M1 Finance vs Betterment
By Itai Varochik | Updated 2026
Quick Verdict
Overall Winner: Betterment (4.5/5)
We tested M1 Finance and Betterment side-by-side. Betterment comes out ahead overall, but M1 Finance may be better for specific use cases.
Score Breakdown
| Criteria | M1 Finance | Betterment |
|---|---|---|
| Features | 8/10 | 8/10 |
| Ease of Use | 8/10 | 9/10 |
| Value for Money | 9.5/10 | 8.5/10 |
| Customer Support | 6.5/10 | 8/10 |
| Overall | 7.9/10 | 8.5/10 |
Feature Comparison
| Feature | M1 Finance | Betterment |
|---|---|---|
| Custom Pies | Yes | No |
| Auto-Invest | Yes | No |
| Fractional Shares | Yes | No |
| M1 Borrow | Yes | No |
| M1 Spend | Yes | No |
| Automated Investing | No | Yes |
| Tax-Loss Harvesting | No | Yes |
| Goal Planning | No | Yes |
| SRI Portfolios | No | Yes |
| Cash Reserve | No | Yes |
| Financial Advice | No | Yes |
| Automatic Rebalancing | No | Yes |
Pricing Comparison
M1 Finance: Free (M1 Plus: $125/yr)
Betterment: 0.25%/year
M1 Finance Pros & Cons
Pros
- Zero management fees
- Custom Pies
- Fractional shares
- Borrow against portfolio
Cons
- Single daily trading window
- No tax-loss harvesting
Betterment Pros & Cons
Pros
- No minimum deposit required to start investing, making it accessible for beginners.
- Industry-leading automated tax-loss harvesting significantly boosts after-tax returns.
- Offers diverse socially responsible investing (SRI) portfolios to align with personal values.
- High-yield Cash Reserve account with competitive APY and FDIC insurance.
- Intuitive and user-friendly interface simplifies financial planning and tracking.
- Goal-based investing framework helps users visualize and achieve financial milestones.
Cons
- Does not support direct trading of individual stocks or ETFs, limiting active investor control.
- Access to a human financial advisor requires a substantial $100,000 minimum balance for the Premium plan.
- Limited customization options for investment portfolios beyond pre-set allocations.
- No cryptocurrency investment options are currently available.
Key Specifications
| Spec | M1 Finance | Betterment |
|---|---|---|
| Rating | 4.2/5 | 4.5/5 |
| Pricing | Free (M1 Plus: $125/yr) | 0.25%/year |
| Year Founded | 2015 | 2008 |
| Headquarters | Chicago, IL | New York, NY |
| Employees | N/A | 400+ |
| Best For Region | N/A | United States |
| Cash Account APY | N/A | 4.00%+ |
Our Verdict
Betterment wins overall. Choose M1 Finance if you value DIY investors wanting free automation. Choose Betterment if you prioritize Hands-off investors wanting automated, diversified portfolios..
Frequently Asked Questions
Is M1 Finance better than Betterment?
Based on our testing, Betterment scores higher with a rating of 4.5/5 compared to M1 Finance's 4.2/5. However, the best choice depends on your specific needs.
What is the main difference between M1 Finance and Betterment?
M1 Finance is known for: Free automated investing with custom portfolio Pies.. Betterment is known for: America's largest independent robo-advisor with automated investing and tax optimization..
Which is cheaper, M1 Finance or Betterment?
M1 Finance pricing: Free (M1 Plus: $125/yr). Betterment pricing: 0.25%/year.
Can I use M1 Finance and Betterment together?
While both tools serve similar purposes in the Robo-Advisors category, some users do use complementary features from both platforms.
What are the pros of M1 Finance?
Zero management fees. Custom Pies. Fractional shares
What are the pros of Betterment?
No minimum deposit required to start investing, making it accessible for beginners.. Industry-leading automated tax-loss harvesting significantly boosts after-tax returns.. Offers diverse socially responsible investing (SRI) portfolios to align with personal values.
Which robo-advisors should I choose?
Choose M1 Finance if you value DIY investors wanting free automation. Choose Betterment if you prioritize Hands-off investors wanting automated, diversified portfolios..