Intro – Stash vs M1 Finance

When it comes to investing, choosing the right platform is crucial for maximizing returns and achieving financial goals. Two popular options are Stash vs M1 Finance. In this article, we’ll compare these platforms head-to-head to help you determine which one suits your investment needs best.

Quick Comparison

In a nutshell, both Stash and M1 Finance offer unique features tailored to different types of investors. Stash is ideal for beginners looking for a user-friendly platform with educational tools, while M1 Finance caters to more experienced investors seeking customization and automation in their portfolios.

Features

Stash: Stash offers fractional shares, allowing investors to buy small portions of stocks and ETFs. It provides a range of thematic investment options, known as “Stash Themes,” such as Clean & Green and Internet Titans. Additionally, Stash offers educational content through its “Learn” tab, making it suitable for new investors seeking guidance.

M1 Finance: M1 Finance offers dynamic rebalancing and automated investing, allowing users to maintain their target asset allocation effortlessly. It provides a high level of customization, enabling investors to create portfolios with individual stocks and ETFs. M1 Finance also offers a checking account and a debit card with cashback rewards, enhancing its overall value proposition.

Personal Experience

Having used both platforms, I found Stash to be straightforward and beginner-friendly. The thematic investment options helped me align my investments with my interests and values. However, as I became more experienced, I appreciated M1 Finance’s customization options and automated features, which allowed me to tailor my portfolio to my specific investment strategy.

Pricing

Stash: Stash offers three subscription tiers: Beginner ($1/month), Growth ($3/month), and Stash+ ($9/month). Each tier provides access to different features and benefits, such as investing accounts, stock-back rewards, and custodial accounts for kids.

M1 Finance: M1 Finance offers a basic account with no management fees. However, it also provides a premium tier, M1 Plus ($125/year), which includes additional features like lower borrowing rates, cashback rewards, and a second trading window.

Pros & Cons

Stash:

• Pros:
  1. Beginner-friendly interface: Stash’s intuitive interface makes it easy for novice investors to navigate the platform and start investing without feeling overwhelmed.
  2. Thematic investment options: Stash offers a variety of themed investment options, allowing users to invest in companies and industries that align with their interests and values.
  3. Educational resources: Stash provides educational content through its “Learn” tab, offering articles, guides, and tips to help users learn about investing and make informed decisions.
• Cons:
  1. Limited customization: While Stash offers thematic investment options, it lacks the level of customization found in other platforms like M1 Finance, limiting users who prefer to build their own portfolios.
  2. Monthly subscription fees: Stash’s subscription model may deter some investors, especially those who are just starting and may not see the value in paying a monthly fee for investment services.

M1 Finance:

• Pros:
  1. Customizable portfolios: M1 Finance allows users to create highly customized portfolios by choosing individual stocks and ETFs, giving them more control over their investment strategy.
  2. Automated investing and rebalancing: M1 Finance offers automated features that automatically rebalance portfolios to maintain target asset allocations, saving time and effort for investors.
  3. No management fees for basic accounts: Unlike many other investment platforms, M1 Finance does not charge management fees for its basic accounts, making it an attractive option for cost-conscious investors.
• Cons:
  1. Steeper learning curve for beginners: M1 Finance’s level of customization and advanced features may be daunting for novice investors who are not familiar with investing concepts and strategies.
  2. Additional features locked behind premium subscription: While M1 Finance offers a basic account with no management fees, some of its advanced features, such as lower borrowing rates and cashback rewards, are only available to users who upgrade to M1 Plus, which comes with an annual fee.

Alternatives

While Stash vs M1 Finance are both excellent investment platforms, alternatives like Robinhood and Betterment also offer unique features and benefits worth considering. Robinhood is known for its commission-free trading, while Betterment offers automated portfolio management and tax-loss harvesting.

Are you looking for the best alternatives? Check this out: TIAA vs Vanguard

Conclusion

In conclusion, both Stash vs M1 Finance have their strengths and weaknesses, making them suitable for different types of investors. For beginners seeking simplicity and educational resources, Stash may be the better choice. On the other hand, experienced investors looking for customization and automation may prefer M1 Finance. Ultimately, the best platform depends on your investment goals, preferences, and level of experience.