M1 Finance vs Merrill Guided Investing: Which Is Better in 2026?
Last updated July 2026
Short answer
M1 Finance and Merrill Guided Investing are often compared, but they are built for different jobs. M1 Finance is hands-off automated investing (robo-advisors) (automates rebalancing toward weights you set), best for people who want to choose the holdings but automate the maintenance. Merrill Guided Investing is hands-off automated investing (robo-advisors) (automates a research-driven model portfolio), best for bank of america customers who want managed portfolios in the same app. Neither is universally better: pick M1 Finance if you want people who want to choose the holdings but automate the maintenance, Merrill Guided Investing if you want bank of america customers who want managed portfolios in the same app.
Both M1 Finance and Merrill Guided Investing get grouped under “AI investing tools,” which is why people compare them, but they sit in different categories and answer to different needs. Below is a balanced, 2026 look at what each one does, whether it reads the brokerage you already use, how each is priced, and who each fits, so you can tell which job you are actually hiring a tool for. Where relevant, we note where Walnut sits in its own category: chat-driven management of your own broker. Walnut is not an investment adviser.
M1 Finance vs Merrill Guided Investing at a glance
| M1 Finance | Merrill Guided Investing | |
|---|---|---|
| Category | Hands-off automated investing (robo-advisors) | Hands-off automated investing (robo-advisors) |
| What the AI does | Automates rebalancing toward weights you set | Automates a research-driven model portfolio |
| Connects your broker | No (holds your money at M1) | No (holds your money at Merrill) |
| Read vs trade | Automated within your chosen weights | Automated |
| Cost | Free tier plus a paid tier (verify current) | Percentage of assets, higher with an advisor (verify current) |
| Best for | People who want to choose the holdings but automate the maintenance | Bank of America customers who want managed portfolios in the same app |
| One limitation | Trading happens in scheduled windows rather than on demand, which suits long-term investing and frustrates anyone wanting control over execution. | Priced above the cheapest automated services, and the portfolios lean on Merrill's own research and funds. |
Figures and features are point-in-time and change; treat the table as a starting map, not a live quote.
What is M1 Finance?
A pie-based investing platform where you choose the holdings and target weights and M1 automates the rebalancing. Between a robo-advisor and a brokerage.
How it works: You build a Pie of stocks and ETFs with target percentages, and every deposit is allocated to whatever is furthest below target, which rebalances the portfolio as you contribute rather than by selling. Trades execute in one or two daily windows rather than immediately, which is the design trade for the automation and the fractional-share support.
In practice, M1 Finance’s AI automates rebalancing toward weights you set. It falls under hands-off automated investing (robo-advisors), which makes it best suited to people who want to choose the holdings but automate the maintenance. On connecting an account it is “No (holds your money at M1)”, and on execution it is “Automated within your chosen weights”. It is priced as free tier plus a paid tier (verify current).
One honest limitation: Trading happens in scheduled windows rather than on demand, which suits long-term investing and frustrates anyone wanting control over execution.
What is Merrill Guided Investing?
Merrill's automated investing service, built on Bank of America research, with an optional tier that adds an advisor.
How it works: A questionnaire sets a goal and risk level, and Merrill invests in model portfolios built by its investment office, rebalancing automatically. A higher-priced tier adds access to a financial advisor. Preferred Rewards status at Bank of America can reduce the fee, which is the main reason existing customers choose it.
In practice, Merrill Guided Investing’s AI automates a research-driven model portfolio. It falls under hands-off automated investing (robo-advisors), which makes it best suited to bank of america customers who want managed portfolios in the same app. On connecting an account it is “No (holds your money at Merrill)”, and on execution it is “Automated”. It is priced as percentage of assets, higher with an advisor (verify current).
One honest limitation: Priced above the cheapest automated services, and the portfolios lean on Merrill's own research and funds.
M1 Finance vs Merrill Guided Investing: how they actually differ
The core difference is category. M1 Finance focuses on people who want to choose the holdings but automate the maintenance (automates rebalancing toward weights you set), and Merrill Guided Investing on bank of america customers who want managed portfolios in the same app (automates a research-driven model portfolio). On broker connection they differ too: M1 Finance is “No (holds your money at M1)” versus Merrill Guided Investing at “No (holds your money at Merrill)”. That shapes everything downstream: how personal the answers are, where trades settle, and how much control you keep over individual positions.
M1 Finance vs Merrill Guided Investing: strengths and trade-offs
Every tool gives something up for what it does well. Here is the honest give-and-take on each, so you can weigh the specific strengths against the limitations that come with them rather than judging on the headline category alone.
M1 Finance
Where it is strong
- You pick the holdings, which no conventional robo-advisor allows
- Contribution-based rebalancing avoids realising gains the way selling to rebalance does
- Fractional shares make precise target weights achievable on small amounts
What to watch out for
- Scheduled trade windows mean you do not control execution timing
- It is a brokerage rather than an advice service, so nobody is telling you whether your Pie is sensible
Merrill Guided Investing
Where it is strong
- Integrated with Bank of America, including reward tiers that cut the fee
- Portfolios come from a large in-house research operation rather than a pure algorithm
- An advisor tier is available without moving firms
What to watch out for
- More expensive than the cheapest automated services unless rewards tiers apply
- Portfolios lean on Merrill's own funds and research, which is a narrower opinion than an open comparison
The key divider: does it read your real holdings?
For AI investing tools, the distinction that matters most is whether the tool works from your actual, connected positions or reasons from something else: a separate account it manages for you, or the tickers and numbers you feed it. It decides how personal the answers can be, and where your money physically lives.
- M1 Finance: manages a separate account it holds. M1 Finance does not read the brokerage you already use. It opens and holds a new account, then invests the money you move into it, so its view is limited to what sits inside M1 Finance.
- Merrill Guided Investing: manages a separate account it holds. Merrill Guided Investing does not read the brokerage you already use. It opens and holds a new account, then invests the money you move into it, so its view is limited to what sits inside Merrill Guided Investing.
On this specific question the two land on the same side, so the deciding factors between them are elsewhere: category, cost, and who each is built for. This holdings-aware angle is the one Walnut is built around: it connects the brokerage you already use and reasons from your live positions, read-only by default, with any trades left for you to approve.
M1 Finance vs Merrill Guided Investing: which should you choose?
There is no universal winner here; the right pick depends on the job you are hiring the tool for. Match the category to your intent rather than chasing a single “best.”
- Choose M1 Finance if you want people who want to choose the holdings but automate the maintenance. Its AI automates rebalancing toward weights you set, it is priced as free tier plus a paid tier (verify current), and it fits hands-off automated investing (robo-advisors). It is built for a self-directed investor with a clear allocation in mind who wants it maintained automatically rather than by hand. Keep in mind that trading happens in scheduled windows rather than on demand, which suits long-term investing and frustrates anyone wanting control over execution.
- Choose Merrill Guided Investing if you want bank of america customers who want managed portfolios in the same app. Its AI automates a research-driven model portfolio, it is priced as percentage of assets, higher with an advisor (verify current), and it fits hands-off automated investing (robo-advisors). It is built for an existing Bank of America customer whose rewards tier makes the pricing competitive and who values everything in one app. Keep in mind that priced above the cheapest automated services, and the portfolios lean on merrill's own research and funds.
Because both sit in the same category, the choice comes down to the finer details above rather than a fundamental difference in approach.
M1 Finance vs Merrill Guided Investing: pricing and cost model
Cost is easy to misread when two tools charge in different shapes, so compare the model, not just the number. M1 Finance is priced as free tier plus a paid tier (verify current), while Merrill Guided Investing is priced as percentage of assets, higher with an advisor (verify current). A percentage-of-assets fee scales with your balance, a flat subscription does not, and a “free” tier usually earns elsewhere (on cash, order flow, or premium upgrades), so the cheapest headline is not always the cheapest outcome for your situation.
Pricing and tiers change often. Confirm the current numbers on each provider’s own site before you decide; the framing above is point-in-time.
Where Walnut fits
If neither quite fits, Walnut sits in a third category: chat-driven management of your own brokerage. It connects the brokerage you already use through SnapTrade, lets you analyze and manage it by talking through Claude or ChatGPT, build thematic portfolios around a thesis, and place trades you approve. Read-only by default. See Walnut vs M1 Finance and Walnut vs Merrill Guided Investing. Walnut is not an investment adviser.
Try Walnut on top of your broker
Walnut is the AI that knows your portfolio: ask anything in plain English, research any fund, and get an honest second opinion. On the broker you already use, read-only, and you approve every trade. Walnut is not a registered investment adviser.
FAQ
Is M1 Finance or Merrill Guided Investing better?
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Neither is universally better, because they are built for different jobs. M1 Finance is hands-off automated investing (robo-advisors) and suits people who want to choose the holdings but automate the maintenance. Merrill Guided Investing is hands-off automated investing (robo-advisors) and suits bank of america customers who want managed portfolios in the same app. Pick the one whose job matches what you actually want to do.
What is the difference between M1 Finance and Merrill Guided Investing?
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M1 Finance is hands-off automated investing (robo-advisors): automates rebalancing toward weights you set. Merrill Guided Investing is hands-off automated investing (robo-advisors): automates a research-driven model portfolio. They solve different jobs, so the better choice depends on whether you want people who want to choose the holdings but automate the maintenance or bank of america customers who want managed portfolios in the same app.
Is M1 Finance or Merrill Guided Investing better for beginners?
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M1 Finance is generally the more beginner-friendly of the two (people who want to choose the holdings but automate the maintenance). The other is better once you know what you want from it. Neither replaces understanding what you own.
Does M1 Finance connect to my brokerage?
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M1 Finance: no (holds your money at m1) (manages a separate account it holds). Merrill Guided Investing: no (holds your money at merrill) (manages a separate account it holds). If keeping your current broker matters, that distinction is often the deciding factor.
Does M1 Finance see my real holdings?
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M1 Finance does not read the brokerage you already use. It opens and holds a new account, then invests the money you move into it, so its view is limited to what sits inside M1 Finance. By contrast, Merrill Guided Investing manages a separate account it holds: Merrill Guided Investing does not read the brokerage you already use. It opens and holds a new account, then invests the money you move into it, so its view is limited to what sits inside Merrill Guided Investing.
M1 Finance vs Merrill Guided Investing: which is cheaper?
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M1 Finance is priced as free tier plus a paid tier (verify current); Merrill Guided Investing is percentage of assets, higher with an advisor (verify current). The models are not always comparable (a percentage of assets is different from a flat subscription), so weigh cost against the job each does. Pricing and tiers change, so verify the current numbers on each provider's site before deciding.
Can I use M1 Finance and Merrill Guided Investing together?
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Often yes, because they do different things. Many investors use one for people who want to choose the holdings but automate the maintenance and the other for bank of america customers who want managed portfolios in the same app. Just watch for overlapping subscription costs and remember that trades ultimately settle in whatever account actually holds your money.
Who is M1 Finance best for, and who is Merrill Guided Investing best for?
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M1 Finance best fits a self-directed investor with a clear allocation in mind who wants it maintained automatically rather than by hand. Merrill Guided Investing best fits an existing Bank of America customer whose rewards tier makes the pricing competitive and who values everything in one app. If you see yourself in one description more than the other, that is usually the clearer signal than any single feature or price.
What are the main trade-offs between M1 Finance and Merrill Guided Investing?
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M1 Finance's main thing to watch is that scheduled trade windows mean you do not control execution timing. Merrill Guided Investing's is that more expensive than the cheapest automated services unless rewards tiers apply. Neither is a dealbreaker on its own; the right call is whichever trade-off you can most live with given what you actually want the tool to do.
Where does Walnut fit between M1 Finance and Merrill Guided Investing?
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Walnut is a third option in a different category: chat-driven management of the brokerage you already use. It connects your real account, lets you analyze and manage it by talking through Claude or ChatGPT, build thematic portfolios, and place trades you approve. Your login stays with your broker and the connection is read-only by default. Walnut is not an investment adviser.
Related comparisons
Walnut is informational, not investment advice. Competitor features and pricing are point-in-time and change; verify the current details on each provider's site before deciding. Nothing here is a recommendation to use any particular product or security.