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

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

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