SoFi Invest Review 2024 - A Robo Advisor for Newbies

Social Finance, Inc was established in the year 2011 by Stanford business school students. The company was initially based on an alumni-funded lending model in order to connect recent graduates with alumni within their own community. But it has since expanded to include various financial products.

Today, SoFi provides everything from student loans to home loans, personal loans, and auto loan refinancing to credit cards, banking as well as wealth management, investment and insurance. It's an all-in-one place for all your financial needs.

In this review, we will concentrate on the SoFi Invest that has a wide range of choices to increase your wealth. The SoFi Invest(r) offers a complete investment platform that allows users to trade ETFs, stocks and cryptocurrency. It also lets users buy fractional shares as well as participate at IPOs for IPO rates. SoFi investors also have access to a robo-advisor as well as tax-deferred IRAs to help save for retirement. We will try our best to be unbiased in our SoFi Invest review. If you find any inconvenience, please contact AtoZ Markets editorial team.

Types of Products under SoFi Invest

Under SoFi Invest, they offer a wide range of products. Those are Active Investing, Cryptos, Automated Investing, IPO Investing, Fractional Shares, ETFs and Retirement Accounts. Let's explore all the products of SoFi Invest in our SoFi Invest Review.

SoFi Invest Review: Active Investing

Active investing involves trading individual bonds or stocks in an effort to beat the market.

You can do this by your own decisions or you can find a mutual fund to invest where fund managers will actively take decisions.

The opposite of active investing is the passive investment, which is where you place your money into the form of a portfolio of stocks like the index funds or exchange-traded funds (ETF) and then relax.

Active investing has become less popular over the past few years while passive investing is on the rise. The first index fund, the S&P 500 was launched in 1977 hundreds of funds have been launched. Though active investing is less widespread, it's still worth exploring. Let's see what's SoFi offers

SoFi Active Investing

If you're interested in dipping your toes in active investing and opening an account with SoFi Invest(r) could be an ideal method to begin. There are no minimums for accounts which means you can begin to develop and learn as an investor without placing much risk.

The platform allows you to monitor performance and stay up-to-date with the most recent news.

Additionally, you'll be able purchase and sell stocks without any commissions or fees to SoFi. You are able to choose to invest in companies you trust and know about or discover new opportunities according to your preferences.

Since active investing may not be suitable for everyone, you may also adopt the automated investment approach by letting SoFi build an investment portfolio for you and then manage it without the expense of a management fee. SoFi can help you identify your goals.

With the SoFi Invest account, your portfolio will automatically be adjusted every quarter to ensure that it's within your desired goals and the risk tolerance.

If you're taking an active or relaxing approach investing with SoFi gives you benefits as a member like the ability to attend exclusive events as well as discounts on financial services and complimentary sessions with certified financial advisors. You can open your account on the internet in only two minutes. If you're looking to manage your own investments or opt for an automated approach it's simple to get your money working through SoFi Invest.

Cryptocurrency

SoFi offers Crypto through SoFi Digital Assets, LLC. Under SoFi Invest, you can trade Bitcoin, Ethereum, Dogecoin, Cardano, and 24 more coins.

They offer an extremely secure and safe platform that guarantees your assets are secure from theft and fraud. When you make your first trade of at least $10 in SoFi Crypto, you'll receive the amount of $10 in bitcoin.

SoFi Invest uses a number of security measures to guard your crypto assets against theft, such as 2-factor authentication, SSL security, and working with approved exchanges such as Coinbase for transactions, and not disclosing personal information regarding our customers with our crypto trading partners or custodians. Prior to purchasing crypto with SoFi Invest, it is crucial to be aware of the fluctuation of its value and the risk inherent to it.

SoFi Automated Investing

Unlike other automated trading platforms, SoFi has a very low minimum deposit. SoFi Automated Investing has a  robo-advisor with a $1 account minimum.

More importantly, SoFi Automated Investing doesn't have any management fees. Whereas many counterparts like Wealthfront or Betterment have 0.25% annual charge.

SoFi Automated Investing has expense ratios of around 0.05 percent, making it competitive with the most affordable automated advisors, like those offered by Vanguard Digital Advisor and TD Ameritrade Essential Portfolios.

They have a $75 outgoing transfer fee. It doesn't support wire support. So this SoFi account fees are bit high.

You can choose from a range of 10 portfolios that are based on risk tolerance and investment goals, using various ETFs at a low cost that offer the opportunity to invest in U.S. stocks, developed international markets and emerging markets and high yield as well as Treasury bonds.

One of the drawbacks of SoFi Automated Investing is that they don't provide any socially responsible investment option

SoFi Automated Investing allows you to open joint non-retirement accounts, Keogh plans, Roth, traditional, rollover and SEP IRAs.

Another drawback with SoFi Automated Investing is that they don't offer tax-loss harvesting, an investment method that has the potential to substantially reduce capital gains tax. In tax-exempt accounts this method involves selling losses-making investments to offset gains made by winning investments.

SoFi stands out in this category. You have access to SoFi's financial human advisors free of charge. They are CFPs who have an Series 65 designation (or similar) that bind them to a fiduciary code that requires them to work in your best interests.

The advisors are available during any time and via various methods of contact. It is possible to schedule a telephone or video appointment between 7:15 a.m. to 7:15 p.m. Eastern time Monday through Thursday, and from 7:30 a.m. until 3:00 p.m. Eastern time on Fridays. For beginners this is an amazing facility that many robo-advisors do not have.

IPO Investing of SoFi

Traditionally access to IPOs prior to their trading on the market was reserved for big institutional investors. SoFi members are now able to be part of IPOs without a minimum account. If you are a SoFi Active Investing member, you can participate in IPOs without a minimum amount.

You can get the most current information on IPO options under the heading 'IPO Investing' on the Invest section of the mobile app of SoFi or on the SoFi website. If they're made accessible, members who are eligible are able to start by selecting an IPO. You'll then need to provide your declaration of interest. This will let SoFi know how many shares or units you're looking to purchase. Indicates of interest aren't considered to be orders that are binding because they are not made until the prospectus is approved and valid by SEC. A statement of interest is like making a reservation. In other words, you reserve your spot in the queue and you will be called via SoFi in order to verify that you are interested after the deal has been made in place and formal orders are accepted. SoFi will notify you once it's the time for you to confirm your purchase. You'll only have just a few minutes to confirm your purchase so  you have to complete the process as soon as you can.

Retirement Accounts of SoFi

SoFi Invest offers investors the option to open different types of Retirement accounts. There are no fees associated with opening or maintaining your account, but there is an annual $500 fee for management of each investment portfolio you choose. This makes Sofi IRA's competitive when compared to other companies that charge similar fees in addition to trading costs and commissions. You can also invest in taxable accounts if you'd like, which means that there aren't any tax advantaged restrictions on how much money you're able to put toward investing. You simply need at least one taxable brokerage account before adding another type of investment vehicle such as real estate or precious metals. SoFi also offers Traditional, Roth, SEP and Rollover IRAs, Solo 401(k) Plans, SIMPLE IRA Plans, Profit-Sharing Plans, Employee Stock Ownership Plans (ESOPs), 457 Plans and many more.

SoFi Fractional Shares

When parts of stocks are purchased that are commonly referred to as 'Fractional Shares'. It's an opportunity to invest in well-known stocks without relying on the price of shares. The purchase is dependent on an amount in dollars, which means investors can purchase shares in increments of $5 and have a share of the stock, as opposed to buying shares they think are too expensive.

With SoFi, purchasing and trading fractional shares is the same as the traditional stock market, without any additional barriers for only owning an amount of stock.

SoFi fractional shares are an easy way to begin to own stocks for investing based on dollars. With SoFi, you can start investing with just $5.

SoFi ETFs

The exchange-traded funds (ETFs) offerings of SoFi are a simple inexpensive way to diversify your portfolio. They are designed for both investors who are new and less-than-new investors who want to expand their portfolios through investing into a range of stocks at less than the price.

SoFi Invest allows you to look up the majority of ETFs that are traded on exchanges with public access All from their application. You can also browse through the current ETF collection and discover what is of your needs.

SoFi has six ETFs which are intelligently diversified and auto-rebalanced, so that faster-growing companies are always in the mix.

1. WKLY

SoFi Weekly Dividend

You will receive weekly payments with SoFi Weekly Dividend ETF. WKLY is a weekly dividend distribution and follows an index of global stocks that have sustained dividends.

2. TGIF

SoFi Weekly Income

With TGIF, you will receive weekly payments with this SoFi Weekly income ETF. TGIF is an actively-managed fixed income ETF which is expected to pay dividends on Fridays.

3. GIGE

SoFi Gig Economy

The SoFi Gig Economy ETF (GIGE) is a low-cost (0.59 percent) option to invest in high growth tech companies that you use and are fond of shortly following their IPO.

4. SFY

SoFi Select 500

You can purchase a stake in the SoFi Select 500 (SFY) and receive a share of the 500 biggest publicly trading U.S. companies weighted by indicators of growth. This ETF is cost-free for one year and is part of SoFi automated portfolios of investing.

5. SFYX

SoFi Next 500

You can put your money into 500 mid-cap U.S. companies weighted by growth indicators with the fund called SoFi Next 500 (SFYX). This ETF is part of SoFi's automated portfolios of investing and is fee-free for the initial year.

6. SFYF

Social 50 Social 50

It is the SoFi Social 50 ETF (SFYF) with which you can invest in the top 50 most widely held stocks listed on SoFi Invest. This low-cost (0.29 percent) ETF is an easy method to gain exposure to what SoFi members are purchasing.

Is SoFi Invest Regulated?

Yes, SoFi Invest refers to the three investment and trading platforms run through Social Finance, Inc. and its affiliates. Customer accounts for individuals are bound by the rules that apply to any of the platforms described below.

1.) Automated investing and advisory services are offered through SoFi Wealth LLC, an SEC-registered investment Adviser ("Sofi Wealth"). Brokerage services are offered for SoFi Wealth LLC by SoFi Securities LLC.

2.) Active Investing and broker services are offered via SoFi Securities LLC, Member FINRA/SIPC, ("Sofi Securities). The clearing and administration of the securities is provided via APEX Clearing Corporation.

3.) Cryptocurrency is provided through SoFi Digital Assets, LLC that is a FinCEN registered Money Service Business.

Is SoFi Reliable or Scam?

SoFi Invest is a great option for those who are looking for low-cost investments and personalized advice. The company has two investment portfolios to choose from, each with a diversified mix of stocks and bonds that are appropriate for your chosen risk level. There are no restrictions on the types of investments you can make, so you're free to invest in real estate, precious metals, or individual stocks and bonds. And if you want to invest in products that aren't offered through SoFi Invest, you can open a separate account with another company. Fees start at $0 for opening an account and maintaining it, plus there's no annual fee for management of each investment portfolio. SoFi Invest uses a risk-driven investing strategy that is tailored to your individual financial goals and risk tolerance, making it a great choice for those who want personalized advice. However, be sure to read the fine print before opening an account so you know what to expect in terms of fees. Overall, we think SoFi Invest is reliable and a great option for anyone looking for low-cost investments.

Customer Support

SoFi Invest has live chat support. But to avail the live chat support, you have to login into their website. They also have email and phone support. Support is available from Monday to Thursday 5am-7pm PT and  Friday to Sunday 5am-5pm PT.

Conclusion

SoFi Invest has a wide range of products offering. They have no annual fee for management of each investment portfolio. It has low fees both for opening and maintaining an account, as well as for management of each investment portfolio.

SoFi Invest also has no restrictions on what types of investments you can make, so you're free to invest in real estate, precious metals, or individual stocks and bonds.

The problem with SoFi Invest is it's only available for the USA. Outside the USA people do not have access to their service. If you are user of SoFi, let us know your experience with them in the below comment section.