M1 Finance vs Robinhood

M1 finance vs robinhood

M1 Finance vs Robinhood: which platform should you choose? It depends on your investment style and strategy.

In short, M1 Finance aims to reach longterm investors and dividend income seekers, where as Robinhood targets short term investors such as day traders.

It is crucial to select an efficient, pocket friendly as well as reliable trading and investing platform.

Moreover with the inception of online and application based trading, it is very important that your platform of choice has a strong online presence.

Keeping these aspects in mind, we bring you a detailed comparison of M1 Finance and Robinhood.

Overview

M1 Finance and Robinhood both are platforms which offer a commission free trading experience. However their services and user experience might attract two different set of traders and investors.

Indeed, M1 Finance is for investors who intend to invest over a long term or aim to earn dividend income.

Robinhood on the other hand acts as a trading platform which enables active traders (most often day traders) to enjoy a commission free trading experience.

M1 Finance vs Robinhood – Detailed Comparison

Investment Instruments

M1 Finance provides more traditional investment instruments. Indeedw, the platform offers trading and investment in stocks and ETFs only.

On the other hand Robinhood offers more varied and modern day investment instruments. Particularly, users can trade and invest in stocks, ETFs, options and cryptocurrencies.

Account Requirements

Both platforms are very user friendly. However M1 Finance has a specific minimum account balance requirement.

Indeed, M1 Finance requires its users to have a minimum account balance of $100 for regular accounts and $500 for Retirement Accounts.

Surprisingly, Robinhood does not have any minimum account balance requirement for users to begin trading.

Margin

M1 Finance and Robinhood both provide a buying on margin feature to their users. However both platforms have specific requirements in order for you to be eligible for margin buying.

In M1 Finance, any account that has more than $2000 gets access to the margin capability by default.

In Robinhood, however, you would need to be registered as a Robinhood Gold member and have a $2000 minimum account balance.

You can get the Robinhood Gold subscription easily at $5 per month and receive all associated premium benefits.

M1 Finance vs Robinhood – Final Word

At the end it is clear from the above comparison that M1 Finance is best suited for those who intend to be a long term investor and earn dividends.

Robinhood is great for active day traders who would like to focus on short term or day trading opportunities.