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M1 Finance vs. Betterment

M1 Finance vs. Betterment

M1 Finance and Betterment are leading investment platforms for low-cost investment. But, choosing one from both these options can be challenging. This M1 Finance vs. Betterment review will help you choose the best investment tool to boost your wealth.

The major difference between M1 Finance and Betterment is the type of investing. While Betterment is suitable for passive investing, M1 Finance is perfect for DIY investing. But, many different factors may influence your decision. Let’s review both these investment options and learn which one will suit your better.

What is M1 Finance?

M1 Finance is an investing platform that offers customized investing tools. With these tools, you can choose from a wide range of pre-built portfolios and customize them according to your strategies. Using these tools you can easily manage your portfolio and boost profits.

M1 Finance offers many financial instruments such as bonds, stocks, and ETF’s. But, you won’t find mutual funds on this platform. The notable benefits of this tool are the user-friendly payment options. You can insure up to $500,000 of your investment using SIPC. Also, M1 Plus users get a debit card that works like a checking account.

M1 Finance is a unique Robo-advisor that offers customization. Furthermore, it is a hybrid between a Robo-advisor and a traditional online brokerage. Thus, it allows you to buy fractional shares of stock. For instance, if you want to invest in Tesla, you don’t have to purchase a full share. With this platform, you get tax advantages like any other Robo-advisors today. Also, you can automatically rebalance your portfolio. Here are some features of M1 Finance:

  • Wide range of investment options such as ETFs and stocks
  • M1 Borrow allows you to borrow amounts at a certain investment level.
  • M1 Spend offers cash management features. This tool is available on the high-yielding cash account.
  • It allows you to buy and sell securities.
  • You can choose from pre-made investment pies.

What is Betterment?

Betterment manages more than $16 billion worth of assets, making it suitable for professional investors. It is a traditional Robo-advisor, launched in 2008. While registering you have to answer a few questions, pick tolerance and risk levels. Once you complete the registration process Betterment will create a portfolio, suitable for you.

With Betterment, you can manage your portfolio and deposit your investments. Furthermore, it helps you choose the right investment options and plan strategies. That said, you can’t choose individual investments. Like M1 Finance, you can create a cash account and receive a debit card for withdrawals. Betterment offers the following features:

  • Tax-loss harvesting
  • Rebalancing
  • Goal-based investing
  • Access to financial planning packages and advisors
  • Betterment cash reserve

M1 Finance vs. Betterment

Both financial tools offer a wide range of features to simplify online brokerage tasks. Furthermore, you can pick your risk tolerance level and take your investments under control. Allocating and rebalancing work through an algorithm on the backend. That analyzes your needs and requirements and allows you to create personalized strategies.

However, M1 Finance is a better option for many beginner investors. This investment tool is a full-scale Robo-advisor that allows you to automate your investments. It allows you to pick customized individual funds and stocks and customize your portfolio. The automatic rebalances and tax efficiencies simplify your decision-making process.

Another notable benefit of choosing M1 Finance is the wide range of stocks and fund options. Since you don’t have to purchase entire stocks you get more investing options. These features make this tool perfect for both new and existing investors.

M1 Finance is an easy-to-use tool that allows you to pick the core investments with simple clicks. Also, the portfolio will adjust and allocate your investments automatically. But still, Betterment is a better investment tool than other platforms such as TD Ameritrade.


This M1 Finance vs. Betterment review explains how both these platforms are excellent options. But, M1 Finance offers better features than Betterment. It allows you to pick individual investments and offer a hands-off approach. That way you get complete control over your investment. Read more to learn how M1 Finance is the best Robo-advisor. Meanwhile, for more information about Betterment, visit this link.

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