Platform Comparison

E*TRADE vs M1 Finance

Compare E*TRADE and M1 Finance on fees, DRIP, fractional shares and research for dividend investing.

ET

E*TRADE

★4.6

Morgan Stanley's full-service brokerage pairs $0 commissions and free dividend reinvestment with institutional-grade research—and in 2026 it finally added direct fractional shares and crypto trading.

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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.

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E*TRADE vs M1 Finance: Fees, Minimums & DRIP Compared

FeatureE*TRADEM1 Finance
Our Rating4.6/54.7/5
Trading Commissions$0$0
Account Minimum$0$100
Fractional SharesYes (phased rollout)Yes
DRIPFreeFree + Smart
Research ToolsExcellentBasic
Best ForResearch-Driven Dividend InvestorsHands-Off Dividend Investors

E*TRADE vs M1 Finance: Pros and Cons

E*TRADE

Pros

  • + Commission-free trading on stocks and ETFs
  • + Free dividend reinvestment (DRIP) with fractional shares, enrollable per security
  • + Industry-leading research from Morgan Stanley, Morningstar, and MarketEdge
  • + Direct fractional-share purchases now rolling out (started Q2 2026)
  • + Crypto trading live at a 0.50% fee—cheaper than Coinbase, Schwab, and Fidelity

Cons

  • - Fractional-share purchases are still in a phased rollout—not every stock is eligible yet
  • - No dollar-based orders yet; fractional buys are share-quantity only
  • - Low interest rate on uninvested cash
  • - Website navigation can be confusing

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: E*TRADE or M1 Finance?

Choose E*TRADE if you...

  • Are in E*TRADE's core audience: research-driven dividend investors

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 E*TRADE review and M1 Finance review.

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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.