Betterment vs. SoFi Invest— Which Robo-Advisor is Best for You?

Betterment vs SoFi Invest

Betterment vs. SoFi Invest— Overview

One of the biggest hurdles to investing is having enough money upfront.

Both Betterment and SoFi Automated Investing robo-advisors both boast affordable initial investments. Far from being basic robo-advisors, however, Betterment and SoFi Invest have something to offer novice and seasoned investors alike. This Betterment vs SoFi Invest review will focus on the SoFi Automated Investing division of the firm.

Disclosure: Please note that this article may contain affiliate links which means that – at zero cost to you – I might earn a commission if you sign up or buy through the affiliate link.

What is Betterment?

Betterment is a goals-based advisor that has been around for nearly a decade, making it one of the original robo-advisors. Over the years, Betterment has shown its willingness to grow with its clients— they have since developed new financial planning services, as well as increased client access to human financial planners.

Betterment now offers cash management with a high yield savings account, free debit card with ATM access.

We love that all investors can text with financial advisors and that they offer a la carte financial planning packagest. That way, you only pay for the financial advice that you need.

More affluent investors can sign up for Betterment Premium with Certified Financial Planners.

Betterment is also one of the more affordable robo-advisors, with account management fees on the lower end of other robo-advisors in the same category.

What is SoFi Invest?

Social Finance, or SoFi for short, made a name for itself as a place for well-qualified borrowers to refinance their student loans. However, SoFi has long since moved beyond loan refinancing services. SoFi has exploded it’s offerings to include money management, investments, and insurance.

The SoFi Invest category includes:

  • Automated Investing – The SoFi robo-advisor invests your money in diversified exchange traded funds, or ETFs and manages it for you.
  • Crypto Investing – Cryptocurrency trading platform.
  • Stock Bits – Free stock market investing, similar to Robinhood and M1 Finance.
  • Active Investing – This SoFi stock investing platform allows you to buy shares of stock or even partial shares and get started investing on your own, for free.
  • SoFi ETFs – SoFi offers four ETFs: SoFi Select 500 (SFY), SoFi Next 500 (SFYX), SoFi 50 (SFYF) and SoFi Gig Economy (GIGE).

As a robo-advisor, SoFi Invest Automated Portfolios is quite competitive. In addition to offering fee-free investment management all cutomers have access to financial advisors, career coaches and member activities (in certain cities).

Betterment vs. SoFi Invest— Top Features

FeaturesBettermentSoFi Invest
OverviewGoals-based digital investment manager with access to financial advisors and cash management.Free automated investment management robo-advisor platform with financial advisors. Active or passive account management available.
Minimum Investment AmountNo minimum for Betterment Digital.
$100,000 minimum for Betterment Premium.
Free ServicesFree portfolio reviewFree account management and access to financial professionals
Fee StructureDigital-0.25%  AUM
Premium-0.40% AUM
No account management fees.
Top FeaturesDigital and hybrid investment management with financial advisors. All investors can text with financial advisors. Socially-responsible, income and smart beta portfolios. Tax loss harvesting. Cash management.Investment management with live advisors. Access to SoFi member benefits and career planning. Cash management.
Investment FundsLow fee exchange traded funds from diverse asset classes.Diversified low-fee exchange traded index funds-ETFs.
Stock bit - fractional shares of stock available through SoFi Active Investing.
Accounts AvailableSingle and joint taxable brokerage. Roth, traditional, rollover and SEP IRA. Trust.Individual and joint taxable accounts. Roth, traditional and SEP IRAs.
Contact & Investing AdvicePhone support M-F. Email support 7 days per week. Financial advisor access available at various levels.Phone support M-F. Email support 7 days per week. Financial advisor access for all clients.
PromotionsFree investment management promotionFree investment management at SoFI Automated Investing

Betterment Top Features:

  • Texting access to financial planners for all users
  • Tax-loss harvesting
  • Smart-Beta and socially responsible portfolios
  • Financial planning a la carte packages

SoFi Invest Top Features:

  • Active and passive investing strategies
  • An opportunity to have multiple financial products under one company
  • No account management fees
  • Financial advisor access for all with automated investing

Betterment vs. SoFi Invest YouTube Video

To speed up the video, click on the “settings” gear at the bottom of the video. Choose “playback speed”. Select your speed (I prefer 1.5).

Betterment vs. SoFi Invest— Who Benefits?

For those want to get started investing with robo-advisors but don’t have a lot of money to invest from the start, either Betterment or SoFi Invest will be beneficial. With their virtually non-existent minimum investment requirements, both robo-advisors are accessible to anyone.

SoFi Invest

Anyone who is looking for a free robo-advisor would benefit from SoFi Invest. While Betterment’s low fees certainly make it one of the more affordable robo-advisors available, you just can’t beat zero account management fees!

Investors who want free financial and career advice might choose SoFi Invest Automated Portfolios.


Investors who are looking for a robo-advisor with a long history will benefit from Betterment’s long-term work in the industry. Betterment launched in 2010, making it one of the oldest and most well-established robos on the market.

Investors seeking cash management, socially responsible and smart beta portfolios might match up with Betterment.

Betterment vs. SoFi

Betterment vs. SoFi Invest— Fees and Minimums

Minimums Winner: Betterment and SoFi Invest are essentially tied in the minimum investment category, with minimum investments of $0 and $1 respectively. Their account management fees, however, differ.

Fees Winner: It’s tough to beat SoFi’s fee-free investment management.

Betterment Fees and Minimums

Betterment has two account types, each with its own minimum investment amount and account management fees.

Betterment Digital has no minimum investment requirement. Fees are 0.25% AUM for accounts valued under $2 million and drop to 0.15% AUM for accounts over that amount.

Betterment Premium has a $100,000 minimum investment. Investors will pay 0.40% AUM for accounts under $2 million, and 0.30% for accounts over $2 million.

A la carte financial planning sessions are available as well and range from $199 to $299 depending on the number of sessions purchased.

SoFi Invest Fees and Minimums

SoFi requires only $1 for an initial investment, which makes the difference between SoFi Invest and Betterment negligible.  After all, any robo-advisor needs something to invest!

The real difference between Betterment vs. SoFi Invest is that SoFi does not have any account management fees. Free robo-advisors aren’t that rare, but not many of them offer multiple other financial services under the same company— something that gives SoFi Invest a competitive edge.

Although, Schwab Intelligent Portfolios also lacks account management fees, and belongs to a broad-based financial firm with decades of history.

Betterment vs. SoFi Invest— Robo Investing Deep Dive

Betterment vs. SoFi Invest— Human Financial Planners

Winner: The SoFi vs Betterment financial advising win goes to SoFi investing as their financial planning access is free.

Betterment clients have the opportunity to text with human financial professionals at any portfolio level, digital or premium. Betterment also gives Premium clients unlimited access to Certified Financial Planners, a top certified advisor designation.

For those who want some access to human professionals but aren’t looking to pay the Premium account management fee, Betterment’s a la carte financial planning sessions might be the right choice.

SoFi Invest offers live investment advisors to answer client questions or concerns. This is a huge selling point for SoFi, since few free robo-advisors offer human financial professionals. For more complex questions, and to help develop a personalized financial plan, SoFi has a team of financial planning professionals.

Choose a robo-advisor in under one minute: ROBO-ADVISOR SELECTION WIZARD

Betterment vs. SoFi Invest— Tax-Loss Harvesting

Winner: Betterment is the clear victor here, because SoFi Invest does not offer tax-loss harvesting.

A quick reminder, tax loss harvesting only applies to taxable accounts, not retirement accounts.

Betterment clients will get tax-loss harvesting, regardless as to whether they are Digital or Premium clients. Betterment claims to beat other automated tax-loss harvesting algorithms by around 1%, and believes their strategy has the potential to increase portfolio returns by 0.77% per year.

Betterment vs. SoFi Invest— Investments

Winner: In the SoFi vs Betterment investment duel, Betterment takes the win due to the well-researched fund selection. We don’t understand the justification for including the Gig Economy or Cryptocurrency in the SoFi portfolio, as it seems a bit speculative.

Betterment Investments

Betterment  offers a wide range of investments, including:

  • US. Total Stock Market Stocks
  • US. Large-, Mid-, and Small-Cap Value Stocks
  • International Developed and Emerging Market Stocks
  • US. High Quality Bonds
  • US. Municipal Bonds
  • US. Inflation-Protected Bonds
  • US. High-Yield Corporate Bonds
  • US. Short-Term Treasury Bonds
  • US. Short-Term Investment-Grade Bonds
  • International Developed and Emerging Market Bonds
  • Socially responsible investment funds
  • Income portfolio
  • Smart beta portfolio

SoFi Investments

SoFi inestments can include:

  • Real Estate
  • High-Yield Bonds
  • SoFi Select 500 ETF
  • SoFi Next 500 ETF
  • SoFi 50 ETF
  • SoFi Gig Economy ETF
  • Small-Cap ETF
  • Developed and Emerging Markets ETFs
  • Total Bond Market ETF
  • Cryptocurrency

Betterment vs. SoFi Invest— Rebalancing

Winner: In the SoFi vs. Betterment rebalancing competition, we call a tie. There is a minimal distinction which shouldn’t make a significant difference in your robo-advisor choice.

Rebalancing is a core feature with all robo advisors. This automated task buys or sells specific investment funds at periodic times so that your investment mix, or asset allocation remains in accord with your initial preference.

Simply, if you chose a 60% stock vs 40% bond allocation and it drifts to 65% stock and 35% bond, then 5% of your stock funds would be sold and reinvested in bond funds. That keeps your investment mix constant.

Studies show that rebalancing reduces portfolio volatility and may even boost returns.

Both SoFi Invest Automated Investing and Betterment offer rebalancing. Betterment monitors your asset allocation daily and rebalances whenever your allocation drifts 3% from its target. SoFi rebalances quarterly.

Betterment vs. SoFi Invest— Customer Support

Winner: SoFi Invest wins the customer support contest.

Customer support doesn’t matter, until you need it, and then – it’s important.

Monday through Friday, Betterment offers daily phone customer service with separate numbers for help with the Betterment Checking and Cash Reserve products and investing/general questions. On week-ends, email customer service is available.

SoFi Invest offer phone support seven days a week. This is helpful when you want to talk to someone on the week-end.

Betterment vs. SoFi Invest— Cash Management

Winner: It’s a tie between Betterment Cash and SoFi’s cash management offering.

If you’re seeking high yield cash accounts, then Betterment Checking and Cash Reserve and SoFi Money will both abide. Both offer high yield cash accounts which means that your money earns higher than average interest on the balance. The SoFi savings account offers high yields, similar to those of the Betterment Cash Reserve account. Both robo-advisors offer checking and debit cards.


Is SoFi a Good Investment company?

SoFi offers a wide range of opportunities for investors from the fee-free automated advisor to self directed, crypto and stock bits investing. After a quick check with the BBB, we didn’t notice any complaints for the firm. Our experience with SoFi is response and credible.

Which is better – SoFi or Robinhood?

Robinhood is an investment app which offers commission free trading of stocks, funds, options, crypto along with cash management. In contrast, SoFi Invest offers stock and fund, crypto, and automated investing. If you want an investment manager/robo-advisor, then SoFi is better. If you are an active trader and want to trade options then Robinhood is best. Otherwise, either might fit your needs.

Betterment vs. SoFi Invest— Which is Best? The Takeaway

Aross the internet investors ask, “Is SoFi Legit?” or “Is SoFi worth it?” While the same questions might also apply to Betterment.

In the Betterment vs. SoFi Invest head-to-head, it appears as if the robo-advisors are pretty evenly matched. Yet, we always implore you to consider your own needs first and then to evaluate which robo-advisor is a fit for you.

If account management fees are not your main concern, SoFi Invest and Bettermbetterent offer unique investment options that can set them apart:

  • Betterment offers Socially-Responsible Investment (SRI), Income and Smart-Beta portfolios. Investors who want to invest in line with their ethics or who want a chance to beat the market may end up choosing to go with Betterment— provided the 0.25% AUM fees are acceptable.
  • SoFi Invest offers cryptocurrency investment options. This is not common currently, so investors who are interested in cryptocurrency investing have limited options.

Investors who want access to human financial planners can choose either Betterment or SoFi Invest— however, those who want tax-loss harvesting will need to rely on Betterment, as SoFi Invest does not currently offer this service.

Betterment is one of the oldest robo-advisors with a proven record of success and robo investing is their main business. The firm has top notch advisors and a tested strategy.

While SoFi Invest is a newer entrant to the arena with less time in the robo advisory genre.

Clearly, both robo-advisors provide a lot of value to investors. That being said, SoFi Invest’s free account management pushes it ahead in many cases. Unless clients are specifically looking for SRI options, Smart-Beta portfolios, or tax-loss harvesting, SoFi is the clear victor, although we recommend caution when investing in cryptocurrency.

Read the complete Betterment Review.

Read the complete SoFi Invest Review.

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Disclosure: Please note that this article may contain affiliate links which means that – at zero cost to you – I might earn a commission if you sign up or buy through the affiliate link. That said, I never recommend anything I don’t believe is valuable.

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