Stocks

Battle of the Investing Titans: Webull vs. M1 Finance – Who Will Reign Supreme?

KEY FEATURES
QUICK SUMMARY	M1 Finance is a Robo-advisory platform that offers automated investing and portfolio management. Known for its ease of use, user-friendly interface, and hands-off approach to investing.	Webull is a mobile-first investment platform catering to active traders, offering a wide range of technical and charting tools.
INVESTMENT OPTIONS	Stocks ETFs Cryptocurrencies	Stocks ETFs Options Cryptocurrencies International Markets
FEES	$0 for stocks, ETFs, and options	$0 for stocks, ETFs, and options
	Learn More	Learn More

What is M1 Finance?

M1 Finance is an all-in-one personal finance tool platform that offers automated investing and portfolio management, robo-advisory, borrowing, and a checking account all in one place. The company helps investors build a diversified portfolio focused on a long-term strategy through commission-free stock and ETF trading.

The company is known for its ease of use, user-friendly interface, and hands-off approach to investing.

M1 Finance uses a unique “pie” system, where investors can create customized portfolios using a variety of pre-built portfolios or individual stocks and ETFs. The platform also offers automatic portfolio rebalancing and tax-loss harvesting for tax-efficient investing.

You can invest with M1 through a traditional brokerage, retirement, or trust accounts.

In addition to its investment offerings, M1 Finance offers a checking account and a credit card, making it a one-stop shop for personal finance and investing.

Its free checking account offers a high-yield interest rate on cash balances, plus a debit card and ATM access. The M1 Finance credit card offers generous cash-back of up to 10% when you shop at popular retailers.

Read our Full: M1 Finance Review

What is Webull?

Webull is a mobile-first investment platform that offers commission-free trading on stocks, options, and ETFs. The company also offers crypto trading, short selling and access to international markets, complimented by various charting features and technical analysis tools for active traders.

The platform is designed to be intuitive and easy to navigate, making it ideal for experienced and novice investors. Its user-friendly mobile app makes it easy to monitor real-time market data and make trades on the go.

New investors who open a Webull brokerage account can get up to 12 free stocks valued between $3 and $3,000.

Head-to-Head Comparison

Webull and M1 Finance offer investors helpful investing tools and features. Let’s look at 4 key categories and find out how these investment platforms stack against each other.

Investment Options

Winner: Webull

In terms of investment options, Webull is the clear winner over M1 Finance.

Webull offers a wide range of investment options, including stocks, options, ETFs, OTC stocks, and cryptocurrency trading. Users also have access to international markets like the Hong Kong Stock Exchange and can participate in Initial Public Offerings (IPOs) of companies going public soon.

Meanwhile, M1 Finance focuses on a long-term investment strategy and offers fewer investment options than Webull.

Like Webull, M1 Finance also offers stock and ETF trading. However, it’s important to note you can only build a portfolio of securities. You cannot trade individual stocks. However, there is no cryptocurrency, option, Mutual Fund or international stock market trading with M1.

However, M1 Finance does offer automatic dividend reinvestment, a feature not available at Webull, which can help to compound the returns over time.

Lastly, M1 also offers a cash management account: M1 Finance offers a cash management account that provides a debit card and ATM access and a high-yield interest rate on cash balances.

Research, Investing Tools, and Portfolio Optimization

Winner: Tie

Webull and M1 Finance offer helpful research and investing tools, making it difficult to call a winner.

Webull’s tools focus more on the technical and analytical side; they offer advanced charting features and real-time market data. 

In contrast, M1 focuses more on portfolio construction and optimization, they provide automatic portfolio rebalancing and tax-loss harvesting, features not available to Webull customers.

Some of the key investing tools offered by Webull include:

Webull Investing Tools

Real-time market data
Webull provides real-time market data and quotes for stocks, options, and ETFs, allowing users to stay up-to-date on the latest market movements.

Advanced charting
The app offers advanced charting features, including more than 50 technical indicators and drawing tools, allowing users to conduct technical analysis on the go.

Webull offers a wide variety of technical analysis tools .

Research Tools
Webull offers a variety of research tools, such as news, earnings reports, and analyst ratings, to help users make informed investment decisions.

Alerts and watchlist
The app allows users to set alerts for specific stocks, options, or ETFs and create watchlists to monitor their favorite securities.

Community
Webull has a community feature where users can share their thoughts and ideas and analyze market trends with other investors.

Paper trading
Webull offers a paper trading feature that allows users to practice and test their strategies without risking real money.

Stock Screener
Webull offers a stock screener that allows users to filter and sort through stocks based on various criteria such as market cap, dividend yield, P/E ratio, and more.

Earnings Calendar
Webull offers an earnings calendar that allows users to track upcoming earnings reports and plan their trades accordingly.

These tools are designed to give users the information they need to make informed investment decisions and help them stay on top of the market.

Meanwhile, because M1 Finance focuses on long-term investing, they offer different tools than Webull. Some of the key investing tools offered by M1 Finance include:

M1 Finance Portfolio Tools

Pies
M1 Finance’s unique “pie” system allows users to create custom portfolios using a variety of pre-built portfolios or individual stocks and ETFs. This system makes it easy for users to diversify their investments and allocate assets according to their investment goals and risk tolerance.

LEARN MORE

Automatic rebalancing
M1 Finance automatically rebalances users’ portfolios to ensure they remain aligned with their investment goals and risk tolerance. This helps minimize users’ need to constantly monitor and adjust their portfolios.

Tax-loss harvesting
M1 Finance automatically looks for opportunities to harvest tax losses within a user’s portfolio to help reduce their tax bill.

Research tools
M1 Finance offers a variety of research tools and portfolio analytics, such as news and earnings reports, to help users make informed investment decisions, track their portfolios’ performance and identify improvement areas.

Fees

Winner: M1 Finance

Regarding fees, M1 Finance is the winner in this category.

Webull and M1 Finance offer commission-free stock, option, and Exchange Traded Funds (ETF) trading. Both platforms charge account fees for other services.

Still, Webull also charges higher margin trading rates, cryptocurrency mark-up, and short-selling fees, giving M1 Finance a slight edge in the fees category.

Webull Fees

• Cryptocurrency trading: Webull charges a 1.0% mark-up on cryptocurrency trades.
• Margin borrowing: Webull allows users to borrow money from the brokerage to buy securities. The interest rate charged on margin borrowing varies depending on the amount borrowed and the type of security but starts at 9.49%.
• Short Selling: Webull charges a fee for short selling, which is the process of selling a security that you do not own with the expectation that its price will fall. The fee varies depending on the stock and the market conditions.
• Account Transfer Fee: Webull charges a $75 fee for transferring an account from another brokerage
• Inactivity Fee: If a user’s account is inactive for more than 12 months, Webull charges a $10 inactivity fee per month.

M1 Finance Fees

While M1 offers commission-free trading for basic trading functionality, it also charges fees for add-on services. These fees include the following:

• Account transfer fee: M1 Finance charges a $75 fee for transferring an account from another brokerage using the Automated Customer Account Transfer (ACAT) process.
• IRA annual fee: For traditional IRA accounts, M1 Finance charges a $20 annual fee.
• Inactivity fee: If a user’s account is inactive for more than 12 months, M1 Finance charges a $20 inactivity fee per month.
• Margin borrowing: M1 Finance offers margin rates much lower than Webull; 7.75% interest rate, or 6.25% if you are an M1 Plus member.

It’s important to note that M1 Finance’s fees are lower than many other online brokerages, making it an attractive option for cost-conscious investors. Additionally, M1 Finance’s cash management account provides a debit card and ATM access, as well as a high-yield interest rate on cash balances, which can help to offset any fees that may be incurred.

Mobile App

Winner: M1 Finance

Both M1 and Webull offer mobile apps with full functionality. While Webull is designed to be a mobile-first investing app, the ability for M1 Finance to be a one-stop-shop for personal finance, gives M1 the lead in this category.

M1 Finance is a desktop-first service. It also offers a mobile app that provides access to the platform on the go. The mobile app has a similar user-friendly interface as the website and is easy to navigate.

Mobile users can monitor their portfolios, make trades, and access research tools from their mobile devices.

Webull’s mobile-first investing app is designed to be easy to use and navigate. The app is available to iOS and Android device users. It’s a great option for active traders who want to stay connected to the market and make trades on the go.

PROS and CONs

M1 Finance

Webull

Who Should Use These Platforms?

Webull and M1 Finance are both great options for commission-free trading and building a diversified portfolio. 

The choice between the two depends on your investment style, goals, and investing experience.

M1 Finance is better for…

Long-term investors who prefer M1’s automated portfolio management and tax-efficient investing strategies.

Webull is better for…

Active traders who want to leverage Webull’s real-time market data and advanced charting features

The Bottom Line

M1 Finance and Webull seem similar at first glance, but each investing platform caters to a different type of investor.

The primary difference between M1 Finance and Webull is that M1 Finance focuses on passive, long-term investing, whereas Webull targets active traders. 

In the long run, most individuals end up ahead by adopting a passive investing approach, and given that M1 focuses on this strategy, in the comparison of Webull vs. M1 Finance, M1 Finance is the winner.

You might also be interested in: M1 Finance vs. Robinhood Review

Quick Comparison

Feature
Overview	Investing, budgeting, and banking app that aims to simplify personal finance.	No commission trading platform for equities, options, and crypo.
Trading Commissions	$0	$0
Type of Investment Accounts	Taxable Brokerage, IRA, UGMA/UTMA	Taxable Brokerage
Fractional Share Trading	No	Yes
Cryptocurrencies	No	Yes
Options Trading?	No	Yes
Mobile App	Yes	Yes
Auto-investing?	Yes	Yes
Margin Trading	No	Yes, $5 per month
Reoccurring Fees	$3, or $9 (unavoidable)	No

What is Stash?

Stash is an investing and personal finance app aiming to simplify banking, investing, and advice within a single app. Their mission is to help Americans reach their financial goals with a low monthly fee.

For a small monthly fee of $3, Stash users can budget, build a portfolio, and save for retirement, all within one app.

Stash was founded in 2015 and has over 6 million users on its platform.

The company is headquartered in New York City.

What is Robinhood?

Robinhood is a mobile-first investing app that focuses on active investors who trade frequently. The company became one of the first brokerages to offer commission-free stock and options trading with a minimum investment of just $1.

Robinhood is publicly-traded on the NASDAQ and has 31 million users.

How Does Stash Work?

Stash aims to create long-term wealth.

When you open an account with Stash, they will ask you basic financial questions like your financial goals and plans. Your answers are used to provide specific advice for investing and budgeting.

After that, you choose your subscription plan, starting at just $3/month, giving access to a brokerage account, retirement account, and Smart Portfolio.

You also will receive the Stock-back card, which allows you to earn stock when spending. Depending on your plan, you get access to additional features like budgeting & saving tools, education, and much more.

How Does Robinhood Work?

Robinhood caters to active traders and only offers taxable brokerage accounts. Through Robinhood, investors can trade stocks, options, ETFs, and cryptocurrencies on a whole or fractional share basis.

Robinhood offers two tiers of investment accounts. A free, their most popular version, and a premium version (Robinhood Gold) for $5 a month offers access to market research, real-time data, and a lower margin rate.

Head-to-Head Comparison

Account Types
Winner: Robinhood

Both Stash and Robinhood offer taxable brokerage accounts. However, Stash also offers retirement accounts such as Traditional and Roth IRA accounts plus custodial investment accounts for children when you opt-in for its Stash+ account.

Robinhood does not provide other investment accounts outside of a taxable brokerage, such as retirement accounts.

Investment Options
Winner: Robinhood

Both Stash and Robinhood offer fractional share trading, stock, and ETF trading. With Robinhood, you can buy and sell as long as the market is open. Meanwhile, Stash only has 4 trading windows.

Robinhood also offers options trading for US equities, crypto investing in bitcoin and six other cryptocurrencies, and margin investing.

A unique feature Robinhood offers that is not available on Stash is IPO Investing. Robinhood offers individual investors public access to upcoming IPOs.

This means everyday investors like you and me can purchase securities at the IPO price. IPO access was once only available to the ultra-wealthy and institutional investors.

Robinhood allows trading in the following asset classes:

• U.S. Exchange-Listed Stocks and Exchange Traded Funds (ETFs).
• Options Contracts for U.S. Exchange-Listed Stocks and ETFs
• ADRs for over 650 Globally-Listed Companies
• Crypto such as bitcoin and six other cryptocurrencies
• Fractional shares

Robinhood does not allow trading in the following asset classes:

• Mutual Funds
• Bonds
• Closed-end funds
• Foreign-domiciled stock

On the other hand, Stash offers more limited investment options:

• Fractional shares

Fees
Winner: Tie

Robinhood nor Stash charges any transaction fees. However, both platforms may charge a reoccurring monthly fee depending on your account tier. Robinhood Gold is $5 a month, while Stash Growth is $3/month and Stash + is $9/month.

There is no free version with Stash because their objective is to make your investing and banking experience more specialized. Meanwhile, Robinhood’s Instant Account offers no frills, with little to no personalization.

Stash Account Tiers & Fees

$3 per month for Growth accounts. You get a taxable brokerage account, a stock back card, a Roth or Traditional IRA, and $1,000 of life insurance with a growth account.

$9 for Stash+. With a Stash+ account, you get a traditional brokerage, a Roth or Traditional IRA, an investment account for children, monthly market insights, and $10,000 of life insurance.

Reading the fine print, Stash also notes, “You may incur ancillary fees charged by Stash and/or its custodian that are not included in the monthly Wrap-Fee.”

Robinhood Account Tiers & Fees

Robinhood Instant. A Robinhood Instant account is Robinhood’s free account tier, there are no trading or reoccurring maintenance fees with its Robinhood Instant account.

Robinhood Gold. For $5 per month, the Gold Account provides users with all the features of an instant account, plus: a lower margin rate, more significant access to unsettled funds, third-party market research, and Level II market data from Nasdaq.

So if you are looking for a truly 0 cost option, Robinhood is your winner. It is not possible to open an account with Stash without paying a reoccurring monthly fee.

• Trading Fees: None
• Margin Trading: 9.75%, 5.75% with Robinhood Gold
• Inactivity Fees: None
• Miscellaneous Fees: ACATs (Outgoing): $75,  Domestic overnight check delivery: $20, Paper Statements: $5, Paper Confirms: $2

Other Features

Outside of traditional investment options, fees, and types of accounts available, both Robinhood and Stash offer unique features that might tip you over the edge.

Noteworthy Stash Features

Stash Stock Back. When you use your Stash debit, you earn 0.125% on everyday purchases and up to 5% for specific merchants, with bonuses. In general, everyday purchases such as gas, groceries, travel, and dining—will earn you stock.

Plus, the Stash debit card does not have any hidden fees. So, no overdraft or maintenance fees, plus no minimum balances in addition to 19,000 fee-free ATMs.

Noteworthy Robinhood Features

Robinhood Cash Card. Like Stash, Robinhood offers a debit card that enables you to earn cash back that’s reinvested into stock and cryptocurrencies.

You can earn 10% – 100% bonuses on your weekly round-ups. Round-ups are capped at $100/week, and bonuses are $10/week.

Earn Income on Stocks You Already Own. Stock Lending gives you the opportunity to earn extra income through stocks you already own.

Once you turn on Stock Lending, Robinhood does the work to find borrowers. If there’s a match, the income earned is paid monthly. You will be able to sell your stocks at any time with the same gains or losses.

Income from Stock Lending will likely vary from month to month. You’re more likely to earn money when there’s high market demand and low market availability for the stocks you own.

Mobile Experience

Stash has 4.7 out of 5 stars in Apple Store and a 4.1 rating out of 5 in the Google Play Store.

Stash has a mobile app and a web-based user interface; however, it has been noted that the web-based services do not have the same services as the mobile app.

The Robinhood app is straightforward to use and user-friendly. The company was built with a mobile-first experience to make it extremely easy to use and an intuitive user interface.

The Robinhood app has a 4.1 out of 5-star rating in the Apple store and 3.8 out of 5 in the Google Play Store.

Pros & Cons

Stash

Robinhood

Who Should Use Robinhood And Stash?

Robinhood is better for…

• DIY investors
• Active investors
• Taxable brokerages
• Margin trading

Stash is better for…

• Long-term, passive investing
• Retirement Investing
• Guided investment advice

Which Platform Is Better?

In reality, Stash and Robinhood target different audiences.

Stash is focused on individuals who want to build long-term wealth through investing and budgeting personalized to their unique circumstances.

Meanwhile, Robinhood focuses on investors who want to trade frequently and seamlessly, not those focused on long-term wealth-building.

Public.com is a mobile-first investing platform that enables individuals to invest in Stocks, ETFs, Crypto, Art, NFTs, Collectibles, and more – all in one place.

Quick Summary:
Public is a mobile-first investing app that allows individuals to invest in stocks, etfs, crypto, and alternatives, but with a community twist.

Overall Rating:

PROS

• Invest in fractional share of alternative assets
• Community-based investing
• Unique market data and insights

CONS

• No fixed income or mutual funds
• No secondary market for alternatives
• No retirement account investing

In this public.com review will look at this commission-free, community-based investing app, and help you decide if it’s the right place to start investing.

At A Glance:

• Minimum Investment: $0
• Pricing & Fees: $0 commissions for stock and ETF
• Account Types: Taxable Brokerage account, Cash account
• Investment Options: Stocks, ETFs, Cryptocurrencies, Alternative Assets
• Automated Dividend Reinvesting: Yes
• Recurring Investing: Yes
• Automatic Transfers: Yes
• Margin Accounts: No
• Options Trading: No
• Current Promotions: New customers are eligible for free stock valued up to $300

What Is Public.com?

Public is a mobile-first investing app that appeals to beginner to intermediate investors who want to invest in stocks, ETFs, cryptocurrencies, and alternative assets in one easy-to-use platform.

Like other discount brokers, Public offers commission-free trading for stocks and ETFs.

The company emphasizes a community-based investing ecosystzem by encouraging users to interact with other investors on the platforms, join town halls with business executives, and create group chats with other public app users.

Public users can invest on a fractional or a whole share basis with no minimum investment.

The company was founded in 2017 and has over 1 million users. Since its founding, this investing platform has raised over $300 million in venture capital from some of the same investors who also backed Facebook and Venmo.

Public is headquartered in New York City with additional offices in Copenhagen.

Get Free Stock

How Does Public Work?

Public operates as a mobile-only platform and offers one type of account; a taxable brokerage. Like most discount brokers, you can buy and sell stocks and ETFs without commission.

At first glance, Public.com appears to be no different than other brokerages out there.

However, unlike other brokerages, Public creates emphasis on its community-based platform. You can also invest in alternative assets like fine art, collectibles, and cryptocurrencies – all in one place.

Opening an account with Public is easy. There are no sign-up fees, and anyone 18 or older can open an account in minutes. If you are a new member, you can earn free stock valued up to $300 when you sign-up for Public.

Fractional share Investing

Like most discount brokerages, the public app offers investing on a fractional share basis for stocks, ETFs, cryptocurrencies, and alternatives. Additionally, you can turn on automatic dividend reinvestment for stocks and ETFs on a fractional basis too.

You can purchase fractional shares with just $1, which will also give you voting rights.

You can only buy and sell fractional shares with market orders; you cannot execute limit orders with fractional shares.

Alternative Assets

Anyone interested in a Birkin bag?

The public investment app offers alternative asset investing through fine art, collectibles, and NFTs. Their alternative asset platform will soon start offering music royalties and real estate too.

Public’s alternative investing platform takes care of everything you might be worried about with alternative investments like authentication, insurance, and storage.

Due to the high acquisition costs of alternative investments, you can invest on a fractional share basis, requiring far less capital than you would with traditional alternative investments.

It’s important to note that due to the illiquidity of alternative assets, Public does add hefty fees during acquisition, holding and disposition:

Primary offering fee: 0 – 10%, used to purchase the asset, storage, insurance and maintenance. This fee enables the public team to comprehensively analyze, source, and perform diligence on each of our collectible assets and pay brokerage and related fees.

Carry 10% of profits on the assets sold.

Secondary Trading Fee: 2.5% is charged if you want to sell your shares early. This fee is associated with the illiquidity alternative investments.

Investing in alternative assets through Public can be an excellent way to provide diversification and reduce volatility in your investment portfolio.

Cryptocurrency Investing

Through the public investing app, you can buy, sell and hold 27 different cryptocurrencies, including Bitcoin, Ether, UniSwap, and Litecoin, to name a few.

Unlike stock & ETF trades, there is a 1 -2% markup on cryptocurrency trades executed through Public.

Public does not currently offer individual crypto wallets. Instead, they provide cryptocurrency trading through its partnership with Apex Clearing. This means you cannot transfer cryptocurrency assets in or out of the public app.

Not a huge deal — but you should be aware if you plan on actively trading crypto.

Tradeable Cryptocurrencies on Public:

Bitcoin (BTC)
Ethereum (ETH)
ApeCoin (APE)
Cardano (ADA)
Shiba Inu (SHIB)
Dogecoin (DOGE)
Avalanche (AVAX)
Solana (SOL)
Uniswap (UNI)
Chainlink (LINK)
Polygon (MATIC)
Algorand (ALGO)
Sushiswap (SUSHI)

Community, Investing Tools & Research

Public does not offer traditional stock screening tools or charting functionality, but offers community-based knowledge sharing. Public gives users the power to create chat groups with other investors, and you can also participate in investing events through the app.

• Investing Themes. If you are new to investing or want some trading ideas, you can use themes to discover stocks and ETFs to invest in. Some popular themes include most popular stocks, companies investing green power, and Cannabis, to name a few.

• Get Information in unique formats. The Pulse feature enables companies to share their stories in an innovative format. Gone are the days of press releases and boring long-form writing.

  According to Public, 50% of retail investors factor trends, new products, and/or company values into their decisions.

• Hear directly from industry execs. Through public town halls, they offer Q&A sessions with executives of various publicly-traded companies. Historically, executive sessions were only reserved for institutional investors, and public is changing that.

• Public Live. Is their audio broadcast that gives members direct access to business leaders, financial creators, and industry experts as events in the market unfold in real time.

• Members can easily drop in to listen as guests discuss the latest business moves in the same place where they invest and share their insights with a community of fellow investors.

Public Premium Subscription

Public Premium is the company’s advanced subscription service.

For $10 a month, Public Premium members can access MorningStar Research Reports, Unique market metrics, and unparalleled access to VIP customer service with a North Carolina team.

Public Premium Features:

• MorningStar Research Reports
• Unique Market Metrics
• VIP Customer Service – Team in North Carolina
• Extended trading hours

Public Premium has free cancellations; if you sign-up and decide you don’t like the service or don’t need it, you won’t be charged any outrageous cancellation fees like other investing platforms.

Pricing & Fees

Public has a reasonable fee structure that is in line with other discount brokers — nothing extraordinary. They do not charge trading fees for US Equities or ETFs, and there are no costs to open an account.

There are fees for cryptocurrencies, alternative assets, and other add-on services, such as extended-hours market trading.

• U.S. Stocks & ETFs: $0
• Alternative Assets: 2.5%. Alternative assets may have additional fees to offset asset storage, insurance, and management costs and fees associated with asset sales or cash distributions. These fees are laid out in the specific asset’s offering circular.
• Cryptos: 1 -2 % Mark-Up
• Extended Hours Trading: $0 for premium members, $2.99/mo for non-premium members
• Public Premium Subscription: $10/month (optional)

Mobile App

Public.com is a mobile-first investment platform. Their investing platforms focus on making a user’s experience as seamless as possible through an integrated and well-thought-out design.

Overall, many users indicate they are happy with the app, noting the community aspect of public and ease of use.

There is a feed of other investors’ trades with hashtagged categories providing various trading ideas.

To execute a buy or sell or order, you search for the stock or ETF and select “Invest.”

From there, the app requires you to specify the number of shares or dollar amount.

The Public app is available in the Apple App Store, which has a 4.7 out of 5, and Google Play Store.

Who Should Use Public?

Public Is Good for…

• Beginner to intermediate investors
• Active traders
• Investors who want a social-based aspect to investing

Public Is Not Good for…

• Retirement account investing
• Options trading

Alternatives To Public

When it comes to Public.com alternatives, the closet competitor is Robinhood. Let’s see how Robinhood stacks up against Public.

Public vs. Robinhood

Public’s closest competitor is Robinhood. Both investment platforms are considered discount brokers who target beginner to intermediate investors. Public and Robinhood both provide a mobile-first investing experience with no fees for equity or ETF trades.

Public.com vs. Robinhood: Investment options

Public and Robinhood both offer stock, ETF, and cryptocurrency trading. However, Public.com does not have US options trading like Robinhood, but Public offers alternative assets while Robinhood does not.

Neither platform offers fixed income or mutual funds.

Public.com vs. Robinhood: Fees

Many users were unhappy with Robinhood after their business model of payment for order flow became public knowledge. Unlike Robinhood, Public does not participate in payment for order flow or payments to market makers.

Public vs. Robinhood: Premium Subscription Services

Both trading platforms offer a premium-level subscription; Public offers its Public Premium service which provides enhanced market data, VIP customer support, and extended trading hours for $10 a month.

Meanwhile, Robinhood offers its Robinhood Gold service for $5 a month. Robinhood gold provides investors with lower margin rates than its instant account, enhanced market data, and larger access to unsettled funds.

Unlike Robinhood, Public does not offer margin investing.

You might be interested in: M1 Finance vs. Robinhood

Is Public.com Legit?

Yes, Public is legit. This company is a Regulated Broker-dealer registered with the Securities and Exchange Commission and FINRA. This means you can be rest assured that Public.com is adhering to laws and regulations that govern the investing markets.

• $500,000 SIPC Insurance for stocks, ETFs, and cash
• Regulated Broker-dealer
• Registered with the Securities & Exchange Commission
• Registered with FINRA

In addition, Stocks, ETFs, and cash in your account are protected with up to $500,000 in SIPC insurance, including up to $250,000 in cash protection. This means that in the case that Public experiences financial trouble, your cash, stocks, and ETFs are safe.

Did you know? Cryptocurrencies are never covered by SIPC insurance.

Is The Public App Safe?

Yes, the public app is safe. All accounts are secured by a bank-grade security AES 128-bit encryption, TLS for secure data transit, and a default two-factor authentication for additional protection.

Furthermore, all data collected on Public’s app is stored and managed on U.S.-based servers. As of this writing, Public has not had any major data breaches.

How does Public make money?

One of the biggest concerns with Robinhood was its payment-for-order flow business model.

Public does not sell your trades to third-party market makers, nor do they take any payment for order flow.

Public makes money through its premium subscription, optional tipping, stock lending, the markup on crypto transactions, and the carry fee it generates from alternative assets. Public also makes money on uninvested cash in cash accounts.

Public’s diversified revenue ensures it is putting investors first and not focused on revenue strictly from payment for order flow, which can be detrimental to investors.

The Bottom Line

Public offers a unique business model that is a bit more refreshing than what we have seen from other discount brokerages.

Public’s key differentiation from other discount brokerages is its community-based investing and alternative asset offerings.

In addition, the ability to trade stocks, ETFs, cryptocurrencies, and alternatives in one easy place – instead of fumbling through multiple apps and websites makes it a huge plus.

If you want to try investing with a community twist, then public.com could be right for you.

Quick Summary:

M1 Finance is an all-in-one investing, borrowing, and spending platform offering a semi-guided investment approach.

PROS

Commission-free investing

Automated investing is available at no additional cost

Digital banking, borrowing, and investment accounts in one place

CONS

Limited trading windows

No crypto or options trading is available

No tax-loss harvesting

At A Glance

• Account Minimum: $100 for taxable accounts, $500 for retirement accounts
• Trading Fees: $0 commissions or mark-up on trades
• Account Types: Taxable brokerage, IRA, Trust accounts
• Automation Features: Dynamic rebalancing, Investing schedules, smart transfers
• Fractional Share trading: Available on stocks and ETFs
• Margin Rates: 3.50% – 5.0%
• Community Pies: Investment options with your values in mind (LQBTQ, Women-Led)
• Automated Investing: Available
• Digital Banking: Yes, 1.3% APY and 1% cashback with M1 Plus
• Trading Window: 1 trading window per day (2 per day with M1 Plus)

Who Should Use M1 Finance?

M1 Finance is a good option for…

Beginner to intermediate investors looking for a long-term, semi-guided approach to investing.

M1 Finance is not a good option for…

• Day traders
• Individuals looking for entire control over their portfolio
• Individuals who are interested in investing in mutual funds, options, fixed income, or crypto.

What Is M1 Finance?

M1 Finance is a mobile-first fintech platform focusing on beginner to intermediate investors interested in long-term investing.

The company’s services include Robo-advisory services, a digital checking account, a credit card, and lines of credit.

M1 Finance was founded in 2015 by Brian Barnes and has $6 billion in assets under management as of 2022.

How Does Investing With M1 Finance Work?

M1 Finance uses a concept called a Pie-Based portfolio.

A pie is your selection of stocks and ETFs used to create your customized portfolio designed to meet your long-term goals. Each unique holding is considered a slice. All the slices make up your pie.

1. Create your pie-based portfolio.

A pie is your selection of stocks and ETFs used to create your customized portfolio designed to meet your long-term goals. Each unique holding is considered a slice. All the slices make up your pie.

2. Deposit your funds to be invested with M1.

3. During the trading window, your funds will be invested based on your selections.

4. If you want to change your targets, such as changing the percentage allocation or adding a new slice, your portfolio does not automatically buy and sell holdings to return your portfolio to your targets, but it will occur over time through M1’s Dynamic Rebalancing.

Note: The exception to the dynamic rebalancing rule is when you remove a slice from your portfolio. When a slice is removed from a Pie, M1 will liquidate the holdings and reinvest the money in that same Pie.

For Example, You deposit $500 into your M1 Investing account and allocate the money among the 5 pies you selected at 20% each. During the trading window, your investment will be aligned with the pies you select.

You only need $100 to start with a taxable brokerage account and $500 in a retirement code. Plus, M1 offers fractional shares so you can fully invest all of your money.

M1 Finance Features Explained

Investing, borrowing, and spending in one easy platform.

Most people have multiple credit card cards, bank accounts, and brokerages. M1 offers a solid 1.30% APY on its digital FDIC insured checking account, 1.5% cash-back with its credit card, and margin rates between 3.50% and 5%. An integrated banking experience makes managing your finance a breeze and is definitely worth considering if you are frustrated managing your finances through different companies.

Investing

With M1, your investment portfolio is considered a pie, and your pie is made up of slices. There are 3 types of pies – Community Pies, Expert Pies, and Customized pies. Pies are the foundation of your portfolio.

M1 Customized Pies

Add your securities as slices of your Pie or build a Pie and use it as a smaller part of your overall Pie to organize your portfolio with ease. 

Community Pies

Shareable community pies are baskets of publicly-traded companies created by M1 that allow you to invest with your values and goals in mind.

Two popular types of pies are minority-led business pies and sustainable business pies.

Minority-led business pie focus on women-led, minority-led, LGBTQ+ led, Black-led, AAPI-led, Latine-led, to name a few.

The sustainable business pie focuses on companies committed to sustainable policies and practices relative to the United Nations Sustainable Development Goals.

Expert Pies

M1 Expert Pies are a collection of portfolios that are made up of stocks and ETFs, which align to different investment goals ranging from general investing, retirement planning, and responsible investing.

An expert pie can be used for all, some, or none of your portfolio. Users cannot make adjustments to Expert Pies.

There are 80 Expert Pies to choose from currently.

Borrowing

Access a portfolio line of credit and borrow with rates as low as 3.50% and up to 40% of the value of your portfolio with M1 Plus.

• No required monthly minimum repayment.
• Pay the principal back at any time.
• No limitations on what the borrowed money can be used for.
• $2,000 minimum balance required
• No available for retirement or custodial accounts.

Without M1 Plus, borrowing starts at 3.5%. If you are approved, you have access to your funds in minutes. Interest will accumulate for each day that you use your portfolio line of credit.

Stay invested and pay for what you need. Tap into M1 Borrow’s flexible line of credit for things like:

• Increasing your buying power to make timely investments 
• Getting liquidity without selling your investments  
• Paying for other expenses, whether large or unplanned

Compared to competitors, M1 Finance’s borrow rate is very competitive:

Spend

With M1 Spend, the company offers a high-yield checking account and credit card.

M1 Checking

• 1.30% APY. This is 33x the national average. You’ll earn more in two weeks than an entire year at a big bank.
• 1% cashback. Get a little back on eligible purchases made with your M1 Spend Visa® debit card.
• Send checks. Schedule one-time or recurring paper checks from the M1 app.
• Early direct deposit. Get your paycheck up to two days early. Who doesn’t like getting paid early?
• No minimum balance to open an account

M1 Credit

Earn up to 10% cashback. Get 10%, 5%, or 2.5% cash back on purchases with some of the most popular brands—and 1.5% standard cashback on everything else. 

Reinvest your rewards. Use the M1 platform to reinvest the cash you earn for long-term impact.

Advanced security. Freeze your card anytime and get Visa Signature® benefits, including Visa® Zero Liability.

$95 annual fee. The card has a $95 annual fee, waived with an active M1 Plus membership.

Make managing your finances easy. Seamlessly manage your checking and credit card through M1 Spend.

Sign Up For M1 Finance

Auto-Invest Explained

With M1 auto-invest, you can:

• Invest all your cash automatically
• None of your cash (auto-invest turned-off),
• Or anytime your cash exceeds a pre-specified amount by $25.

Your cash is auto-invested into your pie, and you maintain your pre-determined investment targets without any manual adjustments.

For example:

Minimum Cash Balance: $0

Trading will occur once your cash balance exceeds $25. All cash will be invested based on your target allocations, and the remaining cash will be $0.

Account Fees

Account minimums: $100 for brokerage, $500 for retirement accounts
Fees: There are no commissions or mark-ups on trades.
Misellaneous Fees: Wire Transfer: $25, Check request: $25, Returned Checks: $30
IRA Management Fees: None

There is a $100 minimum to open a brokerage account and a $500 minimum for retirement accounts. M1 Finance does not charge any commissions or mark-ups on trades.

However, other miscellaneous fees may apply. A full list of fees can be found here.

Account Types Available

M1 offers 3 types of investing accounts:

• Taxable brokerage
• IRA (Traditional, Roth, or SEP)
• Trusts
• M1 Finance supports 401k rollovers and the ability to transfer in IRA. If you open an IRA, there are no management fees, but there is a $100 closing fee and an outgoing account transfer fee.

M1 Plus Explained

M1 Plus is a premium service offering enhanced investing, checking, borrowing, and spending accounts benefits.

M1 Plus is free for the first 3 months and $125 thereafter.

It’s not a bad deal because their credit card offers 1.5% cash-back on all purchases and higher cash-back rates at select merchants.

Plus 1% APY on their digital checking account. Given most credit cards have an annual fee of $75 – $95 per year and the average checking account offers just .05% APY, it’s definitely worth considering.

Worst case, sign-up for a year and right away set a calendar reminder to cancel it.

Required M1 Plus Disclosure: M1 Plus is a $125 annual subscription offering products and services from M1 Spend LLC and M1 Finance LLC, both wholly-owned, separate but affiliated subsidiaries of M1 Holdings Inc

Let’s take a look at the full list of features available with M1 Plus:

Mobile App

M1 Finance has a mobile app available in the Apple and Google Play store. The app has a 4.6 out of 5-star rating in the Apple store and a 4.4 out of 5 stars in the Google Play store. The mobile app is very user-friendly.

Account Protections

M1 Invest accounts: Securities in M1 Invest accounts are insured up to $500,000 by the SIPC.

M1 Spend Checking accounts: M1 Spend checking accounts may be insured for up to $250,000 by FDIC insurance.

Latest Technology: All data transferred and stored within M1 systems are protected with military-grade 4096-bit encryption. Plus, M1 offers two-factor authentication (2FA).

Alternatives To M1 Finance

If you’re looking for an alternative to M1, There are a few competitors in the Robo-advisory space.

Features
Overview	Automatically investing your purchases	Earn stock when making purchases using your debit card
Number of Trading Windows	One per day	Four per day during weekdays
Types of Accounts	Taxable brokerage and IRA	Brokerage, IRA, and custodial accounts
Cryptocurrencies	No	No
Fees	$3 – $5 per month	$1, $3, or $9 per month

M1 Finance and Robinhood are some of the most popular mobile-first brokerages. In this M1 Finance vs. Robinhood review, we will help you decide which platform is right for you.

Quick Comparison

KEY FEATURES
QUICK SUMMARY	No frills brokerage app that offers commission-free trading	Robo-advisory platform that offers investing, checking accounts, credit cards, margin & personal loans
MINIMUM INVESTMENT	$1	$100
TRADING COMMISSIONS	0%	0%
INVESTMENT OPTIONS	Individual stocks ETFs Cryptocurrency Fractional shares Options Trading	Fractional shares Cryptocurrencies Options ETFs
ACCOUNT TYPES	Taxable Brokerage Margin Accounts	Taxable Brokerage Retirement Accounts High-Yield Checking ETFs
		Learn More

What is M1 Finance?

M1 Finance is a mobile-first investing and trading platform focusing on beginner to intermediate investors interested in long-term investing.

The company’s services include Robo-advisory services, a digital checking account, a credit card, and lines of credit.

M1 Finance was founded in 2015 by Brian Barnes and has $6 billion in assets under management. The company is headquartered in Chicago, IL.

What is Robinhood?

Robinhood is an investing app that offers commission-free stock and options trading with a minimum balance of just $1. Robinhood focuses on active investors who trade frequently.

The company rose to fame by being one of the first brokerages to offer commission-free trading. The company is publicly traded on the NASDAQ and has 31 million users.

Robinhood is headquartered in San Francisco, CA.

How Does M1 Finance Work?

M1 Finance uses a pie-based portfolio to create a diversified portfolio of stocks, ETFs, and cryptocurrencies designed to meet your long-term investing goals.

A pie is your selection of stocks, ETFs, and cryptocurrencies used to create your customized portfolio.

Each unique holding is considered a slice. All the slices make up your pie.

Keep Reading: Read our entire M1 Finance Review

How Does Robinhood Work?

Robinhood caters to active traders with taxable brokerage accounts. Through Robinhood, investors can trade stocks, options, ETFs, and cryptocurrencies on a whole or fractional share basis.

You can open an account with Robinhood for just $1.

Robinhood offers two tiers of investment accounts. A free and premium version (Robinhood Gold) for $5 a month.

Robinhood Gold provides access to margin trading, more access to unsettled funds, third-party market research, and Level II market data from Nasdaq.

Head-to-Head Comparison

In this head-to-head comparison, we will look at 7 key aspects: account types, investment options, fees, customer service, mobile app, and security to see which investing platform comes out on top.

Account Types

M1 Finance offers a wide range of account types to suit different investor needs, while Robinhood only offers taxable accounts.

Several types of accounts are available with M1, including taxable brokerage, custody accounts, high-yield checking accounts, margin accounts, a credit cards, and traditional, Roth, and SEP IRAs.

Customers can create a single account that integrates borrowing, investing and banking.

There is a $100 minimum to open a taxable account and a $500 minimum for retirement accounts.

M1 Finance Account Types

• Taxable Brokerage
• Traditional, Roth, and Sep IRAs
• Margin Accounts
• High Yield Checking Account
• Credit Card

Robinhood customers have fewer choices. With Robinhood, you can open a taxable brokerage and a margin account.

Robinhood does not offer retirement accounts.

You can only open a margin account if you have a Robinhood Gold account, which is $5 monthly.

You can open a Robinhood account with just $1.

Robinhood Account Types

• Taxable brokerage account

• Margin accounts (Robinhood Gold only)

Investment Options

M1 Finance has more investment options, while Robinhood focuses primarily on stocks and options trading. Both platforms allow investors to trade with no commission.

M1 Finance provides customers with numerous investment options like stocks, bonds, mutual funds, ETFs, and cryptocurrency. Investors can trade whole shares or fractional shares. You can also set up automated investing with just $25.

You cannot trade options with M1 Finance.

Meanwhile, Robinhood’s investment options are limited to equity, ETFs, and cryptocurrency. However, they do allow options trading, but only on U.S. stocks.

It’s important to note you can buy and sell in real-time with Robinhood, whereas M1 Finance has specified trading windows during which buy and sell orders are executed.

Robinhood Investment Options

• Individual stocks
• Cryptocurrencies (Bitcoin, Ethereum, Polygon, and many more)
• Options Trading: U.S. Equities only
• Fractional shares

• Exchange-traded funds (ETFs)

M1 Finance Investment Options

• Individual stocks
• Exchange Traded Funds (ETFs)
• Fractional shares
• Cryptocurrencies

Fees

Winner: Robinhood

Robinhood and M1 Finance offer commission-free trades for stocks and ETFs. Neither platform charges any fees to open an account.

There are no fees to buy or sell stocks and options with Robinhood. There are also no fees to maintain your account, making Robinhood one of the most economical brokerage firms in the market.

Investors who open a Robinhood Gold account will have to pay a $5 monthly account fee. But Robinhood Gold comes with enhanced features like margin trading, more access to unsettled funds, third-party market research, and Level II market data from Nasdaq.

Like Robinhood, M1 provides commission-free stock trading and ETF trading.

However, investors with no activity for 90 days will be required to pay an inactivity fee of $20.

M1 Finance Fees:

• Trading Fees: None
• Margin Fees: 6.50%, 5% with M1 Plus
• Miscellaneous Fees: Wire Transfer: $25, Check request: $25, Returned Checks: $30
• IRA Management Fees: None
• Inactivity Fee: $20 after 90 days

Robinhood Fees:

• Trading Fees: None
• Margin Fees: 9.75%, 5.75% with Robinhood Gold
• Inactivity Fee: None
• Miscellaneous Fee: ACATs (Outgoing): $75,  Domestic overnight check delivery: $20, Paper Statements: $5, Paper Confirms: $2

Customer Service

Winner: M1 Finance

M1 offers excellent customer service through its extensive online Help Center, which provides a range of valuable answers to common questions about investing and the M1 Platform.

Meanwhile, Robinhood has long been known for its limited customer service, but they are making progress.

In November 2021, Robinhood announced a new telephone service for all users. Support requests are also available from within Robinhood’s mobile app.

Premium Features

Winner: M1 Finance

Both M1 Finance and Robinhood offer “premium” level accounts. M1 Finance offers M1 Plus for $125 a year, and Robinhood has Robinhood Gold for $5 a month.

Both premium-level accounts come with unique features for their customers.

Trading Windows

M1 Plus offers 2 trading windows (AM and PM) and only an AM trading window without M1 Plus. This feature isn’t relevant for Robinhood accounts because all taxable accounts can trade as long as the market is open.

Margin Rates

With M1 Plus, you can borrow at 5%, and it’s 6.50% without M1 Plus. Meanwhile, Robinhood Gold offers a margin rate of 5.75%, and 9.75% for users without Robinhood Gold.

If you trade on margin, Robinhood Gold is a better option.

Cash Rates

If you have an M1 Plus account, you can earn 2.50% APY and 1% cash back on purchases. Meanwhile, with Robinhood Gold, you can earn 3% APY on uninvested brokerage cash (1.5% without Robinhood Gold).

It’s important to note that the M1 Plus cash rate is for checking accounts, while the Robinhood Gold cash rate is for uninvested cash in taxable investment accounts.

Other Premium Features

Through M1 Plus, individuals who open an M1 credit card can have the $95/year fee waived, plus you can earn 1.5% – 10% cashback on purchases.

Meanwhile, with Robinhood Gold, you can access instant deposits, Morningstar professional research, and level II market data from Nasdaq.

Overall, Robinhood Gold is not only cheaper than M1 Plus at $60 vs. $125, but Robinhood also offers better margin rates and pays a higher interest rate for uninvested cash.

Mobile App

Winner: M1 Finance

M1 offers a top-rated smartphone app that is incredibly well-designed. The app is available for Android and iPhone and has almost the exact same functionality as its website.

Robinhood has an Android and iPhone-compatible app available to its users. The app has been designed especially for new investors and designed for rapid trading. The Robinhood app does not have advanced functionality.

Add More details comparing the mobile apps

Security

Winner: Tie

Robinhood and M1 Finance are regulated by FINRA and the Securities and Exchange Commission.

Customers also receive financial protection under SIPC — which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash).

Note – cryptocurrencies are not covered under SIPC.

From a personal security perspective, Robinhood provides data encryption (keeping your personal information safe, and 2FA (two-factor authentication).

PROs and CONs

Robinhood

Who Should Use These Brokerages?

M1 Finance is better for…

• Long term investors

• Investors who want a semi-guided approach to invest

Robinhood is better for…

• Active investors
• Individuals who want to use a taxable brokerage account only

Final Thoughts

Robinhood is an online trading app designed for active traders who want to quickly and easily buy and sell equities, options and cryptocurrencies. This is evidenced by the fact that Robinhood only offer taxable brokerage accounts.

Meanwhile, M1 Finance focuses more on building a well-diversified long-term investment portfolio to meet your investing needs.