I've done both, the test at the course and test at the MTO, (received M2 the first time via the course, but let my license expire between off time from riding); the MTO test is definitely harder depending on your bike.
Those little 125/250's they give you at the schools zip through the cones like nothing, it's more a slalom course than a tight weave.
The MTO test is as follows, I'll provide more info just in case others are wondering (as of a couple months back):
Done in a group of riders, there were 7 guys including myself in our group.
PART 1 - IN THE PARKING LOT
1) Bike check, does your horn, all lights and brakes work? They quickly go over the controls "show me the clutch", "is there a fuel shutoff"
2) Push your bike in a figure 8 (shows manual control over the bike)
3) Weave through the cones as shown in the handbook, if you don't have excellent slow speed control of the bike, get yourself a set of cones at walmart for $15 and practice for a few hours. Slow speed riding on the street doesn't really train your brain for the cone test IMO.
4) Ride straight through the cones away from the instructor, turn at the end, accelerate QUICKLY, and emergency brake stopping on a line. The first emergency stop I did, the instructor said I didn't get up fast enough and had me loop around again. Can't say how fast I was even going, maybe 50-60kph.
From this section, I believe 2 guys failed, not sure the reason as new ministry standards dictate that you have to have a "private session", so we were all stationed around a corner doing this phase. All I know is they did not move onto Part 2. Instructor took off a mark for the cones I went wide at the end, but said it wasn't a big deal because I clearly demonstrated I had good clutch, brake, and balance at slow speeds.
PART 2 - ON THE STREET
This was much shorter than I thought, we were in a Wal-mart parking lot, the instructor stands at the corner of the intersection and has you make a turn, go 100-200m up the street, turn into a business and come back. All the while he is marking for the following:
-Head/Shoulder/Mirror checks. I actually taped a big painters tape X on the back of my helmet to hopefully be better seen by the instructor when I was moving. It gets to the point you are just like a bobble head, many of the motions unnecessary but you want to be seen as "doing your checks"
-Shoulder check when turning right, they will NAIL you for not checking for cyclists riding in the right shoulder or cyclists riding across the sidewalk that may pop out.
-Lane position
-Signals (turning them off quickly is just as important as using them)
-Braking distance (leave space in front of you)
-Turning - Be sure to maintain your 'lane blocking' through the turn, this was more scrutinized than I thought
-Intersections - Be mindful of reds and preparing for a go/no-go situation depending on where you get stuck.
If you're an intelligent street rider, and always look ahead, and are mindful of the above, you really shouldn't have a problem.
The ministry in my city is located right around a ton of turning lanes so lane blocking REALLY screwed many of the riders up.
Overall I think 1 rider failed this section, passing only 4 / 7 that started.
Plan for approximately 2-3 hours. My appointment was at 1030am and was not complete until 1pm. I booked 1030 rather than 830 thinking I would avoid rush our traffic however I just ended up getting stuck in the 12pm lunch time rush lol.
Why did I do the MTO test the 2nd time around: Having already done the course, I wasn't up for dropping another $500 and giving up an entire weekend. When I did the training course the first time I had already been riding on the street for maybe 2 months and felt that 70% (rough guess) of it was stuff that you can figure out for yourself if you read and watch some proper riding videos. The course unfortunately assumes you've never ridden a motorcycle so the more advanced (as far as new rider anyways) stuff only comes on the 2nd day. The first day you'll be pushing the bike around and turning it off and on, circles, etc.
That being said: If you haven't done the course as a new rider, DO IT. Having the instructors there is great for questions and humbling experience. Most insurance companies rates with just your M1 will be significantly higher (2x), or they won't even offer insurance without it.