SoFi Invest - Reviewed & Compared

Summary

SoFi Invest emerges as an enticing option for new investors with its zero commission trading¹ and an appealing $1 account minimum. However, limitations in investment choices, particularly the absence of mutual funds and bonds, may pose a drawback, especially for those with long-term savings goals such as retirement.

Overview

SoFi Active Investing positions itself as a low-cost broker, emphasizing accessibility for novice investors. The platform allows for zero commission stock and ETF trades, and the option to purchase fractional shares from just $5³. Notably, SoFi goes beyond mere trading, offering financial counseling⁶ and a 1% match on all IRA contributions⁸ .

What They Do Best

• Zero commission Trading¹: SoFi provides a cost-effective solution with $0 trading commissions.
• Fractional Shares: Enabling users to invest in fractional shares from $5³, widening access to a range of stocks and ETFs.
• Exclusive Benefits: SoFi extends beyond a typical brokerage, offering financial planning services⁶ and a 1% match on IRA contributions⁸ .

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Any Negatives

Limited Investment Choices: The platform's drawback lies in the restricted selection of tradable securities, particularly the absence of mutual funds. Lack of Bonds: Investors looking for a diversified portfolio might find the absence of bond options limiting.

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Our Final Verdict: 9.6/10

SoFi Invest caters well to beginners and those seeking a holistic financial platform. The zero commission¹ structure and unique features like fractional shares³ and exclusive benefits make it stand out. However, potential users should weigh these advantages against the limitations in investment options, especially if their strategy involves a broader range of securities like mutual funds.

Sofi Disclosure

¹Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.

²Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org).

³There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.

⁴Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options [HYPERLINK: https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf

⁵Utilizing a margin loan is generally considered more appropriate for experienced investors as there are additional costs and risks associated. It is possible to lose more than your initial investment when using margin. Please see https://www.sofi.com/wealth/assets/documents/brokerage-margin-disclosure-statement.pdf for detailed disclosure information

⁶SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.

⁷ Probability of Member receiving $1,000 is a probability of 0.028%

⁸ Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.

⁹Must be a SoFi Plus member at the time a recurring deposit is received into your SoFi Active or Automated investing account to qualify. Bonus calculated on net monthly recurring deposits made via ACH and paid out as Rewards Points. See Rewards Terms of Service. SoFi reserves the right to change or terminate this promotion at any time without notice. See terms and limitations. https://www.sofi.com/sofiplus/invest/#disclaimers

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

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