SoFi Invest App Review: Stock Investing Simplified

Summary

Sofi is a comprehensive financial platform offering automated and active investing with no advisory fees. It provides commission-free trading, fractional shares, and a user-friendly interface suitable for all investors. Sofi also includes integrated banking with checking, savings, and retirement accounts, as well as personal finance tools like budgeting and credit score monitoring. The app stands out for its access to IPOs and free financial planning, making it an attractive choice for both beginners and experienced investors.

Takeaways

• 📱 Sofi is a comprehensive financial app offering investing, banking, and saving services through a user-friendly interface.
• 💼 Sofi Invest caters to both active and passive investors with commission-free trading and automated portfolio management.
• 💵 The app allows users to start investing with as little as $1, making the stock market accessible to a wide audience.
• 🆓 Sofi offers commission-free trading for stocks, ETFs, and options, and no advisory fees for their automated investing service.
• 🔍 Fractional shares are supported, enabling users to buy a portion of a stock for as little as $1.
• 🚀 Sofi provides unique access to IPOs, traditionally reserved for institutional investors.
• 📊 The app features automatic rebalancing and offers historical data, stock performance information, and real-time tracking.
• 🏦 Sofi Money includes Sofi Relay for credit score monitoring and financial insights, along with budgeting and tracking tools.
• 💰 Integrated checking and savings accounts with competitive interest rates are available within the app.
• 🏡 Sofi offers dedicated savings vaults for specific financial goals and access to certified financial planners at no extra cost.
• 🔐 As a member of SIPC, Sofi is insured against brokerage failure, and deposits are FDIC insured for bank services.

Q & A

What is Sofi and what does it offer?

Sofi is a financial platform that offers a range of services including automated and active investing, integrated checking and savings accounts, budgeting tools, and access to IPOs, all through a user-friendly interface.

How does Sofi Invest work?

Sofi Invest caters to both active and passive investors, offering commission-free trading of stocks, ETFs, and options, as well as automated investing through their robo-advisor service that builds a portfolio based on personal risk tolerance and time horizon.

What are the benefits of commission-free trading on Sofi?

Commission-free trading on Sofi makes it cost-effective for active traders and investors, as they can trade thousands of stocks, ETFs, and options without paying any commission fees.

How does fractional share investing work on Sofi?

Fractional share investing on Sofi allows users to buy a portion of a stock for as little as $1, making it possible to own shares in companies that might otherwise be too expensive to invest in with a full share.

What is the minimum investment required to start using Sofi Invest?

The minimum deposit to open an account with Sofi Invest is $0, but for their automated investment account, you only need $1 to get started, while for active investment portfolios, you need to fund your account with at least $10 within 30 days of opening the account.

What types of accounts does Sofi offer outside of investing?

Sofi offers Sofi Relay for financial tracking, checking and savings accounts with competitive interest rates, dedicated savings vaults for specific goals, and access to certified financial planners for guidance.

What is unique about Sofi's access to IPOs?

Sofi offers unique access to initial public offerings before they are traded on public markets, which is typically reserved for institutional investors.

How does the Sofi credit card work and what are its benefits?

The Sofi credit card offers unlimited 2% cash back on all purchases when points are redeemed towards Sofi investing or money accounts, or paying down eligible Sofi loans. It also offers 3% cashback on travel booked with Sofi travel, with no annual fees.

What is Sofi Plus and what benefits does it provide?

Sofi Plus is a free premium membership that provides enhanced interest rates on checking and savings accounts, discounted personal loan rates, double reward points on qualifying activities, and welcome offers.

Who is Sofi Invest ideal for?

Sofi Invest is ideal for beginner investors, hands-off investors who prefer a robo-advisor approach, and investors needing financial planning guidance, offering user-friendly access, automated portfolios, and unlimited access to certified financial planners.

What are the potential drawbacks of using Sofi Invest?

The potential drawbacks include basic charting that may not meet the needs of advanced traders, limited research tools compared to other platforms, and the absence of tax-loss harvesting features.

Outlines

00:00

💼 Overview of Sofi's Comprehensive Financial Platform

The Sofi app is a multifaceted financial tool that offers a range of services including automated and active investing, integrated banking with checking and savings accounts, and budget management. It's designed to cater to all levels of investors, from beginners to seasoned traders, with a user-friendly interface. The app allows for commission-free trading, fractional shares, and automated portfolio management through its Robo advisor service. Additionally, Sofi provides unique access to IPOs and features like automatic rebalancing and contributions to help users maintain their investment strategies.

05:02

📱 User Experience and Investment Options on Sofi

Sofi provides a clean and intuitive interface on both mobile and desktop platforms, making it accessible for investors of all levels. The investment options on Sofi include individual stocks, ETFs, options trading, and fractional shares. The platform also offers automated investing services and access to Bitcoin ETFs for those interested in crypto. The minimum investment to open an account is $0, with active portfolios requiring a minimum of $10 within 30 days. Sofi also offers a variety of accounts, including investment, checking and savings, retirement, and personal loans, mortgages, and student loans.

10:03

🔐 Security, Pricing, and Sofi Plus Benefits

Sofi is a secure platform, being a member of SIPC, which provides insurance against brokerage failure, and FDIC insurance for bank deposits. There are no monthly or annual fees for using the Sofi platform, and it offers commission-free trading and free automated investing services. Sofi Plus is a premium membership that provides enhanced interest rates, discounted loan rates, and other benefits such as double reward points and welcome offers. The Sofi credit card offers 2% cash back on all purchases and 3% cash back on travel booked through Sofi, with no annual fees.

🌟 Pros and Cons of Sofi Invest App

The Sofi Invest app is praised for its convenience, flexibility for all investors, access to IPOs, and free access to certified financial planners. However, it has some drawbacks such as basic charting that may not satisfy advanced traders, limited research tools, and the absence of tax-loss harvesting. The app is ideal for beginner investors, hands-off investors who prefer automated portfolio management, and those seeking financial planning guidance.

Keywords

💡Sofi

Sofi is a comprehensive financial platform that offers a wide range of services including investing, banking, and saving solutions. It is designed to be user-friendly and accessible to investors of all levels, from beginners to more experienced traders. In the video script, Sofi is highlighted as an all-in-one solution where users can manage their finances, invest in stocks and ETFs, and even save for specific goals, making it a central theme of the video.

💡Automated Investing

Automated investing, also known as robo-investing, is a service where algorithms manage your investment portfolio based on your risk tolerance and financial goals. Sofi's automated investing accounts are mentioned in the script as a feature that allows users to get started with as little as $1, emphasizing the platform's accessibility and hands-off approach to investing.

💡Active Investing

Active investing refers to the strategy where investors actively buy and sell stocks, ETFs, and options in an attempt to outperform the market. The script explains that Sofi offers commission-free active investing accounts, allowing users to manage their own portfolios without paying trading fees, catering to those who prefer a more hands-on approach.

💡Fractional Shares

Fractional shares allow investors to buy a portion of a full share, which can be particularly beneficial for those who cannot afford a full share or wish to diversify their portfolio. The script mentions that Sofi supports fractional shares, enabling users to invest in companies with high share prices by purchasing just a fraction of a share.

💡Robo Advisor

A robo advisor is an automated platform that provides financial planning services with little to no human supervision. In the context of the video, Sofi's robo advisor service builds and manages a diversified portfolio of low-cost ETFs for the user, based on their personal risk tolerance and investment horizon, which is a key feature for passive investors.

💡IPOs

Initial Public Offerings (IPOs) refer to the process by which a private company goes public by offering its shares for sale to the general public for the first time. The script highlights that Sofi offers access to IPOs, a feature typically reserved for institutional investors, providing a unique opportunity for retail investors to participate.

💡Checking and Savings Accounts

Checking and savings accounts are basic banking products that allow users to deposit and withdraw funds. The video script mentions that Sofi integrates these accounts within its platform, offering competitive interest rates and no fees, which allows users to manage their day-to-day finances alongside their investments.

💡Certified Financial Planners

Certified Financial Planners (CFP) are professionals who have met rigorous certification standards and can provide comprehensive financial planning services. The script points out that Sofi offers unlimited access to CFPs at no extra cost, providing users with personalized financial advice and guidance.

💡SIPC Insurance

The Securities Investor Protection Corporation (SIPC) is a nonprofit organization that provides limited insurance to customers of failed brokerage firms. The script assures viewers that Sofi is SIPC insured, protecting up to $500,000 of securities per customer, which is crucial for investor confidence.

💡FDIC Insurance

The Federal Deposit Insurance Corporation (FDIC) is an independent agency that insures deposits in banks and credit unions. The video script notes that Sofi Bank deposits are FDIC insured, which is important for users to know as it protects their deposits up to a certain limit in case the bank fails.

💡Minimum Investment

The minimum investment refers to the least amount of money required to open or participate in an investment account. The script clarifies that Sofi has a low minimum investment requirement, with no minimum deposit needed to open an account and just $1 needed to start an automated investment account, making it accessible to a wide range of investors.

Highlights

Sofi is a comprehensive financial app offering automated investing, active investing portfolios, integrated checking and savings accounts.

Sofi's user-friendly interface is suitable for beginners and experienced investors alike.

Sofi Invest allows investing in the stock market starting with just $1.

The app provides a single dashboard to connect all accounts, monitor credit score, and manage budget.

Sofi offers automated portfolios, fractional shares, and commission-free trading of stocks, ETFs, and options.

Active investing accounts let users buy and sell without paying commissions.

Automated investing accounts utilize a robo-advisor service building a portfolio based on personal risk tolerance.

Sofi provides access to IPOs, typically reserved for institutional investors.

The app offers a user-friendly interface for managing investments, banking, and money.

Sofi provides historical data, stock performance information, and real-time quotes.

Automatic rebalancing is offered to maintain target asset allocation when money enters or leaves the account.

Sofi Money includes Sofi Relay for credit score monitoring and financial insights.

Sofi offers checking and savings accounts with competitive interest rates.

Dedicated savings vaults help users save for specific goals like vacations or homes.

Sofi provides access to certified financial planners for guidance at no extra cost.

Sofi Points is a rewards program where users can earn points for completing tasks in the app.

Sofi offers a clean, intuitive interface suitable for investors of all skill levels.

Sofi Invest provides access to individual stocks, ETFs, and options trading.

The minimum deposit to open an account with Sofi Invest is $0, with a $1 minimum for automated investment accounts.

Sofi is SIPC insured and FDIC insured for investment and bank deposits, respectively.

There are no monthly or annual fees for using the Sofi platform.

Sofi Plus offers enhanced interest rates and discounted personal loan rates with direct deposit setup.

Sofi Credit Card offers 2% cash back on all purchases and 3% on travel booked with Sofi.

Sofi is ideal for beginner investors, hands-off investors, and those needing financial planning guidance.

Transcripts

this is what makes Sofi the one app

where all your finances are just the tap

away from automated investing and active

investing portfolios to integrated

checking and savings accounts whether

you're a beginner a hands-off investor

or a more active investor sofi's

userfriendly interface offers something

for everyone it's simple straightforward

and lets anyone get started investing in

the stock market with just $ one but is

Sofi the right investing app for you

let's dive in so what is Sofi well the

Sofi app is a feature-packed financial

platform where you can invest bank and

save all Under One Roof through a single

dashboard you can connect all your

accounts monitor your credit score and

even manage your budget the app is

straightforward and userfriendly making

it an ideal choice for beginners but it

also provides the tools and features

necessary that even more experienced

investors can appreciate Sofi invest

offers automated portfolios fractional

shares and let you get started buying

stocks with as little as $1 the app is

really designed to be a One-Stop shop

providing you with a wide range of

services and resources to help you get

your money right so how does Sofi invest

work well Sofi invest is the investment

platform inside the Sofi app that caters

to both active and passive investors

offering a range of services including

commission-free trading of stocks

exchange traded funds or ETFs and

options and the app mainly provides two

main types of investing active investing

and automated investing sofi's active

investing accounts allow you to buy and

sell stocks ETFs and options without

paying commissions while sofi's

automated investing accounts is their

Robo advisor service where the app

builds a portfolio of lowcost ETFs for

you based on your personal risk

tolerance and time Horizon plus their

automated investing portfolios are also

free of any advisory fees so let's dive

into some of the best features of Sofi

invest and the first would be their

commission free trading with commission

free trading in thousands of stocks ETFs

and options it makes Sofi a pretty

cost-effective choice for active Traders

and investors ERS another beneficial

feature are fractional shares the app

supports fractional shares allowing you

to buy a portion of stock for as little

as $1 and this feature really makes it

possible for anyone owns shares in

companies that otherwise might be too

expensive to buy a full share and for

more hands-off investors you also have

to appreciate the app's Robo advisor

service because with their automated

investing portfolios this really helps

take the guesswork out of picking Stocks

by letting Sofi build and manage a

portfolio for you based on your

financial goals and your risk tolerance

another interesting feature with Sofi

invest is access to IPOs they offer

unique access to initial public

offerings before they're traded on

public markets which is typically

something usually reserved only for

institutional investors the app also has

a user-friendly interfaced so whether

you're investing banking or just

managing your money the app is simple to

navigate and find what you need from the

home dashboard and as far as research

and data while its research capabilities

might not be as extensive as some other

trading platforms so Sofi invest does

provide historical data stock

performance information and real-time

quotes and performance tracking another

beneficial feature for Sofi users is

their automatic rebalancing Sofi invest

automatically rebalances your portfolio

to maintain your target asset allocation

and this occurs every time money enters

or leaves your account ensuring your

investment strategy stays on track plus

with automatic contributions you can set

up automatic transfers and contributions

to your Sofi portfolios which can help

in building your safe consistency over

time now let's talk about Sofi money

because the Sofi app also offers several

useful features outside of investing

that are designed to help you manage

your finances more effectively the first

is Sofi relay so with Sofi relay this

feature tracks all of your money in one

place providing you credit score

monitoring and Financial Insights at no

extra cost it allows you to connect both

your Sofi accounts and your external

accounts giving you a more complete

overview of your financial health and

for budgeting and money tracking the

Sofi app also includes tools for

budgeting and tracking your money

helping you to manage your finances more

efficiently plus Sofi also offers

checking and savings accounts with

competitive interest rates and these

accounts are actually integrated into

the same Sofi app allowing you to manage

your day-to-day finances alongside your

investments in a single place now

another savings feature on Sofi are

their dedicated savings vaults and these

are specific savings accounts Sofi lets

you set up for different goals such as

saving for your vacation or for

purchasing a home this feature can

really help you more effectively by

separating your dedicated savings

accounts from your regular check-in

accounts and for those who may need

guidance Sofi also offers unlimited

access to certified financial planners

at no extra cost so if you ever need

guidance their financial advisers can

provide you with personalized advice to

help you along the way and then you have

Sofi points this is sofi's member

Rewards program where you can earn

points by completing tasks in the Sofi

app these points can then be be redeemed

for rewards such as free stocks and your

favorite companies right back in your

Sofi portfolio so let's talk about the

user experience because Sofi provides

you with an easy to navigate mobile app

and desktop interface so whether you're

on iOS or Android Sofi focuses on

Simplicity making their platform

suitable for investors of all skill

levels the app has a clean intuitive

interface and you'll never find yourself

more than a click away from all your

essential information now let's talk

about the types of Investments available

on Sofi invest because they offer

several different options the first is

stocks again you have access to buying

and selling thousands of individual

stocks on the platform as well as

exchange traded funds or ETFs Sofi

offers a wide range of lowcost ETFs

which are Diversified investment funds

also traded on stock exchanges the

platform also allows for options trading

which involves buying and selling

options contracts on the direction of

stock prices Sofi invest also supports

the purchase of fractional shares and

enabling you to invest in stocks with as

little as $1 which is particularly

useful for buying shares of companies

with higher stock prices plus with

automated investing the robo advisor

service provides automated investing

Services where the platform builds and

manages a diversified portfolio for you

based on your personal risk tolerance

now while you can no longer invest in

crypto directly on Sofi they do offer

you access to the crypto space through

Bitcoin ETFs so let's talk about the

minimum investment required to get

started started with Sofi so this will

actually vary depending on the type of

account you're interested in opening so

the minimum deposit to open an account

with Sofi invest is actually 0 which

means you can open account without

immediately funding it the difference is

for their automated investment account

you only need $1 to get started but for

their active investment portfolios you

need to fund your account with at least

$10 within 30 days of opening the

account so whether you're interested in

their automated portfolios or you prefer

picking your own stocks sofi's low minut

minimum investment helps make the stock

market accessible to a wide range of

investors speaking of investing if you'd

like to try Sofi I do have referral

links below with sign up bonuses for

Sofi and all my favorite investing apps

at my personal website investing

apps.com now Sofi offers a variety of

different types of accounts that all

integrate with each other the first is

their investment accounts and Sofi

offers both individual and Joint

investment accounts where you can buy

and sell stocks and ETFs these accounts

again can be managed actively by you or

passively through sofi's automated

investing service and for Mobile Banking

Sofi offers a combined checking and

savings account called Sofi checking and

savings this account offers competitive

apy interest rates no account fees and

even access to a large network of ATMs

and for saving for retirement Sofi

offers traditional IRA Roth IRA and SEP

IRA retirement accounts as part of its

investment options just like their

individual investment accounts sofi's

retirement account can also be managed

actively or passively and in addition to

investing in banking Sofi also offers

personal loans student loans and

mortgages which can all be applied for

online through the app or on their

website sofi's personal loans are

actually unsecured loans that can be

used for a variety of purposes such as

debt consolidation medical bills Home

Improvement and even family vacations

Sofi student loans are private loans

that can cover up to 100% of school

certified cost including things such as

tuition books room in board and even

transportation and for those interested

in buying a home sofi's mortgage loans

offer flexible term options and down

payments as low as 3% so is Sofi safe

well yes as a member of the sipc or the

Securities investor Protection

Corporation Sofi is sipc insured against

brokerage failure Securities in your

accounts are protected up to $500,000

including up to $250,000 for cash sipc

insurance is investor protection for

investment brokerages Sofi Bank deposits

are also FDIC insured as well now let's

talk about pricing and plans because

while many Robo advisers charge a

monthly fee or percentage-based fee

there's no monthly or annual fee for

using the Sofi platform again sofi's

active investing platform allows for

commission free trading of stocks ETFs

and options and their automated

investing service is also provided

without any advisory fees so whether

you're just starting to invest or you're

looking to cut down on your monthly cost

from your bank or brokerage Sofi has has

got you covered now let's talk about

Sofi plus Sofi plus is a free premium

membership offered by Sofi that provides

you with access to enhanced interest

rates on your checking and savings

accounts and also discounted personal

loan rates to unlock Sofi Plus at no

extra cost you need to set up direct

deposit to your Sofi checking and

savings account other benefits also

include earning double reward points on

qualifying activities and welcome offers

like 3% cash back on eligible Sofi

credit card purchases so let's talk

about that Sofi credit card the Sofi

credit card offers unlimited 2% cash

back on all your purchases when the

points are redeemed towards your Sofi

investing or your Sofi money accounts or

even toward paying down an eligible Sofi

loan you can also earn unlimited 3%

cashback on all travel booked with Sofi

travel the Sofi credit card essentially

rewards you for paying off your balance

in full each month and it has zero

Annual fees so let's break down the pros

and cons of the Sofi invest app the

first pro would definitely be convenient

the app is userfriendly and feature

packed with a variety of financial

services all in one place again

including investing Banking and lending

the second Pro would be that Sofi is

flexible for all investors whether

you're a hands-off investor or a more

active investor Sofi offers you

automated portfolios commission free

trading and low account minimums and

thirdly with access to IPOs Sofi

provides access to initial public

offerings a feature not found in all

investment apps and the last Pro would

be sofi's certified financial planners

because again Sofi offers access to

certified financial planners at no

additional charge for its users now onto

the con side the first con would be

sofi's basic charts while the charts

provided by Sofi are more than adequate

enough for more hands-off and passive

investors they may not meet the needs of

more advanced Traders the second con

would be sofi's limited research tools

while sofi's research tools are simple

to understand they may not be sufficient

for more advanced investors and the the

third con would be no tax lost

harvesting Sofi does not offer tax lost

harvesting a feature offered by some

Robo advisers that can help reduce taxes

owed on your investment gains so at the

end of the day who is Sofi invest

actually ideal for I would say for

beginner investors sofi's app and

website are userfriendly and designed to

be accessible making them a good fit for

those new to investing or who are just

starting to build their portfolios also

for hands-off investors sofi's automated

investing portfolios are perfect for

investors who prefer more of a robo

advisor approach to managing their

Investments again this service

completely manages a portfolio for you

based on your personal risk tolerance

and time Horizon all without charging

any advisory fees and lastly for

investors needing financial planning

guidance Sofi offers unlimited access to

a team of certified financial planners

which can be a valuable resource if you

ever need professional guidance on your

investment strategies now if you would

like to try Sofi I do have referral

links below with signup bonuses for Sofi

along with all my favorite investing

apps at my personal website investing

apps.com from my years of testing

several investing apps Sofi is one of

the most userfriendly for investing in

stocks and ETFs if you'd like to see how

Sofi compares to these other top

investment brokerages check out this

video right here where I compare some of

the top investing apps with Sofi and if

you'd like to learn how to get started

with Sofi check out my Sofi tutorial for

beginners right here I'll show you how

to set up your Sofi account navigate

your port folio and how to take

advantage of all their investing

automation features