M1 Finance vs Merrill Guided Investing? Find Out Which One Grows Your Wealth Faster!

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M1 Finance vs. Merrill Guided Investing: Which Robo-Advisor is Right for You in 2025?

In today’s fast-paced digital world, robo-advisors are transforming how Americans invest. Two of the most talked-about platforms are M1 Finance and Merrill Guided Investing. Knowing which platform suits your goals is essential, whether you’re a hands-on investor or prefer a more guided approach.

In this post, we’ll compare M1 Finance vs Merrill Guided Investing in terms of features, fees, performance, and ideal users — helping you decide which fits your financial journey in 2025.

M1 Finance Vs Merrill Guided Investing?

With vastly different digital wealth management platforms and investor targets, M1 Finance vs. Merrill Guided Investing have very little in common. M1 is a relative newcomer to the financial space, while the parent company of Merrill Guided Investing has been around for over 100 years. They are not directly comparable as they serve different types of communities. Both are among our top choices: M1 Finance for advanced investors, reasonable costs, Socially Responsible Investing, and Merrill Guided Investing for research. Personal Finance Podcasts to Listen in 2025

M1 Finance Vs Merrill Guided Investing

​For most investors, the M1 Finance service offers a better option in that you can have complete control, and there are no fees related to account management (which can help lower hidden costs). Merrill Guided Investing is also a sound option for other investors who want the experience of a robo-advisor. In this hands-off investing experience, the program recommends a portfolio that aligns with your financial goals, explains how much risk you can bear to take, and describes how long you will need to access the money. I will examine both platforms simultaneously to help you determine what is better for your investment needs.

M1 Finance Vs Merrill Guided Investing
M1 Finance vs Merrill Guided Investing? Which One Grows Your Wealth Faster

✅ Merrill Guided Investing vs M1 Finance (2025): Key Differences Explained

🚀 Key Takeaways: Merrill Guided Investing

  • Limited portfolio customization — great for hands-off investors

  • Seamless integration with Bank of America accounts and services

  • 24/7 customer support for all users

  • Access to powerful educational resources, calculators, and planning tools

🧾 Account Setup Comparison

🔹 M1 Finance: Quick & Customizable

M1 Finance makes it incredibly easy to open an account via desktop or mobile (iOS and Android). After a simple username/password setup, you’re guided through an onboarding experience that also educates you about the platform.

You can:

  • Choose from pre-built portfolios (called “Pies”) or create your own

  • Start investing with as little as $100 (or $500 for retirement accounts)

  • Instantly link a bank and fund your account

This makes M1 a favorite for DIY investors who want control and low friction.

🔸 Merrill Guided Investing: Guided, Goal-Based Setup

Merrill’s setup process is more detailed, asking about:

  • Your financial goals and timelines

  • Expected contributions and risk tolerance

  • Whether you prefer traditional growth or ESG (environmental, social, governance) investing

Once done, Merrill generates a customized, risk-based portfolio for you. You can open an account with $1,000 for the online-only option or $20,000 if you want access to a personal financial advisor.

✔️ Verdict: Merrill offers a more personalized setup for new or goal-focused investors.

🧾 Account Types Offered

Account Type M1 Finance ✅ Merrill Guided Investing ✅
Individual & Joint Brokerage ✔️ ✔️
Traditional & Roth IRAs ✔️ ✔️
SEP IRA, SIMPLE IRA, 401(k) Rollover ✔️ ✔️
Trust, UTMA/UGMA ✔️ ✔️
Crypto Investment Accounts ✔️ ❌
High-Interest Cash Accounts ✔️ ❌ (but integrated banking)

✔️ Verdict: M1 Finance wins for offering crypto and more modern account types within the same platform.

🛠️ Account Services & Tools

M1 Finance

  • Choose from 3,900+ stocks and ETFs

  • Create up to 100 slices per Pie

  • Margin loans available (once your balance hits $2,000)

  • Offers credit cards and portfolio-based borrowing

Merrill Guided Investing

  • Connected directly to Bank of America accounts

  • Offers both online-only and advisor-assisted plans

    • Online-only: 0.45% annual fee, $1,000 minimum

    • With advisor: 0.85% fee, $20,000 minimum

  • Currently offers 0% program fees for 6 months (limited-time)

✔️ Verdict: M1 gives more investment flexibility, while Merrill is great for those who want access to advice and a bank ecosystem.

💵 Cash Management Features

Feature M1 Finance Merrill Guided Investing
Cashback Credit Card ✔️ (Up to 10%) ❌
Smart Transfers (Automated Rules) ✔️ ❌
Interest on Cash Balance Competitive with investment automation 4.12% Sweep Rate via Bank of America
Bank Integration No (but high-yield accounts available) Yes (deep integration with BofA accounts)
Fee Discounts for High Balances ❌ ✔️ (Preferred Rewards Program)

✔️ Verdict: Tie. M1 is better for automation and rewards; Merrill wins on high interest and banking perks.

🎯 Goal Planning & Tracking

M1 Finance

  • No built-in goal tracking or financial advisor access

  • Great for independent investors

  • Provides helpful blog content on topics like taxes, HSA, etc.

Merrill Guided Investing

  • Comprehensive goal planning tools

  • Tracks progress toward goals (retirement, home, travel, education, etc.)

  • Allows adjusting goals as your life changes

  • One goal per account, but highly intuitive interface

✔️ Verdict: Merrill is the clear winner for hands-on financial planning and tools.

🧱 Portfolio Construction & Investment Choices

Feature M1 Finance Merrill Guided Investing
Pre-Built Portfolios 80+ “Pies” (including SRI, ESG, etc.) Multiple market-matching portfolios
Custom Portfolio Creation ✔️ Fully customizable ❌ Limited to generated strategies
Crypto Assets ✔️ Bitcoin, Ethereum, etc. ❌
ESG & Impact Investing ✔️ Faith-based, ESG, SRI options ✔️ ESG options available
Professional Monitoring ❌ DIY management ✔️ Ongoing rebalancing by Merrill advisors

✔️ Verdict: M1 shines for power users, while Merrill works best for hands-off or values-based investors.

🏁 Final Verdict: Which Platform is Right for You?

Feature Best Choice
Low-cost DIY investing ✅ M1 Finance
Professional portfolio help ✅ Merrill
Crypto access ✅ M1 Finance
Banking integration ✅ Merrill
Goal planning ✅ Merrill
Customization & flexibility ✅ M1 Finance

Bottom Line:
If you’re a confident investor who wants full control and low fees, M1 Finance is the go-to. But if you’re looking for expert guidance, long-term goal tracking, and integrated banking, Merrill Guided Investing offers a comprehensive solution backed by Bank of America.

Available Investment Options

Investment Type M1 Finance Merrill Guided Investing
Individual Stocks ✅ Yes ❌ No
Mutual Funds ❌ No ❌ No
Fixed Income ❌ No ✅ Via Mutual Funds & ETFs
REITs ✅ Yes ❌ No
ESG/Socially Responsible Investing ✅ Yes ✅ Yes
ETFs ✅ Yes ✅ Yes
Non-Proprietary ETFs ✅ Yes ✅ Yes
Private Equity ❌ No ❌ No
Crypto, Forex, OTC Stocks ✅ Yes ❌ No

Portfolio Customization

M1 Finance stands out with its robust customization features. You can handpick individual stocks, ETFs, and REITs, or build “Pies” (custom mini-portfolios) to tailor your investments. The platform includes a research tool to screen various securities.

Merrill Guided Investing, on the other hand, offers limited customization. You can’t select individual assets but can apply exclusions and update your financial goals, which prompts portfolio adjustments.

🔍 Verdict: M1 Finance wins for its powerful DIY portfolio customization tools.

Portfolio Management

M1 Finance does not auto-rebalance your portfolio unless you tell it to. However, it offers:

  • Manual Rebalancing – You decide when to realign your portfolio.

  • Dynamic Rebalancing – Automatically allocates new deposits to underweight assets.

Merrill Guided Investing provides discretionary rebalancing. Instead of fixed schedules, the platform adjusts your investments based on market opportunities and risk analysis, often with human oversight.

🔍 Quick Comparison Table

Feature M1 Finance Merrill Guided Investing
Minimum Investment $100 ($500 for retirement) $1,000
Advisory Fees $0 for basic account 0.45% annually
Account Types Individual, Joint, Retirement Individual, Joint, Retirement
Customization Highly customizable “Pies” Limited portfolio customization
Human Advisor Access Not available (M1 Plus offers some perks) Yes, with Guided Investing with Advisor
Mobile App Highly rated (iOS & Android) Good but less flexible
Best For DIY investors & long-term planners Hands-off investors wanting guidance

🧠 Understanding the Basics

✅ What is M1 Finance?

M1 Finance is a hybrid robo-advisor and self-directed investment platform that lets users build portfolios using “Pies”—a visual way to allocate your investments. It’s best suited for investors who enjoy more control without managing trades manually.

Key Perks:

  • Zero management fees

  • Fractional shares

  • Automation with customization

  • Tax-efficient rebalancing

✅ What is Merrill Guided Investing?

Bank of America offers Merrill Guided Investing, an automated portfolio management based on your goals, time horizon, and risk tolerance. It’s perfect for beginners or those who want a bank-integrated experience.

Key Perks:

  • Professional portfolio management

  • Integration with Bank of America accounts

  • Option to upgrade for advisor access

  • Goal-based planning tools

M1 Finance or Merrill Guided Investing?

💵 Fees and Pricing

  • M1 Finance: $0 advisory fees make it extremely attractive for cost-conscious investors. However, M1 Plus (optional) costs $125/year and offers extra features like afternoon trading and cash-back on the M1 debit card.

  • Merrill Guided Investing: Charges 0.45% annually, meaning you’ll pay $45 for every $10,000 invested. If you upgrade to an advisor, the fee jumps to 0.85%.

Verdict: M1 Finance wins for low fees, especially for long-term passive investors.

📈 Performance and Investment Strategy

Both platforms use modern portfolio theory to diversify and minimize risk. However:

  • M1 Finance gives you more flexibility—you can choose from expert-built pies or build your own.

  • Merrill Guided Investing is more conservative and structured, with limited customization.

If you want more say in your investment strategy, M1 is ideal. If you want professionals to handle everything, Merrill is better.

👥 Who Should Use M1 Finance?

  • You like to customize your investment portfolio.

  • You’re looking for zero fees.

  • You want to set and forget with auto-investing tools.

  • You’re tech-savvy and prefer mobile-first solutions.

👥 Who Should Use Merrill Guided Investing?

  • You prefer a guided experience.

  • You’re already a Bank of America customer.

  • You want the option to consult a human advisor.

  • You’re okay with paying a modest annual fee for peace of mind.

✅ Pros and Cons Summary

M1 Finance:

Pros:

  • No advisory fees

  • Total control over portfolio

  • Automated rebalancing

Cons:

  • No human advisor access

  • Requires active setup

Merrill Guided Investing:

Pros:

  • Expert portfolio management

  • Bank of America integration

  • Human advisor upgrade option

Cons:

  • Annual fee

  • Less flexibility

🏁 Final Verdict: Which One Wins in 2025?

  • Choose M1 Finance if you’re confident managing your investments and want a free, flexible platform with strong automation tools.

  • Go with Merrill Guided Investing if you prefer expert help, seamless banking integration, and a hands-off experience.

Both are excellent platforms—your choice depends on your financial style and goals.

🔎 FAQs

Q: Is M1 Finance safe to use in 2025?
A: M1 Finance is SIPC-insured and uses bank-level encryption to protect your assets.

Q: Can I switch from Merrill to M1 or vice versa?
A: Absolutely. You can transfer your assets using ACAT transfers, which may involve fees or tax implications.

Q: Is there a mobile app for both?
A: Both offer iOS and Android apps, but M1’s app is more user-friendly for DIY investors.

If you’re just starting with robo-investing, this comparison will help you make an informed choice. Ready to grow your wealth? Pick the platform that fits your future. Better Explained M1 Finance vs Merrill Guided Investing

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