Financial Education  SoFi Invest Review 2024 - Simplify Your Stock Portfolio
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SoFi Invest Review 2024 - Simplify Your Stock Portfolio
TABLE OF CONTENTS
Video Summary
Key Takeaways
What Is SoFi?
How Does SoFi Invest Work?
Active Investing
Automated Investing
SoFi Invest Features
SoFi Money Features
User Experience
Types of Investments Available
Minimum Investment Required
Types of Accounts
SoFi Loans
Is SoFi Safe?
Pricing and Plans
SoFi Plus
SoFi Credit Card
Pros and Cons
Pros:
Cons:
Who is SoFI Invest Ideal For?
SoFi Alternatives
Final Thoughts

SoFi Invest Review 2024 - Simplify Your Stock Portfolio

Discover the perks of investing with SoFi, from commission-free trades and high APY on savings to exclusive member benefits and a supportive community.

Erik Machuca Erik Machuca
Jan 25, 2024
We’re exploring the app where all your finances are just a tap away, from automated investing and active trading to integrated checking and savings accounts.
SoFi
SoFi
★★★★☆ | 4.5 / 5
Sign-Up Bonus
 
✅
Automated Investing
✅
Commission-Free Trading
✅
Fractional Shares
⛔
Limited Trading Features
 
SoFi Invest and the SoFi app bring the perfect mix of financial services, combining the convenience of automated portfolios with the tools needed for optimizing your investments.
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Whether you’re a beginner, a hands-off investor, or an active trader, SoFi’s user-friendly interface offers something for everyone.
It’s simple, straightforward, and lets anyone get started investing in the stock market with just $1.

Video Summary

Video preview

Key Takeaways

  • SoFi Invest offers a comprehensive financial platform that includes investing, banking, saving, and more.
  • It provides a one-stop solution for managing your finances, tracking accounts, and monitoring your credit score.
  • The app offers user-friendly features for both hands-off and active investors.
Try SoFi, and get a special sign-up bonus here.
Try SoFi, and get a special sign-up bonus here.

What Is SoFi?

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The SoFi app is a feature-packed financial platform where you can invest, bank, and save, all under one roof.
Through a single dashboard, you can connect all your accounts, monitor your credit score, and even manage your budget.
The app is straightforward and user-friendly, making it an ideal choice for beginners, but also provides the tools and features that experienced investors will appreciate.
SoFi Invest offers automated portfolios, fractional-shares, and lets you get started buying stocks with as little as $1.
The app is designed to be a one-stop shop, providing you with a wide range of financial services and resources to help you get your money right.

How Does SoFi Invest Work?

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SoFi Invest is an investment platform inside the SoFi app that caters to both active and passive investors, offering a range of services including commission-free trading of stocks, exchange-traded funds (ETFs), and options.
The app provides two main types of investing: Active Investing and Automated Investing.

Active Investing

Active Investing allows users to buy and sell stocks, ETFs, and options without paying any commissions.

Automated Investing

Automated Investing is their robo-advisor service where the app builds a portfolio of low-cost ETFs for you based on your risk tolerance and time horizon. Their Automated Investing portfolios are also free of any advisory fees.

SoFi Invest Features

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Commission-Free Trading: SoFi Invest offers commission-free trading for thousands of stocks, ETFs, and options, making it a cost-effective choice for active traders and investors.
Fractional Shares: The app supports fractional shares, allowing you to buy a portion of a stock for as little as $1. This feature makes it possible to own shares in companies that might otherwise be too expensive.
Robo-Advisor Service: For hands-off investors, SoFi’s Automated Investing portfolios take the guesswork out of picking stocks by building and managing a portfolio for you tailored to your financial goals and risk tolerance.
Access to IPOs: SoFi Invest offers unique access to initial public offerings (IPOs) before they're traded on public markets, which is something usually reserved only for institutional investors.
User-Friendly Interface: Whether you’re investing, banking, or managing your money, the app is simple to navigate and find what you need from the home dashboard.
Research and Data: While its research capabilities might not be as extensive as some other trading platforms, SoFi Invest does provide historical data, stock performance information, and real-time quotes and performance tracking.
Automatic Rebalancing: SoFi automatically rebalances your portfolio to maintain your target asset allocation. This occurs every time money enters or leaves the account, ensuring your investment strategy stays on track.
Automatic Contributions: You can set up automatic transfers and contributions to your investment portfolios, which can help in building your savings consistency over time.
Try SoFi, and get a special sign-up bonus here.
Try SoFi, and get a special sign-up bonus here.

SoFi Money Features

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The SoFi app also offers several useful features outside of investing that are designed to help you manage your finances more effectively.
SoFi Relay: This feature tracks all of your money in one place, providing credit score monitoring and financial insights at no extra cost. It allows you to connect both your SoFi accounts and your external accounts, giving you a complete view of your financial health.
Budgeting and Money Tracking: The SoFi app includes tools for budgeting and tracking money, helping you to manage your finances more efficiently.
SoFi Checking and Savings: SoFi offers checking and savings accounts with competitive interest rates. These accounts are integrated into the SoFi app, allowing you to manage your day-to-day finances alongside your investments.
Dedicated Savings Vaults: These are specific savings accounts SoFi lets you set up for different goals, such as saving for a vacation or a larger purchase. This feature can help you save more effectively by separating your dedicated savings accounts from your regular checking account.
Access to Financial Planners: SoFi provides unlimited access to certified financial planners at no extra cost. If you ever need guidance, their financial advisors can provide personalized advice to help you along the way.
SoFi Points: This is their member rewards program where you can earn points by completing tasks in the SoFi app. These points can be redeemed for rewards such as free stocks in your favorite companies.

User Experience

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SoFi provides you with an easy-to-navigate mobile app and desktop interface,
Whether you’re on iOS or Android, SoFi focuses on simplicity, making their platform suitable for investors of all skill levels.
The app has a clean, intuitive user interface, and you’ll never find yourself more than a click away from all your essentials.

Types of Investments Available

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On the SoFi Invest platform, you have access to several investment options, including:
Stocks: You can buy and sell thousands of individual stocks on the platform.
ETFs (Exchange-Traded Funds): SoFi Invest offers a wide range of low-cost ETFs, which are investment funds traded on stock exchanges, similar to stocks.
Options: The platform allows for options trading, which involves buying and selling options contracts on the direction of stock prices.
Fractional Shares: SoFi Invest supports the purchase of fractional shares, enabling you to invest in stocks with as little as $1, which is particularly useful for buying shares of companies with high stock prices.
Automated Investing: Their robo-advisor service provides automated investing services where the platform builds and manages a diversified portfolio based on your financial goals and risk tolerance.
While you can no longer invest in crypto directly on the SoFi,  they do offer you access to the crypto space through Bitcoin ETFs.

Minimum Investment Required

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The minimum investment required on SoFi Invest varies depending on the type of investing you are interested in.
The minimum deposit to open an account with SoFi Invest is $0, which means you can open an account without immediately funding it.
For Automated Investing, you only need $1 to get started.
For Active Investing, you’ll need to fund your account with at least $10 within 30 days of opening the account.
Whether you’re interested in their automated portfolios or prefer picking your own stocks, SoFi’s low minimum investment helps make the stock market accessible to a wide range of investors.
Try SoFi, and get a special sign-up bonus here.
Try SoFi, and get a special sign-up bonus here.

Types of Accounts

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SoFi offers a variety of account types that all integrate with each other.
Investment Accounts: SoFi offers both individual and joint investment accounts where you can buy and sell stocks and ETFs. These accounts can be managed actively by the user or passively through SoFi's Automated Investing service.
Checking and Savings Account: SoFi offers a combined checking and savings account known as SoFi Checking and Savings. This account offers competitive APYs, no account fees, and access to a large network of ATMs.
Retirement Accounts: SoFi offers Traditional IRA, Roth IRA, and SEP IRA retirement accounts as part of its investment options. Just like their individual investment accounts, SoFi’s retirement accounts can also be managed actively or passively.

SoFi Loans

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In addition to investing and banking, SoFi also offers personal loans, student loans, and mortgages, which can all be applied for online through the app or on their website.
Personal Loans: SoFi personal loans are unsecured loans that can be used for a variety of purposes, such as debt consolidation, medical bills, home improvement, family planning, and vacations.
These loan amounts range from $5,000 to $100,000, with repayment terms from 2 to 7 years. The application process is online, and SoFi offers competitive fixed rates and same-day funding.
Student Loans: SoFi offers private student loans that can cover up to 100% of school-certified costs, including tuition, books, supplies, room and board, and transportation.
The interest rates may be either fixed or variable, and the application process is entirely online.
Mortgages: SoFi also offers mortgage loans with flexible term options and down payments as low as 3%.
SoFi offers both conventional home loans and government-insured loans (FHA loan, USDA loan, or VA loan), and the repayment term is typically 15, 20, or 30 years.

Is SoFi Safe?

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Yes, as a nationally chartered bank, SoFi is subject to strict regulatory standards by the Federal Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation (FDIC), the Securities and Exchange Commission, the Securities Investor Protection Corporation, and others.
As a member of SIPC (Securities Investor Protection Corporation), SoFi is SIPC insured against brokerage failure. Securities in member's accounts are protected up to $500,000, including up to $250,000 for cash.
SIPC insurance is investor protection for investment brokerages.
SoFi Bank deposits are insured by the FDIC up to $250,000 per individual and $500,000 per joint account. This means that even if the bank were to fail, the FDIC would cover the loss of your deposits up to these limits.
Additionally, as a platform regulated by the Financial Industry Regulatory Authority (FINRA), M1 Finance must follow strict regulations designed to protect investors, adding another level of security to your transactions.

Pricing and Plans

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While many robo-advisors charge a monthly fee or a percentage-based fee, there’s no monthly or annual fee for using the SoFi platform.
Active Investing: SoFi's Active Investing platform allows for commission-free stock, ETF, and options trading.
Automated Investing: SoFi's Automated Investing service is also provided without any advisory fees.
Whether you’re just starting to invest or you’re looking to cut down monthly costs from your bank, SoFi’s got you covered.

SoFi Plus

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SoFi Plus is a free premium membership offered by SoFi that provides members with access to enhanced interest rates on checking and savings accounts and discounted personal loan rates.
To unlock SoFi Plus at no extra cost, you need to set up direct deposit to your SoFi Checking and Savings accounts.
Other benefits include earning double SoFi rewards points on qualifying activities and welcome offers like 3% cash back on eligible SoFi Credit Card purchases.

SoFi Credit Card

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The SoFi Credit Card offers unlimited 2% cash back on all purchases when the rewards are redeemed towards your SoFi investing or SoFi Money accounts, or toward paying down an eligible SoFi loan.
Cardholders can also earn unlimited 3% cash back on all travel booked with SoFi Travel.
The SoFi Credit Card rewards you for paying off your balance in full each month and has zero annual fees.
For a limited time, SoFi is offering a promotion where members with SoFi Checking and Savings, direct deposit, and the SoFi Credit Card can earn 3% cash back on all credit card purchases for a full year.

Pros and Cons

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Pros:

  • Convenience: The app is user-friendly and feature-packed with a variety of financial services in one place, including investing, banking, and lending.
  • Flexible For All Investors: Whether you’re a hands-off investor or a more active investor, SoFi offers you automated portfolios, commission-free trading, and low account minimums.
  • Access to IPOs: SoFi provides access to initial public offerings (IPOs), a feature not found in all investment apps.
  • Certified Financial Planners: SoFi offers access to Certified Financial Planners at no additional charge.

Cons:

  • Basic Charts: The charts provided by SoFi are basic and may not meet the needs of more advanced traders.
  • Limited Research Tools: SoFi's research tools are simple to understand but they may not be sufficient for more advanced investors.
  • No Tax-Loss Harvesting: SoFi does not offer tax-loss harvesting, a feature offered by some robo-advisors that can reduce taxes owed on investment gains.

Who is SoFI Invest Ideal For?

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Beginner Investors: SoFi's app and website are user-friendly and designed to be accessible, making them a good fit for those new to investing who are just starting to build their portfolios.
Hands-Off Investors: Their Automated Investing service is perfect for investors who prefer a robo-advisor to manage their investments. This service builds and manages a diversified portfolio based on your time horizon and risk tolerance, and it does so without charging an advisory fee.
Investors Needing Financial Planning Guidance: SoFi offers unlimited access to a team of certified financial planners, which can be a valuable resource if you ever need professional guidance on your investment strategies.

SoFi Alternatives

SoFi is a versatile app for investors of all levels, but here’s a few other apps worth considering.
Acorns: Acorns is a beginner-friendly investing app that invests your spare change, automates your investments, and offers pre-built and diversified expert portfolios.
Acorns: Acorns is a beginner-friendly investing app that invests your spare change, automates your investments, and offers pre-built and diversified expert portfolios.
Acorns Review
M1 Finance: M1 is a comprehensive investment platform that offers a unique blend of automated investing and individual customization, allowing you to invest in fractional shares of stocks and ETFs.
M1 Finance: M1 is a comprehensive investment platform that offers a unique blend of automated investing and individual customization, allowing you to invest in fractional shares of stocks and ETFs.
M1 Review
Stash: Stash is a user-friendly investing app that offers Smart Portfolios, investing automation tools, and a cash back card that earns you stock rewards in real companies from your purchases.
Stash: Stash is a user-friendly investing app that offers Smart Portfolios, investing automation tools, and a cash back card that earns you stock rewards in real companies from your purchases.
Stash Review
Here’s a quick recap to keep things simple:
Platform
Features
Who it's for
SoFi Invest
Diversified portfolios, automated investing
Passive investors
Acorns
Automated portfolios, beginner-friendly
Beginner investors
M1 Finance
Smart portfolios, fractional shares
All investors
Stash
Automated tools, investing themes
Passive investors

Final Thoughts

The SoFi app is a feature-packed financial platform that offers a range of services, including commission-free trading, automated investing, and access to initial public offerings (IPOs).
Its user-friendly interface, low account minimums, and educational resources make it an optimal choice for beginners and more hands-off investors
Plus with access to certified financial planners, you can always access professional guidance when needed.
Try SoFi, and get a special sign-up bonus here.
Try SoFi, and get a special sign-up bonus here.
Erik Machuca
Erik Machuca
Erik Machuca is the founder of EverydayInvesting.com. He is passionate about helping everyday investors simplify investing with technology.

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