Charles Schwab vs M1 Finance Comparison: Fees, Features, and More (2026)

Charles Schwab and M1 Finance are two leading discount brokerages offering commission-free stock and ETF trading. Use this head-to-head comparison table to evaluate fees, features, trading tools, and account options to help you decide which broker is right for you in 2026.

Head-to-Head Comparison: Charles Schwab vs M1 Finance (2026)
Feature Charles Schwab M1 Finance
Website https://www.schwab.com/ https://www.m1finance.com/
Broker Type Full-service Self-directed discount brokerage
Trading: Stock & ETF? Yes Yes
ETF & Stock commission $0 online (listed stocks/ETFs) $0 commission; $3/mo platform fee if assets <$10k (waived at $10k+ or with loan)
Fractional Shares? Yes (most U.S.-listed stocks/ETFs, from $1) Yes (to 1/100,000th of a share)
Percent Allocations? Yes (Personalized Portfolio Builder) Yes (M1 Pies with custom target % allocations)
Crypto Trading? Yes, via Schwab Crypto (BTC/ETH currently; not NY/LA/territories) Yes (Bakkt Crypto Account; BTC, ETH, LTC; US 18+)
Crypto Fees 0.75% of notional value (min $0.01) per buy/sell Bakkt 1% (100 bps) on buys/sells (in exec. price); M1 $0 commission
Options Trading? Yes No
Options Fee $0 online commission + $0.65 per contract N/A
Bond Trading Available? Yes No
Receives payment for order flow (PFOF)? Yes (receives PFOF rebates) Yes (receives PFOF ~$0.002/share)
Interface: Web trading? Yes Yes (web m1.com and iOS/Android apps)
Desktop trading? Yes, thinkorswim desktop (Windows/Mac; free for brokerage clients) No
API Trading? Yes, Trader API (Individual) for self-directed retail accounts (orders, data; via developer.schwab.com) No
Mutual Funds: Offered? Yes No
Total Mutual Funds ~14,500 from 600+ families (incl. 4,000+ NTF) None
NTF Mutual Funds 4,000+ (no-load via OneSource & others) None
Non-NTF Fund Fee Up to $74.95/buy online ($0 sell); some $49.95; 8.5% cap, <$100 exempt N/A
Early Redemption Fee? No; $49.95 Schwab fee on NTF funds held ≤90 days (some exemptions) N/A
Redemption Hold (Days) 90 days (NTF/OneSource funds; some Schwab Funds exempt) N/A
Early Redemption Fee $49.95 online/automated phone; $49.95 + $25 broker-assisted N/A
Accounts: Margin Accounts? Yes ($2,000 min. cash or marginable securities) Yes; Individual/Joint brokerage accounts include M1 Margin Loan by default ($2,000 min equity). Not for IRAs.
IRAs Offered? Yes (Traditional, Roth, SEP, Rollover, Inherited, Custodial, SIMPLE) Yes; Traditional, Roth, and SEP IRAs available ($500 minimum).
HSAs Offered? Yes (HSBA via participating HSA providers; no standalone Schwab HSA) No
Money Market Sweep? Yes (Cash Features Program: Bank Sweep or Schwab One Interest) Yes; High-Yield Cash Account has FDIC bank sweep. Invest-account cash does not auto-sweep (transfer required).
CDs Offered? Yes (brokered CDs via Schwab CD OneSource) No
Robo-Advisor: Offered Yes No (self-directed Pies/auto-invest; optional non-discretionary M1 Advisory)
Robo-Advisor Service Schwab Intelligent Portfolios® (Premium also offered) M1 Pies (self-directed); M1 Advisory / M1 Advisor (AI, non-discretionary)
Robo-Advisor Fees $0 advisory (standard); $300 one-time + $30/mo (Premium); ETF OERs 0.02–0.15%. Mins $5k/$25k. $3/mo platform fee if <$10k assets (waived at $10k+ or Personal Loan); advisory currently 0% (up to 0.20%)
Basics: Headquarters Westlake, TX Chicago, IL
Year Founded 1971 2015
Clearing Firm Charles Schwab & Co., Inc. (self-clearing) M1 Finance LLC (self-clearing Individual/Joint); Apex Clearing (IRA/Trust/Custodial)
Local Branches? Yes, more than 420 branches in 48 U.S. states No
New Account Minimum $0 $100 (individual/joint taxable); $500 (IRAs)

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