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If you want to grow your wealth with automated investing, Wealthfront and M1 Finance are two popular options. Both provide low-cost, hands-off investing plus tools for more active management, but they serve different types of investors. Below is a clear look at what each platform offers and who they suit best.
Both platforms combine automated investing with self-directed options, so you can choose a fully managed approach or take more control.
What is Wealthfront?
Wealthfront started as a classic robo-advisor for investors who prefer a fully managed experience. After a short questionnaire it recommends a diversified portfolio aligned with your timeline, risk tolerance, and goals. Wealthfront handles rebalancing, dividend reinvestment, and tax-loss harvesting to help improve after-tax returns. It also offers individual stocks, ETFs, themed portfolios, cash management, and socially responsible investing choices.
What is M1 Finance?
M1 Finance gives access to thousands of ETFs and stocks, plus screeners to help you build the portfolio you want. It offers expert-built model portfolios covering retirement, stocks and bonds, income, global exposure, socially responsible investing, and both aggressive and conservative strategies. Portfolios can be rebalanced to your target allocation on demand. M1 is commission-free if you maintain a $10,000 balance or have an M1 Borrow loan; otherwise there’s a $3/month fee. The platform is a good fit for investors who want control with some automation and integrated financial tools. It also supports cash management and socially responsible options.
Which should you choose?
Choose Wealthfront if you want a hands-off, tax-aware portfolio that requires minimal effort. Choose M1 Finance if you prefer to design your own portfolio or use a model portfolio and still have the option to automate rebalancing. Both platforms are solid—your choice depends on how active you want to be in managing investments.
Safety and security
Wealthfront uses bank-level security and partners with banks to provide FDIC protection for cash deposits; brokerage assets are covered by SIPC. Its automated strategies and tax tools aim to reduce volatility and improve returns over time, though market risk remains.
M1 Finance is a registered broker-dealer and works with partner banks to offer FDIC protection for cash. Investment assets are protected by SIPC against firm failure or misconduct, but market risk still applies. M1’s regulatory compliance and infrastructure help protect accounts and personal data.
