Essential benefits like no trading commissions, no account minimums, and a top-notch mobile app experience are all included in SoFi Active Investing.
SoFi Crypto is a legitimate business and not a scam, and the SoFi Active Invest web trading platform is created for novice investors.
Learn more about this stock broker with our SoFi Active Investing review.
Pros & Cons of SoFi Active Invest
This stock broker is a good fit for: Beginner stock and ETF investors seeking a high-quality mobile experience and low commissions. Investors in mutual funds will want to look elsewhere.
Pros
- $0 stock and ETF commissions
- Low account minimum
- High-quality mobile app
Cons
- No mutual funds
- No stock option trading
Ways to Invest With SoFi
For novice investors looking for an easy way to begin investing, SoFi Invest is the best option. SoFi has no minimum deposit requirement to open an account, so you can get started even if you don’t have much money to invest. It has a very basic set of features:
- No account or management fees and very low fees on funds
- Complimentary access to Certified Financial Planners (CFPs)
- The ability to invest in fractional shares of company stock
- Active or automated investing
- Access to cryptocurrency
While its automated investing account (or robo-advisor) offers users pre-built portfolios based on risk level and financial situation, its active investing account gives you complete control of buying and selling whatever stocks and funds you prefer. Humans created the 10 robo-advisor portfolios offered by SoFi to reflect various financial circumstances.
For investors who want to try out newly public companies, SoFi also provides IPO investing as an additional option.
SoFi’s fee-free accounts might be all you need if all you want to do is invest your money in affordable Vanguard or other index ETFs. You might want to think about using another brokerage if you want to harvest tax losses or trade more actively with stop-loss orders.
In terms of cryptocurrencies, SoFi provides 27 additional coins and tokens in addition to bitcoin, ethereum, and litecoin. SoFi charges a markup fee for each crypto transaction, so be prepared to pay an additional 1.25% in trading fees.
SoFi Active Invest User Benefits
SoFi offers a heightened level of security as opposed to other exchanges. To guarantee user security, it makes use of tools like SSL encryption and two-factor authentication. Additionally, it collaborates with Coinbase to make crypto transactions easier. The security precautions SoFi has already taken are strengthened by Coinbase’s reputation for security. Additionally, there is a sizable list of frequently asked questions (FAQs) for users to peruse, which contains a wealth of knowledge for inquisitive investors. However, the exchange is only accessible within the United States. Those who reside outside of the U.S. will not be able to use the app.
- No trading commissions
Trading commissions for online stock and ETF trades are no longer charged by the majority of brokerages. SoFi is no different.
- No account minimums
No minimum is required to open an account with SoFi.
- Buy fractional shares
Only a few brokerages, including SoFi, allow stockholders to purchase fractional shares. In essence, investors can spend as little as $5 to purchase a portion of a share of stock. This means that investors can not only open an account with a small deposit, but they can also invest that small sum of money — even in stocks with relatively high share prices.
- Cryptocurrency trading
The same SoFi Invest platform that investors use to buy and sell stocks also enables them to trade cryptocurrencies around-the-clock. The available cryptocurrencies at the moment are Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and a few other well-known ones. Over time, SoFi intends to expand the platform’s support for additional virtual currencies.
- All-in-one app
The functional hub for SoFi’s investing platform and other financial products is an intuitive mobile app.
- Retirement accounts
Unlike some of the other low-frills brokerages, SoFi offers traditional, Roth, and SEP IRA accounts to its investors, both active and automated.
- IPO Investing
Most brokers only allow high-net-worth or extremely active investors to invest in initial public offerings (IPOs). No minimum account balance or investment amount is required for participation in IPOs on SoFi.
- Discounts on other SoFi products
If you use Active Investing,, you’ll become a SoFi member. This entitles you to discounts on additional products that the business sells. For instance, because of your connection to the business, you may be able to receive a personal loan at a reduced interest rate.
What Could Be Improved in SoFi Active Invest
- Mutual funds
You can buy and sell ETFs on SoFi’s platform, but not mutual funds. It will be necessary to work with a different broker if you want to invest in mutual funds.
- Account types
Traditional and Roth IRAs are both available through SoFi, along with traditional brokerage accounts. It also offers SEP IRAs — a favorite of self-employed individuals. The SIMPLE IRA, solo 401(k), UGMA/UTMA, trust, and a number of other account types you might find interesting are not available, though.
- Trading platform
The desktop and mobile trading platforms offered by SoFi are simple to use. They do not have as many features as some of the other top brokerages, though. You might want to look elsewhere if you’re an active investor or you want features like stock research, charting tools, or other advanced features.
SoFi Active Invest Account Setup
Opening a new SoFi Invest account is a straightforward process. You will enter your name and a few basic identification questions, as well as questions about your risk tolerance and investing experience. The entire signup process only takes about two minutes. SoFi offers a variety of account types, including traditional, Roth, and SEP IRAs, taxable brokerage accounts, and SEP IRAs. Each of these accounts can use SoFi’s automated investing system (also known as “passive investing”) or be actively invested and controlled by you.
For creating new accounts, SoFi Invest frequently offers bonuses. These bonuses are sometimes made available to the general public, and other times they can only be obtained by getting a referral from an existing client. There is no assurance that there will be a bonus offer because these new account bonuses fluctuate over time. Even so, before opening a new account, check these offers out because they can be worth hundreds of dollars.
Commissions
Similar to the majority of brokerages, SoFi Active Investing doesn’t charge commissions on stock trades. It does not, however, provide mutual funds.
| STOCKS AND ETFS | OPTIONS | MUTUAL FUNDS |
|---|---|---|
| $0 | $0 | Not offered |
Fees
Investors will not be charged any transaction fees for any stock or ETF trades. It doesn’t provide the kinds of investment transactions that typically involve fees (like broker-assisted trades).
Please take note that the focus of this review is SoFi Active Investing’s stock and ETF division. Customers can buy and sell certain types of cryptocurrencies, too. SoFi does charge a fee for these. Specifically, SoFi will add a 1.25% “markup” to cryptocurrency purchases on its platform.
Who Can Try SoFi Active Invest?
- You’re a beginning investor: Beginner investors are the target market for SoFi. It isn’t intended to be the best place for experienced investors who are analyzing stocks.
- You want to keep all of your finances in one place: SoFi is well known for its loan products, particularly personal loans. The SoFi Money account, which combines the best aspects of checking and savings accounts, is another option available. And SoFi Automated Investing, one of our top-rated robo-advisors, is offered by SoFi. SoFi can be a great option for people who want to keep their investments in the same place as their other financial accounts because it has an all-in-one app and a wide range of financial products.
- You don’t care about mutual funds: A fantastic place to buy and sell stocks or cryptocurrencies is SoFi Active Investing. That’s all. If you want to invest in mutual funds, or pretty much anything else, you’ll have to do it elsewhere.
- You want low frills, but also want to invest for retirement: This stands out significantly. Most other low-frills platforms don’t offer IRAs. Cash App and Robinhood do not. Investors can easily invest for retirement with the help of SoFi.
SoFi Invest Conclusion: is It Trustworthy?
In accordance with the Better Business Bureau, SoFi has an A+ rating. The BBB uses a grade range of A+ to F when evaluating company trustworthiness and considers a number of factors — including customer complaint history, licensing and government actions, and advertising issues — when reaching a final rating.
In the most recent year, SoFi resolved 406 of the 613 complaints it received over the previous three years. According to the platform’s BBB profile, there are currently no open complaints. You should perform your own research on SoFi even though its A+ rating shows that it interacts with customers exceptionally well. According to the BBB, a company’s performance or dependability is not assured by its rating.
FAQs
Is SoFi a Good Place to Buy Crypto?
SoFi provides 28 tradeable tokens and low fees. For smaller investors looking to trade popular tokens, it is a great platform.
Can I Buy Cardano on SoFi?
Cardano (ADA) can be purchased on SoFi, yes.
Is SoFi Good for Beginners?
For those learning how to trade cryptocurrencies for the first time, SoFi provides a user-friendly platform.
