At Investor Junkie, we reviewed over one hundred investing and personal finance services. Our goal is to bring you the most honest, simple, and informative reviews. It turns out; users also want to compare specific services.
This review compares M1 Finance and Betterment. The better service depends on your needs. So let's dive in!
According to our readers (you!), when it comes to robo advisors, people care most about the fees, minimum investment requirements, and whether or not the service supports for 401(k) plans. Let's look at how M1 Finance and Betterment stack up against each other on these features.
To start, we will compare the fees for trading with both robo advisors. M1 Finance has annual fees at 0% fee per year. In contrast, Betterment has annual fees of 0.25%.
M1 Finance wins because their service is free to use.
Let's consider the minimum investment that's required to use both M1 Finance and Betterment.
At $0, both services have the same minimum deposit.
Both M1 Finance and Betterment have the same $0 minimum deposit.
When it comes to supporting 401(k) plans, there is a clear line of division. Betterment does offer support for 401(k) plans, while M1 Finance does not. If you are someone who wants input on your employee-sponsored retirement account, Betterment will be your option.
|Review||M1 Finance Review||Betterment Review|
Overall rating as by Investor Junkie.Rating
|Commissions & Fees|
|Ease of Use|
|Tools & Resources|
|Promotions||Invest for FREE||Up To 1 Year Free|
|Account Fees||None||Digital – 0.25%/year; Premium – 0.40%/year|
|Accounts Available||Taxable, Joint, Roth IRA, Traditional IRA, Rollover IRA, SEP IRA, Trusts||Taxable, Joint, Roth IRA, Traditional IRA, Rollover IRA, SEP IRA, Trusts, Non-Profit|
Does the robo-advisor offer assistance with your employer sponsored retirement plan?401(k) Guidance
|Tax Loss Harvesting||No||Yes — All Taxable Accounts|
|Retirement Planning Tools||No||Yes|
|Automatic Deposits||Daily, Weekly, and Monthly||Weekly, Biweekly and Monthly|
|Clearing Agency||Apex Clearing||Apex Clearing|
|Socially Responsible Investing||Yes||Yes|
|Invests in Commodities||No||No|
|Invests in Real Estate||No||No|
How can you access the sevice? Website only? Via smartphone app?Access
|Website, iOS App, Android App||Website, iOS App, Android App|
More security to prevent unauthorized access to your account.Two-Factor Authentication
|Customer Service||Phone: M-F 9A-5P CT; Email||Phone: M-Th 9A-8P, F 9A-6P ET; Live Chat: M-Th 9A-8P, F 9A-6P, Sat-Sun 11A-6P ET; Email|
|Assets Under Management||$30M||$12B|
|Number of Accounts||N/A||393K|
|Sign Up||Sign Up|
About M1 Finance
Combining the best of both traditional investment brokerage accounts and robo advisors, M1 Finance is dangerously close to being the perfect all-around investment platform. The only significant negatives are that it does not offer tax-loss harvesting or investment in mutual funds.
Betterment is a good starting point for beginner investors. The robo advisor has no minimum deposit and costs 0.25% annually. If you need the assistance, it recently added human advisors, which can assist with your retirement account. Unfortunately, its asset allocation excludes REITs or commodities.