Updated September 29, 2026 · BrokerCue Editorial Team
M1 vs Robinhood
M1 vs Robinhood: the differences
| Compare |  M1 |  Robinhood |
|---|---|---|
| Markets | Stocks, ETFs, Crypto | Stocks, ETFs, Options, Futures, CryptoCovers more |
| Regulators | SIPC | Bank of Lithuania (LSC), LT BL, SIPCCovers more |
| Investor protection | SIPC up to USD 500,000 | EU ICS up to EUR 20,000 |
| Margin rate | 5.9% | 3.95%Lower |
| Maximum retail leverage | Up to 50% of portfolio value | 10X |
| Account fee | Not confirmed | $0 |
| Inactivity fee | Not confirmed | $0 |
| Options contract fee | Not confirmed | $0 |
| Deposit and withdrawal fees | Not confirmed | $100 outgoing transfer |
| Platforms | Not confirmed | Robinhood app, Robinhood Legend |
| Interest on cash | 3.35% | Not confirmed |
Same on both: Minimum deposit ($0), Stock trade fee ($0), Account types (IRA, Roth IRA, Joint).
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Key differences
- Robinhood scores higher overall: 9.4 vs 9.0.
- Regulators: only Robinhood offers Bank of Lithuania (LSC), LT BL.
- Founded is lower at Robinhood: 2013 vs 2015.
- Robinhood is licensed in 1 more country.
- Margin rate is lower at Robinhood: 3.95% vs 5.9%.
- Markets: only Robinhood offers Options, Futures.
- Features: only Robinhood offers Options, Futures.
- Pricing model: only Robinhood offers Low fees.
Our verdict on each
M1
M1 is a low-cost brokerage built for retirement savers and small investors who want shares, ETFs and crypto in a single account. Stock trades run at $0 and it places 1 of 213 brands on minimum deposit, though the managed portfolios want $10,000 to start.
Robinhood
Robinhood suits first-time investors and small, regular investors who want nothing charged for holding or trading. It is the cheapest way in on our data, with a minimum deposit of $0, no account fee and no inactivity charge, under the Bank of Lithuania and SIPC.
Score breakdown
| Area | M1 | Robinhood |
|---|---|---|
| Cost | 9.5 | 9.6HigherStock trades cost $0, options contracts $0, the account fee is $0 and inactivity is $0. |
| Offer | 9.0Costs carry the offer: 0% management fee, $0 stock trades and a $0 minimum deposit. | 9.3Higher |
| Trust | 8.6 | 9.3Higher |
Positions in our rankings
| Ranking | M1 | Robinhood |
|---|---|---|
| Stock and ETF brokers | 145 of 471 | 13 of 471 |
| Investment platforms and apps | 29 of 86 | 1 of 86 |
| Margin trading brokers | 16 of 22 | 2 of 22 |
| IRA providers | 21 of 43 | 1 of 43 |
A third option
Nexo has margin rate at 1.9%, against 5.9% for M1 and 3.95% for Robinhood.
Nexo reviewEvery fact side by side
| Fact | M1 | Robinhood |
|---|---|---|
| Features | Crypto, Fractional shares, Mobile app | Crypto, Fractional shares, Options, Futures, Mobile appCovers more |
| Pricing model | Commission free | Commission free, Low feesCovers more |
| Audience | Not confirmed | Beginners, Day traders |
| Legal entity | M1 FINANCE LLC | Robinhood Europe UAB |
| Headquarters | United States | Lithuania |
| Founded | 2015 | 2013Lower |
| Support channels | Help centre | Not confirmed |
Robo-advisors
| Fact | M1 | Robinhood |
|---|---|---|
| Management fee | 0% | Not confirmed |
| Minimum investment | $10,000 | Not confirmed |
| Portfolio types | ETF, Cash, Crypto | Not confirmed |
Where each stands against the rest
| Fact | M1 | Robinhood | Median |
|---|---|---|---|
| Minimum deposit | $0below the median | $0below the median | $25 |
| Stock trade fee | $0at the median | $0at the median | $0 |
| Account fee | Not confirmed | $0at the median | $0 |
| Inactivity fee | Not confirmed | $0at the median | $0 |
| Margin rate | 5.9%below the median | 3.95%lowest quarter | 8.75% |
| Options contract fee | Not confirmed | $0lowest quarter | $0.625 |
Median across 134 listed brokers.
Pros and cons
M1
Pros
- Placing 1 of 213 brands on minimum deposit, so an account opens without a funding hurdle.
- Placing 1 of 161 brands on stock trade fees, with a stock trade costing $0.
- Uninvested cash earns 3.35%, and Pie portfolios mix etf, cash and crypto.
Cons
- Margin borrowing at 5.9% can cost more over a held position than the $0 trade fee saves.
- Support runs on help centre only, with no phone or live chat listed.
- Managed portfolios want $10,000 to start, well above the $0 brokerage entry point.
Robinhood
Pros
- Nothing to pay to open or hold an account, with an account fee of $0 and an inactivity fee of $0
- Trading a share costs $0, so a small first order is not eaten by commission
- You can start with a deposit of $0, lower than most brands on our data
Cons
- Leverage is available at 10X, which magnifies losses as well as gains
- Outgoing transfers carry a charge of $100 outgoing transfer
- Margin borrowing is priced at a margin rate of 3.95%, so interest adds to your cost
Who each suits
M1
Who it suits
- Self-directed investors who want to trade shares and ETFs without a per-trade charge.
- Retirement savers, since accounts include ira, roth ira and joint.
- People who want crypto alongside equities in the same account, under stocks, etfs and crypto.
Who should look elsewhere
- Traders who need forex, CFDs or futures, since eToro lists stocks, etfs and forex and M1 stops at stocks, etfs and crypto.
- Readers who want a wider asset list in the same app, because CFI covers stocks, etfs and forex.
- Managed portfolio buyers starting below $10,000, a floor that sits well above the $5 deposit Vantage asks to open an account.
Robinhood
Who it suits
- Beginners opening a first account with a small deposit
- Day-traders working in options, futures and crypto on mobile
- Retirement investors using an IRA, Roth IRA or joint account
Who should look elsewhere
- Vantage if a flat minimum deposit of $5 suits you better
- CFI if you want forex and CFDs alongside shares, since its markets cover stocks, etfs and forex
- eToro if social copy trading matters more than options and futures
Country by country
| Country | M1 | Robinhood |
|---|---|---|
| United States | Yes | No |
Questions about each
M1
What does it cost to trade shares at M1?+
Stock trades cost $0 and the account opens with a $0 minimum deposit, so there is no per-trade commission and no funding hurdle. The running cost sits in the spread and in currency conversion when shares priced in dollars are bought. Margin borrowing is charged at 5.9% and is the line most likely to run up a bill.
Is my money protected at M1?+
Protection runs through the scheme listed as SIPC, with cover stated as SIPC up to USD 500,000. It is the only regulator on file, so there is a single scheme to claim against and a single register to check. The membership record reads SIPC member 69670. The stated figure is a ceiling on the payout, not a stand-in for the balance itself.
Robinhood
What does it cost to trade shares on Robinhood?+
Trading a share costs $0, and an options contract costs $0. There is also an account fee of $0 and an inactivity fee of $0, so nothing is taken for simply holding the account open. Borrowing on margin is charged at a margin rate of 3.95%, which is the main running cost if you use leverage.
Is there a minimum deposit to open a Robinhood account?+
The minimum deposit is $0, so you can open an account and place a small first order without funding a large balance. It is worth comparing that with the deposits other brands ask for before you commit, since the figure varies widely across the market. Outgoing transfers are charged at $100 outgoing transfer, so factor that in if you plan to move money out early.
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