SoFi investing review 2021 | finder.com

SoFi review

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A commission-free platform with active and automated investment accounts.

finder.com’s rating: 4.3 / 5.0

★★★★★

SoFi is an online personal finance company that offers multiple financial products from, banking to investing. It sets itself apart with its no-fee robo-advisor and free account transfers. But its limited securities offerings, and lackluster research tools may force some investors to look elsewhere.

  • Consider SoFi if you want to swap commission-free stocks or access a no-fee robo-advisor.
  • Look elsewhere if you’re an experienced trader seeking bonds, mutual funds, futures or forex trading.

$0

Stock trade fee

0%

Annual fee

$1

Minimum deposit to open

Details

Intro or bonus offerFor a limited time, get one free stock worth up to $1,000 when you open a SoFi Invest Active Investing brokerage account.
Stock trade fee$0
Annual fee0%
Option trade feeN/A
Asset typesStocks, ETFs, Cryptocurrency
Account typesBrokerage, Retirement, Robo-Advisor
Minimum deposit to open$1
Fees

★★★★★ 4.8/5

Commission-free trades, free account transfers and free portfolio management help SoFi stand apart from competitors.
Available securities

★★★★★ 3/5

It only offers access to stocks, ETFs and cryptocurrencies.
Customer support

★★★★★ 5/5

Support can quickly be reached in three ways.
Mobile app

★★★★★ 4.7/5

Both Apple and Google users give its mobile app high marks.
Research and tools

★★★★★ 3/5

You’ll get the basics, like watchlists and company fundamentals, but charting tools are limited.
Reliability

★★★★★ 5/5

No major outages have been reported.

To learn how our star ratings are calculated, read the methodology at the bottom of the page.

WATCH: How to use Sofi Invest

What investments does SoFi offer?

SoFi offers access to the following securities:

  • Stocks and ETFs. Buy and sell stocks, ETFs and fractional shares with no commission fees.
  • Cryptocurrency. Swap cryptocurrencies like Bitcoin and Ethereum 24 hours a day.

Choose from a self-directed brokerage account, automated investing or an individual retirement account (IRA) to start investing. SoFi also offers a cash management account that earns 0.25% APY if you have recurring monthly deposits of at least $500.

Who is SoFi best for?

With its pairing of brokerage accounts and robo-advising, SoFi Invest may be best for:

  • New investors. A low $1 minimum deposit and educational resources make SoFi active investing a good option for those just starting out.
  • Active traders. With commission-free trades on its brokerage account, active traders don’t have to worry about fees eating into their returns.
  • Cryptocurrency investors. Many trading platforms don’t offer cryptocurrency trading, but SoFi offers 24/7 access to Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ethereum Classic.
  • Hands-off investors. Investors who don’t want to manage a portfolio can take advantage of SoFi’s robo-advisor.

SoFi’s dual trading services allow it to appeal to both passive and active investors with commission-free, self-directed trades and free robo-advising. Active traders gain access to stocks, ETFs, fractional shares and cryptocurrency, while passive traders can choose from 401(k), Traditional, Roth or SEP IRAs.

Fees and costs

SoFi is among the most competitively priced investment platforms on the market. It charges no commissions for self-directed share trading and no management fees for automated investing. While a number of its competitors have dropped their commissions, including Robinhood, Ally Invest and Webull, few platforms offer free portfolio management.

Most charge an annual or advisory fee — typically 0.25% to 0.35% of the account balance. It’s also rare to find an investment platform that offers free account transfers — most charge between $25 to $75 to move funds to a new investment account.

SoFi active investing

Minimum deposit to open$0
Minimum investment$1
$10 for crypto
Annual fee$0
Stock trading fee$0
Cryptocurrency trading fee1.25%
Account transfer fee$0

SoFi automated investing

Minimum deposit to open$0
Minimum investment$1
Management fee$0
Account transfer fee$0

How do I sign up?

Whether you want to open an active or automated investing account, the SoFi signup process begins with creating an account:

  1. Go to the official SoFi website, hover over the Products tab and click SoFi Invest. Then, click Invest now.
  2. Enter your full name, state, email address and password and agree to the terms and conditions.
  3. Click Register.

From your SoFi account dashboard, click Start investing and select the type of account you’d like to open.

To open a SoFi active investing account

  1. Select Active Investing.
  2. Choose whether you’re opening a new account or rolling over an existing 401(k) or IRA and click Next.
  3. Select your primary reason for investing, enter your date of birth and click Next.
  4. Select whether you’re opening a taxable investment account or an IRA and click Next.
  5. Enter your personal information, including your address, employer, citizenship status, net worth, investment experience, and Social Security number. Click Next.
  6. Follow the prompts to verify your identity and fund your account.

To open a SoFi automated investing account

  1. Select Automated Investing.
  2. Enter your birthdate.
  3. Select from SoFi’s five investment strategies: Conservative, Moderately Conservative, Moderate, Moderately Aggressive or Aggressive.
  4. Select the type of taxable account you’d like to open and click Next.
  5. Enter your full name, phone number, residential address, employment information and Social Security number. Click Next.
  6. Complete the application process by funding your account.

Eligibility

In order to sign up for a SoFi account, you’ll need to meet a few eligibility requirements:

  • Be at least 18 years old
  • Have a valid Social Security number or tax ID number
  • Have a valid US address

Required information

When you sign up for an account with SoFi, you’ll need the following information:

  • Name, date of birth and address
  • Contact information
  • Social Security number
  • Current savings and income information
  • Investment preferences and goals

Research tools

The SoFi platform offers basic research, but its charting tools are limited. You’ll get:

  • Watchlists to browse popular stocks
  • Access to the platform’s Investing 101 Center filled with tips for beginners, need-to-know terminology and more
  • Real-time investing news and data

Technical day traders looking for in-depth stock research and advanced charting tools may want to look elsewhere.

Pros and cons

Pros

Here’s why investors enjoy SoFi:

  • Low minimum investment amount. You only need $1 to start investing with a Sofi active or automated investment account.
  • Fee transparency. There are no trading, transfer, custodian or commission fees, so you can hold on to more of your money.
  • Free personalized help. SoFi financial advisors can help you adjust your goals, portfolio and strategy to align with your financial situation.
  • Membership perks. Get access to local meetups, career coaches, unemployment protection and more when you open a SoFi account.

Cons

Consider the following SoFi drawbacks before signing up:

  • No tax optimization. Unlike other services, SoFi cannot help you optimize your tax losses.
  • Limited account options. If you’re looking to get a head start on saving for your kids’ education with a 529 account or set up a trust, SoFi won’t be able to help.
  • Limited securities. SoFi doesn’t offer bonds, mutual funds, futures, forex or orders.
  • Limited support. Customer support representatives are only available on weekdays.

Research toolsIs SoFi legit?

Yes, SoFi is a legit broker founded in 2011 by Stanford business school students. Your accounts are secured up to $500,000, including a $250,000 limit for cash claims, by the Securities Investor Protection Corporation (SIPC). SoFi is also a Registered Investment Advisor registered with the Securities and Exchange Commission (SEC)

SoFi reviews and complaints

Overall, feedback on SoFi’s investing platform is fairly positive, as is the company’s reputation as a whole. SoFi earns an A rating from the Better Business Bureau (BBB) but is not a BBB-accredited business. As of March 2021, it has a TrustScore of 3.4 out of 5 stars based on over 2,488 reviews.

Most of the feedback we unearthed targeted SoFi’s banking products. And a majority of its 121 Consumer Financial Protection Bureau complaints were about SoFi’s student loans.

Reddit investors have no major concerns about SoFi’s automated investing, with numerous reports of satisfactory returns. For self-directed trades, Reddit users report that share trades are filled and confirmed in seconds — a hefty perk for a trading platform.

Federal Trade Commission alert

SoFi has an active alert on its BBB page. In October 2018, the Federal Trade Commission accused SoFi of making false statements to its customers about how much money they would save using its loan financing programs. In February 2019, a final Consent Order was approved that prohibits SoFi from misrepresenting potential savings to its customers without reliable evidence.

How do I contact SoFi support?

There are a few ways you can get in touch with a SoFi representative:

  • Email. Send an email to investsupport@sofi.com.
  • Phone. Call 855-525-7634 Monday through Thursday, 8 a.m. to 8 p.m. and Fridays from 8 a.m. to 7 p.m. ET.
  • Live chat. Chat with a member of the SoFi team, Monday through Thursday, 8 a.m. to 8 p.m. and Fridays from 8 a.m. to 7 p.m. ET.

Compare with other stock trading platforms

Name Product Stock trade fee Asset types Option trade fee Annual fee Signup bonus
Sofi Invest
$0
Stocks, ETFs, Cryptocurrency
N/A
0%
N/A
A free way to invest in stocks, ETFs and crypto.
Robinhood
$0
Stocks, Options, ETFs, Gold/Commodities
$0
0%
Free stock (chosen randomly with a value anywhere between $2.50 and $200)
Sign up using the "go to site" link
Make unlimited commission-free trades in stocks, funds, and options with Robinhood Financial.
Interactive Brokers
$0
Stocks, Bonds, Options, Mutual funds, ETFs
$0 + $0.65/contract, $1 minimum
0%
N/A
IBKR Lite offers $0 commissions, and IBKR Pro offers advanced tools for professional traders.
Webull
$0
Stocks, Options, ETFs
$0
0%
Get one free stock valued between $2.50 and $250 when you open an account, one more with a deposit
Open an account
Margin financing rates start at 3.99%. No monthly subscription fees for margin.
TradeStation
$0
Stocks, Bonds, Options, Mutual funds, ETFs, Cryptocurrency
$0 + $0.50/contract
$0 per month
$50
Deposit qualifying assets of $5,000+
A platform built for all kinds of traders and all styles of trading
Public
$0
Stocks, ETFs
N/A
$0 per month
N/A
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Compare up to 4 providers

*Signup bonus information updated weekly.

Disclaimer: The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Bottom line

SoFi’s commission-free trades and no-fee robo-advising are solid options for those new to trading. You can get started with an investment minimum as low as $1, and the platform offers plenty of educational resources for newbies. Plus, human advisers stand at the ready to assist with portfolio management for automated investment account holders.

The biggest drawback? Limited securities and account options. SoFi doesn’t offer access to mutual funds, bonds, options, futures or forex. And if you want to open a trust or 529, you’ll have to look elsewhere.

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