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

M1 Finance and Alpaca 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: M1 Finance vs Alpaca (2026)
Feature M1 Finance Alpaca
Website https://www.m1finance.com/ https://alpaca.markets/
Broker Type Self-directed discount brokerage API-first self-clearing broker-dealer (Trading API for retail/algo; web dashboard available)
Trading: Stock & ETF? Yes Yes
ETF & Stock commission $0 commission; $3/mo platform fee if assets <$10k (waived at $10k+ or with loan) $0 commission (retail US stocks/ETFs); plus SEC/FINRA/CAT fees. Elite Smart Router: $0.0005–$0.004/share
Fractional Shares? Yes (to 1/100,000th of a share) Yes (from $1 notional; 2,000+ US equities)
Percent Allocations? Yes (M1 Pies with custom target % allocations) Yes, via API
Crypto Trading? Yes (Bakkt Crypto Account; BTC, ETH, LTC; US 18+) Yes (most US states via API/dashboard; 24/7)
Crypto Fees Bakkt 1% (100 bps) on buys/sells (in exec. price); M1 $0 commission Maker/taker 0.15%/0.25% (under $100k 30d vol) to 0%/0.10% ($100M+); on received asset
Options Trading? No Yes (Levels 1-3 equity/ETF; index options live)
Options Fee N/A $0 commission retail equity/ETF options; index $0.50/contract + ORF/OCC/exchange pass-throughs
Bond Trading Available? No No (Broker API partners only; not Trading API/dashboard retail)
Receives payment for order flow (PFOF)? Yes (receives PFOF ~$0.002/share) Yes (receives PFOF rebates)
Interface: Web trading? Yes (web m1.com and iOS/Android apps) Yes web dashboard; no official mobile app (third-party/TradingView yes)
Desktop trading? No No
API Trading? No Yes (Alpaca Trading API)
Mutual Funds: Offered? No No
Total Mutual Funds None None
NTF Mutual Funds None None
Non-NTF Fund Fee N/A N/A
Early Redemption Fee? N/A N/A
Redemption Hold (Days) N/A N/A
Early Redemption Fee N/A N/A
Accounts: Margin Accounts? Yes; Individual/Joint brokerage accounts include M1 Margin Loan by default ($2,000 min equity). Not for IRAs. Yes; all accounts opened as margin (limited margin if equity under $2,000).
IRAs Offered? Yes; Traditional, Roth, and SEP IRAs available ($500 minimum). Yes; Traditional and Roth IRAs for US tax residents (Trading API). SEP-IRA in agreements.
HSAs Offered? No No
Money Market Sweep? Yes; High-Yield Cash Account has FDIC bank sweep. Invest-account cash does not auto-sweep (transfer required). Yes; opt-in FDIC Bank Sweep/High-Yield Cash for uninvested cash (variable APY, up to $1M FDIC).
CDs Offered? No No
Robo-Advisor: Offered No (self-directed Pies/auto-invest; optional non-discretionary M1 Advisory) No
Robo-Advisor Service M1 Pies (self-directed); M1 Advisory / M1 Advisor (AI, non-discretionary) N/A
Robo-Advisor Fees $3/mo platform fee if <$10k assets (waived at $10k+ or Personal Loan); advisory currently 0% (up to 0.20%) N/A
Basics: Headquarters Chicago, IL San Mateo, CA
Year Founded 2015 2015
Clearing Firm M1 Finance LLC (self-clearing Individual/Joint); Apex Clearing (IRA/Trust/Custodial) Self-clearing (Alpaca Clearing)
Local Branches? No No
New Account Minimum $100 (individual/joint taxable); $500 (IRAs) $0

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