The ultimate comparison between Robinhood Vs Webull Vs M1 Finance will help you in making your investment decision after you have read through what we have to tell you.
It can be quite confusing choosing between investment options especially if it is your first time. That’s why it’s best you know the differences between these investment companies. This will better inform your choice(s). You have to carefully weigh the pros and the cons to know which one is the best fit for you. Thankfully we have made the work easier for you by giving you the necessary information that will guide you in making a decision.
Robinhood
Robinhood falls under the category of brokerage. This investment company was founded in 2013 and does not ask for any consideration fee. It offer you free trades on stock, exchange-traded funds (ETFs), cryptocurrencies, and other commission-free options.
This investment platform mostly focuses on investors who are very new to this environment of investing. Also, those who want to get started choosing individual stocks or funds in the stock market. Robinhood has garnered quite a number of followers and audiences and has grown a lot over a very long period of time.
It offers its users various features and functions. Users are offered basic types, line charts as well as some useful essential information. Currently, this stands as the easiest application that you can find. It offers you the fundamental types, limited data, and no trading simulator. However, they do not provide you with dividend reinvestment. Let’s look at some of the key features that this application offers to its users:
Multiple Assets
Multiple assets are one of the features that Robinhood offers to its customers. The multiple assets it provides include – stocks, cryptocurrencies, and options. If you are interested in this feature, you can go for it.
Robinhood Gold
This is basically a paid subscription from this application that is offered to you to earn their price. Here, they extend you a loan via which you can buy stocks through your account balance. However, remember that it would be a great risk if you intend to trade on your margins.
Fractional Shares
With this application, you can purchase fractional shares of stock and ETFs. This implies that you will be able to purchase the shares of stocks in $1 increments. By this, you can easily invest in expensive stocks.
Dividend Reinvestment
This feature offered to users provides the stock-level DRIP. This implies that whenever a stock pays a dividend, you will have the right to choose. You can choose whether to reinvest the dividend back into the fractional shares of the company’s stock.
Recurring Investments
Recurring investments enable the investors to put up an automatic investment which would be periodic into the stocks or ETFs they particularly want to invest in.
Pros
- Quite effortless to use
- You are not asked for a minimum balance
- Free trading
- An array of investment options
Cons
- Does not offer any retirement accounts.
Webull
Webull is an application that was founded in 2016 after Robinhood. This application has more advanced features or tools which will help you do your work. This is another free-of-cost application to users. As compared to Robinhood, it did not have robust, data-driven free trading as we mentioned that it was for beginners. Webull on the other hand offers some more advanced features. Webull provides its users with transforming from intermediate to advanced traders or investors features. Users are offered more fundamental and technical features which most of the applications do not offer.
Webull has also added on with the IRAs, which is a feature that traders need to go ahead with their work. But, this application does not offer any fractional shares, dividend reinvestment, crypto trading or expert portfolios. You are not asked for any commissions or trading as well. Webull is more of an advanced application than Robinhood which is beginner-friendly. Webull offers the following features:
Features
Real-Time Market Data
With Webull, you enjoy robust data, which is mainly for traders and investors. Users are provided with many technical indicators, which include all the key financial documents, earning dates, and analyst references.
Trading Simulator
Users on this application are offered free trading simulator, which comes as a great feature. The key feature provided by this application is trading with real money. The outstanding benefits that accrue from this, is that you can practice through your fake money, in order to learn all the importance and basics of trading or investing.
Commission-Free Short Selling
Are you interested in short-selling? If yes, you can go for this application. This is because they allow the investors to invest with the thought that your stock price will go below than thinking of getting high.
Extended Trading Hours
This feature offers its users extended trading hours which are both pre-market. This implies that you can trade stocks before the market opens and after the market closes.
Retirement Accounts
This application unlike Robinhood offers its users retirement accounts. This is very beneficial for them to work with. Here you can easily open a traditional or Roth IRA retirement account in this, with no minimum balance needed.
Pros
- Offers extended trading hours
- Have added on with the Retirement accounts
- Do not have any commissions
Cons
- Do not offer crypto investing
M1 Finance
M1 Finance was founded in 2015 before Webull was established. It is an application that is considered a hybrid brokerage owing to its function which shows half Robo-advisor and half-online brokerage accounts.
With this application, you are given the option of choosing the set number of stocks, funds, or ETFs for the purpose of your portfolio. This application has a unique feature with your portfolio. The target you decide on for your portfolio with the original stocks or funds, this application maintains that reliably according to your built strategy.
M1 provides long-term investing for the investors, which is not available with Robinhood. Dividend investors are mostly in this. Why? Because they offer portfolio-level dividend investments. However, they do not offer you options trading or crypto trading. Additionally, they do not offer you the trading simulator as Webull does. Unlike Robinhood and Webull, M1 will 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.
M1 does not cost you anything, which is one of the things it has in common with the other applications mentioned above. The traders are also free of cost. However, if you want an upgraded account you will be offered an M1 Plus account which has various features. This will cost you $125 per month.
Want to know the features that M1 Finance offers?
Features
Custom and Expert Pies
With this feature, you can create your own portfolio from scratch to invest in one of their pre-built expert pies. You are not charged for these expert pies and each of these pies can hold up to 100 stocks or ETFs.
Portfolio level DRIP
This is a feature where when a stock in your pie earns a dividend, that dividend is reinvested into your portfolio. But this will be the case only if your cash balance goes above $10. This comes as an excellent method to reinvest dividends and also to earn compound interests.
Automatic Rebalancing
Rebalancing is very important if you want to keep your portfolio at your target allocations. This feature enables you 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.
Retirement Accounts
This is also a feature that is not offered on Robinhood. Here you have to open it with an opening balance of $500
Pros
- Has a good feature of Automatic investments
- Has fractional shares
Cons
- Has minimal trading windows
Conclusion
Now that you have read through and gotten the basic differences and similarities between the three applications, it is now left to you to choose. You can make a more informed choice depending on the application that is the best fit for you.