Well known for its lending business, SoFi has branched out more recently into investing products. SoFi Active Investing is the companyâ€™s online brokerage product, providing a platform for users to invest in individual stocks and exchange traded funds (ETFs).
SoFi Active Investing offers very limited choices for investing, and should be considered a product for people who want to learn the basics. That said, this platformâ€™s biggest hook makes it a very attractive choice for investing beginners: it charges zero transaction fees. In addition, you can get started buying fractional shares of stock with as little as a $1, and it provides great educational resources.
SoFi Active Investing is best for beginners who would like to gain hands-on experience in trading individual stocks. Fractional investing through the Stock Bits feature can be a very useful tool, since you can buy a small piece of a more expensive company for as little as $1.
While best suited for beginners, intermediate and even advanced traders can benefit from using SoFiâ€™s brokerage account. SoFi doesnâ€™t charge trading commissions like most other brokers. More active traders can benefit from using this product and save money on fees, rather than needing to pay each time an order is executed.
Note that investors who are more focused on long-term goals and want a more hands-off approach to their portfolio might look at SoFi Automated Investing, the companyâ€™s robo-advisor platform. This SoFi product takes care of the heavy lifting for investors by offering a selection of ETF portfolios.
|Amount minimum to open account||
|Account fees (annual, transfer, inactivity)||
|Commission-free ETFs offered|
|Mutual funds (no transaction fee) offered|
|Offers automated portfolio/robo-advisor|
|Ease of use|
|Mobile app||iOS, Android|
|Customer support||Phone, Email, 4 branch locations|
SoFi Active Investing is as safe as any investment. It is important to understand that anytime you invest, you are putting your money on the line and you could lose it â€” this is true no matter what broker you use.
However, SoFi offers its account under SoFi Securities LLC, a broker registered with the Securities and Exchange Commission (SEC). Additionally, SoFi carries SIPC insurance, which is designed to protect investors if the broker fails. Realize, though, that the SIPC wonâ€™t protect you from economic and market events â€” those losses are entirely yours.
SoFi is also regulated by the Financial Industry Regulatory Authority (FINRA), which helps keep your investments safe. Before investing, itâ€™s a good idea to use resources like FINRAâ€™s BrokerCheck to see if there are problems related to any broker. Additionally, you can look at the Better Business Bureau to see if there are complaints against an investing company.
SoFi Active Investing is a good choice for beginners who want to start active trading. Itâ€™s possible to invest in individual stocks and fractional shares without paying transaction fees. You can open an account fairly easily, and when you link a bank account, you can invest instantly.
There are other brokers, like Robinhood, that provide access to individual stocks without high costs, and if you donâ€™t trade very frequently, established brokers like Charles Schwab and Ally Invest can be good choices, even with transaction fees.
However, itâ€™s important to note that SoFi is relatively new to the investment space, and you might not have access to some of the tools commonly available with more established brokers. Additionally, if youâ€™re not sure that youâ€™re ready for active investing, it can make sense to start with a robo-advisor. SoFiâ€™s Automated Investing product might be a good choice, or you might consider another well-known investment product, like Ellevest, Wealthfront or Betterment.
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