About SoFi Invest
SoFi Invest is an offshoot of Social Finance Inc, an American online personal finance company based in San Francisco. SoFi was founded in 2011 by Dan McLean, Mike Cagney, Ian Brady, and James Finnigan. It was originally a student loan refinancing company but has since expanded in scope and diversity. It provides a range of financial products ranging from mortgages, loans, and banking services to credit cards and student loan refinancing, in addition to investment services. Anthony Noto is the current CEO and Director.
In 2018, the firm launched a commission-free ETF and stock trading called SoFi Invest. In 2019, it introduced an automatic investment feature without charging a management fee. In 2019, SoFi also announced a partnership with Coinbase, offering users over 20 crypto assets. The broker has announced that it will go public through SPAC with an initial valuation of $9 billion in early 2021. After going public, the value of the company increased by more than 12%.
The trading platform is simple and elegant, offering investors the opportunity to invest in stocks, ETFs, IPOs, and cryptocurrencies. The app does not currently support any advanced charting or analysis features, but it does provide a breakdown of asset performance.
There are two main services on the trading platform. Active account and Automated account. An Active account allows you to search for individual assets, buy and sell them with zero commission. Investors can create custom watchlists linked to real-time market data to keep an eye on assets and monitor the market based on preferences. This service is suitable for traders who prefer to build their portfolios based on their knowledge and experience.
An automated account allows a robot advisor to manage your portfolio; you just need to specify your investment goals (goals and risk preferences) and the AI will automatically do it for you. It also automatically rebalances and diversifies your account. This feature does not require a management fee or consultation. This service is suitable for those traders who prefer a more “hands-off” approach and provides a range of funds with different Assets under Management (AUM).
The firm offers opportunities to invest in company stocks, exchange-traded funds (ETFs), initial public offerings (IPOs), and cryptocurrencies.
There is a wide range of different stocks and stocks listed on NASDAQ, AMEX and NYSE. They are divided into different groups depending on certain characteristics. For example, there are categories based on popularity, trends, and dividend payouts, among other things.
There are 6 ETFs on offer with a total of 2,300 securities.
- SoFi Weekly Dividend ETF (WKLY) – distributes dividends every week by tracking an index of global dividend-supporting stocks (0.49% management fee).
- SoFi Weekly Income ETF (TGIF) – distributes profits to investors every Friday (0.59% management fee).
- SoFi Gig Economy ETF (GIGE) – invests in high-growth technology companies (0.59% management fee).
- SoFi Social 50 ETF (SFYF) – consists of the 50 most traded stocks on the SoFi Invest platform (0.29% management fee).
- SoFi Select 500 ETF (SFY) – Focuses on the largest Fortune 500 publicly traded companies in the US (As of October 2021, management fees have been waived)
- SoFi Next 500 ETF (SFYX) – Targets growing US mid-caps (management fees waived from October 2021)
Unlike many other ETFs, they are weighted by growth, not just by market cap.
SoFi Invest supports IPO participation by giving clients the opportunity to buy the company’s shares before they are sold on the public market.
The firm’s partnership with Coinbase empowers its clients to buy and trade over 20 major cryptocurrencies including Bitcoin, Ethereum, and Litecoin. SoFi Invest Compliance Calculator and Pricing News
Spreads and Commission
SoFi invest has a 0% commission and a minimum amount to open an account, so all you need is $1 to start investing. There is also no inactivity fee, but the robot advisor service includes a 0.25% fee for invoices over $10,000. Although there are no fees, some ETFs include a management fee, the highest.
SoFi Invest is a purely mobile and web trading application. The mobile app is supported for iOS and Android (APK) downloads, and the web client can be accessed through the broker’s website. The app varies slightly between the mobile and web versions, but overall it is elegant and user-friendly for a seamless trading experience. The app requires a two-step login with biometric authentication and has a built-in free learning platform that can help you navigate the app and invest
The application is quite simple for experienced traders, especially regarding technical indicators. For example, there are no price alarm/notification features and limited customization options. You can only choose from several preset alerts, such as when the price of an ETF or stock hits a 52-week high or low. The platform only allows market and limit orders, which can put off intraday traders who want to use stop loss and stop limit.
Depositing funds to the SoFi Invest account is seamless, you only need to write down your basic personal and financial details and connect the bank account from which you want to transfer your funds.
There is no minimum deposit limit. SoFi offers instant deposits (funding) up to $1,000 and also up to $50,000 with other SoFi products. This means you don’t have to wait for the bank transfer to complete in order to make your investment. The firm also supports a direct deposit feature, so you can add funds to your account on a regular basis.
SoFi does not charge fees for ACH withdrawals, although wire transfers cost $25. There is also a $75 fee to close your account.
Offers and promotions
SoFi Invest often offers a range of welcome bonuses and financial incentives for new clients. For all beginners who make a deposit of at least $5,000, there is a sign-up bonus of up to $50. The broker will provide a bonus of $10 in Bitcoin when they make their first trade of $10 or more. SoFi is also waiving ETF management fees for certain periods. In addition, SoFi Invest has launched a Twitter-popular touchdown football tournament that features leaderboards with medium returns and exciting rewards.
Regulation and licensing
Social Finance Inc. (SoFi) is an American financial services company regulated by the SEC and FINRA. As a subsidiary of SoFi Inc., SoFi Invest is also regulated by the SEC and FINRA. As such, client investment accounts are protected by SIPC up to a maximum of $500,000 in securities and up to $250,000 in cash.
Automated investment and advisory services are provided by SoFi Wealth LLC, an SEC registered investment advisor. The brokerage services of SoFi Wealth LLC are provided by SoFi Securities LLC.
Active investment and brokerage services (“SoFi Securities”) are provided by SoFi Securities LLC, a member of FINRA/SIPC. All securities are cleared and held by APEX Clearing Corporation.