M1 Finance vs. TD Ameritrade: Compare Online Brokers (2025)

Quick Verdict (Because You’re Busy)

• Pick M1 Finance if you want automated, long-term investing with a “build once, rebalance often”
  workflowespecially for ETFs and diversified portfolios.
• Pick the TD Ameritrade experience (now Schwab + thinkorswim) if you want active trading tools,
  deeper charting, research, and the flexibility to place trades anytime during market hours.

The big idea: M1 is a portfolio machine. Thinkorswim/Schwab is a trading cockpit.
One is a slow cooker; the other is a hibachi grill.

M1 Finance vs. TD Ameritrade (Schwab) at a Glance

How they “feel” day to day

• M1 Finance: You build portfolios (pies), add money, and M1 allocates purchases based on your target
  weights. Trading is often available in scheduled windows rather than constant manual clicking.
• TD Ameritrade-style (Schwab + thinkorswim): You trade like a traditional brokerreal-time decisions,
  advanced order types, chart-driven strategies, and research that can make you feel like you’re auditioning for a movie
  about Wall Street (minus the dramatic background music).

Who each broker is built for

• M1 Finance: Long-term investors, “lazy but smart” automation lovers, ETF builders, dividend reinvestors,
  goal-based investing fans.
• Schwab/thinkorswim (TD Ameritrade legacy): Active traders, options traders, chart users, people who want
  more control over timing and order types.

Fees and Minimums: What You’ll Actually Pay

M1 Finance fees

M1’s pricing in recent updates has leaned toward a simple concept: if your account is small, there may be a monthly platform fee;
once you pass a certain asset threshold, that fee can go away. For example, M1 has communicated a monthly platform fee for accounts under
a specified asset level (often cited as $10,000), with exceptions depending on account status. (Always check the current fee page
right before you openbroker pricing is allergic to staying still.)

The bigger “cost” with M1 is sometimes not a line-item feeit’s the trade execution style. If you’re the type who needs to buy
at exactly 10:07 a.m. because your chart told you so, M1 will feel like a restaurant that only takes orders at specific times.

TD Ameritrade (now Schwab) fees

In the Schwab ecosystem, many online stock and ETF trades are commonly advertised as $0 commission.
Options trades typically come with a per-contract fee (often around $0.65 per contract on major platforms).
That matters a lot if you trade options frequentlybecause small fees become big fees when you do a lot of contracts.

Minimums

Both ecosystems are generally friendly to starting investors in terms of minimums for many account types,
though specific products (like certain managed options, advanced features, or specialty accounts) can have their own requirements.
The more important “minimum” is behavior: if you’re going to tinker daily, you’ll want a broker designed for tinkering.

Investing Experience: “Pies” vs. “Platforms”

M1’s pie-based investing (the portfolio-first approach)

M1’s signature move is letting you build a portfolio like a pie chart: slices represent ETFs or stocks, and you set target percentages.
Add money, and M1 tries to direct new contributions toward whatever is underweighthelping you rebalance with less manual work.

This is especially nice if you invest like a normal human with a day job: you can automate contributions, rebalance periodically,
and avoid turning investing into an all-consuming hobby. (Your hobbies should at least include snacks.)

TD Ameritrade/thinkorswim (the trading-first approach)

The TD Ameritrade legacy is closely tied to thinkorswim’s reputation for robust charting, watchlists, scanners, and options tools.
If you like technical analysis, multi-leg options chains, and advanced order types, this ecosystem is built to support that.

The experience is more like flying a plane: powerful controls, lots of toggles, and a sense that you should probably read a manual
before pushing random buttons.

Trading Tools and Order Types

M1 Finance

• Best for: Automated investing, long-term allocations, recurring contributions.
• Less ideal for: Intraday trading, complex order types, highly precise timing.
• Reality check: If you want to day trade, M1 is not the vibe.

Schwab + thinkorswim (TD Ameritrade legacy)

• Best for: Active trading, charting, technical indicators, options workflows.
• Order types: Typically broader choices, including advanced conditional orders and multi-leg option strategies.
• Power user perk: Research + tools can reduce “guessing” and increase “informed decision-making.”

Research, Education, and “Help Me Understand What I’m Doing”

M1 Finance

M1’s educational vibe tends to be more “here’s how to build a strong portfolio” than “here’s how to scalp a breakout.”
You’ll often find content focused on long-term investing principles, diversification, and portfolio design.

Schwab/thinkorswim

The Schwab + thinkorswim world is historically strong on research and education for traders and investors:
market commentary, trading education, platform tutorials, and a deeper toolset for analyzing securities.

If you want to learn options or explore strategies beyond buy-and-hold, this ecosystem tends to offer more runway.

Account Types: Taxable, IRA, and Beyond

In 2025, most investors are comparing brokers on these basics:

• Taxable brokerage accounts for everyday investing
• IRAs (Traditional and Roth) for retirement
• Joint accounts for shared finances
• Custodial accounts (where available) for investing for kids

M1 is typically favored by investors who want their IRA to behave like a self-rebalancing portfolio. Schwab/thinkorswim tends to be favored
by those who want more granular control, plus a broader “traditional brokerage” experience.

Fractional Shares and Automation

M1 Finance: automation is the point

M1’s model works best when you use fractional shares and recurring contributions. If you invest $100 a week,
M1 can spread that across many holdings according to your target percentages. This can make diversification easier,
especially if you like ETFs mixed with a few favorite stocks.

Schwab/thinkorswim: flexibility first

Schwab’s ecosystem supports a broader set of workflows: long-term investing, active trading, options strategies,
and more. Automation exists (recurring investing features may be available depending on product), but the platform’s
“center of gravity” is still user-directed control.

Margin and Borrowing: Powerful, But Not a Party Trick

Borrowing against investments can be convenient, but it also adds riskbecause markets do not care about your plans.
(Markets are like cats: they do whatever they want and then look at you like you’re the problem.)

M1 Borrow / margin-style borrowing

M1 promotes borrowing features that may allow you to borrow against the value of your portfolio, often up to a percentage of it,
with rates that can change over time. In late-2025 communications, M1 has referenced rate updates and promotions that can temporarily
reduce borrowing costs, but rates are variable and can move with market conditions.

Schwab margin

Schwab also offers margin features for eligible accounts, and the thinkorswim ecosystem is commonly used by traders who employ margin
strategically. The key difference is less “can you borrow” and more “what’s your workflow, and how actively do you manage risk?”

Practical rule: If margin is your “Plan A,” you may want a platform designed for active risk monitoring.
If margin is your occasional “Plan B,” understand the terms, the interest cost, and what happens in a sharp market drop.

Cash Management and “Where Does My Money Sit?”

Many brokers now blur the line between investing accounts and cash accounts. The differences you should watch:

• APY and cash yield (often changes as rates change)
• How quickly cash moves between cash and investing
• Debit card / bill pay features (if you care)
• FDIC coverage structure (varies by cash program setup)

M1 has historically leaned into an ecosystem feel (investing + cash + borrowing options). Schwab leans into a full-service brokerage
plus banking-style features depending on how you set up accounts.

Customer Support and Reliability

This is the part nobody gets excited about until something goes wrong. Consider:

• How easy it is to reach support when you need it
• Platform stability during high-volume market moments
• Clear statements and tax documents (boring… until tax season)

Schwab’s scale can be a plus if you value a large, established brokerage infrastructure. M1’s appeal is more about streamlined automation and
a modern investing UXespecially for long-term portfolio builders.

Which One Is Better in 2025? It Depends on Your Investor Personality

Choose M1 Finance if…

• You want to automate investing and avoid micromanaging trades.
• You love the idea of portfolio allocation and rebalancing without spreadsheets.
• You invest mostly in ETFs and diversified baskets (with some individual stocks).
• You’d rather make fewer decisions, but make them consistently.

Choose Schwab + thinkorswim (TD Ameritrade style) if…

• You want advanced charting, scanners, and deeper trading tools.
• You trade options or want to learn options with a platform built for it.
• You care about timing, order types, and active decisions.
• You want a more traditional brokerage experience with broad capabilities.

Best simple heuristic: If you say “allocation” more than “entry,” M1 will feel natural.
If you say “entry” more than “allocation,” thinkorswim will feel like home.

FAQ

Is TD Ameritrade still around in 2025?

TD Ameritrade has been moved into Charles Schwab. If you’re looking for the “TD Ameritrade experience,” you’re generally looking at
Schwab accounts and thinkorswim as the flagship trading platform.

Is M1 Finance good for beginners?

It can beespecially if you want to invest regularly, use diversified ETFs, and keep things simple. The biggest learning curve is
understanding how pie allocations work and accepting that investing doesn’t need to be an hourly hobby.

Which is better for options trading?

The Schwab/thinkorswim ecosystem is generally more options-friendly due to platform depth and options workflow support.
M1 is more oriented toward portfolio investing than active options trading.

Which is cheaper?

“Cheaper” depends on your behavior. If you do lots of options contracts, per-contract fees matter. If you’re under an asset threshold
where a platform fee applies, that matters. For long-term, low-activity investors, small differences can be less important than choosing
a platform you’ll actually stick with.

Real-World Experiences (500+ Words): What It’s Like Using M1 vs. the TD Ameritrade/thinkorswim Style in 2025

Let’s make this practical with a few realistic (and totally non-glamorous) scenarios. These aren’t promises of performance
they’re simply examples of how the platforms can feel in daily life.

Experience #1: The “Autopilot Investor” who just wants a clean routine

Imagine Taylor, who invests every Friday like it’s a sacred ritual: coffee, paycheck, invest, repeat. On M1, Taylor builds a pie with
a few broad-market ETFs (say, a U.S. total market ETF, an international ETF, and a bond ETF) plus two “fun” stock slices that scratch
the curiosity itch. Every week, Taylor drops in $100. M1 automatically pushes more of that money into whatever slice is underweight.

The emotional experience is surprisingly calm. Taylor isn’t deciding “what to buy today?” Taylor is deciding “am I still happy with my allocation?”
That subtle difference matters, because it reduces decision fatigue. The platform encourages consistency, which can be a superpower in investing.
Taylor checks performance monthly, not hourly. Taylor also sleeps better. Coincidence? Probably not.

Experience #2: The “I Like Charts” investor who treats investing like a skill

Now meet Jordan, who genuinely enjoys learning about markets. Jordan wants watchlists, indicators, and the ability to place conditional orders.
This is where the Schwab + thinkorswim experience shines. Jordan logs in, pulls up chart studies, and sets up alerts. If Jordan is learning options,
thinkorswim’s workflow can make it easier to visualize strategies and manage positionsespecially when compared to a portfolio-first system.

Jordan’s platform time is higherbecause the platform invites it. That can be a feature or a bug. If Jordan has strong rules and avoids impulsive
trading, the toolset feels empowering. If Jordan tends to overtrade, the same toolset can become a temptation buffet. (Yes, you can absolutely
eat too much at the temptation buffet.)

Experience #3: The “I Need Flexibility” investor with unpredictable cash flow

Consider Casey, a freelancer whose income arrives in bursts. Casey likes the idea of investing regularly, but “regularly” sometimes means
“three times in one week and then nothing for two weeks.” M1 can still work well because Casey can invest whenever money arrives and let the
allocation system handle the distribution. It’s less about perfect timing and more about maintaining a strategy.

But Casey also likes having the option to place a trade immediately when a specific opportunity appears. That’s where a traditional brokerage
experience can be more satisfyingespecially if you want more control over order types and execution timing. In practice, Casey might use M1 for
the long-term core portfolio and Schwab/thinkorswim for “tactical” investing or active strategies. (Many people end up with a two-broker setup
once they accept that no single platform needs to be everything.)

Experience #4: The “I hate admin” investor during tax season

Finally, there’s tax seasonthe annual event where everyone becomes an accountant for three days and then forgets everything immediately.
Investors often appreciate clear statements, simple transaction histories, and predictable behavior. M1’s long-term style can lead to fewer
individual trade decisions (depending on how you use it), which can feel tidier. Meanwhile, frequent traders on thinkorswim may have more
transactions to track, more moving parts, and more moments of “Wait, why did I do that?”

The takeaway: platform fit is lifestyle fit. If you want investing to be a background habit, M1 is designed to help you do that.
If you want investing to be an active craftwith tools, analysis, and flexible executionSchwab + thinkorswim is closer to the TD Ameritrade spirit.