Fidelity vs M1 Finance
Last updated July 2026
Fidelity
Invested in your future
Advantages
- Zero-expense-ratio index funds (FZROX, FZILX) unique to Fidelity
- Industry-leading research, screeners, and analysis tools
- Full range of account types including HSA, 529, trusts, and business accounts
- 24/7 phone support with knowledgeable representatives
- No account minimums and no account fees
Drawbacks
- Mobile app is functional but less polished than Robinhood
- Crypto access is limited compared to Robinhood
- The wealth of features and tools can overwhelm new investors
- Website interface feels complex compared to app-first competitors
M1 Finance
Custom pie-based investing with no advisory fee
Advantages
- No advisory fee on M1 Invest, pay $0/yr on any balance
- Custom Pies let you build fully personalized portfolios with automatic rebalancing
- Fractional shares included
- M1 Borrow: margin at 6.75% on M1 Plus (competitive rates)
- High-yield checking (M1 High-Yield Cash Account paying 5.00% APY as of mid-2026)
Drawbacks
- No tax-loss harvesting (a real gap for taxable accounts)
- Only one trading window per day on the free plan
- M1 Plus is now $3/mo, previously free
- No human advisor access
Fidelity and M1 Finance both play in investing platforms, but they're aimed at different buyers. Fidelity is built for serious investors who want comprehensive research, diverse account types, and long-term retirement planning. M1 Finance is built for dIY investors who want to design their own portfolio with automatic rebalancing. Which one fits depends on which of those descriptions sounds more like you.
Feature Comparison
| Feature | Fidelity | M1 Finance |
|---|---|---|
| Advisory Fee | -- | $0 |
| Minimum Investment | -- | $100 for taxable, $500 for retirement |
| Rebalancing | -- | Automatic based on your custom pie targets |
| Tax-Loss Harvesting | -- | No |
| Borrowing/Margin | -- | M1 Borrow at 6.75% (M1 Plus) |
| Portfolio Customization | -- | High, fully custom pies |
| Human Advisor | -- | No |
| Cash Account APY | -- | 5.00% APY (M1 High-Yield Cash Account) |
| Trading Commissions | $0 for stocks, ETFs, options; $0 index funds | -- |
| Account Types | Individual, joint, IRA, 401(k), HSA, 529, trust, business | -- |
| Research & Analysis | Extensive, proprietary + third-party (20+ research providers) | -- |
| Fractional Shares | Yes, starting at $1 | -- |
| Cryptocurrency Trading | Limited, Bitcoin, Ethereum via Fidelity Crypto | -- |
| Cash Savings Yield | Fidelity Cash Management: competitive sweep rates | -- |
| Customer Support | 24/7 phone, chat, 200+ branch locations | -- |
| Retirement Products | Full suite, 401(k), IRA, annuities, managed accounts | -- |
Fidelity Wins
Fidelity takes it overall (9/10 vs 8/10), but M1 Finance is still the sharper pick for dIY investors who want to design their own portfolio with automatic rebalancing.
Fidelity's standout strength: Zero-expense-ratio index funds (FZROX, FZILX) unique to Fidelity. Its biggest drawback (mobile app is functional but less polished than Robinhood) is easier to live with than M1 Finance's (no tax-loss harvesting (a real gap for taxable accounts)). M1 Finance isn't out of the running though — its own standout strength is no advisory fee on M1 Invest, pay $0/yr on any balance. If you fit the profile of dIY investors who want to design their own portfolio with automatic rebalancing, that alone can flip the decision.