Platform Comparison

Ally Invest vs M1 Finance

Compare Ally Invest and M1 Finance on fees, DRIP, fractional shares and research for dividend investing.

AI

Ally Invest

★4.2

Ally Bank's brokerage arm pairs $0 commissions and free dividend reinvestment with seamless banking integration—though the lack of direct fractional shares holds it back.

Full Review
Higher Rated
M1

M1 Finance

★4.7

The ultimate set-it-and-forget-it platform with pie-based portfolios, automatic rebalancing, and free dividend reinvestment.

Full Review

Ally Invest vs M1 Finance: Fees, Minimums & DRIP Compared

FeatureAlly InvestM1 Finance
Our Rating4.2/54.7/5
Trading Commissions$0$0
Account Minimum$0$100
Fractional SharesDRIP onlyYes
DRIPFreeFree + Smart
Research ToolsBasicBasic
Best ForAlly Bank CustomersHands-Off Dividend Investors

Ally Invest vs M1 Finance: Pros and Cons

Ally Invest

Pros

  • + $0 commissions on stocks and ETFs
  • + Free dividend reinvestment (DRIP) with fractional share support
  • + $0 commissions on no-load mutual funds—the old $9.95 fee is gone
  • + Seamless integration with Ally Bank accounts (3.00% APY savings)
  • + Low options pricing at $0.50 per contract

Cons

  • - No direct fractional share purchases—DRIP is the only way to own fractions
  • - High margin rates, starting around 12% for balances under $25,000
  • - No cryptocurrency or futures trading
  • - $50 account transfer out fee (ACAT) and $25 IRA closure fee

M1 Finance

Pros

  • + Commission-free trading on stocks and ETFs
  • + Unique pie-based portfolio system for easy allocation management
  • + Dynamic rebalancing automatically invests new deposits into underweight positions
  • + Fractional shares let you invest any dollar amount
  • + Three dividend reinvestment options including true DRIP

Cons

  • - Limited trading window (9:30 AM EST only, 3 PM with premium)
  • - $3/month platform fee if account balance under $10,000
  • - No options, mutual funds, bonds, or forex trading
  • - Customer service limited to weekday market hours only

Which Is Better for Dividend Investors: Ally Invest or M1 Finance?

Choose Ally Invest if you...

  • Are in Ally Invest's core audience: ally bank customers

Choose M1 Finance if you...

  • Are in M1 Finance's core audience: hands-off dividend investors
  • Prefer a higher-rated overall platform

Want the full breakdown of fees, DRIP, and research tools? Read our Ally Invest review and M1 Finance review.

Compare Other Platforms

Not sure these are the right fit? Explore more comparisons.

Ally Invest vs FidelityAlly Invest vs Charles SchwabAlly Invest vs TD AmeritradeM1 Finance vs FidelityM1 Finance vs Charles SchwabM1 Finance vs TD Ameritrade
View All Platforms

Investment Disclaimer

Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice.