M1 Finance vs Webull: Which Investing App Is Right?
Tired of the endless options in the investing world? You’re not alone. Choosing the right platform can feel overwhelming, especially for beginners. Two popular choices often top the list: M1 Finance and Webull.
Both platforms offer commission-free trading, but they cater to different investment styles. M1 Finance focuses on automated investing and building custom portfolios, while Webull leans towards active trading with advanced charting tools. Understanding the key differences between these two is crucial.
This comparison dives deep into the features, fees, and benefits of both M1 Finance and Webull. We’ll explore which platform suits your individual needs, whether you’re a passive investor or a day-trading enthusiast. By the end, you’ll be equipped to make an informed decision and start investing with confidence.
Specs at a Glance
| Feature | m1 finance | webull |
|---|---|---|
| Minimum Account Balance | $0 | $0 |
| Fractional Shares | Yes | Yes |
| Automated Investing | Yes | No |
| Investment Options | Stocks, ETFs | Stocks, ETFs, Options |
| Margin Accounts | Yes | Yes |
| Trading Platform | Web & Mobile | Web & Mobile |
| Research Tools | Limited | Basic |
| Customer Service | Email, Phone | Email, Chat |
| Rebalancing | Yes | No |
| Account Types | Taxable, Roth IRA, Traditional IRA, SEP IRA | Taxable, Roth IRA, Traditional IRA |
| Cryptocurrency Trading | No | Yes |
| IPO Access | No | Yes |
Feature-by-Feature Breakdown
Investment Options
- M1 Finance: Offers fractional shares in stocks and ETFs, allowing for diversified portfolios with smaller investments. Provides pre-built and customizable pies, offering various investment strategies. Limited options compared to Webull, particularly in derivatives.
- Webull: Provides access to stocks, ETFs, and options trading. Offers a wider range of investment choices, including international stocks. The platform can be overwhelming for beginners due to the number of choices.
- Winner: Webull
Trading Fees
- M1 Finance: Commission-free trading for stocks and ETFs. No trading fees are charged. Primarily focuses on long-term investing.
- Webull: Commission-free trading for stocks, ETFs, and options. No trading fees are charged. Provides margin trading.
- Winner: Tie
Account Minimums
- M1 Finance: No minimum account balance required to open an account. However, to start investing, you need a minimum of $10 to invest in a pie.
- Webull: No minimum account balance required to open an account or start trading.
- Winner: Tie
Account Types
- M1 Finance: Offers taxable brokerage accounts, traditional and Roth IRAs, and trusts. Supports various account types to cater to different financial goals.
- Webull: Offers taxable brokerage accounts, traditional and Roth IRAs. Account types are somewhat limited compared to M1 Finance.
- Winner: M1 Finance
Platform & User Experience
- M1 Finance: User-friendly interface with a focus on ease of use, especially for beginners. The platform is designed for long-term investing, making it intuitive for building and managing portfolios. Limited charting and research tools.
- Webull: Modern and intuitive platform. Offers advanced charting tools and market data for active traders. Can be complex for beginners.
- Winner: M1 Finance
Research & Education
- M1 Finance: Provides basic educational resources and portfolio analysis tools. Suitable for beginners, but lacks in-depth research resources.
- Webull: Offers advanced charting tools, market data, and analyst ratings. Provides more research tools than M1 Finance, but the educational content is limited.
- Winner: Webull
Margin Rates
- M1 Finance: Offers margin loans, with interest rates based on the amount borrowed. Margin rates are competitive.
- Webull: Offers margin accounts with competitive interest rates. Rates vary based on the margin balance.
- Winner: Tie
Customer Service
- M1 Finance: Provides customer support via email and phone. Response times can vary.
- Webull: Offers customer support via email and phone.
- Winner: Tie
Winner by Category
| Category | Winner |
|---|---|
| Automated Investing | m1 finance |
| Investment Options | webull |
| Research Tools | webull |
| Fractional Shares | Tie |
| Options Trading | webull |
| Cryptocurrency Trading | webull |
| IPO Access | webull |
What They Have in Common
- Fractional Shares: Both platforms allow users to purchase fractional shares, enabling investment in high-priced stocks with smaller amounts of capital.
- Mobile Apps: Both M1 Finance and Webull offer user-friendly mobile applications for convenient trading and account management on the go.
- Commission-Free Trading: Both platforms provide commission-free trading for stocks and ETFs, reducing trading costs for investors.
- Account Types: Both offer taxable brokerage accounts, as well as retirement accounts (IRA).
- Web-Based Platform: Both platforms have web-based trading platforms that can be accessed via a web browser.
M1 Finance Vs Webull Buying Guide
Account Minimums & Fees
M1 Finance stands out with its commission-free trading and no account minimums for standard accounts, making it highly accessible for beginners. They do offer a paid M1 Plus subscription that provides additional benefits like lower borrowing rates and higher APY on savings. Webull also offers commission-free trading but doesn’t have a minimum account balance. Webull may have some regulatory fees passed on to the customer, but these are generally minimal. Both platforms are strong in this area, but M1’s simplicity and lack of account minimums give it a slight edge for those starting small.
Investment Options
M1 Finance focuses on a more curated investment approach. They provide “Pies,” which are pre-built portfolios or allow you to create your own by selecting stocks, ETFs, and fractional shares. This simplifies diversification. Webull offers a broader range of investment options, including individual stocks, ETFs, and options trading. They also provide access to IPOs. Webull’s wider selection caters to more experienced investors who want greater control and access to more complex financial instruments. Both platforms offer fractional shares.
Trading Platform & Tools
M1 Finance’s platform is designed for long-term investing and ease of use. It features a clean interface, with an emphasis on portfolio building and rebalancing. Its tools are geared towards helping users stay on track with their investment goals. Webull offers a more advanced platform with real-time market data, technical analysis tools, and charting capabilities. Webull’s platform will appeal to active traders seeking detailed market insights and the ability to execute trades quickly. While M1 is user-friendly, Webull offers more sophisticated trading tools.
Margin Rates & Borrowing
M1 Finance offers margin loans, especially to M1 Plus subscribers, with competitive rates. This allows investors to borrow against their portfolio to make additional investments or cover expenses. Webull also provides margin trading, but the rates may vary depending on the margin tier and account balance. Webull’s margin rates are usually competitive. If you prioritize margin rates, it’s essential to compare the specific rates offered by each platform, as they can fluctuate based on market conditions and your account size. M1’s margin rates are attractive.
Research & Education Resources
M1 Finance provides limited research tools, primarily focusing on portfolio performance and basic company information. They emphasize educational content related to long-term investing strategies and portfolio construction. Webull offers more extensive research tools, including analyst ratings, financial statements, and news feeds. This allows users to conduct in-depth research before making investment decisions. Webull also provides educational resources to help investors learn about the market. Webull is better for investors who want more in-depth market analysis.
Customer Service
M1 Finance primarily offers customer support through email and in-app chat. Response times may vary. Webull also provides customer support through email, in-app chat, and phone. Both platforms are making improvements in this area. Customer service experiences can differ, so it’s important to consider personal preferences for support channels. Webull has better customer support options. The availability of phone support can be a significant advantage, especially for resolving complex issues quickly.
Who Should Buy What?
Buy m1 finance If…
- You want to automate your investing with pre-built or custom portfolios.
- You prefer a platform that focuses on long-term investing and portfolio management.
- You want a platform that offers automated rebalancing.
Buy webull If…
- You’re looking for a platform with access to cryptocurrency trading.
- You want access to IPOs.
- You’re interested in options trading.
- You want to trade with access to more advanced charting tools.
Frequently Asked Questions
What are the main differences between M1 Finance and Webull?
M1 Finance emphasizes long-term investing with pre-built portfolios and a focus on simplicity. Webull caters to a broader range of investors with access to more investment options, including options trading and IPOs. Webull also has a more advanced trading platform with real-time market data and charting tools. Both offer commission-free trading, but their target audiences and features differ significantly.
Does M1 Finance offer options trading?
No, M1 Finance does not offer options trading. Their platform is designed for long-term investing in stocks and ETFs, with a focus on simplicity and portfolio building. For options trading, you would need to use a platform like Webull, which provides access to more complex trading instruments and a wider range of investment options.
Does Webull offer fractional shares?
Yes, Webull offers fractional shares, allowing investors to purchase a portion of a share of stock. This makes it easier for investors with smaller budgets to diversify their portfolios and invest in high-priced stocks. Fractional shares are available for many stocks and ETFs on the Webull platform.
Which platform is better for beginners?
M1 Finance is generally considered better for beginners due to its user-friendly interface, pre-built portfolios (“Pies”), and focus on long-term investing strategies. Its simplicity makes it easy to understand and use, especially for those new to investing. Webull offers more tools and can be overwhelming for beginners.
What fees do M1 Finance and Webull charge?
Both platforms offer commission-free trading for stocks and ETFs. M1 Finance has a paid M1 Plus subscription with benefits like lower borrowing rates. Webull may pass on some regulatory fees, but these are typically minimal. Both platforms are generally low-cost, making them attractive to investors of all levels.
Is M1 Finance or Webull better for active trading?
Webull is better for active trading due to its advanced platform, real-time market data, charting tools, and access to a wider range of investment options, including options trading. M1 Finance is designed for long-term investing and is not well-suited for active trading strategies. Webull caters better to those who want to actively trade.
Are M1 Finance and Webull safe to use?
Yes, both M1 Finance and Webull are safe to use. They are regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). They also use security measures such as encryption to protect user data and funds. SIPC insurance protects customers’ securities in case of broker failure.
Final Verdict
Both M1 Finance and Webull are strong platforms, each with its own strengths. M1 Finance excels in its ease of use and focus on long-term portfolio building, making it ideal for beginners. Webull, on the other hand, provides a more sophisticated trading platform with a wider range of investment options and advanced tools, appealing to more active traders. The best choice depends on individual investment goals and experience.
Winner: M1 Finance