SoFi Invest: The Broker With No Stock & ETF Fees

December 22, 2020
Brokers
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SoFi Invest started its brokerage services in 2018. The broker offers commission-free stocks & ETFs along with Litecoin, Bitcoin & Ethereum crypto options for users. The broker has a really good referral program that offers plenty of rewards for referring friends that you should definitely check out if you are into investing with friends and family. The broker is a good option for anyone looking to trade in stocks and ETFs and also anyone looking to avoid non-trading fees as the broker has no non-trading fees like inactivity or withdrawal fees associated with it. What are you waiting for signup now and enjoy the platform.

Capital.com also offers plenty of asset options within the commodities, bonds, mutual funds and forex domain. Moreover, even though SoFi Invest’s fee structure is good, Capital.com’s is better. In fact, it has one of the most competitive fee structures out there. Capital.com also offers every trader a dedicated account manager to cater to their needs (fancy huh?), and more than that, the account manager is completely free. So what are you waiting for sign up for Capital.com now and enjoy trading like a VIP.

We analyzed hundreds of data points relevant to the costs, benefits and features of trading with SoFi Invest and scored our findings on a 10-point scale across 10 distinct categories.
Fees 8
Signup Process 9
Minimum Deposit 10
Ease of Use 8
Deposit & Withdrawal Options 3
Customer Support 7
Asset Classes 2
Referral Program 10
Demo Account & Educational Resources 2
Safety & Regulation 10
Total 69

Introduction

Initially launched as a fin-tech start-up in 2011 for providing loan services for students and refinancing loans, SoFi invest started its own brokerage services in 2018. The broker has carried its positive reputation from its other businesses to its brokerage business as an institution that really listens to the voice of its customers and is with them through thick and thin. The sad news, however, is that it only offers its services in the USA.

Pros & Cons

Pros

  • Commission Free Stocks & ETFs
  • Easy Signup Procedure
  • Regulated by SEC & FINRA

Cons

  • Does not offer forex, bonds & commodities
  • No demo account
  • Lack of quality educational resources
  • Limited to the US only

Account Types

SoFi Invest Active Investing

This is a traditional brokerage account where you yourself invest your own funds in stocks & ETFs. So you can build your own portfolios with the SoFi Innvest platform.

SoFi Invest Automated Investing

In this case, the SoFi Invest platform handles your funds and invests them in different assets using their Robo Advisory. It can be a good strategy for you if you are a passive investor who does not have the time to invest their funds personally.

Here’s a breakdown of our 10 scoring categories, each scored out of 10 for a total of 100 points.

#1 SoFi Invest Fees

SoFi Invest Deposit & Withdrawal Fees

There are no deposit and withdrawal fees associated with SoFi Invest. This provides some good value for users because there are brokers like ITrader that can charge heavily for withdrawal fees and withdrawing your funds may cost you up to $100 per withdrawal.

SoFi Invest Inactivity Fee

SoFi invest also charges no inactivity fee which means that the broker is easy to try out because you can always deposit a few funds to see if you enjoy using the platform without having to worry about the platform stripping your account clean without you noticing. Often brokers have a small inactivity fee that is activated after a couple of months of not using your account. The fee usually ranges between $10-$20 however, there are brokers like ITrader that can charge up to $50 for inactivity. So SoFi invest has you covered here.

SoFi Invest Stock & ETF Commissions

There are no stock and ETF commissions as you may have guessed from the title of our post. This provides some really good value for users because often these commissions can make trading expensive. Hence, SoFi invest provides some really good value by charging no fees here.

SoFi Invest Crypto Commission Fees

SoFi Invest does charge commissions when trading cryptocurrencies. The crypto commissions are around 1.25% which can be slightly expensive compared with other commission-based brokers.

The broker loses a couple of points in the fees section due to these crypto fees, but apart from that, it provides some amazing value for users.

SoFi Invest Fees Score: 8/10

#2 SoFi Invest Signup Process

The application process with SoFi Invest is completely online and easy, and requries you to upload a few documents which may include:

Proof Of ID Documents

  • Passport / Drivers License

Proof of address

  • Bank Statement
  • Utility Bill
  • Credit Card Statement

Once you have uploaded the required documents to SoFi Invest, it takes one business day to verify the documents and opening of your account. While this is faster than many brokers, there are brokers like Capital.com that allow for same-day account opening due to which the broker scores a 9 rather than a 10.

SoFi Invest Signup Process Score: 9/10

#3 SoFi Invest Minimum Initial Deposit

With SoFi Invest, you can get started with as little as $1. This provides some really good value for new users and individuals with limited budgets who want to get started with trading on the SoFi invest platform.

Related: If you want to look at other brokers that have no minimum initial deposit requirements you can get started with FXTM or IronFX for $0. FXTM and IronFX have some great demo accounts as well so you can learn to trade with paper money before you commit even small amounts in real investments.

SoFi Invest Minimum Initial Deposit Score: 10/10

#4 SoFi Invest Ease of Use

SoFi invest offers its services via a Web & Mobile platform however, they do not offer a Desktop platform.

SoFi Invest Web Platform

The web platform does a decent job at being intuitive and understandable for a common user however, we feel that it lacks features such as price alerts and the options to customise dashboards in a manner that is suitable for users.

SoFi Invest Mobile Platform

Has similar features as the web platform but offers much more customizability such as the fact that you can set price alerts for your assets on a daily basis, or alerts based on high or low fluctuations in price. However, the dashboard provided across the web and mobile platforms is a bit plain and lacks some important functionality. It can be improved significantly to be much more useful for the users by incorporating long term trends or box and whisker diagrams within the plotted trend line to indicate the volatility associated with each asset type.

SoFi Invest

The general ease of use and the manner in which the platform is designed, hold it in good stead compared to many other brokers. However, the lack of advanced statistical tools and the uncustomizable web platform means that the broker loses a couple of points on our scoring guidelines.

SoFi Invest Ease of Use Score: 8/10

#5 Deposit & Withdrawal Options

The only way that you can deposit or withdraw your funds is via bank transfer. This is a common issue with USA-based brokers as they often lack options for deposit and withdrawal of funds. Offering other ways of transactions such as debit, credit cards and electronic wallets like Paypal provides convenience and a quicker way of conducting transactions rather than relying on bank transfers like people used to do in the good old days back in the 1960’s and 1970’s, so that’s a thumbs-down for SoFi Invest.

SoFi Invest Deposit & Withdrawal Options Score: 3/10

#6 SoFi Invest Customer Support

Customer support is a key factor that our readers consider when choosing a broker and the broker does a really good job of providing users with decent customer service that does not leave them hanging in a quandary whenever they are faced with an issue. You can geet customer service via

  • Email on ir@sofi.com
  • Telephone on +1 (855) 525-SOFI (7634)
  • Live Chat

The response via telephone and live chat is very quick and usually just takes a couple of minutes. However, the email response can be slightly slow at times. The fact that the broker also does not offer a dedicated account manager like Capital.com and other brokers do, means that it loses several points.

SoFi Invest Customer Support Score: 7/10

#7 Asset Classes

SoFi Invest Stocks & ETFs

The broker offers more than 50 stocks & ETFs that you can trade in. ETFs offered by the platform include companies specifically picked by the platform in each ETF. Moreover, the broker offers stocks of all the big names in the book such as:

  • Alphabet
  • Amazon
  • Ali Baba
  • Apple
  • Boeing
  • Facebook
  • Disney
  • Invesco
  • Microsoft
  • Tesla
  • Lyft
  • Spotify

You can see from the list above that you can invest in the stocks of the hottest tech companies on the planet via the SoFi Invest platform. However, they could have also inculcated a wide variety of FMCG or Fast Moving Consumer Goods like Procter & Gamble or Unilever as these are always a good bet to invest in because of the stability that these businesses operate in.

Crypto

The broker only offers crypto from the top 3 crypto providers which are:

  • Bitcoin
  • Litecoin
  • Ethereum

However, there are many other cryptos out there. If you are into crypto, we suggest you check out ITrader as they offer a lot of crypto options.

The fact that SoFi Invest does not offer assets like bonds, mutual funds, forex & commodities means that it scores a paltry 2.

Related: If you want to trade bonds, mutual funds, forex & commodities, check out Capital.com by clicking the link below.

SoFi Invest Asset Classes Score: 2/10

#8 Referral Program

SoFi Invest is one of the few brokers in our database to score a complete 10 in terms of a referral program. You can earn rewards by referring your friends to the investing platform, and the rewards vary in terms of financial value. However, you can keep referring friends to the platform till you earn $10,000 in rewards. The sheer potential of the amount of funds that you can earn through using the broker and telling your friends about it means that it gets a perfect score. The referral program does full justice with the broker’s name which actually stands for Social Finance.

SoFi Invest Referral Program Score: 10/10

#9 Demo Account & Educational Resources

Demo Account

SoFi Invest currently does not have a demo account. Demo accountsa re a good way of learning how to trade using paper money before you start investing your own money. Its a shame that you do not get to do so with SoFi invest because the platform has some really good fee structures for different assets and it can really attract a lot of new traders by giving them the opportunity to test out the platform to see if it is right for them.

Educational Resources

SoFi invest does not offer any educational resources through which you can start to learn to trade. However, the broker does have a Youtube channel through which you can learn how to trade the assets offered by the platform. Again the broker loses an opportunity to train novice traders in using the platform. The fact that the broker does not have a demo account and very basic educational resources means that it loses almost all its points here.

SoFi Invest Demo Account & Educational Resources Score: 2/10

#10 Safety & Regulation

SoFi Invest boasts solid credentials as a legit broker as it is regulated by the Securities and Exchange Commission (SEC) and by the Financial Industry Regulatory Authority (FINRA). This ensures that your funds are safe and that you will not be unduly swindled your hard-earned funds. There have been cases of unregulated brokers who have lost their clients’ hard-earned money due to irregular practices. However, please note that regulation does not protect you against bad investments and you can lose money if you invest in companies that are on the financial wane.

SoFi Invest Safety & Regulation Score: 10/10

While researching 100+ of the world’s top brokers, we’ve noticed what works and what doesn’t from the customer’s point of view. That’s why our final test for any broker is to compare it to Capital.com, which scores 91/100 points across the 10 categories mentioned in this review.

SoFi Invest vs. Capital.com

While SoFi invest performs well on several dimensions such as having a good fee structure with commission-free stocks, ETFs and a quick signup procedure, there are a couple of dimensions that the broker could improve upon compared to Capital.com

More Assets

Capital.com offers more than 1,700 stocks, plenty of bonds, forex pairs, commodities, crypto and mutual funds, something that SoFi Invest currently lacks, hence you should definitely look at Capital.com if you are someone who likes to trade in these assets.

State Of The Art Research Tools

Capital.com has more thorough research tools such as very detailed charting tools. Moreover, they also have a very detailed fundamental data feature that allows you to track the historical trends of financial measures. The broker also has a very active market research team that has developed a very robust news feed feature something that SoFi Invest currently lacks.

Better Educational Resources

Capital.com is like a university for learning to trade. Capital.com really provides a lot of quality educational resources. Some of the resources offered include:

  • Educational videos on trading different assets
  • Webinars
  • Tutorial videos on using the platform

The resources offered to users start by teaching you how the platform works and then with webinars and articles Capital.com keeps you updated with what’s happening in the market. Capital.com also offers asset trading training guides.

Training Guides

  • Trading psychology guides
  • Shares trading guides
  • Forex trading guides
  • CFD training guides
  • Commodities training guides
  • Indices trading guides

Capital.com is with you if you want to start trading an asset that you have not traded before. They also offer 5 courses that are aimed at training beginners and refreshing the knowledge of experienced traders.

Capital.com Online Courses

  • Financial instruments
  • Derivatives and risks of trading
  • What are leverage and margin
  • Introduction to financial markets
  • ABC of derivatives

The online courses are designed for beginners but anyone can benefit from them in learning the basics and good practices and knowledge of the industry.

So what are you waiting for signup today for the most complete broker in the business.

Related: If you want to learn more about this broker, you can read this amazing review of Capital.com.

In Summary

SoFi Invest is a very good platform for anyone looking to trade commission-free stocks and ETFs. The platform is also really good for friends who want to start trading together because of the rewards that you can earn from referring your friends to the platform. Moreover, the broker is also regulated by the esteemed SEC and by the FINRA. If you are an experienced stock or ETF trader, this could be that low-cost broker you’ve been looking for.

On the other hand, if you are someone looking to trade bonds, commodities, mutual funds or someone looking to learn the art of trading, SoFi Invest is definitely not a viable option. But don’t worry, Capital.com has you covered with more diverse asset types and hundreds of asset options coupled with award winning customer service and the best fee structures in the industry, as well as unparalleled learning resources.

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