Skip to content
Luis Clark
- Home
- /
- USA & Crypto
- /
- Crypto Exchanges in USA
- /
- SoFi Invest Review 2023:...
SoFi Invest Review 2023: Features, Pros & Cons
Luis Clark
- URL: https://www.sofi.com/invest/
- Headquarter: San Francisco, California
- Year Founded: 2011
- Platform App: Desktop/Mobile (Android and iOS)
- No. of Cryptos: 30
- Fiats Available: Yes
- Withdraw Method: ACH Bank Transfer, Bank Wire transfer, Direct Deposit, Check, Debit Card
- Payment Method: ACH Bank Transfer, Bank Wire transfer, SoFi Money, Direct Deposit, Check, Debit Card
SoFi Invest Review: Our Opinion
SoFi Invest is an investment platform and online brokerage for trading stocks, cryptocurrency exchange traded funds (ETFs), and crypto assets. The platform is ideal for beginner investors in the US who are interested in trading and investing in these asset classes with zero commissions and low account minimums.
Mobile-first users will also fancy SoFi invest because of its easy-to-use mobile app that lets them manage all their finances, including student loan refinancing, credit cards, and mortgages, in one place. SoFi also stands out from its competitors with its free access to financial advisors, and with no minimum acocunt balance, investors can begin investing in fractional shares and crypto with as little as $1.
However, during our SoFi Invest review, we discovered that SoFi may not be the right brokerage for investors looking for an extensive portfolio outside of stocks, ETFs, and cryptocurrencies. So, investors looking for a robust trading platform may opt for other investment platforms like Fidelity Investment or TradeStation. SoFi also doesn’t offer tax loss harvesting, which has become industry standard among leading robo-advisors.
An Overview of SoFi Invest
SoFi (also known as Social Finance Inc.) is a personal finance technology company and online brokerage service provider based in San Francisco, USA. The investment firm was founded in 2011 by the four Stanford Business School students, Mike Cagney, Dan Macklin, James Finnigan, and Ian Brady. At the time, the founders started SoFi to provide students with more affordable options for their student loans.
Today, SoFi has become a one-stop personal finance hub for millennials. It is home to students taking on debt to fund their education. The company also offers various kinds of loans and services, such as, personal loans, home loans, student loan refinancing, credit cards, financial robo-advisory services, and brokerage services to over 3.5 million members.
Over time, SoFi has added other services to its offerings apart from financing. Some of these services include active investing, cryptocurrency trading, and SoFi automated investing. With this combination, cryptocurrency investors can choose SoFi because of its access to low-cost ETFs and various markets, including stocks and cryptocurrencies.
On SoFi, traders will find 30 cryptocurrencies that they can buy, sell, and exchange. Popular options include Bitcoin, Ethereum, Litecoin, Polygon, Solana, and more. However, the minimum trading requirement for crypto on SoFi is $10.
While SoFi is a great platform for beginners with its simple mobile app and website, we discovered some downsides to the platform during our SoFi Invest review. We highlight some pros and cons below.
Pros
- Beginner-friendly
- Impressive customer support
- No account minimum
- Mobile app available
- No-commission stocks and ETFs trading
- Free access to financial advisors
- SoFi automated investing
- 24/7 customer support
Cons
- No advanced trading features
- Limited number of cryptocurrencies
- No tax loss harvesting
- Available in the US only
Key Features of SoFi Invest
Investments
SoFi Invest offers stock, crypto, IPOs, and ETFs access. The platform provides access to over 30 cryptocurrencies, with some of the big names like Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) available.
The platform has over 2,000 ETF options across different sectors and fund options. As for the stock market, investors enjoy access to companies on the New York Stock Exchange (NYSE) and the NASDAQ. Access to IPOs and fractional shares are also major attractions for SoFi Invest.
Managed Services
Besides its active investment product, SoFi Invest provides a free investment product for passive users, which its in-house robo advisors guide.
The platform is goal-based, and it starts with a questionnaire that tests an investor’s financial capability, objectives, and risk tolerance. From there, SoFi Invest presents an asset allocation of diversified products that align with the investor’s risk tolerance and goals, as derived from the questionnaire.
As part of its managed services, SoFi Invest also provides access to retirement accounts. From traditional and Roth IRAs to pension retirement accounts, the platform makes it easy for users to plan for their future.
Cryptocurrencies Available on SoFi Invest
SoFi Invest offers users access to 30 cryptocurrencies as of the time of our SoFi Invest review. The supported cryptocurrencies include big names like Bitcoin, Ethereum, Dogecoin, and Cardano (ADA), as well as up-and-coming tokens like Decentraland (MANA), Filecoin (FIL), and Tezos (XTZ).
This isn’t the broadest acceptance of cryptocurrencies in the market, as investors cannot maintain a truly diversified portfolio due to its limited crypto library. However, SoFi Invest is doing a good job of expanding its crypto offering. And with the platform focusing on more solid projects and promising enterprise-grade security, users can rest assured that their funds are safe.
SoFi Invest Fees
During our SoFi Invest review, we discovered that the platform is upfront about its fees. SoFi Invest is reputable for its 0% commission for stocks, ETFs, and options trading. Deposits and withdrawals on the platform are also free, and there is no inactivity or management fees. However, other trading and investment activities on SoFi have their corresponding charges. We highlight the SoFi Invest fees below:
- Cryptocurrency trading attracts a 1.25% mark-up for both buying and selling.
- Direct wire transfers come with a $25 fee. But automated clearing house (ACH) transfers are free.
- $75 account transfer fee
- $20 IRA closing fee
- 5.25% fee for margin loans
- $15 fee for returned ACH transfer or insufficient funds
- 5.25% margin loan fee
- $2 fee for paper trade confirmations and tax forms
- FINRA Trading Activity Fee (TAF) of $0.000119 per share
- SEC fee of $22.10 per $1 million dollars trade
These are the standard fees on SoFi invest at the time of writing, and they can be changed or updated by the platform at any time.
SoFi Invest Payment Methods
On SoFi Invest, transactions can be processed using Automated Clearing House (ACH) transfers or wire transfers. ACH transfers don’t have any charges, although withdrawals and deposits usually take up to 2 days to be completed. As for wire transfers, these are completed in minutes. However, withdrawals using this channel cost $25 per transaction.
Users can also make deposits funds into their SoFi invest account using a check, SoFi Money, and debit cards.
SoFi Invest Security
SoFi Securities LLC is a registered entity in the US. The platform employs numerous cyber security measures to safeguard its customers’ funds and data. Before getting started on SoFi investors are required to undergo the standard know your customer (KYC) process as part of its Customer Identity Program (CIP). This helps prevent fraud and protect SoFi investors from scammers.
In addition, the investment platform utilizes the industry-leading two-factor authentication (2FA) security feature on its desktop and mobile platforms. SoFi app users can further secure their SoFi Invest accounts using the biometrics login feature like their faces or fingerprints to protect their accounts from malicious actors.
Our SoFi invest review further highlights that the platform also uses the standard Secure Socket Layer (SSL) encryption to protect users’ data, and the platform claims that it doesn’t share users’ personally identifiable information with its custodians or trading partners, or any third party at any point. The SoFi team also claims that they partner with only trusted exchanges, like Coinbase, to process transactions, thus ensuring that funds are safe when received or sent out.
Furthermore, SoFi is insured by the Securities Investor Protection Corporation (SIPC), meaning there’s coverage up to $500,000 and $250,000 for cash as an additional security measure for brokerage accounts.
There are also no reports of SoFi being hacked since its inception, so it’s safe to say all the security measures in place have been effective in protecting the platform and its users from cyber attacks or hacks.
SoFi Invest Staking Rewards
Staking is a popular way for investors in the crypto market to earn returns by simply locking their crypto funds for periodic interests. While numerous cryptocurrency exchanges like Binance.US and Coinbase offering crypto staking services to their US customers, SoFi Invest currency does not have this feature.
In other words, American investors looking to earn passive income by holding their assets may consider these alternative platforms with highly-rewarding interest rates.
Opening a SoFi Invest Account
Getting started with SoFi Invest is relatively simple. Users need to follow the steps below:
Go To The Homepage
Head to SoFi Invest’s homepage and click on the “Invest Now” button.
Enter the Required Details
The next step will be to fill in personal details. These include a first name, last name, a valid email, and state of residence. Check the consent box after and click “Next”.
Choose Investment Plan
At this point, SoFi Invest shares a questionnaire where investors can choose the assets they want to invest in. These assets include crypto, stocks, and ETFs. Alternatively, users can opt for the SoFi automated investing option and let SoFi build their investment portfolio using its robo-advisors.
Enter Address Information
SoFi requires users to provide their address information as part of its verification process. Enter the address details on the next screen and click “Next”.
Enter Employment Details and Annual Income
After entering the address and mailing details, select an employment status and fill in other corresponding details on the next screen.
Proceed to enter an annual income, citizenship status, date of birth, social security number to complete the registration process.
Trading Experience on SoFi Invest
SoFi offers users a seamless trading experience via its website and mobile app. The platform comes with limited features that make it easy for beginners to register and start trading with little to no learning curve required. Mobile-first users, especially millennials, will fancy the intuitive mobile app that allows them to trade stocks, ETFs, cryptos, and manage their investments on the go.
After creating an account, investors can easily choose any of SoFi’s services, including active investing and trading, retirement savings, cryptocurrency trading and SoFi automated investing. To further cater to beginners, SoFi gives users the choice to choose the “SoFi Automated Investing” option, which uses the platform’s robo-advisor service to build a SoFi automated investing account for them.
In general, the user experience at SoFi Invest is seamless. The platform is properly laid out, allowing users to navigate its interface easily.
However, active investors and seasoned traders may not consider SoFi suitable because of its basic trading platform. More robust platforms offer diverse features like price alerts, multiple order types, live charts, customization, and more, that advanced traders can leverage to make more profitable trades. But with these features missing on SoFi Invest, it’s safe to say the platform’s experience is better suited for beginner investors.
SoFi Invest Customer Support
SoFi Invest does quite well when it comes to customer support. The platform’s users can access an accredited financial advisor via email, phone calls, or the live chat during the weekdays. And with all of its financial specialists being registered certified financial planners and having a fiduciary duty to their clients, users can rest assured that they will get the best service at all times.
That said, there are some caveats with customer service on this platform. For one, SoFi Invest’s customer service isn’t available on a 24/7 basis. This means that users looking to contact the platform will only be able to do so during active business hours.
Also, live chat support will be enabled for users once their accounts have been validated. Completing this step is especially important if users hope to access good customer service at the designated times.
Customer Satisfaction
SoFi offers users a team of dedicated customer support professionals and users have access to financial advisors that provide them with the maximum trading experience on the platform. Online customer reviews also show that the online broker does a good job at satisfying its millions of clients using its products and services.
Despite having over a decade of existence in the fintech space, we discovered that SoFi has an overall impressive experience during our SoFi Automated Investing review. With a 4.4-star rating on Trustpilot, 78% of reviewers highly commend the platform for its ease of use, decent rates, and fast loan processing period.
Overall, customers’ experience on the platform is almost perfect.
Does SoFi Invest offer Education?
Like many exchanges and brokers, SoFi Invest provides access to educational content and research materials for users who would like to broaden their knowledge and expertise in the market.
With SoFi Invest, users can access educational articles via its blog section. SoFi Invest also has a learning center where users can bring their questions about investing and risk management for their assets and get answers. Users have also praised its Frequently Asked Questions (FAQ) section, where SoFi catalogs some of the most popular questions about assets and investing and provides in-depth answers.
The FAQ section is quite thorough, from the basics of investing to more information about SoFi products.
Nevertheless, the educational resources could be more impressive compared to those available at some of its competitors. They appear tailored to beginner traders and need to be more in-depth.
Is SoFi Invest right for you?
SoFi Invest is a great option for beginner investors and traders who want to trade and invest in stocks, ETFs, crypto, and options in one place. The platform also offers users access to various SoFi loans and financing options with affordable rates.
The platform is also right for investors looking for no-commission stocks and ETF trading. The SoFi automated investing is also another indication that beginners will fancy trading and investing on SoFi.
However, with its limited cryptocurrency option and basic trading platform, advanced investors and active traders will find the platform limited. So, such investors can opt for choose other online brokerages like TradeStation. At the same time, SoFi is only available to customers in the US. So, residents of other countries do not have access to the platform.
Final Thoughts
US investors looking to trade and invest in cryptos, stocks, and ETFs have a one-stop hub for all their investment needs in SoFi. Besides investing, the platform also offers various SoFi loans to students and individuals.
Creating an account, requesting loans, and investing on SoFi Invest is hassle free for beginners and casual investors because of its neatly designed website and mobile app that require no steep learning curve.
However, that doesn’t mean the online brokerage is right for everyone, as it doesn’t allow users to trade beyond stocks, ETFs, basic options, and cryptocurrencies. The brokerage also lacks tax loss harvesting, which means users don’t have access to socially responsible portfolios or mutual funds, which is common among younger investors.
SoFi’s trading platform is also limited, with only basic features. Advanced trading features like customizable charts and technical analysis tools are missing, which is a major downside to the platform.
Overall, SoFi is ideal for new investors seeking low costs, low account minimums, as active traders and seasoned investors may opt for other investment platforms.
If you want to know more about on SoFi Invest Competitors and other Crypto Exchanges, you can check out our list of the Best Crypto Exchange USA. You can also read about our TradeStation Review as an alternative to SoFi Invest.
FAQ
Most frequent questions and answers
Yes. Crypto and other financial investors can make money by trading cryptos, stocks, ETFs, and options on SoFi Investing.
SoFi stock can be a great long-term investment option because of the company’s growth in the fintech space and its track record of strong performance. The stock’s average rating from Wall Street analysts is a Strong Buy.
SoFi charges no account fees for its checking and savings accounts. There are also no monthly fees or maintenance fees.
SoFi charges 0% commission on stocks and ETF trading. The platform also claims to have no annual management fees or hidden charges.
We always try to provide the most accurate information available, and make sure our team follow through.
If you want to know more about our Crypto Exchanges Review Methodology follow the link below
Skrumble.com provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade, or sell any investment instruments or products, including but not limited to cryptocurrencies, or use any specific exchange. Please do not use this website as investment advice, financial advice, or legal advice, and each individual’s needs may vary from that of the author. Investing in financial instruments, including cryptocurrencies, carries a high risk and is not suitable for all investors. It is possible to lose the entire initial investment, so do not invest what you cannot afford to lose. We strongly advise conducting your own research before making any investment decisions. This post includes affiliate links with our partners who may compensate us.
To view our privacy policy read here.
