Trade stocks, ETFs, cryptos, etc.

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SoFi is a household name in personal finance. The fintech company was started in 2011 to help millennials refinance their student loans, but has since expanded to all kinds of financial products.

Today, SoFi offers everything from private student loans, personal loans, mortgages, and auto loan refinancing to banking, credit cards, wealth management services, insurance, and investing. In other words, it is apparently one stop shop or all of your money needs.

This review will focus on the investment arm of SoFi, which in itself offers plenty of options for making your money grow. SoFi Invest® is an all-in-one investment platform that gives users the ability to trade stocks, ETFs, cryptocurrencies, and allows users to buy fractions of shares and participate IPOs at IPO prices (before they trade on the stock exchange and the price goes up). SoFi investors also have access to a robo-advisor and tax-efficient IRAs to save for retirement.

Below, Select reviews SoFi Invest’s offerings to give you details about its investment options, features, and fees so you can decide if it’s right for your money.

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SoFi Invest Reviews

SoFi Invest®

  • Minimum deposit and balance

    Minimum deposit and balance requirements may vary depending on the investment vehicle chosen. No account minimum for active or automated investing, or for participating in IPOs. $ 5 minimum to own a fraction of a company share. $ 10 minimum to trade crypto

  • Costs

    The fees may vary depending on the chosen investment vehicle. Active investing does not incur any commission fees for trading stocks and ETFs (currency exchange and fund management fees may apply). Automated investing has no management fees

  • Premium

    Download the SoFi app and get up to $ 1,000 when you open an active SoFi Invest® brokerage account. Make your first crypto trade of $ 10 or more and earn $ 10 in bitcoin. SoFi covers up to $ 75 in transfer fees that your brokerage may charge when you transfer an account to SoFi

  • Investment vehicles

  • Investment options

    Stocks, bonds, ETFs, crypto, fractional shares and IPO participation

  • Educational resources

    Investors can create a personal watchlist that tracks their stocks to stay up to date and receive the latest investment news

Advantages

  • Minimum deposit of $ 0 for active and automated investment and IPO participation
  • Ability to trade cryptocurrencies, buy fractional shares and participate in IPOs before being traded on the public market
  • No commission fees for trading stocks and ETFs
  • No management fees for automated investing
  • Variety of bonuses offered
  • SoFi members have access to rate discounts on other SoFi products and exclusive events and experiences, as well as career services and access to financial advisors

The inconvenients

  • Minimum required for fractional shares ($ 5) and crypto trading ($ 10)
  • Currency exchange and fund management fees may apply in the event of an active investment

SoFi Invest investment options

With SoFi Invest®, you can choose stocks, ETFs and fractions of shares yourself, or have a portfolio built for you by a robo-advisor according to your risk tolerance.

Those who go the former can actively invest and profit from SoFi’s commission-free trading in stocks and ETFs (although trading and fund management fees may apply). No commission fees essentially means that SoFi will not charge you for buying or selling these types of securities on its platform.

Split Stocks, offered by SoFi, allow you to acquire an expensive stock without having to purchase an entire stock. As we mentioned above, active SoFi investors can also trade cryptos (like Bitcoin and Ethereum) and buy shares of companies as they go public. Access to the IPO can not only diversify your portfolio, but it’s a benefit historically reserved for institutional investors (i.e. banks) and high net worth individuals.

While SoFi offers investors access to fractional shares, crypto, and IPOs, it does not offer some of the more standard investment options that savers often resort to, such as mutual funds. investment, index funds and bond funds (although you have access to ETFs which can work in a similar way). There are also no options, futures or currency swaps available on the SoFi platform.

If you want a more passive approach to investing, you can do so through SoFi Automated Investing and never pay an account management fee. The robo-advisor platform uses computer algorithms and market data to create and manage your investment portfolio from a wide range of low-cost ETFs. It will create a portfolio based on your risk tolerance, goals and investment schedule, and then automatically rebalance your investments on a quarterly basis.

And if you’re looking to open an IRA for your retirement, SoFi offers Traditional, Roth, SEP, and Rollover IRAs.

Characteristics

Beyond its unique offering of investment options, SoFi Invest is endowed with special features and benefits for its users. As an example, here are a variety of bonuses that new customers can earn:

  • Download the SoFi app and get up to $ 1,000 when you open an active SoFi Invest® brokerage account (you will need to make eligible deposits)
  • Make your first crypto trade of $ 10 or more and earn $ 10 in bitcoin
  • SoFi covers up to $ 75 in transfer fees that your brokerage may charge when you transfer an account to SoFi

SoFi investors can also create a personal watchlist that tracks their actions to stay up to date and receive the latest investment news. And if you’re looking to borrow money, SoFi members get 0.125% off other SoFi loan products, like student loan refinancing and personal loans. As a SoFi member, you can expect access to exclusive events and experiences, as well as career services and free financial advisors.

The SoFi app is available for free download both on the App Store (for iOS), where it has 4.8 / 5 stars, and on Google Play (for Android), where it has 4.3 / 5 stars at the time of writing.

Costs

Minimum deposit and balance requirements vary depending on the SoFi investment vehicle you select. There is no minimum account for active or automated investing, or for participating in IPOs.

Active investors can also trade stocks and ETFs without a commission fee, but trading and fund management fees may apply. Passive investors using SoFi’s automated service have no management fees. There is a minimum of $ 5 for owning a fraction of a company’s stock and a minimum of $ 10 for trading crypto. SoFi also charges a markup of up to 1.25% on crypto transactions, at the time of writing.

At the end of the line

It’s hard to see what SoFi Invest® does not offer. It offers the option to actively trade or sit back and put your investments on autopilot. Investors can have access to crypto trading, as well as special perks such as the ability to buy IPOs and fractional shares. They can also choose to channel their money through SoFi’s various IRAs. New SoFi users can take advantage of its welcome bonuses, and first-time investors can rely on SoFi’s financial advisors to guide them through the process.

But if you want to invest your money in mutual funds or indexes, you will have to look elsewhere. Charles Schwab is a good place to turn, as he offers these funds for active traders, as well as IRAs and two robo-advisor options. Read our full review of Charles Schwab.

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Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.



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