What is SoFi Invest?
SoFi Invest is an online broker that provides robo-advisory features and the ability to invest for free. In recent years, a lot of companies have started to allow people to invest for free.
You can trade stocks, ETFs, and crypto, but trading options is not available yet. They provide you the option of letting them build your portfolio through automated investing. The initial impression of this broker is good, but we will see how it does in the rest of the SoFi Invest review.
SoFi Invest is operated by Social Finance, Inc. and its affiliates. Social Finance, Inc. focused on student loan refinancing when it was founded in the year 2011. Now, they have diversified into various sectors, including automated investing and active investing.
Pros
- No Fees or Commissions: They don’t charge any fees or commissions for trading.
- Solid Improvements: They have made some solid improvements, like the ability to trade cryptocurrency. I hope that they add options trading as well.
- No Management Fees: They don’t charge management fees for managing your portfolio, so it deserves a special mention.
- Additional Benefits: You get so many extra benefits when you become a member, such as special bonuses, discounts, and career advice from professionals.
Cons
- No Tax-Loss Harvesting: They are not good at offering a tax strategy. They don’t offer a tax-loss harvesting feature with the robo-advisor.
- Customer Service: Their customer service can be improved because it takes some time to reach them, and they don’t offer 24/7 customer service. Maybe, they will improve it after some time.
How does SoFi Invest work?
Let us take a look at the notable features of this broker.
Active Investing: You can invest through their website or use their app. There are no account minimums, which is great for those people who don’t have a lot of money for trading or investing. They allow you to buy and sell stocks at no cost.
They provide news updates, curated content, and data to help you know more about a stock. You can create a watchlist and follow the stocks that you find interesting. There are exclusive events for members to allow you to connect with and learn from others.
You can buy Stock Bits as well. These are fractional shares that allow you to buy a part of the stock of a company. Several companies have very expensive stocks, so you can buy Stock Bits to own a part of their stock and avoid buying the entire stock. This will not only allow you to invest in companies that you like but also help you make good use of your limited money.
Automated Investing: They have made automated investing easy. It will be based on your preferences as they will ask you questions to know what type of portfolio will suit you best. You can start with as little as $1 and choose to make a one-time investment or set up recurring payments. They will manage and build your portfolio on your behalf. They will even rebalance your investments every quarter.
The best part is that you get the benefit of automated investing without paying any management fees.
Trade Cryptocurrencies: They have recently added the ability to trade cryptocurrencies. You can only trade three cryptocurrencies at the time of writing this review, which are Bitcoin, Litecoin, and Ethereum. However, you can track the prices of more than 40 cryptocurrencies to get an understanding of the market.
Mobile App: The SoFi app is an app with a simple interface that allows you to do whatever you can do on their website. When you open the app, you will see how much you have gained, your dividends, your buying power, your investments, and more. You will get an overview of how you are doing.
You will see the information related to a stock when you click on it. The information provided here will be similar to what you see on the website. You can add the stock to your watchlist as well. In short, the app is an extension of this broker and filled with useful features for traders and investors.
These are only some of the benefits that are offered by this broker.
How much does SoFi Invest cost?
There are no fees or commissions, as I mentioned earlier. There are no inactivity fees or platform fees. You don’t have to pay any fees annually or for full or partial account transfers. Overall, you will surely be impressed by their pricing.
What do the users think about SoFi Invest?
It is clear that most of the users are satisfied with them. They are commended for being easy to use and offering a lot of features. The fact that they don’t charge any commissions or fees has not gone unnoticed.
Some people are clearly frustrated by the time it takes to get paid and the time it takes to deposit your money. They are working to improve their platform, so I am sure that these issues can be fixed if they are serious about fixing them.
Who should try SoFi Invest?
Brokers like this one are great for those who are getting started because they are easy to use and allow beginners to save some money. You don’t need a lot to get started, so beginners will not have to worry about risking a lot of money. Their extra benefits will probably appeal to the youngsters. They have a wide variety of features, so you shouldn’t feel limited by them.
Final Thoughts
SoFi Invest is worth considering for young and new investors for sure. You are protected by SIPC insurance, so you don’t have to worry about losing your money because the broker failed. Their robo-advisor is impressive, but it doesn’t have some features that are available in older robo-advisors. Maybe, experienced investors will not find this broker ideal for their needs. On the other hand, beginners will surely be impressed. In the end, you have to decide if this broker is worth it or not. Good luck