 All right guys, we have some serious stuff to talk about today, which is better for you to use M1 finance or Robinhood, I've been getting bombarded with questions on discord, Facebook, Instagram, YouTube comments, every social platform Which should I use for trading? Which should I use for investing? So I figured why not just make a video on it so whenever I do get that question I could link you to this video so in today's video We're just going to be doing that talking about M1 finance Robinhood my personal experience with it So you can actually get some perspective on what you should be using whether you have a goal to be an investor or a Trader and honestly you could be both of these at the same time And I want to give you guys a plan of action for that So if you enjoy this video feel free to go down below hit that like button Consider subscribing if you want to see further content involving the stock market Investing and trading this is the channel for you and let's get right into it So first and foremost guys M1 finance and Robinhood These are both discount brokers meaning that you don't have to pay a Commission each time you buy and you don't have to pay a commission each time you sell a stock and ETF Whatever it may be right so this is very beneficial to those out there starting out with the smaller amount of money Whether it be two hundred dollars five hundred dollars maybe even a thousand dollars Right because if you're using a traditional broker like TD Ameritrade fidelity ones that charge Commissions, you know this may eat into your profit when you're starting out right think about it if you're placing a trade with let's say a Hundred dollars and it costs five dollars to buy five dollars to sell That's already a ten percent chunk out of that one hundred dollars So you're going to have to make ten percent at least on that trade or that investment to break Even right, which is why M1 finance and Robinhood and a bunch of other discount brokers are awesome So the goals of investors and traders they're different right It's like one side of the spectrum versus the other a trader The whole idea of being a trader is hopping in and out of a stock quickly to Capitalize on a short-term movement whether that's an intraday play You know buying and selling in the same day also known as a day trade or a swing trade Right, which is buying one day and maybe selling in five days ten days a month two months Whatever it may be right the whole idea is to buy and capitalize in a short period of time Which in terms of investing that's not the case right investing You're looking to buy a stock and hold it for the long term Maybe two five years maybe five ten years whatever it may be right So that's kind of the distinction of an investor versus a trader So M1 finance and Robin Hood they cater to two of these different crowds Which is what we're going to get into right now So if you're looking to short-term trade in the stock market day trading swing trading hopping in and out of stocks I think Robin Hood is the best option for you and let me explain why so when you're short-term trading The price that you get the stock the price you buy the stock at is extremely important Right, you don't want to end up doing your technical analysis Watching price action hitting a buy order a market order and then getting the stock 40 cents above from where you executed your trade right that might mess up your whole strategy for that trade And that might make you lose money on that specific trade right the whole entire idea is to execute your trade Whether it's a market order or a limit order and get the exact price that you want And Robin Hood allows you to do this and on the flip side M1 finance does not allow you to do this So M1 finance has a trading window meaning if you buy a stock Let's say I put an order in right now 11 30 a.m. Right. Let's say I put in an order for M1 finance I want to buy the specific stock the order won't go in until the next day's trading window Which is very detrimental for those that are looking to trade stocks because again guys the whole entire idea Is to get the stock at the price point that you want to get it at the the price point that it's currently at At that moment in time and M1 finance does not let you do that The trading window is the window of time each weekday when M1 makes all trades for user accounts M1's trading window benefits users because it helps keep M1's Management fees low since M1 is only trading one time per day M1 is a long-term investment vehicle not a trading platform. So timing of trades is less Important so that's pretty much it in a nutshell for what is better for trading hands down Robin Hood guys You can get the stock at what price you want whether it's a market order or a limit order And you can set limit sells and then profit based off whatever your strategy is for that particular investment And Robin Hood also has options trading So if you're more advanced of a trader if you're looking to play puts if you're looking to play Call options whatever it may be Robin Hood is definitely a vehicle that you should keep an eye on because it has commissions free options trading as well This is not to say Robin Hood is not a good long-term investment vehicle because it definitely is but in this video We're breaking down trading versus investing and which one is better for what so in my opinion again Robin Hood is fantastic for trading stocks Especially if you're a beginner with a small amount of capital whether it's a hundred five hundred or thousand dollars Whatever it may be, but you can also use it for a long-term vehicle. So now let's talk about m1 finance So m1 finance is definitely the platform to use if you're a buy and hold Type investor if you want to buy and hold a stock for a three years five years 10 years and collect those dividends and grow those dividends and by the way guys I actually have a m1 finance portfolio building playlist that it's linked down below Where i'm building a portfolio from absolute scratch on m1 finance showing you guys How i'm investing in that particular portfolio is actually a dividend growth portfolio And i'm looking to add some more growth stocks to that portfolio in the coming future So m1 finance is absolutely great guys. It's an easy to use platform It allows you to build your own custom pie chart which allows you to split whatever stocks Whatever ETFs you want based on a percentage value as to how much you want that stock or ETF to hold In your portfolio. So for example, you guys can see mine here, right? I have it split down Between johnson and johnson Altria, I have AT&T. I have alibaba. I have a developed markets fund These are stocks that i'm looking to hold long term, right? And these are companies that i'm going to be reinvesting the dividends and one cool thing about m1 finance Is that it allows you to automate your investing if you want it to right if you want it to You can have it auto invest your cash and auto rebalance your pie to fit The specific percentages that you initially said right and since i'm more of a hands-on investor I'm not doing this right i like doing it manually But if you want to kind of build your pie and then funnel money every single week into m1 finance It will literally disperse that cash for you and split it into what your pie Is set based on the percentages of the different stocks and ETFs in there Which is very very awesome for a more passive Investor m1 also allows you to see hedge fund pies, right? You can see warm buffets icon capital You can see a bunch of these pies from really professional investors that have been in the game for a long long time So you can see how they allocate their money So it's very interesting that you can actually see breakdowns of other people's pies You know pies that m1 actually creates for whether you're a growth investor dividend investor You know if you're looking to retire in 20 30 years It's very interesting how you can use all of these features to kind of help and assist you in building your own portfolio So the gist of it guys is that m1 finance is definitely the better option If you're looking to long term invest and you don't really care about What price you get the stock in that particular day, right? It won't matter if you get let's say johnson and johnson at 130 dollars versus 130 and Dollars and 50 cents, right? It really wouldn't matter because long term here You're going to most likely come out on top You know if you're picking good quality companies that are supposed to grow over time So if you're looking to invest and trade at the same time Maybe it'd be best to have all of your money in robin hood, right? Because robin hood again It allows you to buy at that particular time period and you can also buy and hold stocks for the long term Right, but let's say you're strictly looking to long term invest I really like the way m1 finance is set up the pie function the way that it's very very passive You can just deposit money in and it splits the money accordingly based on your pie I really really like that right but at the end of the day guys It's all about personal experience in me. I've used both robin hood and m1 finance And i'm honestly leaning towards more m1 finance at this point Which is why i'm building out that portfolio on m1 finance because of these features that i just talk about I really find it helpful and i really like the way everything is laid out But don't get me wrong if i'm doing some options trading if i'm looking to maybe short term trade on a small account Sure, i'd go on robin hood and i'll do some options trading I'll do some short term trading there But overall if you're looking to short term trade robin hood long term invest m1 finance And hey, you can even use both if you want to it doesn't really matter It all just comes down to your goals and what you like better in terms of these platforms So I hope you guys enjoyed this video if you did find some value in it Feel free to go down below hit the like button consider subscribing if you want to see further content for me Drop a comment. Let me know what you guys think about robin hood and m1 finance. What do you like better? I'd love to know and i'll catch you all in the next video