Advertiser Disclosure
Many of the offers that appear on this site are from companies from which The Motley Fool receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear), but our reviews and ratings are not influenced by compensation. We do not include all companies or all offers available in the marketplace.
Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
The automated investment company Wealthfront was founded in 2008, while M1 Finance opened for business in 2015. While both brokers provide a place for traders to get their start, they are not identical.
In this overview of Wealthfront vs. M1 Finance, we discuss everything you'll want to know before working with a broker, from the fees each charge to the types of investments offered. By the time you finish reading this comparison, you should have a better idea of which broker is right for you.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Commissions
$0 commissions and no management fee. M1 Plus membership costs $3 per month.
Both brokers keep costs low, which leaves traders with more money to invest. Neither brokerage charges a fee for stock or ETF trades or an account maintenance fee.
The two brokers differ in their account transfer fees. While Wealthfront does not charge one, M1 Finance investors pay $100 for a transfer.
Wealthfront
M1 Finance
Stock & ETF commissions
$0
$0
Options commissions
N/A
N/A
Crypto commissions
N/A
$0
Mutual fund commissions
N/A
N/A
Account transfer fee
$0
$100
Account maintenance fee
$0 for Stock Investing Account 0.25% yearly for Automated Investing Account
$0
Data source: Wealthfront and M1.
Wealthfront vs. M1 Finance: Investments available
Both brokers offer stocks, ETFs, and fractional shares. However, neither offers options, mutual funds, CDs, bonds, futures, or currencies. Only M1 Finance offers crypto.
Wealthfront and M1 Finance may be described as bare bones compared to other brokers. Still, they each provide a reputable option for a novice trader looking for low-fee automated investing.
Wealthfront
M1 Finance
Stocks and ETFs
Yes
Yes
Fractional shares
Yes
Yes
Options
No
No
Mutual funds
No
No
CDs
No
No
Bonds
No
No
Futures
No
No
Crypto
No
Yes
Currencies
No
No
Data source: Wealthfront and M1.
Alternatives to Consider
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
Account
Fees
Account Minimum
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
$0 for stocks, ETFs, and options; $5 monthly for Robinhood Gold
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Wealthfront vs. M1 Finance: Account types available
M1 Finance offers two account types unavailable to Wealthfront customers: margin accounts and checking accounts. While Wealthfront does offer a cash management account, M1 Finance is the best option for anyone hoping to open a dedicated savings account under the same roof as their brokerage account.
However, both of these brokers are famous for their robo-advisory platforms, which allow investors to trade without being involved in the hands-on management of their accounts.
Wealthfront
M1 Finance
Taxable brokerage
Yes
Yes
Joint tenant
Yes
Yes
Margin
No
Yes
Robo-advisor
Yes
Yes
Traditional IRA
Yes
Yes
Roth IRA
Yes
Yes
Other IRAs/Retirement
SEP IRA and 401(k) Rollovers
Yes
Custodial
529 Plan
Yes
Checking
No, but offers a cash management account
No
Savings
No, but offers a cash management account
Yes
Credit card
No
Yes
Data source: Wealthfront and M1.
Wealthfront vs. M1 Finance: Mobile app and trading platforms
The fact that so many people trade online and on the go makes the quality of a broker's mobile app and trading platforms even more important. Here's a breakdown of what Wealthfront and M1 Finance bring to the table.
Wealthfront
Platform highlights
Clear, easy-to-understand layout, which is important given that Wealthfront does not provide access to human advisors.
A full-featured platform that provides the features many new investors look for when searching for the best online brokers for beginners. However, it may be too basic for experienced investors.
Whether through the online platform or app, Wealthfront walks investors through ways to minimize their investment-related taxes.
Wealthfront offers limited ability to diversify, due to relatively few investment options.
Mobile app
iOS users give Wealthfront's robust, easy-to-follow app an excellent score of 4.8 out of 5 stars. Android users appear to be just as impressed, also giving the app a score of 4.8 out of 5 stars.
M1 Finance
Platform highlights
Like Wealthfront, may be too basic for experienced investors. However, it could be quite effective for a new investor who wants to get their feet wet.
Thanks to Dynamic Rebalancing, the account holder does not have to worry about checking and rechecking their account to ensure it's balanced.
Also like Wealthfront, M1 Finance offers relatively few investment options, making it difficult to diversify.
Mobile app
iOS users give M1 Finance's clean and concise app a score of 4.7 out of 5 stars, and Android users also seem happy with the M1 Finance app, giving it a score of 4.5 out of 5 stars.
Final take
It's difficult to say that one of these brokers is better than the other. Both are good for novice investors, but neither provides the number of investment options needed to diversify a portfolio. They're both an excellent choice for hands-off investors who don't want to negatively impact their finances by paying high fees.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
While anyone can use Wealthfront or M1 Finance to trade, the best user would be someone who is very new to trading or wants a hands-off experience.
The more a brokerage charges you, the less you have in your account to invest. It may not seem as though you're paying much at first, but you're not only covering fees, you're also losing out on any gains you could have earned by investing that money instead.
Share This Page
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
E*TRADE services are available just to U.S. residents.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Fact Checked
Ashley Maready
