If you want to invest but cannot decide between M1 Finance and Robinhood, you are weighing two very different philosophies. One automates your portfolio and keeps you hands-off. The other hands you the controls and gets out of the way.
Both charge $0 commissions on stocks and ETFs, so the real difference is how you like to invest. Here is how M1 Finance and Robinhood stack up in 2026, and who each one fits.
M1 Finance vs Robinhood at a Glance
| Feature | M1 Finance | Robinhood |
|---|---|---|
| Stock/ETF commissions | $0 | $0 |
| Platform fee | $3/mo (waived at $10,000+ in assets) | $0 |
| Premium tier | M1 Plus, about $36/year | Robinhood Gold, $5/mo or $50/year |
| Trading style | Once-daily trade window | All-day, real-time |
| Order control | Limited (no stop/limit) | Full (market, limit, stop) |
| Options and futures | No | Yes |
| Crypto | No | Yes |
| Retirement accounts | Traditional, Roth, SEP IRAs | IRA with up to 3% match |
| Best for | Hands-off, long-term investors | Active, hands-on traders |
Figures are current as of July 2026 and terms can change.
How Robinhood Works
Robinhood is a mobile-first brokerage built for people who want to place trades themselves in real time. You can buy and sell stocks and ETFs commission-free, trade options and crypto, and buy fractional shares with as little as $1.
Its all-day trading window and full order control, including market, limit, and stop orders, make it well suited to active investors who want to react to price moves as they happen. Robinhood also offers an IRA with a match on contributions, and its Gold tier ($5 a month) adds a higher cash sweep rate, bigger instant deposits, and research tools. If you like being in the driver's seat, Robinhood fits.
Robinhood
Robinhood
Robinhood is a trading platform that brings stocks, ETFs, options, futures, prediction markets, crypto, and retirement accounts together in one app.
Standout feature
One platform for stocks, ETFs, options, futures, prediction markets, and crypto
Fees
$0 commission on stocks, ETFs, and options.
Pros
Zero-commission trading on stocks, ETFs, and options
Cons
Best perks (high APY, lower margin rates) require Gold subscription ($5/month)
How M1 Finance Works
M1 Finance takes the opposite approach. Instead of placing individual trades, you build a "Pie," a visual portfolio where you set target percentages for each stock or fund. M1 then buys, sells, and rebalances automatically to keep your allocations on track.
That automation is the whole point. M1 is designed for hands-off, long-term investors who want a set-it-and-forget-it system. The trade-off is control: M1 uses a once-daily trade window (a second window comes with M1 Plus), and you cannot place stop or limit orders. Active traders will find that limiting; passive investors will barely notice.
Fees Compared
Neither app charges commissions on stocks or ETFs. The difference is in the extras.
M1 charges a $3 monthly platform fee, but it is waived if you keep at least $10,000 in M1 assets or have an active M1 personal loan. Its premium tier, M1 Plus, runs about $36 a year as of July 2026 for a lower margin rate and a second trading window.
Robinhood has no platform fee at all. Its premium option, Robinhood Gold, costs $5 a month or $50 a year and unlocks a higher rate on uninvested cash, larger instant deposits, and Level II market data. For small balances, Robinhood is cheaper; for larger hands-off portfolios, M1's waived fee evens things out.
Account Types and Retirement
This is where M1 pulls ahead for some investors. M1 offers Traditional, Roth, and SEP IRAs, plus trust and custodial accounts, so you can house nearly all your investing under one roof.
Robinhood offers a taxable brokerage account and an IRA that pays a match on contributions, which is rare in the industry. If a Roth IRA on Robinhood is your goal, that match can add real money over time. M1 wins on account variety; Robinhood wins on the retirement match.
An Alternative Worth Considering
If neither app feels like a perfect fit, Public is worth a look. Public blends self-directed investing in stocks, ETFs, bonds, and crypto with a competitive yield on uninvested cash, and it leans into transparency around how it makes money.
It is a good middle ground for investors who want real-time trading like Robinhood but also want a calmer, more research-focused experience. Our Public review covers its full fee structure and features.
Public
Public
Investing for those who take it seriously. Invest in stocks, bonds, options, crypto & more.
Standout feature
A 5%+ yield Bond Account paired with 3.3% APY on cash — Public is one of the only consumer apps where idle and conservative money is treated as seriously as the equity portfolio.
Fees
Free
Pros
• Invest in stocks, bonds, crypto & more• Earn 3.3% APY* on your cash with no fees• 1% match when you transfer your portfolio• Lock in a 5%+ yield with a Bond Account
Cons
Customer support is in-app and email only, no phone
Which One Should You Choose?
The choice comes down to how involved you want to be. Choose M1 Finance if you want a hands-off, automated portfolio, a wider set of retirement and custodial accounts, and you invest for the long haul without watching the market. Choose Robinhood if you want to trade actively, place options or crypto orders, and value real-time control and an IRA match.
For most beginners who want to learn by doing and keep costs near zero, Robinhood is the easier on-ramp, and you can always add M1's automation later. If you are still comparing brokers, our Robinhood vs Fidelity and Robinhood vs Acorns breakdowns are helpful next reads. All investing carries risk, including the possible loss of principal.
Robinhood
Robinhood
Robinhood is a trading platform that brings stocks, ETFs, options, futures, prediction markets, crypto, and retirement accounts together in one app.
Standout feature
One platform for stocks, ETFs, options, futures, prediction markets, and crypto
Fees
$0 commission on stocks, ETFs, and options.
Pros
Zero-commission trading on stocks, ETFs, and options
Cons
Best perks (high APY, lower margin rates) require Gold subscription ($5/month)
Frequently Asked Questions
Is M1 Finance or Robinhood better for beginners?
Robinhood is often easier for beginners because of its simple interface and real-time trading. M1 Finance suits beginners who prefer a hands-off, automated portfolio and do not want to place trades themselves.
Does M1 Finance or Robinhood charge commissions?
Neither charges commissions on stock and ETF trades. M1 charges a $3 monthly platform fee unless you have $10,000 in assets, while Robinhood has no platform fee but sells a $5-a-month Gold subscription.
Can I trade options on M1 Finance?
No. M1 Finance does not offer options, crypto, or futures trading. Robinhood offers all three, which is why active traders tend to prefer it.
Which app is better for a Roth IRA?
Both offer Roth IRAs. M1 supports more account types overall, but Robinhood pays a match on IRA contributions, which can add meaningful money for long-term retirement savers.
