Schwab vs. M1 Finance (2026): Which One Should You Open?
Schwab is the broker you never have to leave. M1 is the one that maintains your allocation without you.
If you need any account type beyond a taxable and an IRA, Schwab. If your plan is a fixed allocation and monthly deposits, M1 does the maintenance Schwab will not.
This is the same fork as our Fidelity vs. M1 comparison, with Schwab’s branch network and Thinkorswim in place of Fidelity’s zero-fee funds.
If you searched "M1 Finance vs. Schwab"
Same comparison. What decides it is whether your bottleneck is choosing what to hold or maintaining it.
Automation versus control
M1’s Pie system holds a target allocation and rebalances on every deposit. Schwab expects you to do that yourself, and gives you far better tools for deciding what to hold in the first place.
The question is whether your bottleneck is choosing or maintaining. Schwab helps with choosing; M1 helps with maintaining.
On one screen
| CHARLES SCHWAB | M1 FINANCE | |
|---|---|---|
| Stock and ETF commissions | $0 | $0 |
| Portfolio automation | None | Automatic on every deposit |
| Options | $0.65 per contract | Not offered |
| 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 |
| Screening and research | Extensive, plus Thinkorswim | Minimal |
| Retirement accounts | Traditional, Roth, SEP, SIMPLE, solo 401(k), inherited | traditional, Roth, SEP and rollover IRAs, with no minimum beyond the $3 monthly fee below $10,000 |
| Custodial and trust accounts | Yes | yes, custodial accounts are available |
| 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 |
| Branches | Physical network, plus 24/7 phone | None |
Account types, including custodial
Schwab holds essentially every account type a household needs. M1’s range is narrower and has changed, so verify before assuming — particularly for custodial and self-employed plans.
For most readers this is the deciding factor, and it points at Schwab even when the automation is appealing.
What each one costs to own
Schwab has no subscription and earns on your cash instead. The default sweep pays noticeably less than Schwab's own money market funds, so an uninvested balance quietly earns less than it could unless you move it yourself. That is the trade, and on a large cash position it costs more than any fee on this page.
M1 charges $3 a month below $10,000, waived if your balance touches $10,000 on any day in the billing cycle or you hold an active M1 Personal Loan. On a $2,000 balance that is 1.8% a year. On $50,000 it is zero. The fee is regressive in exactly the wrong direction for the beginner the automation is aimed at.
Leaving is dearer at M1 — $100 to transfer out, against $50 on a full transfer from Schwab.
Who each one is wrong for
- Schwab is wrong for someone who will set a sensible allocation and then never rebalance it. The tools are there; using them is the part that does not happen.
- M1 is wrong for anyone who needs a SIMPLE IRA, a solo 401(k), a trust account, options, or intraday execution. It is also wrong as a small first account, where the monthly fee is a real percentage.
- Neither is wrong as a pair — Schwab for the accounts M1 does not offer, M1 for the allocation you want maintained.
What this means for you
- A fixed allocation you want maintained: M1.
- Any specialist account type: Schwab.
- Options, or intraday execution: Schwab. M1 has neither.
- One account for the whole household: Schwab.
Figures and rules in this article are checked against the official sources below. Where they disagree with us, they win.
