over $100 million
Individual and joint non-retirement accounts, Roth, traditional IRAs, and Keogh plans
$0 per trade
There are many SoFi Investing reviews online today, but you will struggle to find one as clear and comprehensive as this one! We’ve put together all of the information you could possibly need about this platform — from investment options, through trading fees, to customer service.
So let’s dive in!
What Is SoFi?
SoFi stands for Social Finance, which is an American online personal finance business. The parent company provides a wide range of services, from mortgages to student loan refinancing. SoFi Investing is one of its flagship products.
Introduced back in 2018, SoFi Invest provides fee-free and commission-free trades of exchange-traded funds and stocks. The service has recently rebranded as SoFi Active Investing.
Keeping up with the industry’s technological development, in 2019, Social Finance introduced SoFi Automated Investing. The robo-advisory service involves no management fees. But we’ll focus on that matter later in this SoFi Invest review. Read on!
How Does SoFi Work?
There are two main account types to choose from when using SoFi Invest. The first is an active investing account, which gives you complete control of buying and selling whichever funds and stocks you like.
The second option is a robo-advisor account, which is also known as a passive investment account. As all SoFi reviews will explain, this account will give you a pre-built portfolio based on your monetary situation and preferred risk level.
Industry experts create SoFi robo advisor portfolios to reflect a broad assortment of financial situations. As a result, they are very suitable for investors who lack experience in the financial market world or wish to save time and effort in selecting assets.
SoFi’s services also include SEP IRA, Roth IRA, and Traditional IRA retirement accounts.
What are the account requirements?
It’s relatively easy to open a new account and start investing with SoFi. All you need to do is enter your name and provide a few other personal and contact details. After this, you will have to answer a few questions about your investing experience and risk tolerance. It should only take you around two minutes to sign up.
As SoFi Investing holds safety first and takes all measures to prevent identity fraud among users, it may ask you to provide a copy of your ID to prove you’re who you claim to be. The verification process may take up to a few business days, which is an industry-standard.
How to start trading?
All you need to do to start trading with SoFi is to log into the mobile app and select the “Invest” icon at the bottom of the screen. Next, click on the magnifying glass, the “Search” icon, to get to the trade screen. You can look for a security by company name or symbol. Also, you can simply click on an asset from your watchlist.
As mentioned earlier in this SoFi review, you have several different types of accounts to choose from, including Traditional, Roth, and SEP IRAs and taxable brokerage accounts. You can use the automated investor system with any of these accounts if you wish to do so.
In terms of funding, you can either link your investment and personal bank accounts or make a money transfer, rollover, wire or check. If you meet certain requirements, you get instant access to up to $1,000 on first-time deposits. In case you aren’t eligible for instant access, your funds will be available in approximately four business days.
What can you trade?
As all good SoFi Investing reviews will attest, there are various trading options on SoFi. This includes cryptocurrency, fractional shares, ETFs, and stocks. Unlike many SoFI competitors, fractional share (Stock Bit) orders are also available here.
What are the main features of SoFi Investing?
There are a number of different features that make SoFi Invest a recommended choice. One of its primary appeals is the commission-free trading platform.
As mentioned above, SoFi investment options include cryptocurrencies, ETFs, and stocks. The company has even developed five of its own ETFs, with two of them waiving fees for the first year — SoFi Next 500 (SFYX) and SoFi Select 500 (SFY).
Being a SoFi Invest user, you also get unlimited access to a team of certified financial planners. They hold fiduciary standards to their clients rather than SoFi, which is imperative, and they don’t work on commission.
Another one of the main features of SoFi is automated investing. The platform has goal-based investing options, using your timeline and goals to determine your risk tolerance and recommend a portfolio for you.
SoFi Invest Fees
There is no investment minimum when using SoFi, which means that you can begin investing irrespective of how many funds you have available. Plus, there’s no commission on selling or buying stocks with SoFi Invest.
Crypto transactions come with an up to 1.25% markup. And if you invest in mutual funds, whether through the automated SoFi investing platform or actively, there may be some fees.
Nevertheless, SoFi has a wide range of mutual funds, including many whose expense ratios are fairly low.
Does SoFi Have a Mobile App?
Yes, SoFi is available for Android and iOS smartphone users. The app is easy to use, and SoFi regularly releases updates to ensure an optimal experience.
SoFi Investing Customer Service
One thing a lot of people want to know when reading SoFi reviews is what level of customer support the company offers.
You can enjoy phone, live chat, and email support. Availability is as follows:
Monday – Thursday, 8 a.m. to 8 p.m ET
Friday, 8 a.m. to 7 p.m ET
SoFi Investing Alternatives
There are some SoFi alternatives worth your consideration. Let’s take a look at some of these competitors to help you decide whether this platform is a suitable choice for you!
SoFi vs Acorns
SoFi is ideal for investors who want a little bit of everything. It provides more investment options in comparison to Acorns.
Acorns is a solid robo-advisory with a spare-change style of investing. That makes it a good solution for cost-conscious investors who have no investment funds but would like to save money from everyday transactions and build a portfolio.
SoFi vs Robinhood
Both Robinhood and SoFi target new to intermediate investors, with a comparable set of assets for people to invest in. Robinhood does focus more on active investors, though.
The main difference between the trading fees offered by both platforms is when it comes to cryptocurrency. There is a 1.25% markup on each crypto trade when using SoFi. With Robinhood, you can pay $5 per month for the Robinhood Gold service, enabling you to start margin trading.
SoFi vs Stash
Another solution you may be interested in Stash. A key difference between SoFi Invest and Stash is that the former is 100% free for ETF and stock trading, as well as auto investing, while Stash charges between $1 and $9 per month.
One benefit of choosing Stash, though, is that you will have access to custodial accounts that you are not going to find with SoFi.
Betterment vs SoFi
There are a lot of similarities between SoFi and Betterment. However, some clear differences set them apart. Unlike Betterment, SoFi Invest provides cryptocurrency investment options.
On the other hand, with Betternet, you get Smart-Beta, Income, and Socially-Responsible Investment (SRI) portfolios. So if you are looking to invest in line with your ethics, this platform may appeal to you.
By reading SoFi Investing reviews and testing the platform extensively ourselves, it’s evident that SoFi Invest is a good choice if you are a beginner looking to get started in the world of investment. Furthermore, with no fees and FDIC protection in place, you can rest assured you’ve found a good deal without compromising your security.
- Free financial counseling
- No account minimum
- Fractional shares are available
- Cryptocurrency trading
- Commission-free stock and ETF trades
- Limited track record
- A narrow selection of tradable securities
- Only available to US residents
Is SoFi legit?
Yes, SoFi is a legitimate money management and investment services provider. The US Securities Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) regulate the company. SoFi also has an A rating with the Better Business Bureau (BBB), demonstrating its trustworthiness.
Is SoFi worth it?
Yes, SoFi is a good choice for anyone looking to get started in the world of investment. It may not be the most suitable option for advanced investors, but it’s an excellent choice for beginners.
How to delete a SoFi account?
If you wish to stop using the service, simply contact the company via phone or chat with one of their agents. They will deactivate your SoFi account at your request.
Is SoFi safe?
Yes, SoFi is a safe solution. The company has all the relevant backing in place, including FDIC protection. Your money is insured up to $1.5 million. SoFi has also implemented security features such as suspicious activity monitoring, two-factor authentication, and chip card technology.
Is SoFi FDIC insured?
Yes, SoFi is FDIC-insured, which means your funds are insured up to $1.5 million.
Is SoFi good for beginners?
Yes, SoFi Invest is a good choice for beginners looking for an easy and simple way to get started with investing. No minimum amount is required for you to open an account with SoFi. So, if you only have a small amount of money to invest, you will still be able to get started. As all SoFi Investing reviews will attest, this is an excellent platform if you’re looking to invest for the very first time.