M1 vs Betterment (2026)
M1 is a self-directed tool that invests deposits toward the target weights you set, with no advisory fee through December 31, 2027 and a $3 monthly fee in cycles under $10,000. Betterment picks and manages the portfolio, with optional tax-loss harvesting, for 0.25% a year or $5 a month under $24,000 without a $200 monthly deposit.
By Wealthy Pot Editorial · Facts checked October 19, 2026
| Feature | M1 | Betterment |
|---|---|---|
| Type | Hybrid | Standalone |
| Advisory fee | $0 (advisory fee waived through Dec 31, 2027) + $3/mo platform fee under $10k | $5/mo under $24k (unless $200+/mo deposits), else 0.25%/yr; Premium 0.65% |
| Year cost on $5,000 | $36 + funds | $62.50 to $66.50 |
| Year cost on $25,000 | $0 + funds | $75 to $95 |
| Year cost on $100,000 | $0 + funds | $300 to $380 |
| Account minimum | $100 ($500 for IRAs) | $0 ($10 first deposit) |
| Tax-loss harvesting | No | Yes |
| Platforms | Web, iOS, Android | Web, iOS, Android |
| Best for | Investors who build their own target portfolio ("pie") and want deposits invested automatically | Goal-based automated investing with tax-loss harvesting and no account minimum |
Year-cost rows are our arithmetic: advisory fee plus typical fund expenses, balance held flat for a year, using each firm's published fee rules. Hypothetical, not a quote.
Key differences
These are different services. M1 says it is not a robo-advisor: you build a "pie" of stocks and ETFs with target weights, M1 invests each deposit toward underweight slices, and a full rebalance is a one-tap action you start, which can trigger taxes. Betterment picks a stock and bond mix for your goal and sells and buys when a portfolio drifts about 3% from its mix. M1 Advisor, launched September 30, 2026, is an AI adviser that recommends while you place the trades, with no human advice. Betterment Premium adds CFP professionals from $100,000 at 0.65%.
M1's advisory fee is waived in full through December 31, 2027; after that its brochure allows up to 0.20% a year, with advance notice. A separate $3 monthly platform fee applies in any 30-day cycle where total M1 assets never reach $10,000. Hypothetically, on $8,000 held all year, M1 costs $3 x 12 = $36, while Betterment costs $5 x 12 = $60 without a $200 monthly deposit, or $8,000 x 0.25% = $20 with one. On $50,000, Betterment's fee is $125 a year and M1's is $0 through 2027, or $100 if the full 0.20% later applies.
Betterment offers optional tax-loss harvesting on taxable accounts; M1's pages and adviser brochure do not mention it. Cash works differently too: M1 brokerage cash earns 0%, with an opt-in High-Yield Cash Account that paid 3.35% APY in September 2026, while Betterment keeps about 0.5% of managed portfolios in cash that earns no interest. Leaving costs $100 per account transfer at M1 and $75 at Betterment. M1's broker-dealer paid three FINRA fines between December 2023 and May 2024; Betterment paid a $9 million SEC penalty in April 2023.
Where M1 wins
- Advisory fee waived in full through December 31, 2027
- Deposits are invested toward your target weights automatically
- You choose every holding, down to individual stocks
- No platform fee in any 30-day cycle with $10,000 in total M1 assets
- M1 Advisor has no minimum of its own
Where Betterment wins
- No minimum balance and a $10 first deposit
- Optional tax-loss harvesting and Tax Coordination, with no balance threshold stated
- 0.25% at any balance with a $200+ monthly recurring deposit
- CFP professionals on Premium from $100,000
- Lower rates on balances above $1 million (0.15%, then 0.10%)
Which should you choose?
Pick M1 if
- You want to pick your own stocks and ETFs and have each deposit invested toward target weights.
- You have $10,000 or more at M1, so the platform fee does not apply.
- You want AI suggestions for your M1 holdings with the advisory fee waived through 2027.
Pick Betterment if
- You invest every month and can set a recurring deposit of $200 or more, so the 0.25% fee applies at any balance.
- You hold a taxable account and want optional tax-loss harvesting with no stated balance threshold.
- You have $100,000 or more and want calls with CFP professionals for 0.65% a year.
- You want an HSA or Solo 401(k) managed in the same place as your IRA.
M1 vs Betterment: FAQ
Is M1 cheaper than Betterment on $25,000?
Through December 31, 2027, yes on advisory fees: at $25,000 M1 charges no platform fee and no advisory fee, so you pay only the expense ratios of the funds you choose. Betterment charges 0.25%, $62.50 a year, plus Core fund costs of $12.50 to $32.50. If M1 later charged the full 0.20% its brochure allows, that would be $50 a year.
Which does tax-loss harvesting, M1 or Betterment?
Betterment, as an option on taxable accounts with no balance threshold stated. M1's pages and the M1 Advisory brochure do not mention tax-loss harvesting, and rebalancing by selling at M1 is something you start, which can create taxable gains.
Does M1 pick my investments the way Betterment does?
No. At M1 you choose every holding and approve every trade; M1 Advisor, an AI adviser, only recommends. Betterment chooses the portfolio for your goal and runs it, and its Premium tier adds CFP professionals from $100,000. M1 has no human advice of any kind.
Compare these against every option in our robo-advisors comparison.
We summarize each company's published terms and pricing, not user reviews or our own testing. Facts come from our full reviews of both services, each checked against the firm's own fee pages and SEC filings on October 19, 2026 with every source listed. We do not earn a commission from either service. Nothing here is investment advice.