Platform Comparison

M1 Finance vs TD Ameritrade

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

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
TD

TD Ameritrade

★4.7

The legendary thinkorswim platform lives on under Schwab. All TD Ameritrade accounts have been migrated—new customers should open a Schwab account directly.

Full Review

M1 Finance vs TD Ameritrade: Fees, Minimums & DRIP Compared

FeatureM1 FinanceTD Ameritrade
Our Rating4.7/54.7/5
Trading Commissions$0N/A
Account Minimum$100N/A
Fractional SharesYesN/A
DRIPFree + SmartVia Schwab
Research ToolsBasicGood
Best ForHands-Off Dividend InvestorsFormer TD Ameritrade Customers

M1 Finance vs TD Ameritrade: Pros and Cons

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

TD Ameritrade

Pros

  • + thinkorswim platform retained and integrated into Schwab
  • + All former TD Ameritrade accounts successfully migrated
  • + Commission-free trading continues under Schwab
  • + 400+ technical analysis tools in thinkorswim
  • + Trading simulator for practice without risk

Cons

  • - TD Ameritrade no longer accepts new accounts
  • - TD Ameritrade API permanently shut down
  • - Some interface changes during Schwab transition
  • - Former TD-only features may differ slightly

Which Is Better for Dividend Investors: M1 Finance or TD Ameritrade?

Choose M1 Finance if you...

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

Choose TD Ameritrade if you...

  • Are in TD Ameritrade's core audience: former td ameritrade customers

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