Platform Comparison

E*TRADE vs M1 Finance

Detailed side-by-side comparison to help you choose the best platform for dividend investing

ET

E*TRADE

4.6

A full-service brokerage backed by Morgan Stanley, offering exceptional research, education, and five trading platforms for every skill level.

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.

Feature Comparison

FeatureE*TRADEM1 Finance
Our Rating4.6/54.7/5
Trading Commissions$0$0
Account Minimum$0$100
Fractional SharesDRIP onlyYes
DRIPFreeFree + Smart
Research ToolsExcellentBasic
Best ForResearch-Focused InvestorsHands-Off Dividend Investors

Pros & Cons

E*TRADE

Pros

  • + Commission-free trading on stocks and ETFs
  • + Industry-leading research from Morgan Stanley, Morningstar, and MarketEdge
  • + Free dividend reinvestment with fractional share support
  • + Five trading platforms from beginner-friendly to professional
  • + 5,000+ no-transaction-fee mutual funds

Cons

  • - No direct fractional share purchases (only through DRIP)
  • - Website navigation can be confusing
  • - Low interest rate on uninvested cash
  • - No cryptocurrency trading (coming 2026)

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 Platform is Right for You?

Choose E*TRADE if you...

  • Want research-focused investors focused features

Choose M1 Finance if you...

  • Want hands-off dividend investors focused features
  • Prefer a higher-rated overall platform

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.