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E*TRADE vs M1 Finance in 2026
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M1 Finance Vs. E*TRADE: Key Points:
• Self-directed brokerage accounts are available at both M1 Finance and E*TRADE.
• Only E*TRADE offers robo-advisory accounts.
• The widest range of tradable assets can be found at E*TRADE.
M1 Finance vs. E*TRADE Introduction
Before opening a new brokerage account, review our comparison of M1 Finance and E*TRADE. These two platforms take very different approaches to investing, so it’s important to see what each firm provides and what it leaves out.
Investment Methods
M1 Finance allows self-directed investing in stocks and exchange-traded funds (ETFs). Certain low-liquidity securities are not supported, and short selling is not permitted. Investors can place a single allocation across up to 50 securities using a Pie, effectively acting as their own portfolio manager. Two trading windows are available each day.
E*TRADE brokerage clients can trade throughout the regular market session with access to extended-hours trading, and there is no monthly account fee. In addition to stocks and ETFs, E*TRADE supports trading in options, bonds, mutual funds, over-the-counter securities, and futures. Short selling is allowed on select asset classes.
E*TRADE also offers a robo-advisory service called Core Portfolios, which charges 0.30% annually for automated portfolio management. Investors seeking traditional full-service advice can work through E*TRADE’s parent company, Morgan Stanley.
Winner: E*TRADE
Margin Services
All individual and joint accounts at M1 are set up as margin accounts by default. At E*TRADE, taxable accounts can be opened as either cash or margin accounts.
Security profiles at M1 Finance display maintenance margin requirements for each asset. E*TRADE goes further with a more advanced margin calculator available on both its website and desktop software.
E*TRADE, but not M1 Finance, supports limited margin borrowing in certain retirement accounts.
Regarding borrowing costs, M1 applies a flat rate of 5.65%. E*TRADE
uses a tiered margin schedule that begins at 12.45% and declines to 10.45% for larger balances.
Winner: Debatable
Websites
Both firms provide websites for account management, research, and order placement. M1’s site is intentionally simple with very limited tools. There is no traditional trade ticket because orders are submitted as not-held requests, meaning M1 determines execution timing and pricing within its trading windows. Users place order requests through a basic interface. Charting tools are also very basic.
E*TRADE’s website is far more advanced. Its web-based Power platform includes a sophisticated order ticket with many advanced features. Charting is robust, with full-screen views and a wide set of technical indicators.
Winner: E*TRADE
Other Software
In addition to Power, E*TRADE offers Pro, a desktop trading platform with a strong feature set. It includes live CNBC streaming and Level II market data. The order ticket supports limit, hidden stop, and trailing orders, and options trading is supported as well.
E*TRADE also provides two mobile apps (a standard app and a Power app) that help traders manage accounts and place trades on the go. The standard app, but not the Power app, supports mutual fund trading.
M1 Finance offers a single mobile app and does not provide a desktop platform. The app closely mirrors the website, with the same focus on simple charts and streamlined order submission.
Winner: E*TRADE
Extra Services
E*TRADE supports automatic mutual fund purchases. M1 Finance enables recurring deposits for automatic investing.
E*TRADE, but not M1 Finance, provides extended-hours trading. In addition, overnight trading is available for certain ETFs, along with futures contracts.
Both M1 Finance and E*TRADE offer Individual Retirement Accounts. M1 Finance charges a $100 IRA termination fee. E*TRADE does not charge this fee.
Initial Public Offerings are available only through E*TRADE.
Both M1 Finance and E*TRADE operate fully-paid securities lending programs.
Both brokers offer fractional-share trading in stocks and ETFs.
Dividend Reinvestment Plans are available at both firms.
Winner: E*TRADE
Recommendations
For frequent stock trading, E*TRADE is the clear choice. Be sure to try the Pro or Power platforms.
For mutual funds, E*TRADE is again the better option.
For beginning investors, we suggest using a robo account at E*TRADE. Power also offers a simulated mode that is helpful for practice.
For long-term investing and retirement planning, we favor E*TRADE, which provides annuities, lifecycle mutual funds, and access to financial planners through Morgan Stanley. M1 Finance does offer target-date Pies.
For small accounts, a brokerage account at E*TRADE makes sense. The company’s robo program requires $500 to get started.
Judgment
M1 Finance uses a distinctive investing model, but it is very streamlined and does not provide much beyond market-based execution for stocks and ETFs. E*TRADE delivers a much broader set of tools and services.
Updated on 3/25/2026.
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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