Compare Betterment and M1 Finance on fees, DRIP, fractional shares and research for dividend investing.
Updated August 26, 2026
Betterment and M1 Finance (usually just “M1”) are both aimed at hands-off investors, but they automate different things. Betterment (4.5/5) is a full robo-advisor: pick a goal, and it builds an ETF portfolio, reinvests dividends, rebalances, and harvests tax losses for 0.25% a year — or $5/month on balances under $24,000 without $200/month in deposits. M1 (4.7/5) automates a portfolio you design yourself: you set target weights in a “pie” of stocks and ETFs, and M1 buys fractional shares, directs new deposits to underweight slices, and reinvests dividends, with $0 commissions and no advisory fee.
For dividend investors, M1’s pies are the draw: you can hold 30 dividend stocks at exact weights and choose a true per-stock DRIP or pie-wide reinvestment. Betterment can’t do that in its managed portfolios — dividends reinvest across your allocation, and while it added commission-free stock trading in late 2025, those positions sit outside its automation. What M1 lacks is Betterment’s tax-loss harvesting, and it charges $3/month on accounts under $10,000 and trades only in a single 9:30 AM window (a 3 PM window requires the premium tier).
The pioneer of robo-advising with automatic portfolio management, tax-loss harvesting, and dividend reinvestment—designed for truly hands-off investing.
The ultimate set-it-and-forget-it platform with pie-based portfolios, automatic rebalancing, and free dividend reinvestment.
| Feature | Betterment | M1 Finance |
|---|---|---|
| Our Rating | 4.5/5 | 4.7/5 |
| Trading Commissions | N/A | $0 |
| Account Minimum | $0 | $100 |
| Fractional Shares | N/A | Yes |
| DRIP | Automatic | Free + Smart |
| Research Tools | Automated | Basic |
| Best For | Hands-Off Investors | Hands-Off Dividend Investors |
Want the full breakdown of fees, DRIP, and research tools? Read our Betterment review and M1 Finance review.
M1 Finance if you want to own specific dividend stocks without managing them day to day — the pie system, fractional shares, and automatic DRIP deliver most of a robo-advisor’s convenience at $0 in fees once you pass $10,000. Betterment if you’re investing in a taxable account and don’t care which ETFs you hold: tax-loss harvesting can offset the 0.25% fee, and goal-based planning is something M1 doesn’t attempt. Inside an IRA the tax edge disappears, which makes M1 the cheaper pick for most dividend portfolios.
M1 Finance if you want to choose your dividend stocks: pies hold them at exact target weights, deposits auto-invest into underweight positions, and you can reinvest dividends per stock or across the pie, all with $0 commissions. Betterment is better for investors who want a fully managed ETF portfolio with tax-loss harvesting included. M1 rates 4.7/5 in our reviews versus Betterment’s 4.5/5.
Betterment charges 0.25% annually with $24,000+ or $200/month in deposits, otherwise $5/month; Premium with human advisors is 0.65%, and ETF expense ratios are extra. M1 charges no advisory fee and $0 commissions, but a $3/month platform fee applies under $10,000, full account transfers out cost $100, and a $50 inactivity fee hits balances under $50 after 90 days.
No. Betterment includes automatic tax-loss harvesting on taxable accounts at no extra cost; M1 does not offer it. M1’s dynamic rebalancing buys underweight slices with new cash rather than selling winners, which keeps taxable events low but doesn’t generate losses to offset gains. In an IRA neither feature matters.
On M1, yes — that’s the whole model. Pies can mix individual stocks, ETFs, and 80+ Expert Pies, all bought as fractional shares. Betterment added commission-free individual stock and ETF trading in late 2025, but those trades sit outside its managed portfolios: no automatic rebalancing, no tax-loss harvesting, and no dividend research tools.
Not sure these are the right fit? Explore more comparisons.
Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice.