Robinhood vs Stash vs M1 Finance
- Summary of Robinhood, Stash, and M1 Finance
- The bottom line
About each brand
No fees to open an account
Immediate access to funds after sale
Cash management option
Cryptocurrency and options trading
Stock-Back debit card
M1 Finance features
Help building a portfolio
Portfolio line of credit
Summary of Robinhood, Stash, and M1 Finance
|Investment options||Stocks, ETFs, options, cryptocurrency||Stocks, ETFs||Stocks, ETFs, mutual funds|
Costs and fees
Robinhood Gold for $5 per month
Regulatory transaction fee
Trading activity fee
American depositary receipt fees
Pros and cons
Robinhood pros and cons
- No monthly fees or account minimum balances, allowing new customers to easily try the app.
- Ability to invest in cryptocurrencies in most states.
- Free stock for opening an account.
- Instant deposits on some accounts after selling stocks.
- Margin investing in the Robinhood Gold account.
- Interest earned on swept cash, which is uninvested cash in the brokerage account.
- Free stock for referring a new member.
- Not as many investment products as competitors.
- No goal-based strategy.
- No customer service phone number.
- $2,000 to open a margin account.
- Doesn’t sell bonds or mutual funds.
- No retirement accounts.
Stash pros and cons
- Easy to use for beginning investors.
- Earn fractional shares of company stocks when you use the Stock-Back rewards debit card at qualifying retailers.
- Long-term investing and diversification encouraged.
- Low monthly pricing of $1 for beginners.
- Access to retirement accounts for $3 per month.
- Can buy fractional shares of stocks.
- Customers choose risk levels of conservative, moderate or aggressive.
- Custodial accounts for top-tier programs.
- Not a robo-advisor and won’t direct you to which stocks to purchase.
- Could pay more with Stash’s flat-free structure in a year than you might with other companies that charge a percentage fee based on earnings.
- Experienced investors may want to invest elsewhere and buy full shares of stocks.
M1 Finance pros and cons
- Geared toward self-directed investors.
- Easy to use with a pie investing feature that makes it easy to understand where your assets are.
- Can create custom pies or use expert ones to set your investments.
- Fractional shares sold.
- Automated rebalancing in M1 Finance.
- Smart transfers of money allowed so users can set threshold-based rules to move money between M1 accounts and pies.
- No financial advisors to talk to.
- Not many investment options.
- Only one trading window, though M1 Plus can get more.
- Not best to use for day trading.
- New investors may want to go elsewhere because M1 Finance doesn’t offer much help setting investment goals or researching investments.
- Doesn’t offer cryptocurrency purchases.
How does Robinhood try to educate investors?
Do I really want fractional shares?
How does Stash help investors learn?
Can Stash automate my investments?
Should I use M1 Finance as a day trader?
Can I “set it and forget it” with M1 Finance?
The bottom line
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|Name||Motley Fool||Stash Invest||Wealthfront|
|Description||Motley Fool's stock picks have averaged returns of 588% (vs 119% for the S&P). Get your 50% discount for new members.||Start investing with as little as $1 and purchase fractional shares of stock. Get $5 from Stash to make your first investment.||Get a personalized portfolio of diversified, low-cost stocks on autopilot — in minutes. It’s the time-tested way to build long-term wealth.|