Who is SoFi Invest?
SoFi Invest is the investing arm of the SoFi personal finance platform, which also includes options for banking, loans, credit cards, credit score monitoring, insurance, and travel, in addition to investing.
SoFi Invest includes both self-directed and robo-advisor options for SoFi members.
Members can buy and sell investments such as stocks, options and ETFs. They can purchase fractional shares of stocks and a range of alternative investments as well. Cryptocurrencies are available through affiliated partner platforms. Members also have access to professional financial advisors for unlimited 30-minute consultations.
SoFi Invest: Highlights
SoFi Invest is a low-cost option offered as part of the SoFi platform.
Fees: No fees to trade stocks, ETFs and fractional shares.
Account minimums: No official account minimum. There are minimums of margin accounts as well as some types of transactions.
Pros:
o Access to Certified Financial Planner (CFP) professionals for all SoFi members using the platform.
o Low fees and low minimum initial investment
o Commission-free trades for stocks and ETFs
o The ability to invest in fractional shares
o The ability to invest in IPOs and alternative investments in addition to stocks, ETFs and options
Cons:
o Investors cannot do tax-loss harvesting
o Investors can only invest in U.S. investments
o There is a $2,000 minimum investment for margin accounts
SoFi Invest is a part of the larger SoFi (Social Finance, Inc.) online personal finance company. SoFi Invest is one of many options offered that include:
Personal loans
Banking services
Credit score insights
Mortgages
Student loan refinancing
Private student loans
Credit cards
Insurance
Travel services
On the investing side, SoFi Invest offers a full range of investing options for investors, including:
Trading stocks and ETFs
Robo investing
Investing in IPOs
Fractional shares
IRAs
Stock options
Alternative investments
SoFi Invest: Pros and cons
When choosing an investment platform, it’s wise to weigh up the pros and cons before making any decision.
Here are some of the key advantages and drawbacks to get started:
SoFi Invest pros
Access to Certified Financial Planner (CFP) professionals for all SoFi members using the platform.
Low fees and low minimum initial investment
Commission-free trades for stocks and ETFs
The ability to invest in fractional shares
The ability to invest in IPOs and alternative investments in addition to stocks, ETFs and options
SoFi Plus members on the main SoFi platform earn a 1% bonus for each $1,000 invested.
SoFi Invest cons
Investors cannot do tax-loss harvesting
Investors can only invest in US investments
There is a $2,000 minimum investment for margin accounts
How much does SoFi Invest cost?
Stocks, ETFs, and fractional shares can all be traded with $0 commissions. The minimum investment to start investing is $1. A $50 minimum holds for SoFi’s robo-advisor option.
Although not an official minimum, you will need at least $5 in your account to purchase fractional shares of stock or to trade stocks or ETFs.
For investors who want to trade on margin, the minimum is $2,000 to open an account that allows margin trading. Margin loans currently carry an 11% annual interest rate.
Types of investments available with SoFi Invest
There are a variety of investments and options for investing available via SoFi Invest, including:
Tradable assets
Tradable asset types include:
Stocks
Fractional shares
ETFs
Mutual funds
Level 2 stock options
Access to some IPOs
Some alternative assets are available through partner firms
One note: research options on the platform are a bit limited, so investors will need to use outside resources to research stocks, ETFs, and other investments.
Trading platform
The SoFi Invest trading platform is considered to be user-friendly for investors looking for basic trading tools and features.
Features of the trading platform include:
A user-friendly design
News updates
Watchlist for the user
Trading of fractional shares
A variety of market order, including open and limit orders, as well as stop-loss and stop-limit orders
Extended trading hours
Limited price alerts
SoFi Plus
This is a membership option on the SoFi platform that offers SoFi Invest users a number of additional benefits.
SoFi Plus features include:
Offers more than $1,000 in annual benefits
Unlimited access to a financial planner for 30-minute sessions
A 1% match on recurring deposits to the investment account (paid as reward points)
Loan discounts and increased reward points on credit cards through SoFi
SoFi Plus membership costs $10 per month; it is free with an eligible direct deposit to a SoFi bank account.
SoFi robo-advisor
SoFi Invest offers a robo-advisor option that offers instant portfolio diversification through pre-allocated portfolios of ETFs and mutual funds.
These portfolios include:
Classic: Low-cost stock and bond funds
Classic with alternatives: Classic portfolios with alternatives added in
Sustainable: Socially responsible portfolios
SoFi Invest: Mobile app
The SoFi Invest mobile app is a part of the overall SoFi mobile app.
This mobile app also provides access to the various features of the overall SoFi site, including banking, loans and other financial functions.
The app is designed to be user-friendly.
SoFi Invest: Security
SoFi Invest offers users several security options, including two-factor authentication and 24/7 account monitoring.
Additionally, SoFi Invest also falls under the SIPC (Securities Investor Protection Corporation), which offers protection should the company encounter financial trouble.
SoFi Invest: Customer feedback
Customer feedback from sites such as Reddit provides insight into how current users find the platform.
Below are some responses from users, showing a mixed response to SoFi Invest:
One user commented on recent improvements made to the service, which provide users with more information and details than some competitors: “So much more detail now, and has some info that even Robinhood and other brokerage apps don’t have. Love to see the improvements!!!”
While other users commented on some limitations with the platform:
“I would like to be able to open a second taxable account. Also, a 1D gain/loss when you’re in the actual account. It starts at 1W, which confuses me. The stock app that comes on the iPhone allows you to put 2 fingers on the graph and it will show you the gain/loss for that time period. Pretty cool little feature that I use a lot.”
“If only I could transfer my assets into SoFi. 5 failed transfers and I’ve had them change my legal name to match and everything.”
Who should choose SoFi Invest?
SoFi Invest is a solid option for beginning and newer investors.
Access to financial advisors can be a real help for these investors. They can provide help in planning out their investments and overall financial future. For those who bank with or have loans with SoFi, their investing service is a natural extension.
It can also be an option for more experienced investors who want to invest in options, various alternatives, and IPOs in addition to more basic investments like stocks and ETFs.
It is a good option for:
Newer to intermediate level investors seeking low fees and access to educational resources.
Those looking for an excellent mobile investing app.
Investors looking to be able to add alternatives such as IPOs and others to more conventional investments like stocks and ETFs.
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