M1 Finance vs. Robinhood | Which Works Better for your Investing Strategy?
The Pros and Cons of Each Platform to Assist You in Reaching Your Investment Goals!
At this point I personally have used Robinhood since about 2014 and M1 for almost a year, and there are definitely some differences that may drive you to using one over the other, depending on what is important for you as an investor and how you contribute capital to the portfolio month after month.
Below is a quick table to help you review what may be important to you and which platform may provide better coverage. Also below is a video in case you want to go more in depth about each topic.
On the surface, I would say Robinhood benefits the active trader - someone who wants to take control over every trade with limit orders and execute immediately. Robinhood also has the ability to do options trading, which is a huge upside that M1 does not have. While Robinhood does have the ability to control every investment, maybe you want to just set it and forget it and let the app/platform do the work for you.
That's where M1 Finance comes in.
M1 Finance is more for the passive investor who wants to set-up their investing allocations (see photo below) and let the app take care and run with it. M1 also has the benefits of having Roth IRA capabilities while robinhood currently does not have tax-advantaged accounts.
I personally use M1 Finance to contribute about $1000/month into $QQQ & $ITOT ETFs at a 45%, 45% allocation and I have a few individual securities that I have in my PIE that I want to continue to buy and hold forever.
The Best American Brokerage Account M1 Finance
Both platforms do not allow you to purchase all securities, however, so if you enjoy trading penny stocks or stocks on foreign stock exchanges, both of these platforms may not be for you.