Fidelity vs. M1 Finance (2026): Which One Should You Open?
Fidelity has the cheapest funds. M1 has the automation.
If you will hold one or two index funds and leave them alone, Fidelity — its zero-expense funds cost literally nothing to own. If you want a target allocation maintained without you, M1.
This is the passive investor's real fork, and it is not about fees in the way people expect. Both are cheap. They differ in who does the maintenance.
If you searched "M1 Finance vs. Fidelity"
Same comparison. The question is whether you want rebalancing handled for you, or would rather own the cheapest possible fund and do nothing at all.
On one screen
| FIDELITY | M1 FINANCE | |
|---|---|---|
| Stock and ETF commissions | $0 | $0 |
| Own index funds | ZERO expense-ratio funds, no minimum | None — you hold third-party ETFs |
| Rebalancing | You do it | Automatic, on every deposit |
| Subscription | None | $3 a month — M1 retired the $125-a-year Plus tier and replaced it with a flat platform fee, waived if your M1 balance touches $10,000 on any day in the billing cycle or you hold an active M1 Personal Loan |
| When trades happen | Any time the market is open | One daily window around 9:30 am ET, with a second afternoon window near 3:00 pm ET on the paid tier |
| Options | Yes | Not offered |
| Retirement accounts | Traditional, Roth, SEP, SIMPLE, inherited, and more | traditional, Roth, SEP and rollover IRAs, with no minimum beyond the $3 monthly fee below $10,000 |
| Fractional shares | Yes — Stocks by the Slice | Yes — every slice is fractional |
| Branches and support | 24/7 phone, plus branches | App and support, no branches |
| Borrowing | Margin | M1 Borrow — portfolio line of credit at 5.65% (as of 2 February 2026), up to 50% of portfolio value. Not available on retirement or custodial accounts |
Automation versus doing it twice a year
M1's argument is that holding a target allocation requires selling winners and buying laggards, and almost nobody does it on schedule. M1 does it on every deposit without asking.
Fidelity's counter is that if your portfolio is one total-market fund, there is nothing to rebalance. The automation solves a problem you can avoid having. Our set-it-and-forget-it portfolio guide covers doing exactly that.
So the honest test is how complicated your intended portfolio is. Three funds or fewer: Fidelity, and rebalance in ten minutes each January. A structured allocation across sectors or themes: M1, because you will not maintain it by hand.
What the funds actually cost
Fidelity's ZERO funds carry no expense ratio and no minimum. That is not marketing shorthand — the ongoing cost of holding them is zero, and no ETF held at M1 can match it.
Against that, M1 may carry a subscription depending on the tier you use, and M1's pricing has changed more than once. Price both before deciding: the marked figures are the ones that matter.
Retirement accounts on both
Fidelity's shelf is comprehensive. M1's is narrower and has changed — verify what it currently offers rather than assuming, particularly for SEP or custodial accounts. Our M1 vs. Betterment comparison covers M1's account structure in more detail.
Who each one is wrong for
- M1 is wrong for someone who wants to hold a single index fund forever, and for anyone who needs options or intraday execution.
- Fidelity is wrong for someone with a multi-slice allocation they will never rebalance by hand.
- Neither is wrong if you keep retirement at Fidelity and run a structured taxable allocation at M1.
What this means for you
- One or two index funds, held for decades: Fidelity. The ZERO funds settle it.
- A structured allocation you want maintained: M1.
- Options anywhere in the plan: Fidelity. M1 has none.
- You have never once rebalanced: M1, honestly.
- Retirement money and you want one place for everything: Fidelity.
Figures and rules in this article are checked against the official sources below. Where they disagree with us, they win.
