M1 Finance and Fidelity Rivalry
Fidelity Investments has been around since the end of World War II. But it now faces strong competition from newer firms that bring different ideas to the table. M1 Finance is one of these firms. It uses a unique way of investing and, as we’ll see, is quite different in almost every category. Let’s compare this young company with an established industry leader.
Pricing
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
M1 Finance
|
$0
|
na
|
na
|
$0
|
$0
|
|
Fidelity
|
$0
|
$49.95
|
$0.65 per contract
|
$0
|
$0
|
Style of Investing
Fidelity offers both managed and self-directed accounts. Its robo-advisory service charges about 0.35%, which is near the industry average, and has no minimum balance requirement. More traditional advisory accounts cost more, require higher balances, and allow investing in securities beyond ETFs.
Fidelity’s self-directed accounts let investors trade mutual funds, ETFs, stocks, options, and fixed-income securities on their own.
M1 Finance uses a Pie-based system. A Pie is a collection of assets such as stocks, ETFs, cryptocurrencies, or other Pies. Many Pies are created by M1, but investors can also build their own. The company does not provide digital or human advisory services beyond this Pie setup. All accounts are technically self-directed, though clients can pick broker-made Pies.
M1 does not offer mutual funds, options, or bonds, which is a drawback compared to Fidelity.
Trading Tools
M1’s website is very basic. Trades are placed through simple web pages. There’s no trade bar, no browser-based platform, and no desktop software. Technical analysis isn’t possible, since there are no charting tools. On the positive side, setting up Pies is simple and works smoothly.
Fidelity’s tools are far more advanced. Its website is user-friendly yet full of features. There’s a pop-out trading ticket and very strong charting tools with studies, company events, and drawing options. Charts can be saved, downloaded, or expanded to full-screen.
Fidelity also provides an advanced platform called Active Trader Pro at no extra cost. It includes powerful features such as Level II quotes.
Mobile Apps
On the M1 Finance app, customers can create or select Pies. It works on Apple and Android devices. The app is easy to use but lacks advanced features. There are no strong charting tools, no advanced order ticket, no live news streaming, and no check deposit.
Fidelity’s mobile app offers far more. It includes mobile check deposit, HD streaming of Bloomberg News, advanced charting, and trading of options and mutual funds. We also liked the wide selection of articles and videos to keep investors updated.
Customer Service
M1 Finance customer service is available only on weekdays from 9:00am to 5:00pm. There’s no support on weekends, no live chat, and no physical branches.
Fidelity is much stronger here. It has online chat during certain hours, a large branch network, and a robo chat service on its site. Phone support is available 24/7. Fidelity also offers a wide self-help section for tasks such as adding a trusted contact or updating account beneficiaries.
Investment Education and Research
M1 Finance doesn’t provide much for research. Aside from some CNBC articles, information is limited and often brief.
Fidelity, on the other hand, has a strong learning center, plus detailed stock and ETF profiles. Customers also get free equity reports from top analysts.
Cash Management
M1 Finance doesn’t provide debit cards or checks. Instead, it offers M1 Borrow, a line of credit against account assets.
Fidelity provides more: debit cards, checks, ATM fee refunds, and different cash position choices, including an FDIC-insured sweep program. Its website also supports banking tools for managing both debit and credit cards.
Recommendation
Fidelity is the better choice for options, fixed-income, and mutual fund trading. It’s also better suited for day traders and active investors who need advanced platforms.
M1 Finance, however, is a good option for beginners.
Fidelity is the stronger choice for retirement savings, offering target-date funds and excellent retirement education.
M1 Finance stands out in its Pie-based investing, which is cheaper than Fidelity’s robo-advisory model. It also competes strongly on pricing with zero commissions, low margin rates, and high cash interest.
Fidelity vs M1 Finance Recap
M1 Finance brings a fresh approach to investing. But compared to Fidelity, it falls short in most areas—except pricing. With free trades, very low margin rates, and solid interest on cash, M1 still deserves attention.
Updated on 8/18/2025.
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