SoFi Active Investing Review: Pros, Cons and Key Insights

4.7

GBR RATING

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No commission fees and the ability to trade stocks, ETFs, fractional shares and SoFi funds.

SoFi Active Investing offers a commission-free, self-directed investing platform that helps individuals to trade stocks, ETFs, SoFi Funds and fractional shares with no account minimums.

SoFi Active Investing is a commission-free trading platform that is ideal for novice and more mature investors. Investors can buy and sell without worrying about an account minimum. The platform also offers a user-friendly interface and robo-advisors to help you automate your investing according to your goals.

One convenient perk is access to certified financial planners to help you strategize about your financial goals. You can also benefit from the educational resources SoFi® offers, as well as the 24/7 accessibility with the app. Read more about the features in this SoFi Active Investing review. 

Overview of SoFi Active Investing

Below are the key features and details that make SoFi Active Investing a popular choice for investors.

Account Types

SoFi Active Investing has account types that may sound familiar to most investors. Here’s the rundown on what account types are available: 

Individual Brokerage Accounts

With an individual brokerage account, you can trade stocks, ETFs and SoFi proprietary funds. 

Retirement Accounts

SoFi IRAs automatically receive a 1% match on rollovers. The following IRA accounts are available: traditional IRA, Roth IRA, SEP IRA and a rollover IRA. You have the choice of automating your SoFi IRA. 

Margin Accounts 

There are trading margin accounts available at SoFi. Margin accounts are convenient for those investors who don’t quite have the funds to invest. SoFi will finance up to 50% of the investment purchase. Generally margin accounts are for seasoned investors. SoFi requires a minimum of $2,000 to trade on margin. 

Requirements To Open an Account

It’s easy to set up an account with SoFi Active Invest. You can either download the app on your cell phone or activate your account on the website. Part of account activation requires you to supply personal details — birthdate, Social Security Number, contact information and citizenship status. In addition, you will have to link your SoFi investment account to a checking or another account. This link will enable you to fund your investment account. 

Investment Options 

Wondering where to put your investment dollars? SoFi Active Investing has several options:

Stocks

You can trade individual stocks without incurring fees. 

ETFs 

There are several types of ETFs available with SoFi Active Investing. You can invest in a broad market ETF which tracks major indexes like the NASDAQ, S&P 500 and the Dow Jones. Other options include sector-specific EFTs that focus on certain industries. Thematic ETFs revolve around new technologies like AI, clean energy, or cyber security. Dividend ETFs offer returns from companies that pay regular dividends to its customers. 

Cryptocurrency

SoFi Active Investing ended its crypto services in December 2023.

Fractional Shares 

Can’t afford the entire purchase price of a stock? Fractional shares enable individuals to buy a part of a stock. This allows people to invest in higher-priced stocks like Apple and Amazon. You can invest with a minimum of $5 and have the benefit of spreading your investments across the board without the requirement of the entire price of the share. 

Fees and Commissions

As an investor, you don’t want fees to eat into your returns. SoFi is accessible for most investors since there are no fees to trade stocks or ETFs.  

SoFi Active Investing doesn’t charge a maintenance fee, but there are fees associated with specific transactions. They are as follows: 

• Outgoing domestic wire: $25
• Annual inactivity: $25 
• Closing fee for IRA: $20
• Outgoing transfer fee: Up to $100 

Tools and Features 

Having tools to navigate investment decisions may become easier with SoFi’s tools and features. Here’s what SoFi offers: 

SoFi Funds

There are proprietary investment options with SoFi Active Investing. It includes low-cost ETFs like SoFi Social 50 EFT which focuses on the 50 most-held stocks in SoFi user portfolios. Other selections include SoFi Weekly Dividends which pays out dividends on a weekly basis. Other choices are available depending on your value and goals. 

Automated Investing

You have the ability to meet virtually with a human advisor for free, or use a robo-advisor to help you make selections. With a robo-advisor, you have the benefit of a digital service that picks and manages your investments for you. These investments are based on your personal preferences and risk tolerance. There is a 0.25% fee, based on your account value, for the service.  

Portfolio Rebalancing

Your portfolio will automatically rebalance with the robo-advisor feature. You can choose a theme based on your financial goals, risk tolerance, and values. The classic theme focuses on performance driven funds that center on low-cost investments to grow wealth.  

Another option, the classic with alternatives, is geared to manage volatility. You will have a mixture of low-cost funds and alternative assets as a part of your portfolio. 

The third option is the sustainable portfolio. These selections revolve around companies that are socially responsible and eco-conscious. 

Research and Education

SoFi Active Investing provides articles on investing basics, stock market trends, and personal finance. Investors can gather additional information with webinars and member events as well as in the forums. 

SoFi Active Investing App

The SoFi Active Investing App is comprehensive and user-friendly. It supports retirement accounts and provides portfolio tracking, real-time market alerts, and stock research tools. SoFi also offers educational resources, including articles and webinars, plus free access to Certified Financial Planners for investment guidance. The app was rated 4.0 out of 5 stars on Google Play and 4.8 out of 5 stars in the Apple Store.

Pros and Cons of SoFi Active Investing

Thinking about opening a SoFi Active Investing account? Having some idea of the advantages and disadvantages about the service can help you decide on how to move forward. Here’s a look at the pros and cons of SoFi Active Investing.

Pros

• Commission-free: Stocks, ETFs and options are commission free. 
• Minimum deposit: No minimum deposit required. 
• Variety of investment options: You can choose to invest in IRAs, stocks, ETFs and fractional shares. 
• Easy-to-use app: The mobile app is simple to use and accessible. 
• Resources: Educational tools and resources available for those who are new to investing. 

Cons

• Lack of direct access: The platform doesn’t offer mutual funds or bonds. 
• Fees: Although investing is commission-free, you do pay $25 for an outgoing wire transfer and inactivity fee (if you don’t log in for six months) and a $20 fee for an IRA closing. 
• Doesn’t speak to every investor: More experienced investors will find SoFi lacks sophisticated resources for advanced investors.
• Reserved for U.S. residents: SoFi Active Invest is only available for U.S. residents. 

How To Get Started With SoFi Active Investing 

It’s easy to set up an account with SoFi Active Invest. You can either download the app on your cell phone or activate your account on the website. Part of account activation requires you to supply personal details — birthdate, Social Security Number, contact information and citizenship status. In addition, you will have to link your SoFi investment account to a checking or another account. This link will enable you to fund your investment account. 

Once you have created your account, you are able to make a choice of what investment account works best for you. You could choose a brokerage or IRA account. 

SoFi Active Investing vs. Competitors

How does SoFi Active Investing stack up against competitors? Here’s a look how Robinhood and E*TRADE differ from SoFi Active Investing.

SoFi Active Investing vs. Robinhood

SoFi Active Investing and Robinhood both have a $0 minimum deposit, making them accessible for new investors. However, SoFi offers access to financial planners, while Robinhood does not. Both platforms allow fractional share investing, but only Robinhood still allows cryptocurrency trading. SoFi stands out with automated investing options, which Robinhood lacks. When it comes to retirement accounts, both brokers offer them, but their research tools differ–SoFi provides resources suitable for beginners and intermediate investors, while Robinhood’s tools are more limited.

SoFi Active Investing vs. E*TRADE

Like SoFi, E*TRADE has a $0 minimum deposit, but E*TRADE does not provide access to financial planners. SoFi allows investors to purchase fractional shares, while E*TRADE does not. Neither E*TRADE nor SoFi offers cryptocurrency trading. Additionally, SoFi offers automated investing, whereas E*TRADE does not provide this feature. Both platforms support retirement accounts, but E*TRADE’s research tools are more advanced and geared toward experienced investors, while SoFi’s may be better suited to beginners and intermediate traders.

SoFi Active Invest Review Score and Methodology

SoFi Active Invest was reviewed via a thorough analysis of all of the features and benefits, pros and cons of the platform, especially in comparison with direct competitors. As fees and investment selection are of critical importance when it comes to the evaluation process, the have been given a double weighting for the purposes of this evaluation. Each category was ranked from 1 to 5, with 5 being the top score. Here’s how the evaluation broke down:

• Account types: 5.00
• Investment selection 4.75
• Fees 4.50
• Tools and features: 4.50
• Access to CFPs: 4.50
• Customer service 5.00
• Mobile app: 4.50
• Robo-advisor: 4.50
• Overall score: 4.65

Overall, SoFi Active Investing is a solid offering. It shines in terms of its investment selection, account types and customer service, offering access to a live person, seven days a week. Its access to Certified Financial Planners, robo-advisory service, low investment fees and solid mobile app all help the platform’s overall appeal. However, there are a few drawbacks that keep the firm from earning straight-As across the board, including the following:

• No more access to crypto trading
• High $100 fee to transfer an account out
• No access to individual bonds
• $25 inactivity fee
• No tools for advanced traders

But of course, no firm can be all things to all people. For its target market, SoFi Active Investing does an admirable job. If you’re a beginning or inexperienced investor, for example, you’re likely to enjoy SoFi’s no-commission trading platform, its ease of use, its robo-advisory service and/or its access to fractional-share trading. Some investors likely appreciate the firm’s access to Certified Financial Planners, convenient mobile app and seven-day-a-week customer services.

Whether or not SoFi Active Investing is a good option for you will depend upon your needs as an investor. But overall, the firm offers a solid package, as demonstrated by our rating.

More About SoFi

• SoFi Routing Number
• SoFi Review
• SoFi Savings Account Interest Rates
• SoFi Promotions

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.

Other fees, such as exchange fees, may apply. Please view SoFi’s fee disclosure to view a full listing of fees

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at http://www.adviserinfo.sec.gov.

Utilizing a margin loan is generally considered more appropriate for experienced investors as there are additional costs and risks associated. It is possible to lose more than your initial investment when using margin. Please see https://www.sofi.com/wealth/assets/documents/brokerage-margin-disclosure-statement.pdf for detailed disclosure information

Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options [HYPERLINK: https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf

Terms and conditions apply. For existing SoFi IRA members, 401k rollovers must be completed via this link For SoFi members without a SoFi IRA, a SoFi IRA must first be opened, and 401k rollover must be completed utilizing Capitalize via this link. For more details visit sofi.com/invest/capitalizeonepercentterms/

SoFi and Capitalize will complete rollover at no cost. SoFi is not liable for any costs incurred from the existing 401k provider for rollover. Please check with your 401k provider for any fees or costs associated with the rollover.

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