Charles Schwab vs M1 Finance
Comprehensive comparison to help you choose the right option
Last updated: March 2026
Quick Verdict
Charles Schwab takes the edge with a rating of 4.7/5. It's best for investors who want a one-stop shop for banking and investing. However, M1 Finance is the better choice if you're looking for set-it-and-forget-it investors who want custom automated portfolios.
Side-by-Side Comparison
| Feature | Charles Schwab | M1 Finance |
|---|---|---|
| Platform Type | Full Service Broker | Automated Investing |
| Stock Commission | $0 | $0 |
| Options Per Contract | $0.65 | N/A |
| Account Minimum | $0 | $100 |
| Fractional Shares | Yes | Yes |
| Robo-Advisor | Yes | Yes |
| Robo-Advisor Fee | 0% | 0% (Plus at $3/mo) |
| Research Quality | Excellent | Basic |
| Our Rating | 4.7/5 | 4.3/5 |
Charles Schwab: Pros & Cons
Charles Schwab Pros
- + Zero commission trades
- + Free robo-advisor
- + Excellent customer service
- + Full banking services
- + Thinkorswim platform (via TD)
Charles Schwab Cons
- - Fractional shares limited to S&P 500
- - No crypto trading
- - Website can be overwhelming
Best for: Investors who want a one-stop shop for banking and investing
M1 Finance: Pros & Cons
M1 Finance Pros
- + Free automated investing
- + Fractional shares
- + Custom portfolio pies
- + Borrow and spend features
- + Great for DCA
M1 Finance Cons
- - One trade window per day (free)
- - No tax-loss harvesting
- - Limited research
- - No options trading
Best for: Set-it-and-forget-it investors who want custom automated portfolios
Detailed Analysis
Who Should Choose Charles Schwab?
Charles Schwab is the better choice if you're looking for investors who want a one-stop shop for banking and investing. Its strongest advantages include zero commission trades and free robo-advisor. With a rating of 4.7/5, it stands out as one of the best options available.
Who Should Choose M1 Finance?
M1 Finance is ideal for those who want set-it-and-forget-it investors who want custom automated portfolios. Key strengths include free automated investing and fractional shares. Rated 4.3/5, it delivers strong value for most users.
Final Verdict
Charles Schwab
M1 Finance
Both Charles Schwab and M1 Finance are legitimate investing platforms. Choose Charles Schwab if you value zero commission trades. Choose M1 Finance if you prioritize free automated investing.