Is Sofi Investing Worth It

Date:

Getting Traction And Keeping It

SoFi Invest Crypto Review – Worth it?

Adding all these new features and divisions is challenging. Youre ramping up staff, onboarding them and integrating all these new features into your constantly transitioning organization.

Im sure there were long discussions on whether SoFi should have stuck to its niche, courted a buyout from a deep-pocketed company that want exposure to the student loan sector and walk away with billions.

But its a moot point now. SoFi is deep into creating a challenger bank.

What Could Be Improved

No tax-loss harvesting

Tax-loss harvesting is a strategy where you sell certain investments that are losing value with the goal of offsetting taxable gains across your portfolio. This reduces the amount of tax you owe on your investment gains.

SoFi doesn’t offer tax-loss harvesting service, a potentially large drawback for investors with large accounts or who are otherwise in high tax brackets and want to reduce their tax bill.

Sofi Invest Review 202: How It Compares Plus Expert Opinion

Home » Product Reviews » SoFi Invest Review 2022

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4.7/5

In a nutshell: SoFi Automated Investing provides a simple, incredibly low-cost investing platform perfect for beginners and cost-conscious investors. Plus, its $5 minimum makes it easy for anyone to get started.

SoFis Active Investing also has commission-free stock and ETF trading, though it does lack some advanced trading features. Overall, SoFi Invest is a solid investment and trading platform.

Fees

SoFi Invest offers no-fee investing and portfolio management, plus free access to financial advisors. For fee-conscious investors, SoFi Invest is tough to match.

Pros & Cons

  • No management fees for Automated Investing
  • Free access to financial advisors
  • Commission-free trading for Active Investing
  • Invest for free
  • Only available in the US

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Alternatives To Mining Bitcoin

For those who choose to undertake the cumbersome task of mining crypto, the best cryptocurrency to mine might be the one with the lowest difficulty and highest price.

Of course, these dynamics are in a constant state of flux, so the best cryptocurrency to mine today might not be the best one to mine tomorrow.

Historically, the only time altcoin miners have made significant profits has been when they were mining lesser-known, cheaper coins in the weeks and months before a large increase in prices, or an alt season. This has happened twice so faronce in 2017 and again in late 2020/early 2021.

Smaller altcoins tend to have lower difficulty, making it easier to mine more of them in a short amount of time.

Making significant investments in altcoin mining can be likened to buying a lottery ticket. The odds of success are slim, but the payoff could be sizable for a few fortunate individuals.

Sofi Invest Trading Fees

SoFi Invest: Get Up To $5,000 When Transferring Over Investments ...

SoFi Invest has low stock and ETF fees, while its crypto fees are OK.

Stock fees and ETF fees

SoFi Invest charges no commission for stock and ETFtrading.

SoFi Invest stock and ETF commission of a $2,000 trade

Only US citizens and green card holders can open an active investing account at SoFi Invest. In the case of robo-advisory accounts, visa holders are also considered.

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How To Open Your Account

The account opening process is user-friendly, fully digital and fast. The online application process takes roughly 20 minutes, and it took 1 business day for our account to be verified.

You need to go through the following steps to open a SoFi Invest account:

  • Register a SoFi account by entering your name, email address and a password
  • Acknowledge terms and conditions
  • Sofis Automated Investing Robo

    Of all the products in SoFis continually expanding customer portfolio, one of the freshest and most exciting is SoFi Automated Investing . SoFi Automated Investing is among the new breed of so-called robo advisor digital automated investing platforms.

    The platform is great for younger investors who do not have a lot of capital to start with and are fee-conscious. It uses Modern Portfolio Theory to provide a solid yet automated approach to building wealth.

    What does all that even mean, anyway?

    A robo advisor platform makes use of two key elements to drive consumer investing success.

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    Sofi Automated Investing Review: Is It Worth It

    Perhaps best known as a competitive student loan refinancing company that uses non-traditional approval criteria, SoFi has now entered the robo-advisor space with its automated investing platform. With few barriers to entry in terms of account minimums and fees, this newcomer deserves a closer look, particularly if you want a hands-off investment approach with plenty of built-in perks and support.

    Heres everything you need to know about SoFi Automated Investing so you can find out if its really worth the hype.

    Bottom Line: Is Sofi Invest Worth It

    SoFi Invest Review | One of the Best Investing Platforms in 2021?

    We found SoFi Invest to be an overall great platform at a price point that literally can’t be beat .

    It caters to more experienced investors through its Active Investing feature, and just as effectively welcomes and guides brand-new investors with its Automated Investing service.

    And their complimentary access to professional financial advisors is a benefit to experienced investors and beginners alike. If you like what you read, you should give SoFi Invest a try.

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    Who Is Sofi Active Investing For

    If you’re brand new to investing and want to keep things simple, SoFi Active Investing could be for you. This is even more true if you’re currently using other SoFi products, like its high-yield checking and savings account or multiple loan offerings.

    This isn’t the right broker for experienced traders who want more tools and research. But if you want an all-in-one financial app that’s geared for young investors, SoFi is worth considering.

    Sofi Vs Acorns: Which Is Better

    SoFi and Acorns are robo-advisors, meaning they digitally manage your investments or offer online advising. The two services target digitally native investors and cater to hands-off traders who prefer a passive investment strategy. Both offer investors the opportunity to start building their investment knowledge and allow them to start with little money. Picking the trading platform that best suits your goals, timeline and level of engagement can take time. If youre looking for professional help with your investments, consider speaking with a financial advisor.

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    A Doorway To Investing

    History has shown that the stock market typically outperforms fixed-income assets and interest-bearing savings accounts by a wide margin. If equities continue to provide returns comparable to the long-term average of 7%, even a small investment can outperform money market savings accounts, which typically yield 1-2%.

    Which Trading Platform Is Better: Robinhood Or Sofi Invest

    SoFi Automated Investing Review 2022

    To compare the trading platforms of Robinhood and Sofi Invest, we tested each broker’s trading tools, research capabilities, and mobile apps. For trading tools, E*TRADE offers a better experience. With research, E*TRADE offers superior market research. Finally, we found E*TRADE to provide better mobile trading apps.

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    Is It Worth Mining Ethereum In 2022

    Some might say that mining Ether , the token that powers the Ethereum network, is worth it in 2022 because this might be the last year anyone can do so.

    Ethereum developers are working on an upgrade to the network called Ethereum 2.0. This upgrade will change the consensus mechanism for Ethereum from proof-of-work to proof-of-stake. The first phase of the upgrade began in December 2020 and the final phases are planned for periods throughout 2021 and 2022.

    Recommended: Ethereum Merge Set for Sept 2022: Everything We Know

    While its still possible to mine ETH so long as the network uses proof-of-work, doing so will no longer be possible with proof-of-stake. Instead, only those who hold large quantities of ETH will be able to stake their tokens and become validators. Validators will have a chance at winning the next block rewards, with the highest odds going to those with the greatest amount of ETH staked.

    Customer Service And Support

    There are two types of support clients of a robo-advisor could need: investment advice and help with technical issues. We already mentioned that SoFi customers get unlimited access to human financial advisors, and you can schedule appointments via phone or video call. SoFi’s advisors can’t advise on the purchase of specific securities, but can offer guidance on your overall financial goals. You can reach a financial advisor by logging into your account in the app or online.

    For technical support, you can access a SoFi Invest rep via email anytime or via online chat or phone Monday through Thursday 5 a.m. to 7 p.m. PST, and Friday through Sunday 5 a.m to 5 p.m. PST. To reach support via phone: 525-SOFI .

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    Easy Fast Convenient Robo

    If you are seeking an easy, fast, convenient and essentially free robo-advisor platform, SoFi may just be the perfect fit.

    Despite some of the not-insignificant hurdles the corporation has had to overcome in recent years, there is no doubt this reportedly $4.8 billion giant is sitting on some pretty stable financial ground.

    In fact, SoFis position in the marketplace is such that competitor Charles Schwab even made a play to buy SoFi outright in mid-2019. The deal never went through, however.

    With SoFi, you get two modes of investing operation to choose from, automated and active. This means you can be as hands-off or hands-on with your online portfolio as your time and interest permits.

    As a side note: as SoFis platform continues its fast-paced evolution in a similarly-paced industry, it is worth committing to a more active role to avoid certain less-wanted automatic portfolio rebalancing actions.

    As well, not all investment assets are completely fee-free most notably certain ETF products . Here again, reading the fine print matters, however dull it may be while it lasts.

    Sofi Stock Isnt Doomed But Its In Transition

    What is Automated Investing and How Does it Work with SoFi

    SoFi Technologies started strongly, moving into an underserved market where it could build a unique position and grow a competitive moat around it. Refinancing student loans and consolidating them wasnt anything traditional banks wanted to touch since they were the beneficiaries of much of that long-term debt.

    And much of the risk was underwritten by the government. Plus, student debt is very difficult to default on, so banks can make loans at better margins than they can if theyre financing other things like houses and cars.

    But that was more than a decade ago.

    Since then, SOFI decided to expand its portfolio, including buying a bank charter, issuing , and even trading in Bitcoin . It also has an investment business.

    Basically, its been doing what all hot, young companies are encouraged to do by their investors grow.

    But when do you lose the value of your niche trying to be like all the other competitors out there? Remember, every new market it enters isnt in its core competency and it has niche as well as big bank competitors.

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    Is Sofi Stock A Good Choice For 2023 3 Catalysts To Watch

    • SoFi is disrupting the banking industry with its online-only business model.
    • I highlight three catalysts for SoFi in 2023.
    • Although SoFi is a volatile and unpredictable stock, I believe that SoFi is materially undervalued today when considering the most likely outcome.
    • This idea was discussed in more depth with members of my private investing community, Tech Investing Edge. Learn More »

    MichaelRLopez

    How Sofi Automated Investing Works

    In addition to standard brokerage accounts, SoFi Automated Investing offers IRAs , SEP-IRAs, and lets members roll over existing retirement funds into a SoFi account. Members can access accounts through SoFi’s online portal or through its user-friendly mobile app.

    SoFi Automated Investing customers can choose from several investment portfolios offering a variety of risk levels and investment goals. If you aren’t sure which one to choose, don’t worry — you can answer questions about your financial goals, current assets, and income, and SoFi will do the rest.

    As with most robo-advisors, the portfolios are composed of exchange-traded funds that put your money into a mix of stocks, bonds, and other asset classes. Unlike many competitors, SoFi uses some proprietary ETFs in its Automated Investing portfolios, another way it keeps expenses low.

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    Should I Use Betterment Or Sofi Invest

    Betterment and SoFi Invest make it simple to start investing, with each offering low-cost, fairly intuitive automated investing solutions. As a pioneer in the robo-advisor space, Betterments core offering has focused on automated investing since its founding in 2008. SoFi was initially known for its student loan refinancing and personal loan solutions, but it introduced its investment service in 2018. If youre interested in using a robo-advisor to start investing, both Betterment and SoFi have their perks and drawbacks. An alternative to both might be for you to hire a financial advisor to manage your investments for you.

    Betterment vs. SoFi Invest

    Betterment only offers an automated investing option, making it a good platform for those who prefer to be totally hands-off with their investments. With SoFi, you can choose automated investing or active investing, so it may be a smart choice for those who prefer flexibility.

    Both platforms offer crypto investing and retirement accounts in addition to taxable brokerage accounts. You can also invest in a traditional, Roth or SEP IRA through Betterment and a Roth or traditional IRA with SoFi. Betterment offers employers 401 options, but SoFi does not.

    Betterment vs. SoFi Invest: Fees

    While neither platform offers a specific expense ratio range, these costs are typically relatively low.

    Betterment vs. SoFi Invest: Services and Features

    Mobile and Online Experience

    Who Should Use Betterment and SoFi Invest?

    The Bottom Line

    Who Manages The Portfolio

    SoFi Investing Review 2020

    Part of the appeal for some investors is that these portfolios are automated and require less hands-on involvement. This may be useful for people who are new to the process of setting up and managing a diversified portfolio, or who dont feel comfortable doing so on their own. In some cases, a robo-advisor service may also offer a consultation with a live human advisor.

    That said, in most cases robo-advisor services are somewhat flexible. Even though youve set up an automated plan, its still possible to change your asset allocation if your preferences change.

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    Does Robinhood Or Sofi Invest Offer A Wider Range Of Investment Options

    Robinhood offers investors access to Stock Trading, Fractional Shares and Options Trading, while Sofi Invest offers investors access to Stock Trading, Fractional Shares and OTCBB / Pink Sheets, neither have Mutual Funds, Futures Trading, Forex Trading and Advisor Services. Looking at Mutual Funds, Robinhood and Sofi Invest both provide customers access to 0 no transaction fee mutual funds.

    Robust Financial Planning Services

    SoFi Automated Investing offers a suite of financial planning services on its app, which allows you to customize your strategies for automated investing.

    Furthermore, SoFi Automated Investing allows you to contact human advisors, each of whom is fully registered professionally.

    With the assistance of these financial advisors, youll be able to better budget, save, and meet your financial objectives. Even better, there arent any ancillary fees for using these financial planning services or advisors.

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    Can I Choose My Own Investments

    To a limited degree, yes. A robo advisor typically has a range of investments they offer investors. Usually these are low-cost index ETFs, but the offerings can vary from company to company. In most cases, though, your investment options are confined to those available through the robo-advisor.

    As the industry grows and becomes increasingly sophisticated, more companies are finding ways to offer investors new options like themed ETFs, stocks from different market sectors, socially responsible investing options, and more.

    Sofi Frequently Asked Questions

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    SoFi offers commission-free stock and ETF trading, and it even provides automated investing for free. Crypto traders, however, should be prepared to pay when exchanging different assets. SoFi currently charges a 1.25% markup on each crypto transaction.

    SoFi takes numerous measures to ensure crypto transactions and client data remain secure. It says it partners with crypto exchanges like Coinbase to complete transactions, and it keeps customer information hidden from custodians and crypto trading partners. SoFi also employs two-factor authentication and SSL encryption.

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    Is It Safe And Secure

    Yes, SoFi uses TLS 1.2 Encryption on its website and offers two-factor authentication for account logins. All securities are protected up to $500,000 by SIPC insurance. And if you happen to also have a cash account with SoFi Money, your deposits are insured up to $1.5 million by FDIC insurance.

    Note: SoFi Invest was fined by the SEC for transferring client assets from independent ETFs to their own proprietary SoFi ETFs. See the SEC violation here.

    Who Should Use Acorns

    Acorns also suits new investors and directly targets college students who want investment experience. It can help those who dont have the financial know-how put their pennies to work. Alternatively, older individuals who are also beginning to trade may appreciate the service. It fits individuals who prefer a passive strategy or want to wait before building their portfolio. Overall, its a promising financial management tool for anyone with little to invest.

    Although, just because its subscription model is cheap and transparent doesnt mean its the right financial choice. If you have a small portfolio, the subscription fee can eat up more than you think. So, weigh your options carefully.

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