but offers a tax minimization feature Withdraw money to your bank account, required minimum distributions apply to IRAs Customized or pre-built expert portfolios.None for a basic account $5/month for Robinhood Gold ![]() None, except for margin accounts, which require a $2,000 minimum $100 for taxable accounts $500 for retirement accounts Here’s a quick summary of the basics of each option. M1 Finance and Robinhood each have different benefits and drawbacks when you compare them to each other.
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