M1 Finance vs Fidelity for Long-Term Investing 2026: Which Platform Wins?

If you're building wealth for the next decade or beyond, the brokerage you choose matters more than most people realize. The difference in fees, automation, and available tools can compound into tens of thousands of dollars over time. That's exactly why the M1 Finance vs Fidelity for long-term investing 2026 debate is worth taking seriously.

Both platforms are excellent — but they're built for different kinds of investors. M1 Finance is a hybrid robo-advisor and self-directed brokerage designed around automated, portfolio-based investing. Fidelity is a full-service financial institution with decades of history, offering everything from index funds to estate planning. Choosing between them depends on what kind of long-term investor you are.

This comparison is for you if you're:

• A buy-and-hold investor looking to automate contributions
• Someone choosing their first (or next) brokerage for retirement accounts
• A DIY investor who wants low costs and solid tools
• Debating between a streamlined fintech platform and an established financial giant

Let's break it down feature by feature.

Quick Comparison Table: M1 Finance vs Fidelity

M1 Finance Overview

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M1 Finance launched in 2015 with a compelling pitch: combine the automation of a robo-advisor with the control of a self-directed brokerage. The result is a platform built around "Pies" — visual portfolio templates that let you set target allocations and then automate your investing around them.

Here's how it works: you create a Pie (or choose from dozens of expert-built ones), set your target allocations, and deposit money. M1 automatically buys fractional shares to keep your portfolio balanced. When you add new money, it's directed toward the underweight positions. It's elegant, hands-off, and perfect for long-term investors who don't want to babysit individual trades.

Key Features

• Pie-based portfolios with automatic rebalancing
• Dynamic rebalancing — new deposits are routed to underweight holdings rather than selling to rebalance (more tax-efficient)
• Fractional shares down to 1/100,000th of a share
• M1 Borrow — margin lending at competitive rates (currently around 6.25%–7.25% depending on M1 Plus status)
• M1 Spend — integrated checking account with debit card
• M1 Plus ($36/year) — extra trading window, lower borrow rates, cashback on M1 Spend, and more

Pricing

M1 Finance's basic account is free — no commissions, no management fees. The M1 Plus plan at $36/year unlocks an afternoon trading window, lower margin rates, and enhanced cash management perks. There are no percentage-based advisory fees on the standard platform, which is a significant advantage for long-term investors with growing portfolios.

Limitations

• Only one trading window per day (9:30 AM ET) on the free plan; two with M1 Plus
• No options trading
• No mutual fund access
• Limited research and charting tools
• No tax-loss harvesting automation (you'd need to do it manually)

Fidelity Overview

Fidelity

Fidelity is one of the largest and most respected brokerage firms in the world, managing over $12 trillion in assets as of early 2026. It's a full-service platform that handles everything from basic stock trades to complex estate planning, 529 college savings plans, and employer-sponsored 401(k)s.

For long-term investors specifically, Fidelity stands out because of its proprietary zero-expense-ratio index funds (the Fidelity ZERO funds), its massive mutual fund selection, and robust retirement planning tools. It's the kind of platform you could realistically never outgrow.

Key Features

• Fidelity ZERO index funds — literally 0.00% expense ratio on four index funds
• Thousands of mutual funds including no-transaction-fee options
• Active Trader Pro — advanced desktop trading platform
• Fidelity Go — robo-advisor option (free under $25K; 0.35%/yr above $25K)
• Full retirement suite — Traditional, Roth, SEP, SIMPLE IRAs, solo 401(k), HSA, 529 plans
• Fidelity Cash Management — checking account with ATM fee reimbursement worldwide
• Extensive research from 20+ independent providers
• 200+ investor centers for in-person support

Pricing

Fidelity charges $0 commissions on stocks, ETFs, and options (options still have a $0.65/contract fee). There's no account minimum for brokerage or retirement accounts. Fidelity Go, its robo-advisor, is free for balances under $25,000 and charges 0.35% annually above that threshold. The Fidelity ZERO funds have no expense ratios at all — a rare offering in the industry.

Limitations

• The interface can feel overwhelming for beginners due to the sheer volume of options
• Fidelity Go's automated investing is separate from the main brokerage experience and less customizable than M1's Pies
• No built-in portfolio automation for self-directed accounts (you manage rebalancing manually)
• Crypto investing is limited compared to some competitors

Feature-by-Feature Comparison: M1 Finance vs Fidelity for Long-Term Investing 2026

User Interface & Ease of Use

M1 Finance wins on simplicity and focus. The Pie interface is intuitive — you see your portfolio as a visual circle chart, drag to adjust allocations, and let automation handle the rest. There's very little clutter because M1 intentionally limits what you can do (no day trading, no options, no mutual funds). For a long-term investor who wants to set it and forget it, this is a feature, not a limitation.

Fidelity's interface has improved substantially over the years, and its 2025–2026 redesign made the web experience cleaner. But it's still a comprehensive platform that tries to serve day traders, retirees, and everyone in between. New investors sometimes feel lost navigating between the brokerage dashboard, NetBenefits (for workplace accounts), and Fidelity Go. That said, once you learn where things are, the depth is impressive.

Winner: M1 Finance for simplicity; Fidelity if you want depth.

Core Features for Long-Term Investing

This is where the comparison gets interesting. Both platforms offer commission-free stock and ETF trading with fractional shares. But the approach to long-term investing is fundamentally different.

M1 Finance is built for portfolio-based investing. You define your target allocation once, and the platform maintains it automatically with every deposit. Dynamic rebalancing means you rarely need to sell to rebalance — new money just gets allocated intelligently. For a long-term, buy-and-hold strategy, this is incredibly powerful and tax-efficient.

Fidelity gives you access to a much wider universe of investments: thousands of mutual funds (including its ZERO funds), bonds, CDs, international markets, and more. But if you want automated portfolio management in a self-directed account, you'll need to rebalance manually or use Fidelity Go (which is a separate, less flexible product).

For pure long-term buy-and-hold investing with automation, M1 Finance has the better core workflow. For access to the broadest range of investment products, Fidelity is unmatched.

Winner: Tie — depends on whether you prioritize automation or investment breadth.

Investment Selection

This isn't close. Fidelity offers a dramatically wider investment universe. If you want to own individual bonds, invest in Fidelity's ZERO mutual funds, trade options as part of a covered call strategy, or buy CDs in a brokerage account, you need Fidelity. M1 Finance limits you to stocks and ETFs.

For many long-term investors, stocks and ETFs are all they need. But the flexibility gap is real.

Winner: Fidelity — by a wide margin.

Pricing & Value

Both platforms offer $0 commissions on stocks and ETFs, so the base cost is identical for most long-term investors. The real differences:

• M1 Finance charges no advisory fee for its core automated investing. The $36/year M1 Plus plan is entirely optional.
• Fidelity Go charges 0.35%/year for portfolios over $25,000. On a $100,000 portfolio, that's $350/year. On $500,000, it's $1,750/year.
• Fidelity ZERO funds have literally no expense ratio — you can't beat free.
• M1 Borrow offers competitive margin rates; Fidelity's margin rates are typically higher for smaller balances.

If you compare M1 Finance's free automated investing to Fidelity Go's fee-based robo-advisor, M1 wins on cost. But if you compare a self-directed Fidelity account using ZERO funds (no advisory fee, no expense ratio) to M1 Finance, Fidelity is actually the cheaper option — you just lose the automation.

Winner: M1 Finance for automated investing; Fidelity for self-directed, ultra-low-cost fund investing.

Customer Support

Fidelity offers phone support, live chat, and over 200 investor centers across the U.S. where you can sit down with a representative in person. For complex situations — estate planning, beneficiary issues, large rollovers — having access to a human being at a physical branch is genuinely valuable.

M1 Finance offers email and in-app chat support. Response times have improved in recent years, but there's no phone support for standard accounts and no physical locations. For a platform that's designed to be hands-off, this is usually fine — but when something goes wrong with a transfer or account issue, the lack of phone support can be frustrating.

Winner: Fidelity — clearly and significantly.

Mobile App

Both apps are well-designed. M1 Finance's app mirrors its web experience beautifully — clean, visual, and centered around your Pies. Depositing money, checking your portfolio, and adjusting allocations are all straightforward. The app is rated 4.6 stars on iOS.

Fidelity's app (4.7 stars on iOS) has undergone significant improvements and now offers a streamlined experience for casual investors while still providing access to advanced features. The Fidelity Spire app (now integrated into the main app) added goal-tracking features that are useful for long-term planners.

Winner: Tie — both are excellent. M1 is simpler; Fidelity is more comprehensive.

Security & Compliance

Both platforms are SIPC members, providing up to $500,000 in securities protection ($250,000 for cash). Both offer two-factor authentication and bank-level encryption.

Fidelity goes further with its Customer Protection Guarantee, which reimburses losses from unauthorized activity in your account — something not all brokerages offer explicitly. Fidelity is also regulated as a broker-dealer and has its own clearing operations, giving it more direct control over account security.

M1 Finance uses Apex Clearing for trade execution and custody, which is a reputable clearinghouse also used by other major fintech platforms. Security is solid, but you're adding a third party to the chain.

Winner: Fidelity — the self-clearing and explicit protection guarantee give it an edge.

Pros and Cons

M1 Finance

Fidelity

Who Should Choose M1 Finance?

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M1 Finance is the better choice if you:

• Want true set-it-and-forget-it investing — You've decided on your asset allocation (or like one of M1's expert Pies) and want every dollar automatically invested according to your plan.
• Prefer a clean, distraction-free interface — No ticker-tape animations, no push notifications about market volatility, no options chain temptations.
• Are building a long-term ETF or stock portfolio — If your strategy is "buy VTI, VXUS, and BND every paycheck and rebalance automatically," M1 was literally designed for you.
• Don't want to pay advisory fees — M1's free automated investing beats Fidelity Go's 0.35% fee, especially as your portfolio grows.
• Want integrated banking — M1 Spend offers a solid checking account tied directly to your investment account.

M1 Finance is particularly well-suited for younger investors in their 20s–40s who have a clear investment thesis and want maximum automation with minimum cost.

Who Should Choose Fidelity?

Fidelity

Fidelity is the better choice if you:

• Want access to everything — Mutual funds, bonds, CDs, options, international markets — Fidelity has it all under one roof.
• Love the ZERO funds — If your long-term strategy revolves around low-cost index funds, Fidelity's 0.00% expense ratio funds are unbeatable.
• Need comprehensive retirement planning — HSAs, 529 plans, solo 401(k)s, estate planning — Fidelity covers financial needs that M1 simply doesn't.
• Value human support — Whether it's a phone call or a face-to-face meeting at a local branch, Fidelity's support infrastructure is vastly superior.
• Have a complex financial life — Multiple account types, beneficiary planning, trust accounts, or workplace retirement plans all centralized with one provider.
• Want institutional stability — Fidelity has been around since 1946. It's privately held (by the Johnson family), profitable, and not reliant on venture capital funding.

Fidelity is especially well-suited for investors who want a single financial home that can grow with them from their first Roth IRA through retirement withdrawals.

Verdict: M1 Finance vs Fidelity for Long-Term Investing in 2026

Here's the honest truth: both platforms are excellent for long-term investing, and the right choice depends on what you value most.

Choose M1 Finance if automation is your top priority. No other brokerage matches M1's ability to automate a self-directed, portfolio-based investment strategy without charging advisory fees. If you know what you want to own and just want the platform to execute your plan every time you deposit money, M1 Finance is the best tool for the job in 2026.

Choose Fidelity if you want the most versatile, full-featured brokerage available. The combination of ZERO expense-ratio funds, comprehensive account types, world-class research, and in-person support makes Fidelity the stronger overall platform — even if it requires a bit more manual effort to maintain your portfolio.

If I had to pick one for a new long-term investor who wants simplicity? M1 Finance. If I had to pick one platform to manage my entire financial life for the next 30 years? Fidelity.

And honestly? Many savvy investors use both — M1 Finance for automated taxable investing and Fidelity for retirement accounts and mutual fund access. There's no rule that says you can only have one brokerage.

FAQ: M1 Finance vs Fidelity for Long-Term Investing 2026

Is M1 Finance safer than Fidelity?

Both are SIPC-insured up to $500,000. However, Fidelity is a larger, more established institution with its own clearing operations and a Customer Protection Guarantee. Fidelity has a slight edge in perceived and actual security, but M1 Finance (which uses Apex Clearing) is also well-regulated and safe for most investors.

Can I transfer my portfolio from M1 Finance to Fidelity (or vice versa)?

Yes. Both platforms support ACATS transfers, which allow you to move your holdings in-kind (without selling) to another brokerage. The process typically takes 5–7 business days. Note that M1 Finance charges a $100 outgoing transfer fee, while Fidelity does not charge for incoming transfers.

Does M1 Finance offer tax-loss harvesting?

Not automatically. M1 Finance doesn't have a built-in tax-loss harvesting feature like some robo-advisors (e.g., Wealthfront or Try Betterment). You can manually sell losing positions and reinvest, but it requires active management on your part. Fidelity also doesn't offer automatic tax-loss harvesting in its standard brokerage accounts, though Fidelity Go includes it for managed accounts above $25,000.

Which is better for a Roth IRA in 2026?

Both are strong choices. M1 Finance is great for a Roth IRA if you want to build a custom ETF portfolio and automate contributions. Fidelity is better if you want access to its ZERO index funds (which have no expense ratio) or prefer having all your accounts — Roth IRA, traditional IRA, HSA, 529 — under one roof. For pure cost efficiency with zero management fees and zero fund expenses, Fidelity's self-directed Roth IRA with ZERO funds is hard to beat.

Does Fidelity have anything like M1 Finance's Pies?

Fidelity Go is the closest equivalent, but it's a separate robo-advisor product with less customization and a 0.35% annual fee for balances over $25,000. In Fidelity's standard brokerage account, there's no built-in equivalent to M1's Pie-based automation. Fidelity's Basket Trading feature (available on Active Trader Pro) offers some portfolio-level functionality, but it's not as intuitive or automated as M1's system.

Can I use M1 Finance and Fidelity together?

Absolutely, and many investors do. A common setup is using M1 Finance for a taxable brokerage account (leveraging its automated investing) and Fidelity for retirement accounts (leveraging its ZERO funds and comprehensive account types). There's no downside to having accounts at both platforms, and it can give you the best of both worlds for long-term investing in 2026.