M1 Finance vs Webull

M1Finance vs Webull

M1 Finance

Who is M1 Finance for?

M1 Finance offers a very competitive platform. Altogether, they offer tools for investing, spending, managing, and borrowing. This is the biggest defining feature of their platform because it means that they can be a legitimate substitute for your current bank.

Due to these reasons, we would recommend M1 Finance to people who aren’t in love with their current bank and are also looking to start investing. With M1 Finance, you can consolidate all of your finances into one platform. You can use them as a checking account, an investing app, and even a place to go when you need a loan.

Let’s take a look at some of the pros of their platform.

Platform Pros

  • One platform – One of M1’s selling points is that they offer one single platform where you can invest, borrow, spend, and manage your cash. Essentially, they want to act like your current bank but with much better technology.
  • $0 in transaction fees – M1 Finance does not have any transaction fees or commissions on trades.
  • Fractional shares – Some shares of stock can cost several hundred to even over a thousand dollars. A fractional share allows you to purchase a small percentage of one share. This means you can start with as little as $5.
  • Education – M1 Finance offers three different forms of education: A blog, an education center, and articles related to different branches of finance (IRAs, investing, 401(k)s, etc.)
  • Lines of credit – Because they essentially want to act as your bank, M1 Finance offers lines of credit at as low as 2% (compared to approximately 8% at traditional brokerages).
  • Earn interest on checking accounts – M1 Finance offers 1% APY on the money you keep in their checking account. This isn’t an amazing percentage but it’s still better than nothing (which is what most banks offer).
  • The Pie – This is M1’s name for its portfolio tool. This makes it very intuitive to build and track your portfolio and you can also see exactly how your money is divided up between different stocks.

Platform Cons

  • Customization – When it comes to their investment options, M1 Finance is a little limited. They don’t have access to things like options, cryptocurrency, bonds, gold, or other securities.
  • The Pie – This positive is also a negative depending on how you look at it. It’s a very intuitive tool and can be good for beginners, however, if you don’t want to use their tool then you don’t have a lot of other options and are better off choosing another platform.
  • All in one – If you already have other organizations that you use for investing and banking then you might not be attracted to an all in one solution.

M1 Finance Fees

How does M1 Finance make money? M1 Finance charges users $125 a year if they want access to most features. M1 Finance also charges interest on all borrowing at rates of 3.5% or 2% depending on whether you have a Basic account or an M1 Plus account.

Overall, M1 Finance is not the worst platform. The biggest differentiator is that M1 Finance charges $125 a year so you can have access to all the features to handle your finances in one place (invest, spend, borrow, and manage).


Who is it for?

Webull also offers a very sleek platform with great user experience. Their platform will offer significantly more functionality than M1 Finance’s and is geared towards investors who are looking for a superior tool for free. They offer a much high level of analysis and have created their platform to incorporate the most cutting edge technology.

Webull’s main userbase is made up of something similar to this:

  • Active traders who want to reduce costs
  • Beginners who want to try investing with 2 free stocks for signing up and depositing any amount.
  • Traders who want to learn fundamentals and technical analysis
  • High-level traders

Platform Pros

As mentioned, there is a lot of power packed into Webull’s platform. Some of the ways that it separates itself from M1 Finance are:

  • Charts – They offer charts of data that can be expanded into 20 different technical indicators.
  • Candles – Their candles can be set from 1-60 minutes.
  • Moving Averages – You can see moving averages from stocks over a 5-year history.
  • Detailed Market Information – They have readily available information on things like Hot Industries, Upcoming IPOs, Upcoming Earnings, and Forex.
  • Screeners – Search for stocks with the most unusual volume or most trades in the last 5 minutes.

Platform Cons

Some of their pros can also be viewed as cons. If you don’t care as much about getting access to all the data available, then it might just be getting in your way. This really comes down to a matter of personal preference.

If you’re looking for a sophisticated, yet simple platform with tons of information to help you make informed decisions then Webull is perfect. If you don’t need all of that, we recommend you learn about the Robinhood Stock Trading App.

Click Here To Read Our 2021 Comparison of Webull vs Robinhood

Webull Fees?

Webull has no fees for using its platform. Webull is rapidly growing in popularity mainly because their platform allows users to trade stocks, options, and ETFs commission free on cash accounts. However, margin rates start at 6.99% for up to $25,000.

Free Stock Promotion

Webull is currently offering you two free stocks when you open an account and make a qualifying deposit. These free stocks will be randomly selected and there is a chance that they could even be worth up to $1650.

Bottom Line

At the end of the day, whichever platform that you end up choosing will be reliant on your preferences and investing goals. M1 Finance is perfect for people who are starting from the ground up and would love to just use one tool to handle all aspects of their personal finance. On the other hand, Webull is perfect for investors who are looking to get more power out of their investment tool.

M1 Finance

$125 Year
  • Commission Free
  • Full Extended Hours Trading
  • 24/7 Online Help
  • Paper Trading
  • In-Depth Analysis Tools

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