FROM OUR PARTNERS

SoFi Active Investing Review 2024: Is It Right For You?

Ashley Jackson

SoFi Active Invest allows you to trade cryptocurrencies, stocks, options and ETFs. The app uses the SIPC protection scheme and offers up to $500,000 in insurance coverage. Through the mobile platform, traders can analyze stocks and track investments and grow their investment skills. The broker also provides you with a list of stock bit companies and lets you invest in those that align with your financial goals. With SoFi’s active investment, traders can draw strategies that fit their risk tolerance.

Overall rating

4.5

Summary: SoFi Active Investing offers fractional share investing, so you can buy your favorite stock, even if it comes with a high price tag.

SoFi Active Investing

sofi logo

$0

Fee Per Trade

$0

Account Minimum


Reviews

5

Account Opening

4.5

Fees

5

Deposits & Withdrawals

5

Trading Platform

3

Markets & Products

4

Research Tools

4

Education

5

Customer Service

5

Safe & Secure

Pros

  • Straightforward account opening process
  • Excellent customer support
  • Safe and Secure
  • No account minimum

Cons

  • Product portfolio is limited 

Best For

  • Free trading on ETFs and stocks
  • Purchasing fractional shares
  • Wide range of cryptocurrencies
  • Free financial advice

Features

HQ234 1st St, San Francisco, CA 94105
FeesNo fees on ETF and Stock Trade, 1.25% mark up on Cryptocurrency
Minimum Deposit$0
LeverageNot disclosed
AccountsTaxable, Roth IRA, Traditional IRA, SEP IRA
InstrumentsCryptocurrency, Bonds, ETFs, Stocks, Options
Regulation– Securities and Exchange Commission (SEC)
– Financial Industry Regulatory Authority (FINRA)
Demo AccountNot available
Trading PlatformsMobile App, Web Trading Platform

In depth review on SoFi Active Investing 

Since its introduction into the broker industry, SoFi Active Investing aims to help investors trade freely on stocks, cryptocurrency, and Exchange Traded Funds (ETFs). Some of the cryptocurrencies include Ethereum and Bitcoin. 

A 2021 survey reveals that 10% of Americans hold about $969,000 stocks in active investment. This number, although still low, has been on a sharp increase since 2009 as people have become more financially aware of active investing. SoFi has certified financial advisors that will walk you through the financial awareness journey and help you achieve your investment goals. 

It also offers an easy-to-navigate digital platform that gives traders access to membership benefits and discounts.  

SoFi Active Investing is best for

  • Free trading on ETFs and stocks: SoFi does not charge any commission on trades. The app is 100% fee-free on ETFs and Stock. However, the broker puts a 1.25% mark up on crypto. 
  • Offers fractional shares: SoFi is among the few brokerages that offer fractional shares and members can buy pieces of shares. The platform provides SoFi Bits that allow members to buy fractional shares for free. You can buy fractional shares through ETFs, Apple, Starbucks, Alphabet, Facebook, and Amazon. 
  • Offers a wide variety of cryptocurrencies: The broker founded SoFi Crypto in 2019  and offers its members free trade on a wide range of cryptocurrencies, including Ethereum, Litecoin, and Bitcoin. 
  • Offers free financial advice: Every SoFi member enjoys unlimited access to certified financial planners that are dedicated to guiding and addressing your financial concerns. Members also access free career coaching to shape their goals. 

SoFi Active Investing benefits

  • Straightforward account opening process: SoFi’s trading platform is easy to navigate. The account opening process takes minutes to complete. 
  • Excellent customer support: SoFi has reliable customer support that addresses your queries fast. It also offers certified specialists on standby should you have complex financial questions. 
  • No account minimum: The company has not stated any minimum account to open your account or trade. 

SoFi Active Investing Drawbacks

  • Product portfolio is limited: SoFo lacks a variety of investment options. An investor who wants to trade with mutual funds and forex may have to look elsewhere.

Account opening

5

Opening an account with SoFi Active Investing is simple and straightforward. You can start your application using the mobile app or desktop platform and Ooly green card holders or US residents can open an account. The sign-up process takes up to 20 minutes, and your account is verified within one day.

To get started, you can go here. You will need to:

  • Provide your full names, 
  • Enter your email address, 
  • Password
  • Consent to its terms and conditions. 
  • Select a self-directed account 
  • Enter your personal identity information, mobile number, and employment status. 

SoFi also requires that you enter your social security number and financial data. The final step is to select a suitable account funding option.

Fees 

4.5

SoFi Active Investing charges zero fees on ETF trading. You can buy and sell stocks and options with the broker without incurring any commission charges. 

When trading with cryptocurrencies, SoFi puts a 1.25% mark up, which is relatively low compared to other market leaders. Also, if your account is inactive, you will not incur any charges for inactivity. 

Deposits and withdrawals 

5

You can use direct deposits such as ACH transfers and wire transfers to fund your account. Direct deposits are more secure, convenient, and save time. Here are the main ways to fund your account:

  • Linking with your bank through ACH
  • ACAT (Account Transfer)
  • Rollover
  • Check 
  • Wire

SoFi offers free deposits and withdrawals to members using bank transfers only. Those who use wire transfers may incur a higher fee of up to $25. 

You can deposit or withdraw your funds in USD only. Members who use personal bank accounts operating in other currencies apart from USD are charged a conversion fee. 

Trading platform 

5

SoFi’s trading platforms are simple and easy to navigate. Users can trade ETFs, options, cryptocurrencies, and stocks through the desktop site or the mobile app. SoFi’s mobile app includes all the financial products that the broker offers. 

You can install the app on your Android or iOS phone by downloading it from Google Play Store Apple Store, respectively. The app has a biometric authentication system to help protect your account. 

The digital platform has become a leader in the industry as it houses all your financial needs in one app. Members gain access to blogs, articles, and financial advice that guide them through trading wisely and increasing their earnings. 

Members can also trade through SoFi’s web trading platform, which offers a user-friendly experience. 

Markets and products

3

SoFi Active Invest offers ETFs, US Stocks, and cryptocurrencies. Users cannot trade forex or mutual funds as the broker has not listed them yet. The following are the cryptocurrencies that SoFi members can trade:

  • Bitcoin
  • Litecoin
  • Ethereum

SoFi has limited its trade to the US Market only. Members can buy and sell stocks on:

  • NYSE
  • AMEX
  • NASDAQ

Members are unable to trade Over The Counter (OTC) products. However, SoFi offers a stock bits feature that allows members to purchase fractional shares.

Research tools 

4

SoFi Active Investing has user-friendly research tools but does not give trading ideas to members. However, users can check trending stocks that have been traded most on a particular day. 

To view these trending stocks and ETFs, you need to click on the recommendation bar. The broker also reveals market indicators to its members. Some of the indicators include:

  • Market Cap
  • Price to Market Cap
  • Moving Average 
  • Relative Strength Index (RSI)

Although SoFi offers charting tools, they are limited compared to other brokers. The broker also briefs you about the stock’s availability. 

You can also visit the news feed sector and view third-party websites available at SoFi. 

Education 

4

SoFi Active Invest offers a wide range of educational content to help you trade wisely. Unfortunately, SoFi Active Invest does not offer demo accounts or tutorials. 

You can visit the SoFi Blog or You Channel to learn more about ETFs, Stocks, and Cryptocurrencies. SoFi also offers financial advisors to guide you through your investment journey. 

Customer service 

5

SoFi Active Invest offers excellent and reliable customer support service. All your concerns are forwarded to relevant departments, and you will receive feedback in the shortest time. 

You can use the telephone or the live chat option to reach the support staff. Although the broker does not offer 24/7 customer support, it offers you a chance to contact the office via email or phone call. The contact details are displayed on the digital platform. 

Operation hours are as follows:

  • Monday to Thursday: 5 am to 5 pm PST 
  • Friday: 5 am to 4 pm PST

Safe and secure 

5

SoFi Active Investing is regulated and licensed by relevant US authorities in the respective States. The broker is regulated by :

  • Securities and Exchange Commission (SEC)
  • Financial Industry Regulatory Authority (FINRA)

When you sign up with SoFi, you become a SoFi Securities LLC member and enjoy investor protection. 

The broker also covers you under the US SIPC protection package that protects your funds and securities up to $500,000. Some of the investments insured by SIPC include stocks, registered securities, notes, and mutual funds

Is Sofi Active Investing right for you?

SoFi Active Investing offers several attractive features to all investors. The broker helps you save more with no account minimum, and zero fees on ETF and stock trades.

The digital platform also makes it easier for investors to track their performance, interact with the online community and read educative blogs on investing smartly. Active investors also enjoy exclusive access to SoFi’s member benefits such as discounts, events, and financial advice from certified professionals. 

Another attractive feature is the ability to buy fractional shares. Additionally, SoFi’s investor protection limit of up to $500,000 is high compared to other traders. If you plan to begin trading stocks, ETFs, or crypto, you need to consider opening an account with SoFi Active Investing.