Platform Comparison

Firstrade vs M1 Finance

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

FT

Firstrade

★4.2

A pioneer of commission-free trading offering truly free options (no contract fees) and mutual funds—one of the most cost-effective brokers available.

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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.

Full Review

Firstrade vs M1 Finance: Fees, Minimums & DRIP Compared

FeatureFirstradeM1 Finance
Our Rating4.2/54.7/5
Trading Commissions$0$0
Account Minimum$0$100
Fractional SharesN/AYes
DRIPFreeFree + Smart
Research ToolsBasicBasic
Best ForOptions Income InvestorsHands-Off Dividend Investors

Firstrade vs M1 Finance: Pros and Cons

Firstrade

Pros

  • + Commission-free stocks, ETFs, options, AND mutual funds
  • + No per-contract fees on options—truly free options trading
  • + Free dividend reinvestment program
  • + No account minimums or inactivity fees
  • + Securities lending lets you earn extra income on shares

Cons

  • - Very low 0.15% interest on uninvested cash
  • - Dated platform interface that can be hard to navigate
  • - No forex, futures, or cryptocurrency trading
  • - Limited research and analysis tools

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: Firstrade or M1 Finance?

Choose Firstrade if you...

  • Are in Firstrade's core audience: options income 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 Firstrade 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.