Our Verdict

Explore the top-tier robo-advisor platforms, M1 Finance and Betterment, each offering unique strengths tailored to different investor profiles.
Understand that both platforms offer strong automated investing features, but they differ in their target audience and overall philosophy. With M1 Finance, empower yourself to be more involved in your investment decisions. In contrast, Betterment takes a more traditional robo-advisor approach, handling most aspects of portfolio management on your behalf.
If you’re a tech-savvy investor who enjoys crafting your own investment strategies but wants the benefits of automation, M1 Finance is likely the better choice. If you prefer a set-it-and-forget-it approach with comprehensive financial planning features, Betterment may be more suitable.
Ultimately, the best recommendation is Betterment. Although both platforms have the potential to serve as excellent tools for long-term wealth building, albeit through different approaches.
Why Choose M1 Finance

Choose M1 Finance for its highly customizable approach, enabling you to craft bespoke portfolios while benefiting from automation. Leverage its innovative “Pie” model and enjoy the absence of management fees for basic accounts, making it an attractive option if you’re a hands-on investor who wants to maintain control over your investment choices.
Who M1 Finance Is Best For
- Select your own investments if you’re an experienced investor
- Create highly customized portfolios that match your specific needs
- Combine automation with control over your investment strategies
- Use an all-in-one financial platform for investing, spending, and borrowing
- Avoid management fees if you’re a cost-conscious investor
- Employ investment “Pies” for strategic portfolio allocation
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Who M1 Finance Is Not Right For
- Start elsewhere if you’re a complete beginner needing extensive guidance
- Seek other options if you want access to human financial advisors
- Find another platform if you need robust goal-planning tools and calculators
- Look elsewhere if you require advanced tax-loss harvesting
- Choose another service if you’re interested in mutual funds or individual bonds
- Opt for a different platform if you prefer a fully-managed, hands-off approach
Why Choose Betterment

Opt for Betterment if you seek a more comprehensive, goal-oriented approach to investing. Take advantage of its robust financial planning tools, automatic tax-loss harvesting, and access to human advisors, ideal for those who prefer a guided experience and value holistic financial management.
Who Betterment Is Best For
- Seek guidance and automated management if you’re a novice investor
- Embrace a hands-off approach to investing
- Focus on specific financial goals like retirement or education
- Explore socially responsible investing options
- Value tax optimization features to enhance returns
- Combine robo-advice with human guidance for a balanced approach
Who Betterment Is Not Right For
- Control your investment selection if you’re an experienced investor
- Trade individual stocks or other securities if that’s your preference
- Minimize fees if you’re looking for the lowest possible costs
- Explore other platforms if you’re interested in margin trading or options
- Invest elsewhere if you’re focused on cryptocurrencies (Betterment offers limited options)
- Customize your portfolio extensively if that’s your requirement
M1 Finance vs. Betterment: Main Differences
Betterment is the winner for offering a comprehensive, hands-off investing approach with extensive financial planning features.
| M1 Finance | Betterment |
Ideal For | M1 Finance is ideal for experienced investors who want to create custom portfolios while still benefiting from automation. It appeals to those who desire a high degree of control over their investments but also appreciate the convenience of automated rebalancing and dividend reinvestment. M1 Finance is particularly well-suited for investors who want to use the “Pie” investing model to create and manage diversified portfolios. | Betterment, on the other hand, is ideal for hands-off investors who prefer a more guided approach to investing. It caters to those who want professionally managed portfolios aligned with specific financial goals. Betterment is particularly appealing to novice investors or those who value comprehensive financial planning tools and access to human advisors. |
Pricing | ● Basic Account: No management fees ● M1 Plus Subscription: $3/month platform fee for accounts under $10,000 (waived for accounts over $10,000 or with an M1 Personal Loan) ● No trading commissions ● Expense ratios for ETFs (typically 0.06% to 0.20%) | ● Digital Plan: $4/month for accounts under $20,000; 0.25% annual fee for accounts $20,000 and above ● Premium Plan: 0.40% annual fee (requires $100,000 minimum balance) ● No trading commissions ● Expense ratios for ETFs (typically 0.07% to 0.15%) |
Integration | ● Integrated spending account (M1 Spend) and borrowing capabilities (M1 Borrow) ● Limited external account syncing for a holistic financial view | ● Integrated checking and high-yield cash reserve accounts ● External account syncing for a comprehensive financial overview ● 401(k) analysis tool to review employer-sponsored retirement plans |
Standout Features | ● Custom “Pie” investing model for portfolio creation ● Extensive portfolio customization options ● Fractional share investing ● Low-cost margin lending through M1 Borrow ● Dynamic rebalancing using cash flows | ● Goal-based investing with multiple portfolio strategies ● Automatic tax-loss harvesting ● Access to human financial advisors (Premium plan) ● Socially responsible investing options ● High-yield cash management account |
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M1 Finance vs. Betterment: Standout Features
M1 Finance is the winner for its highly customizable “Pie” investing model and dynamic rebalancing.
M1 Finance

- Create Custom “Pie” Investing Model: Create custom portfolios with M1 Finance’s unique “Pie” model. Select individual stocks and ETFs, assigning them specific allocations within your “Pie.” You can create multiple Pies tailored to different investment goals or strategies, giving you unmatched flexibility in building your portfolio.
- Optimize with Dynamic Rebalancing: Optimize your portfolio with M1 Finance’s dynamic rebalancing. It uses cash flows (deposits, withdrawals, dividends) to maintain your target allocations, minimizing the need for selling securities and potentially reducing tax implications and trading costs.
- Access Low-Cost Margin Loans with M1 Borrow: Access low-cost margin loans through M1 Borrow, using your investment portfolio as collateral. Enjoy rates lower than traditional lenders, providing flexibility for short-term liquidity needs.
- Enhance Diversification with Fractional Share Investing: Invest in high-priced stocks or ETFs with small amounts of money using fractional shares. Enhance diversification and allocate precise percentages within your custom Pies effortlessly.
Betterment

- Achieve Goals with Goal-Based Investing: Set and achieve financial goals with Betterment’s comprehensive approach. Define multiple goals (like retirement or education), receive tailored portfolio recommendations, and track progress. Stay focused on your long-term objectives and adjust strategies as needed.
- Optimize Tax Strategy with Tax-Loss Harvesting: Automatically optimize your tax strategy with Betterment’s tax-loss harvesting for taxable accounts. Continuously monitor and execute trades to offset gains, potentially improving after-tax returns.
- Get Personalized Advice with Access to Human Financial Advisors: Get personalized financial advice with Betterment. Premium plan members ($100,000+ balance) enjoy unlimited access to Certified Financial Planners (CFPs). Even Digital plan members can purchase one-time advice packages, bridging the gap between automated advice and traditional financial planning.
- Invest According to Your Values with Socially Responsible Investing Options: Invest according to your values with Betterment’s socially responsible investing (SRI) portfolios. Choose from options like Broad Impact, Climate Impact, and Social Impact to align your investments with your principles while maintaining diversification and competitive returns.
M1 Finance vs. Betterment: How to Open an Account with M1 Finance

- Visit the website and sign up
- Submit your application.
- Wait for an email either confirming that your application has been approved or requesting additional information
- Verify your identity
- Await feedback in five to seven days
M1 Finance vs. Betterment: How to Open an Account with Betterment

- To open an account with Betterment, you can start by providing your email and phone number to create a free account, allowing you to explore the platform.
- To invest, you’ll need to verify your identity with a government ID and link a checking account for fund transfers.
- Fund your account and set up an automated investment portfolio based on your goals, such as retirement or emergency savings, and your risk tolerance. Once satisfied with the portfolio recommendation, you can approve it to begin investing, with the option to set up additional contributions and multiple portfolios for different financial objectives.
M1 Finance vs. Betterment: Pros and Cons
Betterment is the winner for its robust goal-based planning and tax optimization features despite higher fees.
M1 Finance

- Pros
- Create highly personalized investment portfolios using M1’s unique “Pie” model, selecting from thousands of stocks and ETFs
- Charges no management fees for basic accounts
- Purchase fractional shares of stocks and ETFs, allowing for precise allocation and diversification even with small investment amounts
- Supports automatic rebalancing
- Offers low-cost margin lending through M1 Borrow
- Integrates investing, spending, and borrowing in one platform
- Cons
- Lacks tax-loss harvesting
- Provides limited financial planning tools and calculators
- Offers no access to human financial advisors
- Limits investment options to stocks and ETFs
- Requires more investment knowledge
- Restricts trading to once or twice daily
Betterment

- Pros
- Offer comprehensive goal-based financial planning
- Provides automatic portfolio rebalancing and tax-loss harvesting
- Gives access to human financial advisors
- Offers socially responsible investing options
- Provides a high-yield cash management account
- Supports external account syncing
- Cons
- Imposes higher fees compared to some competitors
- Restrains investment options
- Requires a high minimum balance for Premium features (You need a $100,000 minimum balance to access Betterment’s Premium plan and unlimited CFP access)
- Offers limited portfolio customization
- Provides no margin trading or borrowing options
- Unlike M1 Finance, Betterment does not offer margin lending or trading capabilities.
- Restricts direct real estate investment options
M1 Finance vs. Betterment: Customer Reviews
M1 Finance is the winner for its high degree of portfolio customization and low management fees.
M1 Finance receives positive reviews for its high degree of portfolio customization, user-friendly interface, and the unique “Pie” investing model, as well as the absence of management fees for basic accounts. Users appreciate the integration of investing, spending, and borrowing features, along with automatic rebalancing and dividend reinvestment. However, some express frustration with the limited trading windows, occasional technical glitches, and the lack of advanced trading features and tax-loss harvesting.
Betterment is praised for its ease of use, intuitive goal-setting features, automatic tax-loss harvesting, and access to human financial advisors in the Premium plan. While users value its financial planning tools and high-yield cash management account, some criticize the higher management fees, desire more portfolio customization, and find the lack of individual stock trading capabilities limiting.
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M1 Finance and Betterment: Competitors
- Wealthfront: Wealthfront is another popular robo-advisor that offers automated investing, tax-loss harvesting, and a high-yield cash account. It stands out for its advanced tax-optimization strategies and unique direct indexing feature for accounts over $100,000.
- Robinhood: Robinhood is a commission-free trading platform that has gained popularity among younger investors. It offers a more active trading experience compared to traditional robo-advisors.
- Vanguard Digital Advisor: Vanguard, known for its low-cost index funds, offers a robo-advisor service that constructs portfolios using Vanguard’s own funds.
- Fidelity Go: Fidelity’s robo-advisor offering provides automated investing with access to Fidelity’s extensive resources and research.
- SoFi Automated Investing: SoFi offers a robo-advisor service as part of its broader financial services platform, which includes lending and banking products.
Pro Tips
- Assess Your Investing Style: Determine whether you prefer a hands-on approach (M1 Finance) or a more guided experience (Betterment) before choosing a platform.
- Consider Your Financial Goals: Evaluate which platform better aligns with your specific financial objectives, whether it’s retirement planning, wealth building, or saving for major purchases.
- Analyze Fee Structures: Calculate the total costs for your expected investment amount, including management fees and fund expense ratios, to determine the most cost-effective option.
- Evaluate Tax Optimization Needs: If tax-loss harvesting is important to you, consider Betterment’s automatic tax optimization features.
- Assess Need for Human Advice: Determine whether access to human financial advisors is a priority, which might make Betterment’s Premium plan more attractive.
- Consider Account Types: Ensure the platform offers the specific account types you need (e.g., individual, joint, IRA, trust).
- Review Investment Options: Decide whether you want the ability to select individual stocks and ETFs (M1 Finance) or prefer pre-built, professionally managed portfolios (Betterment).
- Evaluate Integration Needs: Consider which platform better integrates with your existing financial accounts and services.
- Test User Interfaces: Try out the demo or free versions of both platforms to see which interface you find more intuitive and user-friendly.
Recap
M1 Finance and Betterment are leading robo-advisor platforms, each catering to different investor needs. M1 Finance is ideal for tech-savvy investors who want to customize their portfolios using its “Pie” investing model, offering a high degree of control without management fees for basic accounts.
In contrast, Betterment provides a more traditional robo-advisor experience, focusing on goal-based investing with features like automatic tax-loss harvesting and access to human advisors, making it suitable for those who prefer a hands-off approach.
The choice between the two depends on your investment experience, desire for control, and financial goals. M1 Finance appeals to those who want to manage their investments actively, while Betterment attracts investors seeking comprehensive financial planning and ease of use.
Both platforms offer excellent tools for long-term wealth building, with M1 Finance excelling in customization and Betterment in guided portfolio management.
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