This SoFi Active Investing review, will cover key features and help you decide if the free platform is best for you.
Who can resist a good deal, right? We appear to be programmed to chase deals and snap bargains.
When it comes to investing, we must scrutinize all features of a deal to decide whether or not it is genuine.
That is where we come into the picture – we critically examine what is on offer so that you can make up your mind. You’ll get a 360 degrees view of the SoFi Invest Active Investing product that tempts by offering commission and fee-free stock and ETFs trading.
- What is SoFi Active Investing?
- How does SoFi Active Investing work?
- SoFi Active Investing Features at a Glance
- Who is SoFi Active Investing Best For?
- SoFi Invest Active Investing Drill Down
- SoFi Active Investment Pros and Cons
- SoFi Active Investing Alternatives
- SoFi Active Investment Wrap Up
*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.
Read on to find out ‘How to Invest in SoFi?’, and whether it’s the right service for you.
SoFi Active Investing
Ease of Use
Tool & Resources
- Beginning to intermediate investors
- Current SoFi customers
- Free stock and ETF trading
- Free Crytocurrency trading
- $1 minimum investment
- Free financial and career advisors
- Limited investment choices
- No mutual funds, options or margin
- Basic account types account types
What is SoFi Active Investing?
SoFi Active Investing is a service provided by the SoFi Invest platform. Swimming against the wave of automated robo-investing, it boasts hands-on investing in shares and ETFs, learning by doing support, and access to a community of SoFi members who invest actively. Furthermore, SoFi Active Investing offers fractional shares and cryptocurrency trading and zero commission and fees.
It is primarily aimed at young and inexperienced investors who prefer to trade stocks, crypto and ETFs, on their own. This intent underpins the ‘learn by doing’ boasts and the (somewhat) limited investing options SoFi Active offers.
It is part of the SoFi family, which includes lending, money management, automated investing, and active trading.
How does SoFi Active Investing work?
SoFi Active works like any stock and ETF, trading platform offering fractional shares and zero commission fee trading. Although, SoFi trading only includes market and limit orders, not stop-loss orders. (More about this below.)
After opening a SoFi account, you can trade stocks and ETFs with no fees and no-account minimum. SoFi Active also offers cryptocurrency trading through the same platform used to trade stocks and shares.
SoFi Active Investing Features at a Glance
|Features||SoFi Active Investing|
SoFi Active Investing offers stock and ETF trading. Good for new investors.
|Minimum Investment Amount||$1|
|Top Features||Commission-free stock and ETF trading, fractional shares, IPOs, cryptocurrency, and free financial advice.|
|Fee Structure||$0 stock trading fee |
$0 account fee
$75 outgoing transfer fee
|Accounts Available|| |
Individual and joint taxable brokerage accounts.
|Investments||Stocks, ETFs, and cryptocurrency. |
Fractional shares and dividend reinvestment.
|Contact & Investing Advice||Phone support 8:30am to 8:30 pm M-F. Email and chat support. |
Unlimited access to financial advisors.
Advisors can help with long-term investment strategy but don’t offer advice on stock trades.
|Investing Community||That is one of the great features of SoFi Active – membership in networks and access to local investment meetings.|
|Mobile App||Offers excellent access to account functions and available for Android and iOS.|
|Promotion||Free financial and career counseling and access to investment educational events.|
|Website||Visit the website.|
Who is SoFi Active Investing Best For?
SoFi Active Investing is best for young and new investors who wish to begin trading stocks and investing in ETFs and cryptocurrency. It is also a good option for investors who are strapped for cash and can benefit from the $1 minimum and opportunity to trade fractional shares.
SoFi is good for those who don’t need mutual funds, options and margin trading.
SoFi Invest is good for those who prefer lending, a managed investment account and active investing options, all under one roof.
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SoFi Invest Active Investing Drill Down
Following in the trail of Robinhood, most brokerages have been offering zero fees and low-cost investing options. SoFi Active Investing joins the lowest fee investment platforms.
Their fee structure and transparent and straightforward.
- $0 SoFi stock trading fee or commission.
- $0 account fee.
- $75 outgoing fee (the same fee applies whether you transfer some or all of your investment).
SoFi Active offers:
- Stock Bits-Stock trading, including fractional shares
- Initial Public Offerings
- ETFs investing
- Cryptocurrencies trading
SoFi offers enough ETFs and stocks for most traders.
SoFi Active doesn’t offer mutual funds, options trading, or margin investing. It makes it a straightforward, no-frills trading platform, but it also limits your investment choices.
For those options consider Robinhood.
SoFi offers market and limit orders. A market order means you will buy or sell the stock or ETF at the going price.
A buy limit order states that when the security falls to the specified price, the order will be placed. If it doesn’t reach the limit price, no transaction will occur.
The platform lacks stop loss orders, which may be of interest to intermediate and advanced investors to curtail losses. Stop loss orders allow users a maximum or minimum price to buy or sell a security. The order converts to a market order when a stock reaches to a certain price and the security is automatically or bought.
Officially there is no account minimum, and you can open an account with $1.
Although, you’ll need at least a few bucks to begin building wealth for the future with investing.
SoFi has an ‘all in one’ app that is easy to use, serves as a home base for its financial products and services, including Active Investing. SoFi app is available for Android and iOS and has a rating of 4.8 (out of 5). On the positive, customers extoll the ‘phenomenal’ customer service, the SoFi app’s efficiency, and the money management options.
As a downside, SoFi customers have reported difficulties regarding depositing checks and slow access to their money.
Membership and Community
When you open an account with SoFi, you become a member of their community. You gain access to the SoFi community, offers, and qualify for local meetings and SoFi events.
That seems a valuable feature of SoFi, and Active Investing, given that the learning resources are rather basic and there is no direct guidance and recommendation about stocks and ETFs selection.
Investing Support and Advice
One of the best features of the platform is the opportunity to set up a meeting with a Financial planner. Members go to a special link, select the topic to discuss, and choose a time slot for the meeting.
Meetings are also available with career coaches.
While styling itself as an investing platform, the firms educational resources are sparce.
The learning resources under the Investing 101 Center cover the basic terminology and principles of investing. Still, these don’t stretch far enough to educate a young investor to the level of medium to high competence.
Investors seeking more comprehensive investment education need to look elsewhere.
The customer support and advice, by all appearances, is excellent. The investment guidance is best for beginning and intermediate investors.
- Traditional brokerage accounts.
- SoFi Traditional IRA
- SoFi Roth IRA
- Rollover IRAs
However, it doesn’t offer Simle IRAs, trusts or other account types in which you may be interested.
SoFi Active Investment Pros and Cons
SoFi Active Investing is a contender in the low-cost, no-frills investment platform offerings that Robinhood pioneered. Like most trading platforms in this class, SoFi Active comes with apparent pros and cons.
Here is what we like about SoFi Active:
- Free investment advice-and career coaching.
- Commission-free stock and ETFs trading.
- Cryptocurrency trading.
- Fractional shares are available.
- Initial public offerings.
- No account minimum.
- Automatic dividend reinvestment.
- SoFi community and events access.
- Sleek and functional mobile app.
- Member discounts for other SoFi products and services.
Here are the SoFi Active features on which we are not very keen:
- Limited investment options.
- Do not offer mutual funds or options.
- Basic learning resources.
- No access to stock research and tools.
There are several cautions when investing without commissions. It can make buying and selling too easy, which can be expensive. The selection of trades is left entirely to you. You need considerable knowledge and experience in stocks selection to excel at stock picking. Failing that and not being offered stock selection guidance and advice may lead you to incur unjustified losses.
For that reason, we suggest also exploring the SoFi Invest Automated Investing offer. This offer evaluates your financial situation, risk tolerance, and goals and then creates an index fund investment portfolio in line with your preferences – for FREE management fees.
SoFi Active Investing Alternatives
SoFi stock bits is a great start for beginners, but there are several low-fee alternatives.
Here are some of the SoFi Invest Active competitors for low-cost investing platforms targeted at young investors with big dreams and shallow pockets:
- M1 Finance: Free investment robo-advisor with the option to buy and sell individual stocks and funds or pre-made investment portfolios. There is a $100 minimum investment amount.
- Schwab Stock Slices: Part of the huge Schwab investment offering, Stock Slices allows clients to invest $5 in list of many popular firms. You’ll also have access to Schwab’s range of products including their Intelligent Portfolios Robo-Advisors.
- Robinhood: Robinhood is a commission-free micro-investing platform offering access to US stocks and ETFs traded on the NYSE and Nasdaq. While Robinhood does not appear to take from the rich to feed the poor, this commission-free micro-investing app has set out to empower the investing underdog, e.g., people who have little money to invest.
- Ally Invest: Ally Invest is an automated investment management robo-advisor platform. It has a $100 minimum investment amount and offers an extensive array of investment options and accounts. Ally Invest is also known for socially responsible investments.
SoFi offers a host of financial investment products and services. Whether SoFi is a good investment for you depends upon what you are seeking in your investment management. For beginning investors who want to test out trading in the financial markets, SoFi Active Investing is a reasonable place to start. We like that they have access to financial consultants and good customer service to guide you.
With the SoFi Investing Active Investing service there are no commissions charged when trading stocks and ETFs. There are also no management fees. There will be small fees levied by ETF comanies to manage those investments. There may be a fee to completely close out your account.
The SoFi financial company makes money in various ways. They may sell some of the loans that they originate. They may also earn money for the cash that is held within their accounts. The firm can lend securities that it’s users own to other firms for small fees. There is also the ‘spread’ between the interest rate charged and the cost of the money for the firm. All of these methods are common among financial firms.
Your money is insured by the SIPC up to $500,000. This includes $250,000 protection for cash. The app and platform employ the highest bank-grade levels of protection as well, including two-factor authentication and encryption.
SoFi Active Investment Wrap Up
SoFi Active Investing is a low-cost option that has some advantages compared with other providers (e.g., financial planners, self directed retirement accounts, cryptocurrency trading, links to a community, and eligibility to attend investing events). If you like the community, and are already a member, you might try the Active Investing opportunity.
The platform also has comparative downsides like offering a limited range of accounts, limited trading options, and elementary learning resources with no stock selection advice.
My opinion is that SoFi Active Investing is a decent offering for those that like the “community” and basic features. And, the lack of trading fees is compelling.
It boasts ‘learning through doing’, for example, but appears to leave you to learn mainly from your own investment mistakes.
Newbies might want to explore M1 Finance with over 6,000 investment options, pre-made portfolios and automatic rebalancing.
Another platform to consider is Stash – a veritable nursery school for budding investors if you wish to learn.
For those seeking to start investing, make sure to do some preliminary learning. There are several free and low-fee platforms available.
Finally, new investors may enjoy the upsides to using SoFi Active Investing including access to many financial products, student loans, SoFi Money and more.
Ultimately, evaluate your own needs and choose the stock trading site that best fits your needs.
Learn more about Sofi trading, Stock bits, IRAs, and all products and services:
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.