Overview

Social Finance, Inc. (SoFi) is an online financial services company offering a variety of products, including student loan refinancing, personal loans, mortgage loans, online trading, and wealth management services. Founded in 2011 and headquartered in California, SoFi initially concentrated on student loan refinancing but has since expanded to include other personal finance services, such as self-directed and automated investment accounts.

SoFi Invest is the brokerage division of SoFi, offering commission-free trading for stocks, ETFs, and options. It also provides IPO investing, fractional share investing, automated portfolios, and access to certified financial planners. SoFi allows you to open an IRA for retirement investing, and its competitive pricing and extensive asset selection are notable.

However, it’s important to note that SoFi offers limited tools for analyzing investments. One of the standout features is its automated investing tool, which lets you invest in pre-made portfolios without any fees. On the downside, SoFi doesn’t offer tax-loss harvesting for its automated portfolios.

SoFi Invest is a brokerage service within the larger SoFi ecosystem, which also offers banking, loans, credit cards, and insurance products. With SoFi Invest, users can trade stocks, ETFs, and options. It competes with other $0 commission brokers in terms of pricing and asset variety. Unique features include fractional share investing, the option to invest in IPOs at their original prices, and the ability to open traditional, Roth, and SEP IRAs.

SoFi is a great choice for investors seeking a mix of self-directed and automated investing. It allows you to buy and sell individual stocks or ETFs, invest in pre-made portfolios, or do both. Additionally, you can access guidance from a certified financial planner at no extra cost.

Sofi Invest – Best for?

SoFi Invest serves a diverse group of investors, from beginners and retirement savers to active traders and more.

Beginner Investors

You can open an investment account with no minimum deposit, and automated portfolios have a low minimum investment requirement of just $1. Additionally, you can start investing in fractional shares of stocks and ETFs with as little as $5.

SoFi Invest offers user-friendly trading tools, making it an appealing option for first-time investors. The platform allows you to easily explore popular and trending stocks, and it organizes stocks into themed collections like Stocks under $25 and Dividend Growers to help you find new investment opportunities.

Another advantage of SoFi is its all-in-one financial management. Beyond brokerage services, SoFi provides checking and savings accounts, credit cards, personal loans, mortgages, insurance, and more. You can easily transfer funds between accounts within the SoFi ecosystem, giving you a comprehensive view of your finances.

Active Traders and Investors

SoFi Invest® offers a wide range of investment options, including penny stocks and IPO stocks, making it ideal for self-directed investors looking to diversify their portfolios or explore high-potential opportunities.

For those interested in margin trading, SoFi Invest allows you to borrow funds to enhance your buying power. The platform charges a competitive interest rate of 8.50% APY, with a minimum account balance of $2,000 required to access margin trading.

SoFi Invest provides a basic interface for stock information, featuring line charts displaying price history and recent news headlines. However, it lacks advanced tools for in-depth technical and fundamental analysis, such as detailed financial statements or comprehensive charting capabilities. Investors seeking to perform thorough analyses may need to utilize external platforms or resources to access these advanced features.

Investors Seeking Hands-Off Portfolio Management

SoFi Invest’s automated investing offers a convenient way to build a diversified portfolio. You can choose from 10 pre-made portfolios tailored to your risk tolerance and investment goals. These portfolios include ETFs representing U.S. and international stocks and bonds.

A standout feature is automatic rebalancing, ensuring your portfolio stays aligned with your objectives over time. However, SoFi Invest does not offer tax-loss harvesting, a common tax-optimization feature provided by many other robo-advisors. On the upside, SoFi’s automated portfolios come with no advisory fees, making it an attractive, cost-effective option compared to competitors.

Investors Looking for Guidance from Certified Financial Planners

All SoFi Invest customers have access to certified financial planners who are fiduciaries, ensuring they act in your best interest rather than promoting commission-based investments. You can connect with a financial planner via phone or live chat for personalized advice.

Retirement Investors

SoFi Invest is a great choice for retirement investors, offering traditional, Roth, and SEP IRA accounts. SoFi Invest makes it easy to roll over your 401(k) portfolio from a previous employerinto an IRA. Additionally, getting started is hassle-free, as there’s no minimum deposit required to open an IRA.

Product Offerings

SoFi Invest provides commission-free trading on thousands of stocks and ETFs, including penny stocks. Investors can also purchase fractional shares of most stocks starting at just $5. Additionally, SoFi allows participation in upcoming IPOs at their offering prices.

Options trading is also commission-free, though a regulatory fee of $0.65 per contract applies, as required by all brokers. However, options trading is limited to buying long calls and puts, with multi-leg strategies not supported. It’s important to note that options trading is only available in taxable accounts, not IRAs.

How to Start Investing with SoFi Invest?

You can easily open an account with SoFi Invest online by providing personal details such as your name, birthdate, phone number, email, address, employment status, annual income, and social security number. Additionally, you’ll need to verify your phone number and confirm that you are not a professional investor.

Once you’ve completed the initial setup, you can choose what account you want to open. If you wish to open multiple accounts, you can easily do so from your SoFi Invest dashboard after setting up your first account. You can deposit funds from a bank account or transfer investments from another portfolio. Cash deposits typically take up to three days to settle before you can begin investing. The signup process is straightforward, and SoFi is not pushy about requiring a deposit at sign-up. Additionally, you can transfer holdings from another brokerage firm with ease.

Mobile App

SoFi provides an app for both iOS and Android users that integrates all of its products, including lending, banking, and investing. While this all-in-one design can make the app feel a bit overwhelming if you’re only interested in investing, it’s still relatively easy to navigate. Once you access the investing section, you can focus on your portfolio and view all available assets without distractions.

Security

All SoFi Invest® accounts are insured by the Securities Investor Protection Corporation (SIPC) for up to $500,000. The platform uses SSL encryption and two-factor authentication to ensure the security of your online account.

SoFi is also a Financial Industry Regulatory Authority (FINRA) member and partners with APEX Clearing Corporation, one of the largest securities clearing houses in the U.S., to clear stock, ETF, and options trades. Additionally, SoFi is publicly traded on the NASDAQ stock exchange.

Customer Support

SoFi Invest provides customer support from 5 AM to 5 PM (PT), Monday through Friday, available via phone or live chat. The SoFi website also features a comprehensive help center with hundreds of articles addressing common investing questions. I appreciate that the help center is fully searchable, making it easy to find the information you need.

Bottomline

SoFi is a $0 commission brokerage for stock, ETF, and options trading, offering flexibility with both taxable accounts and IRAs, all without requiring a minimum deposit. We appreciate how user-friendly and cost-effective SoFi is, making it easy to get started without overwhelming users with complex features.

One of SoFi’s standout advantages is its automated investing and access to certified financial planners, both offered at no additional cost—features that most other brokers charge for. Overall, SoFi is an excellent choice for anyone looking to build their first portfolio or take advantage of zero-commission trading.

SoFi provides a range of options for investors at all levels, including active trading, automated investing, and now options trading, offering investors the flexibility to make investment decisions based on stock value projections.