M1 Finance vs. Betterment: Which Broker Is Right for You?
Review
Updated
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Are you in the market for a new online stock brokerage? Trying to decide between M1 Finance vs. Betterment can be a tough choice. Both brokerages offer a range of services and features, as well as giving you an easy way to invest in the stock market.
Let's take a closer look at how M1 Finance compares to Betterment, and which brokerage platform might be the best fit for your financial goals as an investor.
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| Rating |
Rating
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| Commissions |
Commissions |
Commissions |
| Account Minimum |
Account Minimum |
Account Minimum |
| Learn More |
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M1 disclaimers:
M1 is not a robo-advisor and only offers self-directed brokerage services. https://m1.com/legal/disclosures/social-terms/
M1 Finance and Betterment are two of the best low-cost robo advisors. Both of these platforms make it easy to invest for the future at near-zero costs, with no commissions or trading fees.
Betterment charges a management fee of $4 per month (or 0.25% per year), but you get some added value for that money -- because Betterment works like a built-in, automatic financial advisor to help manage your money for you. Betterment gives you an easy way to put your money into expert-built, diversified, low-cost ETF portfolios with automatic rebalancing to suit your time horizon and goals. It's a way to invest in stocks without having to pick stocks; with Betterment, you can just put your investments on autopilot and let the magic of the markets do their work.
M1 Finance's basic M1 Invest Account charges no management fees, which could make it a better option than Betterment if you prefer to manage your own investments and build your own portfolio, without the guiding hand of a financial advisor or robo-advisor. M1 Finance also gives you the option to sign up for M1 Plus ($3 per month) to get some premium benefits, like cash back rewards, lower rates on margin loans, and extra trading features.
READ MORE: Best ETF Brokers
| M1 Finance | Betterment | |
|---|---|---|
| Stock & ETF commissions | $0 | $0 |
| Options commissions | N/A | N/A |
| Crypto commissions | $0 | 1% annual fee plus 0.15% per trade |
| Mutual fund commissions | N/A | N/A |
| Account transfer fee | $100 | $75 |
| Account maintenance fee | $0 | $0 |
Both M1 Finance and Betterment offer the power of automated investing, but there are some big differences in the way you can invest on these two brokerages.
M1 Finance offers over 6,000 stocks and ETFs (which can include stocks, bonds, or commodities). M1 Finance customers can also invest in cryptocurrency and a few individual over-the-counter (OTC) stocks like Adidas, Nintendo, Nestlé, and Volkswagen.
One advantage of M1 Finance, compared to some traditional stock brokerages, is that M1 Finance allows you to trade fractional shares. For example, if the stock you want to buy costs $500 per share and you only have $100 ready to invest, M1 Finance lets you buy 0.20 shares of that stock.
M1 Finance is often a better fit for people who want to be hands-on in managing their own investments, while Betterment is focused on passive investing in exchange traded funds (ETFs).
A big difference between M1 Finance vs. Betterment is that M1 Finance is more flexible in how it lets you invest your money. M1 Finance allows you to buy individual stocks and create your own portfolio of funds. But the brokerage also offers a wide range of diversified model portfolios that you can choose to invest in. Or you can mix and match some of M1 Finance's model portfolios with your own investment choices.
Betterment is not set up for active investing or stock picking. In fact, Betterment does not even allow its customers to invest in individual stocks, bonds, or funds. Instead, Betterment lets you invest in its own range of expert-built, diversified ETF portfolios of stocks and bonds, or diversified crypto portfolios.
Keep in mind that neither M1 Finance nor Betterment support certain other types of investments. Investors can't use these brokerages to trade mutual funds, CDs, options, or currencies.
LEARN MORE: Best Options Trading Platforms
| M1 Finance | Betterment | |
|---|---|---|
| Stocks and ETFs | Yes | Yes (not individual stocks) |
| Fractional shares | Yes | No |
| Options | No | No |
| Mutual funds | No | No |
| CDs | No | No |
| Bonds | No | No |
| Futures | No | No |
| Crypto | Yes | Yes |
| Currencies | No | No |
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2025.
| Broker | Best For | Commissions | Learn More |
|---|---|---|---|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Managing your finances under one roof | $0 for stocks,¹ $0 for options contracts⁴ |
Learn More for SoFi Active Investing
On SoFi Active Investing's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low mutual fund fees. | $0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low fees on stocks, ETFs, crypto, and options | $0 for stocks, ETFs, and options |
Learn More for Robinhood
On Robinhood's Secure Website. |
M1 Finance is not a bank, but it offers a wide range of financial services and accounts, in addition to the investment accounts you'd expect from a brokerage.
M1 Finance investment accounts include:
Other accounts you can get from M1 Finance's bank partners include:
Betterment is also not a bank, but it's also more than a brokerage, offering a wide range of financial products and services. If you wanted to move most of your everyday banking activities to Betterment, you probably could.
Betterment investment accounts include:
Other accounts you can get from Betterment's bank partners include:
LEARN MORE: Best IRA Accounts
| M1 Finance | Betterment | |
|---|---|---|
| Taxable brokerage | Yes | Yes |
| Joint tenant | Yes | Yes |
| Margin | Yes | No |
| Robo-advisor | Yes | Yes |
| Traditional IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| SEP IRA | Yes | Yes |
| Custodial | Yes | No |
| Checking | No | Yes |
| Savings | Yes | Yes |
| Credit card | Yes | No |
The M1 Finance robo-advisor platform can be used via desktop or mobile app, and M1 Finance's app gets rave reviews on the App Store (4.7 stars) and Google Play (4.5 stars). Here are a few features that make M1 Finance stand out from other brokerages:
READ MORE: Best Robo-Advisors
Betterment also lets customers access its platform via desktop or mobile, and its app also gets high ratings on the App Store (4.7 stars) and Google Play (4.6 stars). Here are the biggest differences that make Betterment unique compared to M1 Finance or other brokerages:
M1 Finance is a better fit for people who want a "hands-on" approach to investing. If you want to be involved in choosing stocks or ETFs, and making your own adjustments to the asset allocation of your portfolio along the way. M1 Finance also offers a high-yield savings account, personal loans, margin loans, and a credit card with rewards tied to your brokerage account.
Betterment is a better choice for "hands-off" investors who just want low-cost, diversified ETFs so they can put their retirement savings on autopilot. Betterment also offers its high-yield Betterment Cash Reserve account and checking account through its partner bank.
Neither of these brokerages are designed for day traders. But both can be good choices for everyday investors who want to save for retirement or grow your money for other goals.
On M1 Finance's Secure Website.
M1 Finance gets high marks for combining investing and banking products. M1 Finance offers the support of automated investing tools and the freedom to pick your own stocks and build a customized portfolio. If you want features similar to that of a robo-advisor experience, but with extra flexibility for hands-on investing, consider M1.
No commission, trading, or management fees for self-directed accounts. Platform fee of $3 monthly.
$100 for individual account, $500 for retirement account
On M1 Finance's Secure Website.
M1 disclaimers:
M1 is not a robo-advisor and only offers self-directed brokerage services. https://m1.com/legal/disclosures/social-terms/
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
M1 disclaimers:
M1 is not a robo-advisor and only offers self-directed brokerage services. https://m1.com/legal/disclosures/social-terms/
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
SoFi Disclosure:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Value Prop Disclosures
Promotion Disclosures
J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Betterment disclaimers
†Betterment Cash Reserve ("Cash Reserve") is offered by Betterment LLC. Clients of Betterment LLC participate in Cash Reserve through their brokerage account held at Betterment Securities. Neither Betterment LLC nor any of its affiliates is a bank. Through Cash Reserve, clients' funds are deposited into one or more banks ("Program Banks") where the funds earn a variable interest rate and are eligible for FDIC insurance. Cash Reserve provides Betterment clients with the opportunity to earn interest on cash intended to purchase securities through Betterment LLC and Betterment Securities. Cash Reserve should not be viewed as a long-term investment option.
Funds held in your brokerage accounts are not FDIC‐insured but are protected by SIPC. Funds in transit to or from Program Banks are generally not FDIC‐insured but are protected by SIPC, except when those funds are held in a sweep account following a deposit or prior to a withdrawal, at which time funds are eligible for FDIC insurance but are not protected by SIPC. See Betterment Client Agreements for further details. Funds deposited into Cash Reserve are eligible for up to $1,000,000.00 (or $2,000,000.00 for joint accounts) of FDIC insurance once the funds reach one or more Program Banks (up to $250,000 for each insurable capacity—e.g., individual or joint—at up to four Program Banks). Even if there are more than four Program Banks, clients will not necessarily have deposits allocated in a manner that will provide FDIC insurance above $1,000,000.00 (or $2,000,000.00 for joint accounts). The FDIC calculates the insurance limits based on all accounts held in the same insurable capacity at a bank, not just cash in Cash Reserve. If clients elect to exclude one or more Program Banks from receiving deposits the amount of FDIC insurance available through Cash Reserve may be lower. Clients are responsible for monitoring their total assets at each Program Bank, including existing deposits held at Program Banks outside of Cash Reserve, to ensure FDIC insurance limits are not exceeded, which could result in some funds being uninsured. For more information on FDIC insurance please visit www.FDIC.gov. Deposits held in Program Banks are not protected by SIPC. For more information see the full terms and conditions and Betterment LLC's Form ADV Part II.
**The annual percentage yield ("APY") on the deposit balances in Betterment Cash Reserve ("Cash Reserve") is 4.00% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the "Program Banks") and is current as of Feb. 6, 2023. This APY is variable and subject to change daily. Deposit balances are not allocated equally among the participating Program Banks. A minimum deposit of $10 is required, but there is no minimum balance required to be maintained. The APY available to a customer may be lower if that customer designates a bank or banks as ineligible to receive deposits. APY applies only to Cash Reserve and does not apply to checking accounts held through Betterment Checking. Cash Reserve and Betterment Checking are separate offerings and are not linked accounts.
For Cash Reserve (“CR”), Betterment LLC only receives compensation from our program banks; Betterment LLC and Betterment Securities do not charge fees on your CR balance.
