M1 Finance vs Wealthfront
Last updated July 2026
M1 Finance
Custom pie-based investing with no advisory fee
Advantages
- No advisory fee on M1 Invest, pay $0/yr on any balance
- Custom Pies let you build fully personalized portfolios with automatic rebalancing
- Fractional shares included
- M1 Borrow: margin at 6.75% on M1 Plus (competitive rates)
- High-yield checking (M1 High-Yield Cash Account paying 5.00% APY as of mid-2026)
Drawbacks
- No tax-loss harvesting (a real gap for taxable accounts)
- Only one trading window per day on the free plan
- M1 Plus is now $3/mo, previously free
- No human advisor access
Wealthfront
Automated investing with the best-in-class cash management account
Advantages
- 0.25% annual advisory fee on portfolios above $500
- 4.75% APY on Cash Account with FDIC coverage up to $8M
- Automatic tax-loss harvesting on taxable accounts
- Direct Indexing available on portfolios above $100K for additional tax savings
- Path, a robust automated financial planning tool bundled free
Drawbacks
- $500 minimum to invest
- No human advisor access at any tier
- Portfolio customization is limited to what Wealthfront supports
M1 Finance and Wealthfront both play in investing platforms, but they're aimed at different buyers. M1 Finance is built for dIY investors who want to design their own portfolio with automatic rebalancing. Wealthfront is built for automation-first investors who want tax-loss harvesting and high cash APY. Which one fits depends on which of those descriptions sounds more like you.
Feature Comparison
| Feature | M1 Finance | Wealthfront |
|---|---|---|
| Advisory Fee | $0 | 0.25% annually |
| Minimum Investment | $100 for taxable, $500 for retirement | $500 for investing; $1 for Cash Account |
| Rebalancing | Automatic based on your custom pie targets | -- |
| Tax-Loss Harvesting | No | Yes on all taxable accounts |
| Borrowing/Margin | M1 Borrow at 6.75% (M1 Plus) | -- |
| Portfolio Customization | High, fully custom pies | -- |
| Human Advisor | No | No, fully automated |
| Cash Account APY | 5.00% APY (M1 High-Yield Cash Account) | -- |
| Cash Yield | -- | 4.75% APY on Cash Account (FDIC up to $8M) |
| Direct Indexing | -- | Yes on portfolios above $100K |
| Planning Tools | -- | Path, goal-based automated planning |
| Portfolio Customization | -- | Limited but flexible within Wealthfront's ETF menu |
Too Close to Call
M1 Finance and Wealthfront land roughly even overall; the right pick depends on which of their strengths matters more to you.
M1 Finance's standout strength: No advisory fee on M1 Invest, pay $0/yr on any balance. Wealthfront's standout strength: 0.25% annual advisory fee on portfolios above $500. Neither dominates across the board, and both have well-known weak spots. M1 Finance's biggest drawback: No tax-loss harvesting (a real gap for taxable accounts). Wealthfront's biggest drawback: $500 minimum to invest. Pick the one whose strengths line up with what you actually need.
Related Comparisons
Wealthfront vs Betterment
The two biggest robo-advisors, which one manages your portfolio better?
M1 Finance vs Betterment
DIY pie-based investing versus a fully-managed robo-advisor, which suits you?
Charles Schwab vs M1 Finance
Charles Schwab's "Full-service brokerage with the best trading platform (thinkorswim)" meets M1 Finance's "Custom pie-based investing with no advisory fee". Which one fits your situation?