M1 Finance is the best dedicated auto-rebalancing platform; Fidelity is the better all-around brokerage. If you want a hands-off portfolio that automatically rebalances on every contribution — and you don't need research, options trading, or active management — M1 is structurally better designed for that single job. If you want a full brokerage with research, multiple account types, advanced tools, and integrated cash management, Fidelity wins. Many investors use both: M1 for taxable buy-and-hold passive investing, Fidelity for IRAs and active management. The choice isn't binary.
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- 1.M1 Finance: $0 commissions, free core platform; M1 Plus ($10/mo or $95/yr) unlocks custom trade windows and lower margin rates.
- 2.Fidelity: $0 commissions, $0 account minimums, $0 fees on Fidelity ZERO index funds (FZROX, FXNAX, FNILX, FZILX).
- 3.M1 Pie: target-allocation template that auto-rebalances on every contribution — unique to M1 in the free-tier brokerage space.
- 4.Fidelity: full research suite, Active Trader Pro desktop, options trading, mutual fund supermarket, integrated CMA.
- 5.Both offer fractional shares. M1 is built around fractional; Fidelity supports it for individual stocks/ETFs.
- 6.Account types: M1 covers individual, joint, IRA, Roth IRA, trust. Fidelity adds solo 401k, SEP-IRA, SIMPLE IRA, custodial, 529, HSA.
Side-by-Side Comparison
| Feature | M1 Finance | Fidelity |
|---|---|---|
| Commissions on stocks/ETFs | $0 | $0 |
| Account minimum | $100 (taxable), $500 (IRA) | $0 |
| Free index funds | No | Yes — Fidelity ZERO funds (0% ER) |
| Automatic rebalancing | Yes — built-in to Pies | No (Fidelity Go robo) |
| Fractional shares | Yes (native to platform) | Yes (Stocks by the Slice) |
| Options trading | Limited (M1 doesn't emphasize) | Full support |
| Research tools | Minimal | Extensive (S&P, Morningstar, Argus) |
| Trade windows | 1 per day free; multiple with M1 Plus | Continuous market hours |
| Cash management | M1 Spend (with M1 Plus mostly) | Fidelity CMA — robust |
| Margin rates | ~7-8.5% (lower with M1 Plus) | ~10-13% (varies by balance) |
| Mobile app | Good for the use case | Excellent, full-featured |
| Best for | Hands-off auto-invest | All-around brokerage |
The Pie Concept Is the Real Differentiator
If you're a passive index investor who just wants a 3-fund or 5-fund portfolio that maintains itself, M1's Pie design is genuinely the best UX in retail brokerage.
You set up a Pie like:
- 50% VTI (US Total Stock Market)
- 30% VXUS (International Stocks)
- 20% BND (US Total Bond Market)
Every time you deposit money, M1 buys whichever slice is most underweight relative to your target. Over time, your portfolio drifts toward — and stays at — the target allocation, without any manual rebalancing.
At Fidelity, you have two options for similar behavior:
- Manually rebalance — set a calendar reminder, log in, sell over-weighted positions, buy under-weighted positions. Cumbersome.
- Use Fidelity Go — Fidelity's robo-advisor (0.35% AUM fee above $25K, free below) automatically rebalances. Works but costs more than M1 above $25K.
For a buy-and-hold passive investor, Pie-style automation is meaningfully better than either Fidelity path.
Where Fidelity Pulls Ahead
The reverse holds for almost everything else:
Research and tools. Fidelity provides S&P Capital IQ, Morningstar, Argus, Zacks, and other analyst reports — all free to account holders. Active Trader Pro (desktop platform) has real-time level-2 data, options chains, advanced charting. M1 has none of this.
Active management. If you trade individual stocks, options, or want to react to news quickly, M1's once-per-day trade window (free tier) is a significant friction. M1 Plus ($95/year) adds a second trade window. Fidelity has continuous market-hours trading.
Cash management. Fidelity's Cash Management Account is one of the most respected in the industry — free, FDIC-swept for cash, debit card with worldwide ATM fee reimbursement, no foreign transaction fees, mobile check deposit, bill pay. M1's Spend account is competent but less mature and tied to M1 Plus for some features.
Account variety. Solo 401(k), SEP-IRA, SIMPLE IRA, 529, HSA, custodial accounts — Fidelity supports all of these. M1 covers the basics (individual, joint, IRA, Roth IRA, trust) but not the wider planning ecosystem.
Mutual fund supermarket. Fidelity gives access to thousands of mutual funds (their own ZERO funds at 0% expense ratio, Vanguard, T. Rowe Price, others). M1 is ETF-focused; mutual fund support is minimal.
The "Use Both" Strategy
Many investors run both platforms:
- M1 for taxable passive investing. Set up a target Pie. Direct-deposit a portion of paycheck. Forget about it.
- Fidelity for retirement accounts and active needs. Roth IRA, traditional IRA, HSA. Plus the cash management account as a secondary checking option.
This works because both have $0 commissions and no account fees. The only "cost" is the cognitive load of two platforms, which for most people is minimal once set up.
Choose M1 if...
- You're a passive index investor who wants automatic rebalancing
- You contribute regularly (monthly or per-paycheck) — Pie shines with regular contributions
- You value UX simplicity over deep tools and research
- You don't need options, mutual funds outside ETFs, or advanced cash management
- You're comfortable with a once-per-day trade execution window
Choose Fidelity if...
- You want a full-service brokerage that scales as your needs grow
- You value research, screeners, and analyst reports
- You trade options or want continuous trading windows
- You need a CMA / checking-substitute account
- You want IRA, HSA, 529, solo 401(k), or specialized retirement accounts
- You prefer mutual funds (especially Fidelity's ZERO-fee index funds)
M1's free trade window is once per day, in the morning ET. This means you can't react to mid-day news or buy on dips intraday at the free tier. M1 Plus adds a second window (afternoon) for $95/year, but neither tier supports the kind of intraday discretionary trading active investors expect. If you'd describe yourself as anything more active than "set monthly contribution and forget," Fidelity is the better fit.
What to do next
What to Do Now
- ✦M1 Finance and Fidelity are both $0-commission brokerages but optimize for different things.
- ✦M1's Pie design is the cleanest auto-rebalancing UX in retail brokerage — uniquely suited to passive index investors.
- ✦Fidelity has the broader platform: research, options, mutual funds, CMA, and 7+ account types M1 doesn't support.
- ✦M1's free trade execution is once per day; M1 Plus ($95/yr) adds a second window. Active traders should default to Fidelity.
- ✦Both support fractional shares and IRA accounts; Fidelity also covers HSA, 529, solo 401(k), SEP-IRA.
- ✦Running both is a common pattern: M1 for hands-off taxable investing, Fidelity for retirement and active needs.
Related Calculators and Guides
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- How to Start Investing
Sources: m1.com, fidelity.com, Investor's Business Daily 2026 broker review, NerdWallet broker comparison. Fees and features verified May 13, 2026. SwitchWize may receive commission when readers open accounts through our links; this does not affect rankings.
Frequently asked questions
Which is cheaper — M1 Finance or Fidelity?+
What is an M1 'Pie' and why does it matter?+
Can I do retirement accounts at both?+
Which has better research and tools?+
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Are fractional shares supported at both?+
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