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No matter where you are on your investing journey, SoFi Invest wants to support you. That’s why they offer both active and automated low-fee investing options that are commission free. Recently, SoFi Invest also added IPO investing to their platform. Also featuring options to invest in crypto, SoFi Invest offers some of the most well-rounded investing options out there.
Read on to see if SoFi Invest might be the investment tool for you:
SoFi Invest Review Summary
- SoFi invest allows you to invest in ETFs, stocks, cryptocurrency with an emphasis on low fees
- SoFi Invest charges zero management fees, plus there are no commissions, inactivity fees, or withdrawal fees
- With both automatic investing and active investing, there are investment options for every type of investor
- Investors never have to worry about minimums to open accounts
- Investors are supported with detailed and responsive customer support options
SoFi Invest Pros & Cons
Before you take the plunge and start investing with SoFi Invest, you should take note of some of the biggest pros and cons to SoFi Invest:
Pros
- No minimums and no management fees
- Many low-fee investment offerings
- Fractional shares allow investors access to stocks sooner
- Strong customer support with option to connect with advisors
- Automatic investment rebalancing to support your goals and risk tolerance
Cons
- Does not currently support tax loss harvesting
- Only allows a limited selection of investment accounts
- No stop-loss orders for active investors
- Limited research tools
How Does SoFi Invest Work?
SoFi Invest works in a straightforward way. Cost-conscious investors create an account log in and fill out an application. Once you’re approved, you can start investing in their low-fee investment options.
To make the investment process truly seamless, you can use Plaid, a third-party tool that integrates your existing banking data securely, to connect with a US bank account. You can then use your checking or savings account to fund your SoFi Invest account with an ACH transfer. If you are interested, you can also do wire transfers.
From there, you can decide the type of investing that you want to do. Some people may prefer their automated investing options. Other investors may want to actively trade in stocks, ETFs, or cryptocurrency.
One final thing to know is that you can open retirement and personal or joint investment accounts with SoFi Invest. Whether you want to save for your goal years, grow wealth for another goal, or do both, SoFi Invest has you covered.
How Do I Open a SoFi Invest Account?
You can open a SoFi Invest account in just a few minutes by following a handful of steps.
Step 1
Visit the SoFi site, click the Invest tab, and choose the Invest Now option.
Step 2
Enter your personal information in the fields as requested. This is where you will include an email and create a password.
Step 3
Follow the prompts as directed. You will provide your personal and financial information in your account application.
Step 4
Your account will be reviewed and your status will change from pending once it has been approved.
Note that you can also currently open an account using the SoFi mobile app and have the chance to win anywhere from $5 to $1,000.
Types of Accounts Supported
SoFi Invest is open to all US citizens or permanent residents who are at least 18 years old. You also need a physical US address and a Social Security number.
To connect your bank account to SoFi Invest for ACH deposits and transfers, you can do this automatically using Plaid. You also have the option of connecting your account automatically.
If you prefer to do a wire transfer, you can do them from a personal checking or savings account in your name.
SoFi Invest Features and Benefits
On the surface, SoFi Invest seems like your typical investing app. However, in addition to allowing active and automatic investing, there are other standout SoFi Invest features, such as IPO investing. More so, some of the biggest benefits to using SoFi invest include fractional shares and their customer support.
Let’s explore these features and benefits in greater detail:
IPO Investing
One of SoFi Invest’s most recent additions, IPO investing allows investors to get in an IPO before they are traded on the exchange. If you are interested in initial public offerings, you can actually use SoFi Invest to set up notifications about anticipated offerings, prices, and possible dates.
The process to invest in IPOs with SoFi Invest is fairly straightforward:
- Step 1 – Create an active investing account if you don’t already have one. Then, you can invest with no minimums.
- Step 2 – Submit an indication of interest (IOI) for any IPO you are interested in.
- Step 3 – Look for a confirmation once your transaction settles.
If you aren’t sure if IPO investing is right for you, SoFi Invest also offers a robust educational component with lots of easy-to-understand content on IPOs.
Active Investing
Many investing platforms make you choose between active investing or automated investing through roboadvisor services. Not SoFi Invest!
SoFi Invest aims to make active investing meaningful in three ways. As an active investor, you:
- Pay no commission fees and have no account minimum to meet.
- Access community of SoFi members at exclusive events.
- Learn with the click of a button thanks to the embedded research tools.
Automated Investing
Not interested in active trading? Looking for a “set it and forget it” investing option? SoFi Invest has a solution for you!
There’s no management fee to use their automated investing tool, and it creates a customized profile tailored specifically to your goals and risk tolerance.
To make your automated investing pack a bigger impact, SoFi Invest does three things:
- Offer goal planning to see what you intend to use your money for.
- Rebalance your investments automatically on a quarterly basis.
- Diversify your money across investment types to mitigate some of the risk.
Fractional Shares
Is there a company you’d love to invest in but can’t quite swing a whole share? That’s understandable, especially if it’s a company like Amazon or Alphabet (formerly Google). Rather than sitting on the sidelines while you save up enough money to purchase a full share, you can invest in fractional shares with SoFi Invest.
Fractional shares let you get in on stocks and ETFs with as little as $5, no matter the cost of the full share. These fractional trades happen in real time and with zero commission fees. Thanks to no fees and low minimums, you can build a diverse portfolio that spans a variety of companies.
SoFi Invest Customer Support
The SoFi Invest site offers a thorough database of frequently asked questions and detailed answers. In addition to the FQAs, you can log into your SoFi Invest account and connect to a member of the Invest support team by chat.
Sometimes, you just want to pick up the phone and talk to someone. SoFi Invest offers that option as well. You have access to phone support seven days a week.
Currently, you can call 1-855-525-SOFI Monday through Thursday from 5am to 7pm PT and Friday through Sunday 5am to 5pm PT.
SoFi Invest Investment Options
SoFi Invest may not do it all, but it comes pretty close!
Some of the SoFi Investment options that might help you hit your financial goals include:
- Active investing
- Automated investing
- Retirement accounts
- Cryptocurrency
Let’s explore these investment options to see which might be right for you.
Active versus Automated Investing
SoFi Invest is big on helping people learn by doing. That’s one of the reasons why they welcome active investing on their platform. Active investors can choose from stocks, ETFs, and even cryptocurrency. You can also access Certified Financial Planners if you have questions. It’s worth noting that advanced investors who are looking to tax loss harvest or who want the ability to place stop-loss orders won’t currently find those with SoFi Invest.
Automated investing is great for beginners and for anyone who wants to take a simpler approach to generating wealth. SoFi uses your goals and your risk tolerance to build a smart investing plan suited to you. All you have to do is set up your automatic transfers to fund your investments and you’re ready to go. Plus, your investments automatically rebalance once a quarter to keep your money on track.
SoFi Invest allows investors to create both individual or joint investment accounts, as well as retirement accounts.
Retirement Accounts
If you’re ready to make a money move that your future self will thank you for, consider setting up a retirement account with SoFi Invest.
SoFi Invest offers two retirement account options:
- Traditional IRAs, which lower your current AGI and are taxed upon withdrawal in retirement.
- Roth IRAs, which invest post-tax dollars and grow tax free.
To determine which account is right for you, you can work with a SoFi financial planner, as well as research online.
You can use either active or automated investing to build your retirement account with SoFi Invest. No matter which you choose, SoFI Invest will help you set appropriate goals, diversify your investments, and get advice from a financial planner.
If you run a small business or are self-employed, SoFi Invest also offers SEP IRA options. These simplified employee pension plans allow investors who meet the criteria to tap into tax-deferred perks while saving for their future.
Cryptocurrency
Currently, SoFi Invest allows investors to trade nearly 30 types of crypto through SoFi Digital Assets.
Some of the most popular coins include:
- Bitcoin
- Ethereum
- Dogecoin
- Cardano
- Litecoin
SoFi Invest is committed to crypto, which means they are always looking for new coins to add.
Investors can trade crypto around the clock seven days a week. Additionally, you can count on SoFi Invest to keep your coins secure. They help keep you guarded against fraud and theft.
SoFi Invest Fees
Fees can quickly erode your progress as an investor, which is why it’s so important to pay attention to them. Thankfully, SoFi Invest prioritizes low fees.
To see how seriously SoFi Invest takes saving their investors money, check out some of these features:
- No commission fees
- No account inactivity fees
- Investment funds featuring low fees
- Free access to certified financial planners
SoFi Invest FAQ
When it comes to testing out a new investing app, we know you’ve got questions. Read out for the answers to the most frequently asked SoFi Invest questions. We’ll explore everything from how safe SoFi Invest is to how much it costs to get started.
Let’s get started:
Is SoFi Invest Safe?
While no investment is guaranteed, SoFi Invest is safe! In fact, SoFi prioritizes customer security in several ways.
Since SoFi Invest also allows customers to invest in crypto, they take special security measures for that as well. In addition to two-factor authentication and SSL encryption, SoFi Invest works with reputable cryptocurrency exchanges, like Coinbase. They also do not share personal information along the way. Finally, SoFi Invest offers educational resources on cryptocurrency to help investors understand both the value and risks of crypto.
SoFi also currently has an A+ rating with the Better Business Bureau.
Is SoFi Invest Good for Beginners?
Yes, SoFi Invest is good for beginners! Many times, beginner investors are sidelined by minimum account requirements. SoFi gets it, which is why there are no minimums.
Additionally, by offering fractional shares, beginners can invest in their favorite company or hot stock with as little as $5.
The SoFi app also offers news updates and other basic research tools to take you from a beginner investor to a more knowledgeable one. To keep a closer tab on your investments or prospective buys, you can even create a personal watchlist.
How Much Do I Need To Invest With SoFi Invest?
$0. That’s right. There is no minimum required to start investing with SoFi Invest.
You can also start investing in fractional shares with $5. That means that instead of waiting until you have enough cash set aside to invest in a company like Apple or Google, you can own a slice of it for just a few dollars.
Bottom Line: Is SoFi Invest Worth It?
SoFi Invest is worth it thanks to the SoFi Invest features and SoFi invest fees!
SoFi Invest is robust enough to meet almost every investor’s needs. As a new investor, you might benefit from their automated investing options. The roboadvisor features create an intuitive portfolio tailor made to your goals and risk tolerance.
If you prefer to invest yourself, you can use their active investing options to invest in stocks, ETFs, and even cryptocurrency. No matter how you choose to invest with SoFi Invest, you can be confident that you won’t ever pay commission fees! That means you get to put more of your money to work for your future goals.
SoFi Invest Alternatives
Are you unsure if SoFi Invest is the right choice for you? Check out all of our favorite investing apps for 2021 and then explore these SoFi Invest alternatives:
Ally Invest
Do you want to streamline your finances? Ally Invest might be the investment solution for you. Already renowned for its checking and savings accounts, Ally added investment account options as well. It seamlessly integrates banking capabilities, making it easy to move money across accounts and see updated balances in a matter of seconds. Banking made simple indeed.
Check out our full review of Ally Invest here.
M1 Finance
M1 Finance is still relatively new to the investing scene but it’s taken it by storm. And for good reason! M1 Finance offers investors a ton of support and flexibility, while prioritizing low fees. Whether you want to use one of their Expert Pies, a portfolio created using Modern Portfolio Theory, or start your own from scratch, M1 Finance has investment options that will meet most people’s needs. They also have one of the best user experiences in terms of navigating the investing app. It’s slick, clean, and intuitive.
Learn more about M1 Finance in our full review here.
Acorns
Are you looking to try out a different kind of investing app? Acorns stands out from many other investing apps because it offers investors the chance to micro-invest. Essentially, you get to put your spare change to work! Thanks to a round up feature, any time you use a linked card, Acorns rounds up to the next dollar and sets aside that change to be invested.
Acorns also allows more traditional investing, supporting Roth IRAs, traditional IRAs, and SEP IRAs. Additionally, you can also use Acorns to create a UTMA or UGMA account to teach your child financial literacy and start building generational wealth.
See our full Acorns review here.
