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E*TRADE vs M1 Finance in 2025
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M1 Finance Vs. E*TRADE: Key Points:
• Self-directed brokerage accounts can be opened at M1 Finance and E*Trade.
• Only E*Trade has robo accounts.
• The largest list of tradable products is at E*Trade.
M1 Finance vs. E*Trade Introduction
Before opening your next brokerage account, take a look at our research on M1 Finance and E*Trade. These two firms have very different approaches to investing, so it’s important to understand what each company offers, and what it doesn’t.
Investment Methods
M1 Finance offers self-directed trading in stocks and exchange-traded funds (ETFs). Some thinly-traded issues are not available, and short selling isn’t allowed. You can place a single trade for up to 50 securities at once in something called a Pie. You essentially manage your own portfolio. There are two trading windows each day. Small accounts pay a $3 monthly fee.
E*Trade brokerage customers can trade all day (and beyond regular hours) with no monthly charge. Besides stocks and ETFs, E*Trade offers options, bonds, mutual funds, OTC stocks, and futures. Short selling on some products is possible.
E*Trade also has a robo program called Core Portfolios, costing 0.30% per year for automated management. For traditional full-service advice, there’s E*Trade’s parent, Morgan Stanley.
Winner: E*Trade
Margin Services
Every individual or joint account at M1 is automatically margin. At E*Trade, a taxable account can be set as cash or margin.
M1’s stock pages display an asset’s maintenance requirement. E*Trade goes further with an advanced margin calculator on its website and desktop software.
E*Trade (but not M1) also allows limited margin in retirement accounts.
M1’s interest rate is a flat 6.25%. E*Trade has a tiered schedule starting at 13.2% and ending at 11.2%.
Winner: Debatable
Websites
Both companies have websites for account management, research, and orders. M1’s is basic, with few tools. There’s no trade ticket because all orders are not-held; M1 chooses the time and price. Users submit order requests through a simple form. Charts are also very minimal.
E*Trade’s software is much more advanced. It includes a browser platform called Power with a sophisticated order ticket and powerful charts.
Winner: E*Trade
Other Software
If Power isn’t sufficient, E*Trade has Pro, a professional desktop system. It has live CNBC streaming, Level II data, and an order ticket with limit, hidden stop, and trailing orders. Options are available, too.
E*Trade also has two mobile apps (the main one and a Power version). The primary one can submit mutual-fund trades, while Power can’t.
M1 Finance offers a single app and no desktop program. Its app is basically the same as its website, focusing on simple charts and an order request form.
Winner: E*Trade
Extra Services
E*Trade offers automatic mutual fund buys. M1 Finance has automatic investing with recurring deposits.
E*Trade, not M1, has extended-hours trading. In fact, some ETFs and futures can be traded overnight.
Both brokers have IRAs. M1 Finance charges $3 a month for an IRA if the account doesn’t already have a $3 monthly fee, plus a $100 IRA closeout fee. E*Trade doesn’t charge these.
IPO investing is only at E*Trade.
Both companies run fully-paid securities lending programs.
Only M1 Finance allows fractional shares of stocks and ETFs.
DRIP plans are offered at both.
Winner: E*Trade
Recommendations
For frequent stock trading, E*Trade is your best choice. Try out Power or Pro.
For mutual funds, it’s E*Trade again.
For beginners, a robo account at E*Trade is good. Power offers a paper-trading mode for practice.
For long-term investing and retirement, E*Trade has annuities, lifecycle funds, and advisors via Morgan Stanley. M1 Finance has target-date Pies.
For small accounts, an E*Trade brokerage account. The robo service needs $500.
Judgment
M1 Finance takes a unique approach, focusing on bundled stock and ETF trades at market sessions. E*Trade has a much broader lineup of services.
Updated on 2/23/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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