You may have heard of SoFi before. The company is known for refinancing student loans and personal loans. However, in 2019 they branched out into the investing space.
SoFi Invest is popular among young investors who are just starting to dip their toes into the investing world.
SoFi is known for having no account minimums, zero commission fees, and helpful resources in the SoFi app for new investors.
Today we’re going over:
- Who SoFi is for
- Benefits of using SoFi
- Downfalls of SoFi
- If SoFi is for you
- Alternatives to SoFi
Before we get started, make sure to sign up for my free resource library and get tons of free printables to help change your financial life.
What is SoFi?
SoFi Invest is a commission-free brokerage targeted toward the beginner investor. There are several features and benefits that make it stand out from other brokerage companies.
SoFi is best for
- Beginner investors
- Active traders
- Fractional shares
- ETF investors
What are the benefits of SoFi?
- No trading commissions
- No account minimums
- Option to buy fractional shares
- Cryptocurrency trading
- User-friendly app
- Free helpful resources to get you investing
What are the downfalls of SoFi?
- Only available to U.S. investors
- SoFi Invest has only been around for a few years, not a long track record
- No tax-loss harvesting
- Limited account options
How much does it cost to get started investing with SoFi?
There is no investment minimum with Sofi Invest. You can start with as little or as much as you want.
Pay zero commission fees
You can buy and sell stocks commission-free and no account minimums.
Learn by doing
The SoFi app gives you access to real-time investing news, curated content, and relevant data by creating a personal watchlist and follows the stocks that are important to you.
Get access to fractional shares so you can have a part of your favorite companies. A stock bit is a piece of a single share of stock, AKA fractional share. So if there’s a pricier stock you have your eyes on that costs hundreds of thousands of dollars, you can own a part of a share.
SoFi has local meetups and a great community so you can meet like-minded people.
SoFi is a member of SIPC
SoFi is a Member of SIPC, which protects securities customers of its members up to $500,000.
SoFi Automated Investing
SoFi automated investing is for the hands-off investor. This is for anyone who feels stressed out about investing. SoFi helps you with the heavy lifting by helping you with goal setting, auto rebalancing, and diversification.
SoFi will help you with goal planning and how to save for a particular goal.
SoFi rebalances your investments (adjusting your stock and bond funds) on a quarterly basis.
Your money is allocated across different financial investments which may help reduce risk.
*Diversification can help reduce some investment risk. However, it can’t guarantee profit nor fully protect in a down market.
Is SoFi for you?
If you’re looking to participate in active trading, SoFi might be for you. With no account minimums and no trading commissions and user-friendly app, it makes it a great choice for active traders.
Alternatives to Sofi
You will hear about Vanguard time and time again due to it’s low-cost investing. It’s great for investors who are in it for the long haul and investing for retirement.
I personally have my Solo 401(k), Roth IRA, and traditional IRA with Vanguard and love their customer service.
As much as I love Vanguard, I wish they could catch up with the times and create a user-friendly experience. Betterment’s dashboard is modernized and makes it so easy to get started investing for their retirement.
It’s great for hands-off investors, retirement investors, and investors who don’t have a lot of money to get started.
Robinhood is a trading app known for being commission-free. It has a clean and simple dashboard making it a great option for beginner investors.
With Robinhood, you can invest any amount of money, build a balanced portfolio, and trade in real time. Not only that, Robinhood also has tools to help you learn about investing in financial markets.
Click here to get a free stock. You don’t need any money in your account to get your free stock.
WeBull is a free commission trading app with many benefits and features that make it superior to similar trading apps. WeBull is designed for intermediate and experienced traders, with many tools that beginner traders will enjoy as well.
They use a commission-free structure that allows active and short-term traders to save a good chunk of money on commissions when compared to other online brokers.
If you’re ready to get started with WeBull, you can sign up for an account here. Once you deposit $100, you can get free stock worth up to $1,000.
Related: WeBull Review: Investing In Stocks
Acorns is mobile app that makes it easy to make responsible financial decisions that fit your lifestyle. The “Round Ups” tool is my favorite part of the app. For example, if you buy a $3.40 coffee from Starbucks, the Acorns app does a “Round Up” and takes the remaining $.60 and invests it.
This is how Acorns works:
- Sign up for an account in under 5 minutes. You get a $10 sign up bonus.
- Download the Acorns app and get started with no minimum investment required.
- Invest automatically.
- Set aside spare change or extra cash automatically.
- Grow your account over time with a diversified portfolio.
How To Build Wealth By Investing Course
If you’re on the fence with active trading and you’re looking to build a solid long-term retirement plan, I recommend taking the How To Build Wealth By Investing course.
For a fraction the cost of a college credit, you get information that teaches you how to have a million (or millions!) in your retirement account when you retire. I bought this course with my own money and cannot say enough good things about it.
This course will teach you how to be like Amanda (pictured below).
I personally think it’s always best to save for retirement via your workplace 401(k). In many cases, your employer will match your contributions up to a certain amount. However, if you’re wanting to dip your toes into active investing and trading, SoFi is a great option for the beginner investor.
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Are you interested in using SoFi?
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