An increasingly popular brokerage service, M1 Finance falls under a category known as robo-advisors. Essentially, robo-advisors use algorithms to help guide your platform to profitability. This facilitates the core advantage of hands-free investing, allowing you to live your life while advanced computer technology does the busy work of portfolio management.
On the surface, M1 Finance appears to be most appropriate for beginner investors. Indeed, many new to Wall Street elect M1 for its fuss-free approach. However, even advanced traders could choose to allocate funds in an M1 account. Because an algorithm pulls the weight, you eliminate emotions and personal biases from your decisions.
Interested in a different robo-advisor? Take a look at our list of M1 Finance alternatives.
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### Quick Look at the Top Alternatives to M1 Finance:
– **Best for No Commissions:** Moomoo
– **Best for Accessibility:** E*TRADE
– **Best for Satisfaction:** Robinhood
– **Best for Cryptocurrencies:** Webull
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## 4 Best Alternatives to M1 Finance
For those seeking a hands-free approach to their investment strategies, you will find it difficult to top M1 Finance. With its unique take on pie investing, you are able to remove the intimidation factor from the capital markets. Additionally, you have the confidence of investing alongside 80 Wall Street expert portfolios.
The drawback, however, is that M1 Finance doesn’t provide as comprehensive a platform as its rival brokerages. Also, you may prefer greater control over your money, along with more advanced trading tactics. If you’re looking for something more hands-on, here are some alternatives to consider.
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### 1. Best for No Commissions: Moomoo
Moomoo is an intuitive investment and trading platform with easy-to-use and professional tools, data, and insights that provide a pro-level trading experience for all traders, no matter their level of expertise.
When you open a brokerage account with Moomoo Financial Inc., features include:
– Real-time Level 2 stock and options market data for funded accounts
– Advanced technical indicators
– Unique charting tools
– Advanced options orders
– Full extended trading hours from 4 AM to 8 PM EST
– Multi-market quoting
– 24/7 FAQs in the Help Center for specific questions
The site and app also help users learn with an excellent educational offering and a community of more than 20 million users worldwide.
**Fees:** $0 commission on U.S. stocks and ETFs plus $0 equity options contract fees
**Why we picked it:** Moomoo users can trade not only U.S. stocks but also international stocks from markets like Hong Kong and China.
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### 2. Best for Accessibility: E*TRADE
One of the most popular trading platforms with a long history, investors continue to use E*TRADE for its comprehensive services. Its interface is intuitive enough to guide newcomers while offering advanced traders a plethora of tools that facilitate knowledge-based and data-driven transactions.
Further, E*TRADE provides access to market analysis and educational materials, making it a comprehensive choice.
What really stands out for E*TRADE, though, is its excellent customer service. Help is only a phone call, email, or live chat away—and available 24/7. You can also visit one of the company’s 30 branches, where financial consultants are ready to answer your burning questions.
**Fees:** $0 commission for U.S. stocks and ETFs
**Why we picked it:** E*TRADE provides more advanced trading tools and platforms. For instance, their Power E*TRADE platform includes features like advanced charting, technical analysis tools, and customizable trading strategies.
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### 3. Best for Satisfaction: Robinhood
Before the pandemic, many financial experts worried that millennials were not investing their wealth to the same degree as prior generations at the same age level. However, the crisis changed all that as millions of workers found themselves operating from home. Naturally, this facilitated extra free time they spent on Robinhood trading stocks.
Perhaps the most pivotal reason Robinhood appeals to younger generations is its relevance. Rather than deploying stuffy concepts and language, this platform features a “gamified” interface, bringing in the fun factor that is almost nonexistent in many other brokerages.
While gamified trading apps do have their critics, they also introduced valuable investment concepts to a generation that really wasn’t listening until now.
**Fees:** $0 commission for U.S. stocks and ETFs
**Why we picked it:** Just like M1 Finance, Robinhood offers commission-free trades on stocks and ETFs. This means you don’t have to pay fees when buying or selling popular stocks, which can help you save money on investments.
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### 4. Best for Cryptocurrencies: Webull
Similar to other recent investing platforms, Webull caters to the young crowd, specifically the mobile-first generation who grew up knowing nothing but digital technologies. However, Webull is also fundamentally grounded, offering benefits associated with traditional brokerages such as 24/7 phone and email customer support.
The standout attribute, especially if you’re interested in alternative investments, is Webull’s access to cryptocurrencies. This is one of those controversial sectors because of its underlying volatility. However, cryptocurrencies (unlike stocks) feature round-the-clock trading. This really connects with younger folks, who may not operate by the standard 9-to-5 lifestyle that older generations have grown accustomed to.
**Fees:** $0 commission for U.S. stocks and ETFs
**Why we picked it:** Webull has a paper trading feature that lets you practice trading with virtual money. This is useful for beginners who want to learn without risking real money.
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## What is M1 Finance?
Aside from its robo-advisor algorithms, what makes M1 Finance appealing to a broad audience is its “pie investing.” Pies are mixtures of different stocks and exchange-traded funds (ETFs) that cover various sectors. You can craft your own pie or select from “Expert Pies” — portfolio allocations developed by investment gurus.
While M1 Finance certainly has a reputation as a beginner’s investment portfolio, the platform really appeals to those who prefer delegating the process of money management to another entity. Also, some folks just don’t care for the mechanics of investing and would rather spend their time on pursuits meaningful to them.
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## Why M1 Finance Might Not Be Right for You
Obviously, not everyone has the same attitude about money management. For those who prefer to know the ins and outs of their portfolios, M1 Finance may not be the most appropriate platform.
In addition, a drawback for M1 is that it doesn’t offer the greatest library of investment selections. For instance, if you want to trade options, forex, or cryptocurrencies, you’re out of luck. Naturally, rookie investors who progress in their investing endeavors will want to explore the speculative side of this business. They may find M1’s platform restricting.
Finally, an oddity with M1 is that it lacks advanced transactional tools such as limit orders. Instead, this platform exclusively uses market orders—conducting buy/sell orders at the current market price rather than a specific one. Certainly, this will turn off advanced traders.
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## Conclusion
Robo-advisors have their place and may continue to expand their footprint. Thanks to platforms like M1 Finance, investors can grow their money automatically while attending to their personal and professional endeavors.
While everyone should invest, not all have the temerity to watch over their portfolio like a hawk. Then again, many do. Therefore, as brilliant as M1 Finance is, it does not represent a one-size-fits-all solution.
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## Frequently Asked Questions
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