Robinhood Vs Webull Vs M1 Finance 2021 [Ultimate Comparison]

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This is an ultimate comparison guide on Robinhood Vs Webull Vs M1 Finance.

It becomes challenging if you want to choose between a few things where you get confused about which one would be a perfect one for you. Similarly, we should know about the difference between these three.

There are many such platforms that are taking place in the market, but you should have a better knowledge when you intend to choose between particular things.

At first, you should list down all the pros and cons of it so as to know which fits best for you. If you do not know about it, then here we have provided you with all the basic and useful information about the comparison of  Robinhood Vs Webull Vs M1 Finance.

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Robinhood Vs Webull Vs M1 Finance — Comparison Guide

Robinhood

Starting with this, we would tell you that it falls under the brokerage category. This was established and was founded in 2013, which does not ask for any consideration fee. It simply means that they offer you free trades on stock, exchange-traded funds (ETFs), cryptocurrencies, and other commission-free options.

The main aim of this application is that they generally focus on the investors who are very new to this environment of investing but also who want to get started choosing individual stocks or funds in the stock market. It has owned many followers and audiences and has grown a lot over a very long period of time.

This application has offered its users various features and functions. They offer you the basic types, line charts and also some useful essential information.

This is the easiest application that you will find in today’s generation. They provide you with the fundamental types, limited data, no trading simulator, do not provide you with dividend reinvestment. Here are some of the key features which this application provides to its users.

Features

  1. Multiple Assets

This is one of the very great features which this application provides. Multiple assets which this application provides include Stocks, cryptocurrencies, and options. If people are interested in the field of assets, then they surely can go with this.

  1. Robinhood Gold

By the title itself, you must know what exactly it means. So, this is basically a paid subscription that they offer you to earn their price. What they do is extend you a loan through which you can buy stocks via your account balance. But do remember that it would be a great risk if you intend to trade on your margins.

  1. Fractional Shares

This application allows you to purchase fractional shares of stock and ETFs. This means that you will be able to buy the shares of stocks in $1 increments, by which you can easily invest in expensive stocks.

  1. Dividend Reinvestment

They have offered their users this program which provides the stock-level DRIP. This means that whenever a stock pays a dividend, you will have the right to choose whether to reinvest the dividend back into the fractional shares of the company’s stock.

  1. Recurring Investments

This allows the investors to put up an automatic investment which would be periodic into the stocks or ETFs they particularly want to invest in.

Pros

  • It is effortless to use.
  • There is no as such minimum balance which they will ask you.
  • Trading is free
  • They have many investment options.

Cons

  • Do not offer any retirement accounts.

Webull

The second comparison which we would look into is this: Webull. This application was founded in 2016 after Robinhood. In this application, there are more advanced features or tools which will help you do your work. This application also comes free of cost to its users.

If we compare Robinhood with Webull, then there is a thing which Rohinhood did not offer their users at that time? Robinhood did not have robust, data-driven free trading as we mentioned that it was for beginners, but webull has provided some more advanced features.

Webull has provided its users with transforming from intermediate to advanced traders or investors features. They have given you more fundamental and technical features that many of the applications do not provide you with.

They have also added on with the IRAs, this feature which the traders wanted to have to go on with their work. However, this application does not offer any fractional shares, dividend reinvestment, crypto trading, or expert portfolios.

They do not ask you with any commissions, neither with any trading fees. Moreover, this is an advanced application than Robinhood, which is beginner-friendly. Here are some of the key features which this application provides to its users.

Features

  1. Real-Time Market Data

As we have mentioned above, this application offers you advanced features, with the main thing they provide you is robust data, mainly for the traders and investors.

They have provided their users with many technical indicators, which include all the key financial documents, earnings dates, and analyst references.

  1. Trading Simulator

They have provided their users with the free trading simulator, which is a very great feature. The key feature which they provide is trading with real money. The outstanding benefit you can get from this is that you can practice through your fake money to learn all the importance and basics of trading or investing.

  1. Commission-Free Short Selling

People who are interested in short-selling can go for this application as they allow the investors to invest with the thought that your stock price will go below than thinking of getting high.

  1. Extended Trading Hours

They offer their users extended trading hours which are both pre-market and also after-market. This means you can trade stocks before the market opens as well as after the market closes.

  1. Retirement Accounts

Unlike, Robinhood this application offers their users retirement accounts which is very beneficial for them to work with. You can easily open a traditional or Roth IRA retirement account in this with no minimum balance required.

Pros

  • They offer extended trading hours.
  • They have added on with the Retirement accounts.
  • Do not have any commissions.

Cons

  • They do not provide you crypto investing.

M1 Finance

This was founded in 2015, which is before the Webull was established. This application is considered a hybrid brokerage because of its function, which shows half Robo-advisor and half-online brokerage accounts.

This application asks you to choose the set number of the stocks, funds, or ETFs for the purpose of your portfolio. They have a unique feature with your portfolio: The target you choose for your portfolio with the original stocks or funds; this application maintains that reliably according to your built strategy.

This application has provided long-term investing for the investors, which Robinhood did not offer.  Dividend investors are mostly interested in this just because they offer portfolio-level dividend reinvestments.

Moreover, they do not offer you options trading or crypto trading. Also, they do not offer you the trading simulator as Webull does. Unlike Robinhood and Webull, they ask you for a minimum opening balance of $100, or if you want to have a retirement account which they will ask you for $500.

As the other which we have mentioned above, this application also does not cost you anything, and the trades are also free of cost. But if you want to have an upgraded account, for instance, then they will offer you with M1 Plus account on which they have various features and will cost you $125 per month.

Here are some of the key features which this application provides to its users.

Features

  1. Custom and Expert Pies

You can create your own portfolio from scratch or invest in one of their prebuilt expert pies in this feature. They do not ask you for any charges for these expert pies. Each of these pies can hold up to 100 stocks or ETFs.

  1. Portfolio level DRIP

They have offered you this feature where when a stock in your pie earns a dividend, then that dividend is reinvested into your portfolio only if your cash balance goes above $10. This is an excellent method to reinvest dividends and also to earn compound interests.

  1. Automatic  Rebalancing

Rebalancing is a thing that is very necessary for keeping your portfolio at your target allocations. This feature allows you to add money to your account and earn dividends; this application will invest in all your assets, which they will find you are lagging in to bring your target allocation.

  1. Retirement accounts

They have also provided you with this feature which Robinhood did not offer. You have to open it with an opening balance of $500.

Pros

  • It has a good feature of Automatic Investments
  • They have Fractional shares

Cons

  • They have minimal trading windows

Bottom Line!

So this completes our comparison guide on Robinhood Vs Webull Vs M1 Finance. These were the differences which we have provided you with the three. There are some outstanding features and some of the things which other doesn’t provide you with. Therefore, it now depends upon you how you want to choose for your requirements.

I lead product content strategy for SaltMoney. Additionally, I’m helping our broader team of 4 evolve into a mature content strategy practice with the right documentation and processes to deliver quality work. Prior to Instacart, I was a content strategy lead at Uber Eats and Facebook. Before that, I was a content strategist at SapientNitro, helping major Fortune 500 brands create better, more useful digital content.

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