M1 Finance and Fidelity represent two very different philosophies for long-term investing. Fidelity is the traditional brokerage titan — the largest by assets, with the broadest product lineup. M1 Finance is the modern alternative built around “pie” investing, where you design a visual portfolio and the platform handles all the buying, selling, and rebalancing automatically. Here’s how they compare.
TL;DR:Fidelity wins as the more complete platform — more investment options, better research, zero-fee index funds, more account types, and industry-leading retirement tools. M1 Finance wins for investors who want automated portfolio management with visual pie-based investing, automatic rebalancing, and lower margin rates — all without paying robo-advisor fees.
Side-by-Side Overview
Feature
M1 Finance
Fidelity
Stock/ETF commissions
$0
$0
Monthly fee
$0 (basic) / $10 (Plus)
$0
Investment approach
Pie-based auto-investing
Traditional self-directed
Auto-rebalancing
✓ (dynamic, every deposit)
✗ (manual only)
Fractional shares
✓ (down to $0.01)
✓ (down to $1)
Options
✗
✓
Crypto
✗
✓ (Fidelity Crypto)
Mutual funds
✗
✓ (10,000+ NTF)
Zero-fee index funds
✗
✓ (FZROX, FZILX, etc.)
Margin rate
6.75%-7.75%
8.325%-11.325%
Robo-advisor (free)
✓ (pies are essentially free robo)
✓ (Fidelity Go, free under $25K)
Trading windows
1/day (free) / 2/day (Plus)
Real-time
Research
Minimal
Industry-leading
Retirement accounts
IRA, Roth IRA, SEP IRA
All types + solo 401(k) + HSA
Banking
✓ (M1 Spend)
✓ (Cash Management)
Customer support
Email, chat
Phone, chat, 200+ branches
Mobile app
4.6/5
4.8/5
Total client assets
$7B+
$12T+
How M1’s Pie Investing Works
M1’s core concept is the “pie” — a visual portfolio builder unique to the platform.
Building a Pie
Step
What You Do
1. Create a pie
Name it (e.g., “Retirement Portfolio”)
2. Add slices
Choose stocks and/or ETFs
3. Set target allocation
Assign % to each slice (must total 100%)
4. Fund your account
Deposit cash or set up recurring deposits
5. M1 auto-invests
Buys fractional shares to match your target allocation
6. Ongoing rebalancing
Every new deposit automatically goes to the most underweight slices
Example Pie
Slice
Target
Current
Next Deposit Goes To
VOO (S&P 500)
40%
42%
Less
VXUS (International)
20%
18%
More (underweight)
BND (Bonds)
15%
14%
More (underweight)
AAPL
10%
12%
Less
VGT (Tech ETF)
10%
10%
Proportional
VNQ (REITs)
5%
4%
More (underweight)
This is essentially what a robo-advisor does — but you build the portfolio yourself, and M1 handles execution for free.
Pies Within Pies
Feature
Description
Nested pies
Create a pie of pies (e.g., “US Stocks” pie + “International” pie + “Bonds” pie)
Expert pies
Use M1’s pre-built pies (S&P 500, hedge fund followers, etc.)
Custom + expert
Mix your own picks with M1’s expert pies
Fidelity’s Approach
Fidelity uses traditional self-directed investing:
Feature
How It Works
Buy/sell
Place orders manually for stocks, ETFs, mutual funds, options
Real-time trading
Execute trades instantly during market hours
Automatic investing
Set recurring purchases of specific stocks/funds
No auto-rebalancing
You must rebalance manually (or use Fidelity Go)
Fidelity Go (robo)
Automated portfolio management, free under $25K
Fee Comparison
Platform Costs
Fee
M1 Finance
Fidelity
Stock/ETF trades
$0
$0
Monthly fee
$0 (basic) / $10 (Plus)
$0
Annual cost (basic)
$0
$0
Annual cost (premium)
$120 (M1 Plus)
$0
Options
N/A
$0.65/contract
Mutual funds
N/A
$0 (NTF)
Account transfer (ACAT)
$100
$0
Inactivity fee
✗
✗
Paper statements
$5 (if requested)
Free
What M1 Plus ($10/month) Gets You
Feature
Free Plan
M1 Plus ($10/mo)
Trading windows
1/day (morning)
2/day (morning + afternoon)
M1 Borrow rate
7.75%
6.75%
M1 Spend APY
1.50%
3.30%
M1 Spend cash back
1%
1.5%
Smart transfers
✗
✓
Custodial accounts
✗
✓
Investment Options
Asset Type
M1 Finance
Fidelity
US stocks
✓ (6,000+)
✓ (all listed)
US ETFs
✓ (hundreds)
✓ (all listed)
Mutual funds
✗
✓ (10,000+ NTF)
Zero-fee index funds
✗
✓ (4 funds at 0.00%)
Options
✗
✓
Crypto
✗
✓ (Fidelity Crypto)
Bonds (direct)
✗
✓ (BondSource)
International stocks
✗
✓
Fractional shares
✓ ($0.01)
✓ ($1)
IPO access
✗
✗
Futures
✗
✗
Fidelity offers dramatically more investment types. M1 is stocks and ETFs only.
Automation Comparison
This is M1’s strongest category. No traditional brokerage matches M1’s level of automation.
Automation Feature
M1 Finance
Fidelity
Auto-invest deposits
✓ (allocated by pie weights)
✓ (but specific security only)
Dynamic rebalancing
✓ (continuous, with every deposit)
✗
One-click rebalance
✓
✗
Recurring deposits
✓
✓
Dividend reinvestment
✓ (into underweight slices)
✓ (into same security)
Tax-efficient selling
✓ (minimizes tax impact)
✗
Smart transfers (rule-based)
✓ (M1 Plus)
✗
M1’s Dividend Reinvestment Advantage
Traditional brokerages (Fidelity included) reinvest dividends back into the same stock that paid them. M1 reinvests dividends into whatever slice is most underweight, which helps maintain your target allocation. Over years, this results in a more balanced portfolio.
Margin / Borrowing
Feature
M1 Borrow
Fidelity Margin
Rate (Free plan)
7.75%
8.325%-11.325%
Rate (Premium)
6.75% (M1 Plus)
8.325%-11.325%
Minimum portfolio
$5,000
$2,000
Max borrow
35% of portfolio
50% of portfolio
Interest billing
Monthly
Monthly
No application
✓ (automatic at $5K)
Requires margin agreement
Annual Interest on $25,000 Borrowed
Platform
Rate
Annual Interest
M1 Finance (Plus)
6.75%
$1,687.50
M1 Finance (Free)
7.75%
$1,937.50
Fidelity
11.325%
$2,831.25
Savings with M1 Plus
—
$1,143.75/year
M1’s margin rates are significantly lower, making it better for investors who occasionally borrow against their portfolio.
Banking Features
Feature
M1 Spend
Fidelity Cash Management
Checking
✓
✓
Debit card
✓
✓
APY (basic)
1.50%
2.69%
APY (premium)
3.30% (M1 Plus)
2.69%
Cash back
1%-1.5%
✗
ATM reimbursement
M1 Plus only
✓ (all ATMs worldwide)
Foreign transaction fees
✗
$0
FDIC coverage
$250K
$5M+ (sweep program)
Smart Transfers
✓ (auto-fund investing from checking)
✗
Research and Tools
Feature
M1 Finance
Fidelity
Research reports
✗
✓ (20+ providers)
Stock screener
✗
✓ (advanced)
ETF screener
✗
✓ (comprehensive)
Charting
Basic
Advanced
Analyst ratings
✗
✓
News feed
✗
✓
Retirement planning
Basic
✓ (industry-leading)
Tax planning tools
✗
✓
Fidelity wins overwhelmingly on research. M1 is designed for set-it-and-forget-it investors who’ve already decided what to own.
WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy
