M1 Finance vs Wealthfront
Side-by-side comparison of features, pricing, ratings, and alternatives.
M1 Finance is a self-directed brokerage that lets users build custom portfolios, called Pies, from stocks and ETFs, then automatically invests new deposits and rebalances toward each holding's target allocation. M1 does not charge commissions, trading fees, or account management fees for its self-directed brokerage accounts. Beyond investing, M1 offers a High-Yield Cash Account paying a variable APY, and margin loans that let eligible users borrow against their portfolio's value at rates starting around 5.65%, with a $2,000 minimum invested balance required. M1 is available on web, iOS, and Android, with account syncing across all platforms.
Wealthfront is a financial technology company, now publicly traded, that offers automated investing accounts built from diversified index funds, along with a high-yield Cash Account and a self-directed Stock Investing Account. The Automated Investing Account applies automatic rebalancing and tax-loss harvesting on taxable accounts, and supports taxable, IRA, and 529 education savings account types. The Cash Account pays a variable APY on uninvested balances, includes a Visa debit card, and carries FDIC insurance up to $8 million through a network of partner banks. Wealthfront also offers home lending with mortgage rates it advertises as below the national average, and its Stock Investing Account allows commission-free fractional share trading starting at $1.
- No commissions, trading fees, or management fees on core self-directed brokerage accounts
- Pie-based portfolio structure makes custom, rules-based investing easier to set up and maintain
- Competitive margin loan rates for investors who want to borrow against their portfolio
- Fractional shares let smaller balances still be diversified across many holdings
- Single 0.25% advisory fee covers automatic rebalancing and tax-loss harvesting
- High FDIC coverage ($8M) on the Cash Account through partner banks
- Low $1 minimum to start the Stock Investing Account with fractional shares
- Supports retirement (IRA) and education (529) account types, not just taxable investing
- Trades execute in scheduled trading windows rather than real-time, limiting precise timing
- No access to live human financial advisors for portfolio guidance
- Margin loans and some account types require minimum invested balances to qualify
- Fully automated model offers no access to a live human financial advisor
- Investment options are limited to Wealthfront's model portfolios of funds rather than unlimited security choice
- Advisory fee still applies regardless of portfolio performance in a given period
More alternatives & similar tools
Alternatives to M1 Finance
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Automated investing, cash accounts, and self-directed stock trading in one platform.
Automated investing and cash management with optional access to human financial advisors.
Alternatives to Wealthfront
View all →Automated investing and cash management with optional access to human financial advisors.
The Verdict
AI-generated from listing dataWealthfront is the safer default for hands‑off investors who want automated rebalancing, tax‑loss harvesting and high FDIC coverage for cash, while M1 Finance is best for cost‑conscious self‑directors who want commission‑free, custom portfolios and margin borrowing.
Key differences
- •Wealthfront charges a 0.25% advisory fee; M1 Finance is free (no management fees).
- •Wealthfront provides automatic tax‑loss harvesting; M1 Finance does not.
- •M1 Finance lets users build custom “Pies” of stocks/ETFs; Wealthfront limits investors to its model portfolios.
- •Wealthfront’s cash account offers FDIC insurance up to $8 M via partner banks; M1’s high‑yield cash account has no FDIC coverage mentioned.
- •M1 offers margin loans up to 50% of portfolio value; Wealthfront does not offer margin.
Pricing & value
M1 Finance has no advisory, commission, or management fees; Wealthfront charges a 0.25% advisory fee.
Ease of use / learning curve
Wealthfront’s fully automated model requires minimal setup; M1 requires users to construct and manage custom Pies.
Features & depth
Wealthfront includes automatic tax‑loss harvesting and $8 M FDIC‑insured cash account; M1 lacks these features.
Integrations & ecosystem
Both support ACH bank linking and provide in‑app help center support; no APIs or other integrations listed.
Security & privacy
Wealthfront’s cash account is FDIC‑insured up to $8 M via partner banks; M1’s cash account coverage not specified.
Scalability
M1 allows margin borrowing and unlimited custom holdings, supporting larger, more complex portfolios.
Support
Both offer help‑center and in‑app support; no live human advisors for either.
Choose M1 Finance if…
Self‑directed investors who want zero fees, custom allocations, and optional margin borrowing.
Choose Wealthfront if…
Investors who prefer a set‑and‑forget, tax‑optimized portfolio with strong cash protection.
Common questions
Which platform is cheaper to run long‑term?
M1 Finance is free of advisory, commission, and management fees; Wealthfront charges a 0.25% advisory fee on assets.
Do either platforms offer automatic tax‑loss harvesting?
Only Wealthfront provides automatic tax‑loss harvesting for taxable accounts.
Is my cash protected if the platform fails?
Wealthfront’s cash account is FDIC‑insured up to $8 M through partner banks; M1’s cash protection is not specified.