SoFi Invest Review 2024 - Is It The Best Investing Platform?

Summary

In 2024, Sofi Invest stands out as a favored investment platform offering generous referral bonuses and fee-free active and automated investing. It differentiates itself by not charging management fees, unlike competitors like Wealthfront and Betterment. Key features include the ability to purchase fractional shares and set up recurring investments. Sofi also provides free access to financial advisors and has introduced new features like IPO and options investing, though it has discontinued crypto investing.

Takeaways

• 💰 Sofi offers a generous referral bonus of $50 for depositing $10 or more.
• 📉 The expected value of Sofi's main promotion is only $8, making referral bonuses more attractive.
• 💼 Sofi stands out for having no management fees for its Robo-advisor, unlike Wealthfront and Betterment which charge 0.25% per year.
• 🔄 Sofi allows active and automated investing, providing flexibility for different investment strategies.
• 💡 The platform supports fractional shares, enabling investment in high-priced stocks and ETFs with as little as $5.
• 🔄 Sofi facilitates recurring investments, which is ideal for those who prefer regular, automated investing.
• 📊 The platform provides detailed analytics for ETFs, including current price, average cost per share, unrealized gain, and dividends received.
• 📈 Investors can set up recurring investments in specific ETFs, like SCD, with ease.
• 🆓 Sofi provides free access to a financial advisor, a service that many other firms charge for.
• 🚫 Sofi has discontinued crypto investing as of December 20th, 2023.
• 📈 New features include the ability to invest in IPOs and options, catering to more advanced investors.

Q & A

What is the referral bonus offered by Sofi Invest in 2024?

Sofi Invest offers a referral bonus of $50 to invest when you deposit $10 or more into your account using a referral link.

What is the maximum referral bonus one can earn with Sofi Invest without using a referral link?

Without using a referral link, the maximum referral bonus one can earn is up to $11,000, but the expected value is just $8 based on the odds provided.

What are the two fee-free ways to invest with Sofi Invest?

The two fee-free ways to invest with Sofi Invest are active investing and automated investing.

How does Sofi Invest's Robo advisor compare to competitors like Wealthfront and Betterment in terms of fees?

Sofi Invest's Robo advisor does not charge any management fee, whereas Wealthfront and Betterment both charge a fee of 0.25% per year.

What account types can be opened with Sofi Invest?

With Sofi Invest, you can open a taxable brokerage account, traditional IRA, Roth IRA, or a SEP IRA account.

Why is the ability to purchase fractional shares important for the user?

The ability to purchase fractional shares is important because it allows the user to invest as little as $5 per stock or ETF, even if they don't have enough to buy an entire share.

What recurring investment example does the user provide in the script?

The user provides an example of investing $5 per week in the ETF SCD, which invests in stocks that pay high dividends.

What additional information is provided when analyzing an ETF on Sofi Invest?

When analyzing an ETF, additional information includes the 52-week high and low, market cap, dividend yield, volume, P/E ratio, 30-day SEC yield, and expense ratio.

What is the one feature the user would like to see added to the ETF analysis section on Sofi Invest?

The user would like to see the total return, including the dividends received, as it is currently missing from the unrealized gain calculation.

What new feature has Sofi Invest added that allows users to participate in IPOs?

Sofi Invest has added the ability for users to invest in IPOs, allowing them to buy initial shares when a private company goes public on a stock exchange.

What is the significance of the margin requirements feature on Sofi Invest?

The margin requirements feature on Sofi Invest allows users to invest on margin, meaning Sofi will loan them money on top of their own to invest, but this is riskier as they must pay back the loan even if the stock price goes down.