Webull vs Robinhood vs M1 Finance: Finest Free Funding Apps

Free investing apps have taken the world by storm since Robinhood launched in 2013. It’s laborious to recollect, however free buying and selling was largely extraordinary again then, and Robinhood was a pioneer. Nonetheless, since 2013, a number of new apps have launched, which I why I made a decision to do a complete overview of three of the most important gamers: Webull vs Robinhood vs M1 Finance.

These funding apps largely cater to millennial traders due to their modern buying and selling platforms and low charges. Although, when diving deeper into Webull, Robinhood, and M1 Finance I discovered advantages that I wasn’t essentially anticipating, equivalent to:

  • The power to commerce in low-cost change traded funds (ETFs)
  • In-depth evaluation and buying and selling instruments
  • New investing methods: Pie Investing

There are some main variations between the apps, as effectively. Beneath you’ll be taught extra in regards to the particulars of Webull vs Robinhood vs M1 Finance to find out which is one of the best free investing app for you.

Webull Overview

Webull was based in 2016 and serves a transparent viewers of superior merchants. Out of all three funding apps, they supply probably the most thorough suite of analysis instruments together with 50 technical indicators and 12 charting instruments. On their web site, they state that:

Shoppers can configure the buying and selling panel as they like to find traits and potential alternatives for their very own funding technique.

The platform is without doubt one of the greatest for getting actual time market knowledge to tell funding methods.

Whereas Webull does supply plenty of advances options, it nonetheless gives the fundamentals to profit newbie traders as effectively. Webull has all kinds of shares and ETFs to select from, all with $Zero commissions and no buying and selling charges.

Webull Particulars:

Core Pricing and Charges: Free
Minimal Deposit: None
Varieties of Investments: Shares, ETFs, Choices
Account Sorts: Brokerages, IRAs
Safety: SIPC Insured
Signal-Up Provide: Two Free Shares

One of many coolest options that Webull gives is “paper buying and selling” by way of its free buying and selling simulator. You’ll be able to simulate numerous trades to observe with out risking any actual cash. For somebody new to energetic buying and selling, choices buying and selling, and brief promoting, it’s undoubtedly value contemplating.

Whereas paper buying and selling sounds enjoyable, personally, I’ll nonetheless to the low-risk technique of long-term investing ETFs and index funds.

Two final issues to notice on Webull, they do supply prolonged hours for buying and selling and margin buying and selling, however borrowing cash on margin comes with a price.

Webull Execs:

  • Free Buying and selling: Fee-free buying and selling.
  • Superior Platform: Nice for day merchants and energetic traders.
  • Paper Buying and selling: The one platform to supply simulated buying and selling.

Webull Cons:

  • May be Over-Difficult: Learners may discover the platform cumbersome to navigate.
  • No Cryptocurrency, But: Though, Webull does say that this characteristic is coming quickly.

Get Began with Webull:

Begin Investing

Robinhood Overview

Robinhood, based in 2013, is the unique zero-fee funding app providing free trades (inventory trades and ETF trades) to the plenty. Robinhood’s platform is geared extra in the direction of newbie traders seeking to put money into the inventory market, however it’s rising to supply extra options to compete with giant brokerages, together with:

  • A Money Administration checking account
  • Fractional Shares
  • Choices Buying and selling
  • Prolonged Buying and selling Hours

Most significantly, Robinhood is greatest recognized for its commission-free buying and selling and modern, easy-to-use funding platform.

Robinhood Particulars:

Core Pricing and Charges: Free
Minimal Deposit: None
Varieties of Investments: Shares, ETFs, Choices, Cryptos
Account Sorts: Brokerage
Safety: SIPC Insured
Signal-Up Provide: Free Inventory Bonus

One characteristic that units Robinhood aside from the remainder is they provide the flexibility to put money into cryptocurrency. It’s the one “conventional” brokerage account in which you’ll be able to put money into cryptocurrency to my data, and if I used to be to put money into crypto, I’d do it by way of Robinhood.

Plus, by upgrading your account to Robinhood Gold, you’ll acquire entry to margin buying and selling. Simply keep in mind, margin buying and selling may be very dangerous and never superb for newbie traders.

Robinhood Execs:

  • Free Buying and selling: Fee-free buying and selling.
  • Fashionable Platform: Straightforward to make use of and navigate for newcomers.
  • Cryptocurrency: The one platform to supply crypto buying and selling.

Robinhood Cons:

  • Naked-Bones Platform: Lacks intimately in some areas.

Get Began with Robinhood:

Begin Investing

M1 Finance Overview

M1 Finance was based in 2015 and is without doubt one of the few hybrid brokerage accounts in the marketplace. It’s a hybrid account as a result of you may select to take a passive robo-advisor strategy, put money into your individual shares and ETFs, or do a mixture of each.

That is made attainable due to M1 Finance’s Pie Investing technique. In easy phrases, with M1’s Pie technique, you set your asset allocation, and your funds robotically make investments into this desired allocation.

M1 Finance Pie Investing Defined

For a easy instance, let’s say your required assett allocation is:

  • 50% in a bond ETF
  • 50% in a inventory ETF

Utilizing an M1 Finance Pie, once you make investments your first $100, it’ll robotically make investments $50 into attain part of your pie. You don’t have to allocate $50 to the bond ETF and $50 to the inventory ETF, you merely allocate $100 in the direction of your pie and the cash is robotically dispersed to the right investments.

It’s a pleasant setup for passive traders, and turns into much more useful in two situations:

  1. When you have got a posh asset allocation. Say you wish to put money into bond funds, inventory funds, and plenty of particular person shares. As a substitute of doing the maths and buying each individually, you merely put money into your pie, and the maths is completed for you by M1 Finance.
  2. When your asset allocation must be adjusted. Utilizing the 50/50 instance above, in case your inventory fund takes a nosedive right down to $30 and the bond fund rises in value to $70, you wouldn’t make investments your second $100 the identical as your first. As a substitute, you’ll make investments extra in shares to right-size the 50/50 relationship. With pie investing, this rebalancing is completed robotically for you.

M1 Finance Particulars:

Core Pricing and Charges: Free
Minimal Deposit: $100
Varieties of Investments: Shares, ETFs
Account Sorts: Brokerages, IRAs, Trusts
Safety: SIPC Insured
Signal-Up Provide: $10 Referral Credit score

Whereas I believe the pie investing technique is a singular and helpful providing, the downfall with M1 Finance is that it doesn’t supply automated tax-loss harvesting, which is a generally supplied service from robo-advisors. Though, M1 Finance is free, which can be not like different robo-advisors.

Plus, M1 Finance gives different companies on prime of M1 Make investments:

  • M1 Borrow: You’ll be able to borrow cash at a low-interest fee to commerce on margin or use for different private finance wants. The usual rate of interest is 3.5% until you improve to M1 Plus.
  • M1 Spend: A digital financial institution that provides each a checking account and debit card.
  • M1 Plus: A premium providing that expenses $125 per yr. In return, gives 1% APY on checking account balances, 1% money again on debit card purchases, 2% curiosity on loans, and a day buying and selling window.

One final thing to notice, you should buy fractional shares by way of M1, which is a pleasant profit.

M1 Finance Execs:

  • Free Buying and selling: Fee-free buying and selling.
  • Distinctive Pie Investing Technique: Nice for passive traders.
  • Hybrid Platform: The one platform to supply each passive and energetic investing choices.

M1 Finance Cons:

  • No tax-loss harvesting: Which many different robo-advisors supply.
  • Restricted to One Each day Buying and selling Window: Until you improve to 2 home windows with M1 Plus.

Get Began with M1 Finance:

Begin Investing

Webull vs Robinhood vs M1 Finance Comparability

Charges and Prices

  • Webull: Fee-free buying and selling.
  • Robinhood: Fee-free buying and selling.
  • M1 Finance: Fee-free buying and selling.

All three accounts supply commission-free buying and selling on shares and ETFs. Nonetheless, it’s good to overview every platform’s pricing intimately as a result of in some circumstances there are numerous switch charges, financial institution charges, and inactivity charges, to pay attention to exterior of buying and selling charges.

As well as, as we’ll focus on additional under, Robinhood, Webull, and M1 Finance all supply margin buying and selling, however with a price.

Final, all three platforms additionally cross alongside each an SEC (Securities Change Fee) Charge and TAF (Buying and selling Exercise Charge) Charge. Sometimes, these charges are very small, however you may be taught extra about them utilizing the hyperlinks above.

Funding Accounts Supplied

  • Webull: Brokerages, IRAs
  • Robinhood: Brokerage
  • M1 Finance: Brokerages, IRAs, Trusts

M1 Finance and Webull each supply a greater diversity of funding accounts, with each taxable and retirement accounts accessible. Meaning you may open a brokerage account, conventional IRA, or Roth IRA, in addition to a couple of others.

With Robinhood, you may solely use their taxable buying and selling account.

Funding and Asset Class Choices

  • Webull: Shares, ETFs, Choices
  • Robinhood: Shares, ETFs, Choices, Cryptos
  • M1 Finance: Shares, ETFs

Reverse to the above, Robinhood gives the widest number of asset courses and funding autos so that you can put money into. Their addition of cryptocurrency buying and selling is what units them aside within the funding choices class.

It’s vital to notice, whereas all three brokers supply the flexibility to commerce in shares and ETFs, none supply the flexibility to commerce in index funds or mutual funds. Whereas disappointing, all of them supply high-quality ETFs that match broad markets with low charges, which is often adequate for many passive traders.

Buying and selling Platform and Ease of Use

  • Webull: Finest for superior merchants.
  • Robinhood: Finest for newbie merchants.
  • M1 Finance: Finest for passive merchants.

The underside line right here is that each one three platforms are modern and user-friendly, however there are some distinct variations between them:

Webull, as talked about, is greatest for superior merchants and day merchants, providing real-time charts, technical evaluation instruments, and probably the most strong inventory analysis instruments of the three.

Robinhood has a bare-bones cellular app that’s simple to navigate however generally lacks very important data. My one main grievance is it doesn’t present the expense ratio on ETFs.

M1 Finance is exclusive in that it gives pie investing. We dove into this rather a lot earlier, however I like this structure and technique and assume anybody who desires to take a extra passive investing strategy would too.

Buyer Help

As anticipated with low-cost monetary tech firms, all three on-line brokers supply an in-depth FAQ web page, however make contacting a human slightly tougher. Though, it’s attainable, and I supplied the beginning web page or e-mail above to assist as wanted.

So as, Webull was the simplest to discover a customer support e-mail, and with M1 Finance I couldn’t discover any contact data exterior of social media handles.


  • Webull: SIPC Insured.
  • Robinhood: SIPC Insured.
  • M1 Finance: SIPC Insured.

All three brokers are SIPC Insured, which covers as much as $500,000 and features a $250,000 restrict for money. As well as, all three are a member of the Monetary Business Regulatory Authority (FINRA).

That is normal, and also you shouldn’t contemplate a dealer who doesn’t meet these requirements.

Margin Buying and selling

  • Webull: Supplied.
  • Robinhood: Supplied by way of Robinhood Gold.
  • M1 Finance: Supplied.

All three brokers can help you make investments on margin, however all three cost completely different costs to do it. Keep in mind, investing on margin is a dangerous, superior buying and selling technique that ought to seemingly not be utilized by newcomers.

Webull gives the flexibility to commerce on margin however expenses a tiered rate of interest relying on how a lot cash is in your account.

Robinhood lets you make investments on margin when upgrading to Robinhood Gold for $5 monthly.

With M1 Finance, you may make investments on margin by way of M1 Borrow. That is M1’s service that lets you borrow as much as 35% of your portfolio’s worth with a 3.5% rate of interest (2% rate of interest in the event you improve to M1 Plus).

Beginning Investing Immediately:

Get Began with a Main Funding App Beneath.

M1 Finance

Different Funding Dealer Choices

Whereas understanding the variations between Webull vs Robinhood vs M1 Finance is vital when figuring out a brokerage agency to go along with, they aren’t your solely choices. Beneath are three different nice brokers to think about:

Charles Schwab

Charles Schwab is a conventional on-line dealer providing mutual funds, index funds, and ETFs with low bills.

  • Charges: $Zero per on-line commerce of Charles Schwab funds, ETFs, and shares
  • ETFs/Index Funds: 20+ prime tier funds with expense ratios as little as 0.02%
  • Different Notes: Nice customer support


Betterment is a number one robo-advisor providing a low administration price and automated tax-loss harvesting.

  • Charges: 0.25% administration price (plus the expense ratio of investments)
  • ETFs/Index Funds: Number of Vanguard, Schwab and different index funds and ETFs
  • Different Notes: Supplies tax-loss harvesting


Simply as Robinhood is the pioneer for commission-free buying and selling, Vanguard is the pioneer for low price index fund investing.

  • Charges: $7.00 per commerce ($Zero for Vanguard funds)
  • ETFs/Index Funds: 20+ prime tier funds with expense ratios as little as 0.04%
  • Different Notes: Founding father of Vanguard, John Bogle, invented the low-cost index fund

Abstract: Webull vs Robinhood vs M1 Finance Evaluate

Figuring out whether or not Webull vs Robinhood vs M1 Finance is best for you is dependent upon your familiarity with inventory buying and selling and funding targets.

All three buying and selling platforms have one thing distinctive to supply, otherwise you is likely to be higher off with a conventional dealer like Charles Schwab or a unique robo-advisor like Betterment.

Nonetheless, normally, these are the forms of customers that match every brokerage greatest:

  • Webull: Superior merchants.
  • Robinhood: Newbie merchants.
  • M1 Finance: Passive merchants.

For those who don’t assume you match up with any of the choices above, then do some extra analysis in your different on-line brokerage choices and discover the appropriate one in an effort to begin investing in the present day.

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