Which Broker is Better for you: M1 Finance or Stash?
Both Stash and M1 Finance have good passive investing options. One of them is significantly better for most people though due to the lack of fees it has compared to the other platform.
The platform I believe is better for most people, and I use for my long-term investing and saving is M1 Finance, as their fees are much less and their platform has more flexibility.
Which platform has lower fees?
As briefly touched on above, M1 Finance doesn’t charge any fees, even for it’s managed portfolios. Their platform is entirely free, and they achieve this by making money through other means (such as offering to lend you money with your portfolio as collateral for 4% a year). While you don’t have to take up their offers for that, many people do and it’s a nearly risk-free way for them to make tons of money without charging fees.
Stash charges a flatrate $1 fee per month for small accounts and a 0.25% fee for accounts with more than a few thousand dollars in it. While that’s a small fee, in the long-run it can add up and scrape away thousands of dollars from you over the years, especially if you grow a large portfolio.
Which Platform has better tools and functionality?
While it’d be fine if Stash offers more features for that extra fee they charge, they don’t really have any extra functionality or tools than M1 Finance. I’d argue they have fewer tools and functionality, as they don’t offer low-interest loans or margin like M1 Finance does.
Stash also doesn’t offer research elements that M1 Finance does, nor do they provide Tax-advantageous sale preferences, automatic dividend reinvestment, and portfolio rebalancing (if you so wish, you can disable those features if you’d like). M1 Finance simply has way more features.
Both platforms offer simple things like automatic transfers, so you can easily set up to deposit a set amount from your paycheck/bank-account every week or month if desired.
Is there ANY reason to use Stash over M1 Finance?
The only reason I can think of is I believe Stash offers custodian-accounts, while I’m unsure if M1 Finance currently offers those type of accounts. But for every other type of account (Roth IRA, regular IRA, Traditional taxable investment accounts, etc) I’d say M1 Finance is better in every single regard compared to Stash.
M1 finance simply has everything Stash has and more, all without the pesky “maintenance fee” that Stash charges for you to have an account with them.
If you want to sign up for M1 Finance you can do so by clicking here. If you use that link you should receive between $10 and $25 or so after making your first investment of $100 or more, which is a bonus M1 Finance offers to readers of Greenery Financial.
Stash doesn’t offer any free stock or signup bonus as far as I know of, but if you do want to go with them you can signup normally here.