M1 Finance vs Fidelity in Comparison 2022 | Which One is Better?


M1 Finance and Fidelity Investments are both popular investment platforms. They provide various features and exciting investment products. But, surely they have some differences. And, those differences can impact your investment strategy. So in this article, I will compare M1 Finance vs Fidelity and help you decide which platform is the best for your needs.

m1 finance vs fidelity

M1 Finance is a newer investment platform that offers a unique approach to investing. With M1, you can create custom portfolios of stocks and ETFs. You can also choose to invest in pre-made portfolios or invest in individual stocks and ETFs.

Fidelity Investments is a well-established investment platform with a long history of success. Fidelity offers various investment products, including stocks, ETFs, mutual funds, and options. And, they have several account types, including individual and joint accounts, IRAs, and 401(k)s. However, they have a higher minimum investment requirement than M1 Finance.

It's going to be a neutral comparison. AtoZ Markets is in no way responsible for any information given by the writer.

About M1 Finance

M1 Finance comparison

image credit: M1 Finance

M1 Finance is a free online platform that enables users to invest in a portfolio of stocks and ETFs or to invest in individual stocks and ETFs. In addition, M1 Finance offers a wide variety of features, including the ability to invest in fractional shares, automatic rebalancing, and tax loss harvesting.

M1 Finance was founded in 2016 by Brian Barnes and Mike Lamarra. The company is based in Chicago, Illinois.

Read Our Full Review Of M1 Finance

About Fidelity

Fidelity comparison

image credit: Fidelity

Fidelity Investments is a renowned financial service provider for a long time. And, it has headquarters in Boston, Massachusetts.

In addition, currently it has over $2 trillion in assets under management. Also, Fidelity has massive users all over the world. 

The company was founded in 1946 by Edward C. Johnson II. It was originally called Fidelity Management and Research and focused on managing the money of wealthy individuals and institutions. In 1969, the company began offering mutual funds to the general public.

Read Our Post on Fidelity vs Vanguard in Comparison

M1 Finance vs Fidelity: Trading Experience

M1 Finance and Fidelity offer different trading experiences. M1 Finance's trading platform is designed for novices, with a user-friendly interface and educational resources. Fidelity's platform is more sophisticated, with more features and tools for experienced traders.

Desktop Trading Platform

Trading platform

Fidelity is always known for its best quality desktop trading experience. However, M1 Finance takes the lead by offering more. 

Layout

The M1 Finance desktop trading experience is clean, modern, and easy to navigate. The layout is simple and uncluttered, with the main navigation bar across the top of the screen and the price chart taking up the majority of the screen space. The features and tools are well organized and easy to find, with a good variety of options for customizing your trading experience. Overall, the M1 Finance desktop trading experience is well designed and easy to use.

And the Fidelity desktop trading experience is also clean and modern but feels a bit more cluttered than M1 Finance. For example, the main navigation bar is located at the top of the screen, but the price chart takes up a smaller proportion of the screen space. The features and tools are well organized, but more of them are not as easy to find as they are on M1 Finance. Overall, the Fidelity desktop trading experience is functional but not as user-friendly as M1 Finance.

Features

 M1 Finance offers a variety of features, including:

  • One-click buy and sell
  • Real-time quotes
  • Charting with technical indicators
  • Order management
  • Fully customizable

Fidelity offers a variety of features, including:

  • One-click buy and sell
  • Real-time quotes
  • Charting with technical indicators
  • Order management
  • Fully customizable
  • Ability to trade options
  • Ability to trade futures

Mobile Trading Apps

Mobile trading apps

When it comes to mobile trading, Fidelity Investments is the clear winner. Their app is sleek, easy to use, and offers a variety of features that make trading on the go a breeze. M1 Finance's app, on the other hand, is not that much easy to use and navigate. 

One of the biggest issues with M1 Finance's app is that it's not very user-friendly. The menus are difficult to navigate, and it can be hard to find the information you need. The app also lacks many of the features that are available on Fidelity's app. For example, you can't trade on M1 Finance's app, and there's no option to view your account balance or recent transactions.

Fidelity's app also offers a variety of features that make trading on the go a breeze. You can trade stocks, options, and ETFs, and you can also use the app to manage your portfolio. The app also offers a variety of charts and graphs that allow you to track your investments.

Overall, Fidelity's app is much easier to use and offers a wider range of features than M1 Finance's app. So if you're looking for a mobile trading experience that's easy to use and packed with features, then Fidelity is the clear winner.

M1 Finance vs Fidelity: Usability

M1 Finance and Fidelity are both online brokerages that are user-friendly. However, there are a few key differences in usability. And, that differences you need to know before making investments with the company.

M1 Finance offers a unique pie chart interface that allows you to create custom portfolios of stocks and ETFs. You can also automate your portfolio by setting up rules that will automatically buy and sell securities based on your preferences.

Fidelity offers a more traditional brokerage interface with various research and analysis tools. They also offer a wide range of mutual funds, including both active and passive funds.

Overall, both brokerages are user-friendly and easy to navigate. However, M1 Finance offers a more unique and customizable experience, while Fidelity offers a wider range of investment options.

M1 Finance vs Fidelity: Fees

Fidelity offers more services yet takes minimum fees. Although not in every aspect, though. Let's discuss further. 

Trading Fees

Both offer commission-free trading without any doubt. But Fidelity Go (Robo Investor) has a 0.35% fee. Also, Fidelity takes $0.65 per trade. 

But M1 does not charge any maintenance fee while Fidelity charges $10 per month. 

Inactivity Fees

You have the right to be inactive in trading. And Fidelity does not charge any money as an inactivity fee. But, M1 finance charges $20 for being inactive for more than 90 days. 

Non-Trading/ Other Fees

M1 charges $25 for a domestic wire transfer and $45 for an international wire transfer, while Fidelity does not charge any money for that. 

Fidelity charges $75 for account transfer to another trading platform, but M1 charges $100. 

M1 Finance vs Fidelity: Investment Options

M1 Finance and Fidelity are two very different types of investment platforms. At a high level, M1 Finance is a Robo-advisor that offers automated portfolio management, while Fidelity is a traditional investment broker that offers various investment options.

M1 Finance is known for their Robo-advisor that has automated portfolio managent. Here you can manage your investments using computer algorithms and decide what to do. And, that is helpful for beginners. 

M1 Finance offers a wide variety of investment options, including stocks, ETFs, Fractional shares, IRAs, SEP IRAs, and mutual funds.

It is a great option for investors who want to automate their portfolio management. However, M1 Finance is not as comprehensive as Fidelity.

Fidelity is a traditional investment broker that offers various investment options. Fidelity offer Mutual Funds, ETFs (Exchange Traded Funds), Stocks, options, bonds, and more. Here is the list of their investment products:

  • Mutual Funds
  • Retirement & IRAs
  • Trading
  • Stocks
  • Fixed Income, Bonds & CDs
  • ETFs
  • Options
  • Sustainable Investing
  • Cash Management & Credit Cards
  • Managed Accounts
  • 529 College Savings
  • Health Savings Accounts
  • Annuities
  • Life Insurance & Long Term Care
  • Charitable Giving

Also, Fidelity has a Robo investor called Fidelity Go. However, M1 is better at automated investing. 

Fidelity is a great option for investors who want a wide variety of investment options. And, M1 is a better option for beginners to use their automated investment feature to get profit with a little bit of knowledge about investments. 

M1 Finance vs Fidelity: Account Types

M1 Finance and Fidelity are both investment firms superb for their various account types. Both firms offer brokerage account for individual, joint, custodial, and IRA account types. However, Fidelity offers more account types than M1. And, that is suitable for experienced traders. 

M1 Finance offers a unique account type called a Pie. A Pie is a portfolio of individual stocks and/or ETFs that can be customized to the investor's preferences. Pies can be built with stocks and ETFs from various asset classes, including domestic and international stocks, large-cap and small-cap stocks, and bonds and REITs.

Fidelity offers more account types than M1 Finance. For example, Fidelity offers retirement accounts like traditional and Roth IRAs, SEP and SIMPLE IRAs, and 401(k)s. Fidelity also offers 529 college savings plans.

M1 Finance's account types are better for people who want to invest in individual stocks and ETFs. Fidelity's account types are better for people who want to invest in mutual funds and other types of investments. So, surely Fidelity takes the lead in the Fidelity vs M1 Finance comparison in terms of account types. 

M1 Finance vs Fidelity: Regulations

Broker regulation comparison

M1 Finance is a registered broker-dealer with the Financial Industry Regulatory Authority (FINRA) and is a member of the Securities Investor Protection Corporation (SIPC). M1 Finance is also a registered investment advisor with the Securities and Exchange Commission (SEC).

Fidelity Investments is a registered broker-dealer with FINRA and is a member of the SIPC. Fidelity Investments is also a registered investment advisor with the SEC. Both platforms have a maximum of $250,000 cash protection if you failed in investments and another $250,000 in investment products. 

When choosing a financial institution, it is important to consider the company's regulations. By choosing a company that is registered with the SEC and FINRA, you can be confident that the company is held to high standards and is subject to rigorous oversight.

Fidelity vs M1 Finance: Security

Broker security

M1 Finance offers a very high level of security for your investment account. Your account is protected by multiple layers of security, including a password, two-factor authentication, and a host of other security features. In addition, your account is backed by the full faith and credit of the United States government, which means that your money is safe even in the event of a financial crisis.

Fidelity also offers a high level of security for your investment account. However, it is not quite as secure as M1 Finance. A password and two-factor authentication protect your account, but it is not backed by the full faith and credit of the United States government. This means that your money is not as safe in the event of a financial crisis.

Overall, M1 Finance offers a much higher level of security for your investment account than Fidelity. So if you are looking for a safe and secure platform, M1 Finance is the best option.

M1 Finance vs Fidelity: Research and Tools

When it comes to researching and analyzing potential investments, M1 Finance and Fidelity offer different but equally comprehensive toolsets.

M1 Finance's research and analysis capabilities are built into the platform and are very user-friendly. For example, the app's search bar lets you quickly find the ticker symbol of any company, and detailed information on that company is just a click away. You can also see a company's financials, news, and analyst ratings, as well as a chart of its stock price performance over time.

Fidelity's research capabilities are more extensive, but they are spread out across a number of different platforms and websites. The company's flagship website, Fidelity.com, offers comprehensive information on individual stocks, mutual funds, and ETFs. You can see a company's financials, news, and analyst ratings, as well as a chart of its stock price performance over time. But if you want to research a bond, for example, you'll need to go to Fidelity.com/bonds.

When it comes to choosing between M1 Finance and Fidelity, the most important factor is likely to be personal preference. If you prefer a streamlined and easy platform to use, M1 Finance is a good choice. But if you want more comprehensive information and research capabilities, Fidelity is a better option.

M1 Finance vs Fidelity: Customer Support

Customer support

Fidelity is quite good and better at customer support for their millions of customers. 

Availability

Fidelity's customer service is available 24/7, while M1 Finance's support is only available from Monday to Friday from 8 a.m. to 8 p.m. EST.

Speed

M1 Finance's response time is fast, often responding to inquiries within minutes. On the other hand, Fidelity can take a few hours to get back to you. This makes M1 Finance the better choice for those who need quick assistance.

Quality

In terms of quality, Fidelity takes the lead by providing the best solution for the new brokers. However, M1 is not that bad. Their customer representative is quite good at what they are doing. However, Fidelity has an AI bot live chat that can answer you quickly. But usually, you may have to have patience for getting help from real humans. 

Is M1 Finance better than Fidelity?

M1 Finance is a newer player in the online investing world, has launched its platform in December 2016. Fidelity has been around since 1946 and is one of the largest online brokers with over $2 trillion in assets under management.

So, which is better?

M1 Finance is Better for Beginners

M1 Finance is a great platform for beginners because it's easy to use. There is no minimum deposit, so you can start investing with a few dollars. The platform also offers several built-in features, like automatic rebalancing and dividend reinvestment, that make it easy to invest your money and grow your portfolio.

Fidelity is Better for Experienced Investors

Fidelity is a better platform for experienced investors because it offers a wider range of investment options. Fidelity also has several research and analysis tools that can help you make more informed investment decisions.

M1 Finance is a great platform for beginners, while Fidelity is a better option for experienced investors.

Conclusion

So there you have it: a comprehensive comparison of M1 Finance and Fidelity. Both offer unique benefits, so it ultimately comes down to what's important to you. If you want automated investing experience with low fees, M1 Finance is a great option. And, that suits better for the beginners. On the other hand, Fidelity is a better choice if you're looking for a more traditional investment platform with a wider range of features. And, you can use your experiences to make more precise investments and make profits. 

Fidelity can be good for newbie as well as they give investment advice.

No matter which platform you choose, make sure to always do your own research and never invest more than you can afford to lose. Happy investing!