M1 Finance Vs. E*TRADE: Key Points:
• Self-directed brokerage accounts are available at both M1 Finance and E*Trade.
• Only E*Trade provides robo-advisor accounts.
• E*Trade offers the broader lineup of tradable products.
M1 Finance vs. E*Trade Introduction
Before you open another brokerage account, it’s worth comparing M1 Finance and E*Trade side by side. These two firms handle investing in very different ways, so you’ll want to know what each platform includes, and what is missing.
Investment Methods
M1 Finance allows self-directed investing in stocks and exchange-traded funds (ETFs). Some lightly traded securities are not supported, and short selling is not allowed. M1 lets you place one order that can include up to 50 holdings using a Pie, which is designed to let you build and manage your own portfolio like a mini-fund. Trading happens in two daily windows. Smaller accounts are charged a $3 monthly fee.
E*Trade customers can trade all day without those window restrictions (and they also get access outside the regular session), and there is no monthly account fee. Along with stocks and ETFs, E*Trade supports options, bonds, mutual funds, OTC securities, and futures. It also allows short selling in certain products.
E*Trade also offers managed investing through its advisory service, Core Portfolios. This robo program costs 0.30% per year for automated management. For investors looking for full-service guidance, E*Trade’s parent company, Morgan Stanley, provides traditional advisory services.
Winner: E*Trade
Margin Services
At M1, every individual and joint brokerage account is set up as a margin account by default. With E*Trade, a taxable brokerage account can be configured as either cash or margin.
M1 Finance stock pages show the maintenance requirement for each security. E*Trade provides much more detail, including an advanced margin calculator available on both its website and desktop platform.
E*Trade, unlike M1 Finance, also offers limited margin capability for some retirement accounts.
Borrowing costs are structured differently. M1 charges one flat rate of 5.65%. E*Trade
uses a tiered schedule, starting at 12.45% and dropping as low as 10.45%.
Winner: Debatable
Websites
Both companies provide websites for research, account management, and placing orders. M1’s site is intentionally streamlined, with only a small toolset. There is no traditional order ticket because trades are not-held orders, meaning M1 controls execution timing and pricing. Users simply submit order requests through a basic interface. Charting is also very minimal.
E*Trade’s web experience is much more advanced. Its browser platform, Power, includes a feature-rich trade ticket with many advanced controls. Charting is also high-end, with full-screen viewing and multiple analysis tools.
Winner: E*Trade
Other Software
If Power still isn’t enough, E*Trade also provides Pro, a professional-grade desktop platform. It includes strong features like CNBC streaming and Level II quotes. The order ticket supports limit orders, hidden stops, and trailing orders, and options trading is available as well.
E*Trade also has two mobile apps (a standard app and a Power app) that make it easier to trade and monitor accounts while away from a computer. The standard app can place mutual fund trades, something the Power platform does not support.
M1 Finance has a single mobile app and does not offer any desktop trading program. The app closely matches the website, focusing on simple charts and basic order requests.
Winner: E*Trade
Extra Services
E*Trade supports automatic mutual fund purchases. M1 Finance uses recurring deposits to automate investing.
E*Trade, but not M1 Finance, provides extended-hours trading. In fact, some ETFs can be traded overnight (and futures trading is available as well).
Both firms offer Individual Retirement Accounts. M1 Finance charges $3 per month for an IRA when the account holder is not already paying a $3 monthly fee. It also charges a $100 IRA termination fee. E*Trade does not charge these fees.
Initial Public Offerings are available only at E*Trade.
M1 Finance and E*Trade both provide fully-paid securities lending programs.
Only M1 Finance offers fractional-share trading for stocks and ETFs.
Dividend Reinvestment Plans are offered by both companies.
Winner: E*Trade
Recommendations
For frequent stock trading, E*Trade is the clear pick. Be sure to test either the Pro desktop software or the Power platform.
For mutual funds, E*Trade is again the only option.
For beginning investors, we recommend E*Trade’s robo service. Power also includes a paper-trading mode, which is excellent for practice.
For long-term investing and retirement planning, we lean toward E*Trade, which offers annuities, lifecycle mutual funds, and access to financial planners through Morgan Stanley. M1 Finance does provide target-date Pies.
For small accounts, we suggest an E*Trade brokerage account. The firm’s robo service requires $500 to start.
Judgment
M1 Finance uses a distinctive Pie-based approach, but it is extremely simplified and largely limited to market-style execution for stocks and ETFs. E*Trade offers a much broader platform with far more tools and investment choices.
Updated on 2/6/2026.
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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