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Sofi vs Robinhood 2023: Fees, Features & More
Luis Clark
- Headquarter: San Francisco, California, United States
- Year Founded: 2011
- No. of Cryptos: 28+
- Fiats Available: USD
- Fees: 1.25% spread mark-up
- NFTs Available: No
- Native Coin: N/A
- Beginner Friendly: Yes
- Platform App: Desktop, Mobile
- Security Features: Two-factor authentication, password, user verification, SSAE18 SOC2, PCI DSS, Third-party security measures review
- Headquarter: Menlo Park, California, the United States
- Year Founded: 2013
- No. of Cryptos: 19+
- Fiats Available: USD
- Fees: Spread Mark-up from market makers
- NFTs Available: Yes (receive and store)
- Native Coin: No
- Beginner Friendly: Yes
- Platform App: Web/Mobile
- Security Features: SIPC insurance protection, a brokerage account password, user data encryption, two-factor authentication
In this article, we compare the two investment broker platforms SoFi vs Robinhood. We analyzed their fees, security, supported cryptocurrencies, and much more.
To come up with our verdict, we used both platforms extensively and studied user reviews for each broker. We also took into consideration expert analysis of each investment platform.
Sofi vs Robinhood: Verdict
In this SoFi and Robinhood battle, Robinhood is our pick. The brokerage is easy to use for beginners and offers a ton of commission-free trading products including commission-free crypto trading, free stock, fractional shares trading, etc. Robinhood even allows users to receive and store NFTs, which SoFi, unfortunately, does not.
Pros
- It is free to trade stocks
- Beginner-friendly
- It charges low fees when compared to other brokerages
- Offers retirement accounts
- It supports several payment methods
- Offers automated investing
- Issues student loan refinancing
Cons
- No NFT support
- Limited cryptocurrencies available
Pros
- Offers self-custody wallet
- User-friendly interface for beginner investors
- Suitable for beginners and advanced traders
- Supports retirement accounts
- It offers commission-free trading
- Supports automated investing
Cons
- It lacks support for native crypto wallets
- Users are unable to withdraw crypto purchased on the platform to external wallets
- Limited crypto selection
SoFi Invest vs Robinhood: Unique Features
Unique Features of SoFi Invest
SoFi IPO Investing
SoFi IPO investing offers SoFi users access to unique opportunities via Initial Public Offering investing.
It gives SoFi users access to invest in IPOs for companies going public through the SoFi platform. This opportunity is originally reserved for large institutional investors.
New offerings on SoFi are in high demand and only a limited number of shares are available for distribution to participants. This means that share allocations may be smaller than what was requested in the customer’s initial offer. Also, not all customers will be allocated shares in the IPO.
That said, just like other investments, investing in an Initial Public Offering (IPO) involves several risks including the risk of loss.
Unique Features of Robinhood
Robinhood Gold
Robinhood Gold is the advanced trading platform of Robinhood, it features a suite of advanced tools and data required for advanced investing on the platform.
Interest on uninvested brokerage cash with cash sweep for Robinhood Gold users is as high as 4%. This is 2.5% higher than the 1.5% interest on uninvested brokerage cash paid by non-Gold members.
Robinhood offers a free 30-day Robinhood Gold trial to users who wish to upgrade to Robinhood Gold from any platform. Access to the premium features of Robinhood Gold after the free trial is pegged at $5 monthly.
Aside from the high interest on uninvested brokerage cash, Robinhood Gold members also have access to margin investing at 7%, level II market data from NASDAQ, professional research from Morningstar, and bigger instant deposits.
With margin investing on Robinhood Gold, users are charged a yearly interest of 7% on any amount borrowed over $1,000. Users who wish to earn interest are required to have a cash balance. Interest is calculated daily but charged to the user’s brokerage account at the end of a billing cycle.
If you wish to downgrade from Robinhood Gold, you can do so at any time. But once you do so all access to premium features will be revoked.
Also, the interest earned on uninvested cash will be downgraded to 1.5% with the brokerage cash sweep feature enabled.
If, however, you downgraded from Robinhood Gold with margin investing enabled, your interests will begin to accrue at the standard rate (11% instead of 7%).
To downgrade from Robinhood Gold, scroll to your account settings and open the Robinhood Gold section.
Next, click on “Cancel Membership”. Confirm the instruction. Once you do this you will be downgraded.
However, to avoid being charged you need to also cancel your subscription before the next billing date.
Winner in Unique Features
While SoFi offers vast investing features like Active Investing, SoFi automated investing, and IPO Investing, Robinhood wins as it offers more features than SoFi.
SoFi Invest vs Robinhood: Cryptocurrencies Available
Cryptocurrencies Available on SoFi
SoFi supports the trading of over 28 cryptocurrencies.
Supported cryptocurrencies include Bitcoin, Ethereum, Cardano, Dogecoin, Chainlink, Enjin Coin, Solana, Litecoin, Shiba Inu, Aave, Algorand, Avalanche, Bancorp, Basic Attention Token, Cosmos, Decentraland, Ethereum Classic, Tezos, Uniswap, etc.
Cryptocurrencies Available on Robinhood
The Robinhood platform only supports the trading of 19 cryptocurrencies. Available cryptocurrencies are Ethereum, Bitcoin, Bitcoin Cash, Dogecoin, Polygon, Ethereum Classic, USD Coin, Litecoin Tezos, Bitcoin SV, Stellar Lumens, Shiba Inu, Solana, Bitcoin SV, Avalanche, Aave, Compound, Uniswap, and Cardano.
Winner in Crypto Availability
SoFi wins as it supports more cryptocurrencies than Robinhood.
Sofi Invest vs Robinhood: Can you Buy and Sell NFTs on Robinhood?
No, you cannot buy and sell NFTs on Robinhood. However, you can receive and store NFTs with your Robinhood wallet.
Robinhood supports the Polygon and Ethereum networks.
Winner in NFTs Availability
Robinhood wins here as while the brokerage does not yet support buying and selling of NFTs on its trading platforms, it does allow users to receive and store the assets. SoFi Invest, on the other hand, does not have any form of NFT support.
SoFi Invest vs Robinhood: Fees
SoFi Fees
SoFi Invest charges up to 1.25% in trading fees (a markup fee) for crypto trading.
Additionally, if you opt for margin trading, there is an interest trading fee accrued daily on the outstanding margin balance, which is charged monthly.
For options trading, SoFi Invest charges an assignment and exercise fee of $5. In addition, there are no trading fees for buying and selling ETFs.
SoFi Invest also offers free stocks with “no commissions for buying stocks”.
However, as previously mentioned, taking part in their advanced trading features such as margin trading, crypto, or options trading will attract the aforementioned fees.
Robinhood Fees
Robinhood does not charge users trading fees (commission-free) to buy and sell cryptocurrency.
However, Robinhood generates its revenue by taking a percentage of trades carried out by market makers.
So you’ll be charged a higher market rate for cryptocurrencies.
That said, Robinhood offers via Robinhood Crypto a Web3 wallet that enables users to trade and swap digital assets void of network fees.
Robinhood does not charge withdrawal fees via bank account, except if you make a withdrawal using the Robinhood card, which attracts a 1.5% fee.
Robinhood also offers free stocks and ETF trading (commission-free stock trading).
Robinhood does not support mutual funds, futures trading, or commodities.
Winner in Fees
Robinhood wins in fees, it offers free crypto trading, commission-free ETF trading, and free stocks. SoFi Invest, on the other hand, charges for crypto trading.
SoFi Invest vs Robinhood: Payment Methods
SoFi Payment Methods
SoFi allows you to add funds to your account by connecting the following to your SoFi Invest account:
- SoFi Money
- Bank account (Wire transfer, ACH transfer)
- Account transfer (ACAT)
- Check
- Rollover
SoFi Money members can transfer up to $500 instantly by connecting their Visa and MasterCard debit cards.
Robinhood Payment Methods
Robinhood only offers 2 payment methods: bank account transfer and debit card. But you have the option to set up direct deposit. Though Robinhood does not accept mailed check deposits.
Winner in Payment Methods
SoFi Invest wins in payment methods as it offers a much more robust deposit system than Robinhood, which is much more limited in options.
SoFi Invest Vs Robinhood: Security
SoFi Invest Security
SoFi Securities LLC and Apex Clearing (the custodian of securities) are members of the Securities Investor Protection Corporation ( SIPC).
This means that the securities in your brokerage account are protected with up to $500,000, which includes $250,000 for claims for cash.
Users’ accounts are also protected with several security features. This includes partnering with trusted crypto exchanges like Coinbase to complete transactions, SSL encryption, and two-factor authentication.
All users’ data are kept private and not shared with the platforms custodians or crypto trading partners
Robinhood Security
Robinhood Securities is not a member of the Financial Industry Regulatory Authority ( FINRA) and The Securities Investor Protection Corp ( SIPC). This means that crypto transactions and investments are done through Robinhood Crypto is not protected by SIPC.
However, the platform has several security features in place to ensure the safety of users’ assets and funds.
First, all sensitive information belonging to users is encrypted before storage and all account passwords are hashed using the Bcrypt hashing algorithm. The passwords are stored in a scrambled format to prevent them from being cracked by hackers.
All communications between the Robinhood mobile app and Robinhood servers are done using the Transport Layer Security protocol.
This ensures that all personal and account information is kept private.
Users are required to verify their identity before making any changes to the accounts. And users can also protect their accounts with two-factor authentication.
Winner in Security
While Robinhood has several security features in place, the platform has been hacked in the past. There are, however, no reports of SoFi Invest being hacked since inception.
SoFi Invest vs Robinhood: Earn/Staking Rewards
Robinhood Earn/Staking Rewards
Robinhood does not offer staking for crypto traders, however, it intends to do so soon.
Currently, Robinhood only offers a Learn and Earn program that rewards crypto traders for studying particular cryptocurrencies and passing a test with questions about the digital asset they just studied.
Cryptocurrencies in the Robinhood Learn and Earn program include AVAX and USDC.
To start with the program, go to browse-learn within the app and choose a cryptocurrency.
Winner in Earn/Staking Rewards
Robinhood wins in Earn/Staking Rewards as SoFi Invest does not have a staking or earn rewards program.
SoFi Invest vs Robinhood: Usability
SoFi Invest Usability
SoFi is an easy-to-use and user-friendly option to buy and sell stocks, exchange-traded funds, and cryptocurrency.
It is a well-rounded app that is an add-on to an already successful financial services app.
Robinhood Usability
Robinhood was built to make stock and options trading easy. It is also simple to use and makes active investing beginner-friendly.
Winner in Usability
Both SoFi and Robinhood are easy to use and beginner-friendly.
SoFi Invest Vs Robinhood: Customer Service
SoFi Invest Customer Service
SoFi offers customer service to users via phone and email at mobilesupport@sofi.org.
The platform offers phone support between 5:00 AM – 7:00 PM PT on Monday to Thursday and 5:00 AM – 5:00 PM PT on Friday to Sunday.
Robinhood Customer Service
Robinhood offers customer support via phone, email, and Live chat.
There is also a support page that contains different guides on how to use the platform.
While Robinhood offers phone support, users who wish to contact the team via phone are required to request a phone call.
After the request, a customer care representative will send the customer the phone number they intend to call with and the time of the call.
This makes it easy for customers to identify scammers disguised as Robinhood agents.
Winner in Customer Service
SoFi Invest wins as it offers better customer service than Robinhood.
Conclusion: Final Verdict
Robinhood comes out on top as the overall winner of this comparison.
In general, it offers a more well-rounded cryptocurrency experience and charges no fees for crypto traders.
SoFi, on the other hand, charges up to 1.25% for crypto trading and has limited crypto features.
For example, it offers no earn/staking serving for its digital assets and users cannot engage with NFTs in any way.
FAQ
Most frequent questions and answers
Yes, SoFi is a great way to buy stocks as it offers free stock trading.
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
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