🎯 Brokerage Review: SoFi Invest

SoFi Review: A Modern Brokerage for Everyday Investors

Author

Brandon Smith
May 17, 2025

Table of Contents

✅ What is SoFi Invest?

SoFi Invest: A Modern Brokerage for Everyday Investors

SoFi, short for Social Finance, is a personal finance platform founded in 2011 and based in San Francisco. Known for its student loan refinancing roots, SoFi has since evolved into a full-suite financial services company — offering banking, lending, and investing tools through a sleek, mobile-first experience.

SoFi Invest is its brokerage arm, built for beginners and intermediate investors who want to manage stocks, ETFs, crypto, and retirement accounts in one place — with no commissions, low barriers to entry, and a strong educational bent.

SoFi Invest offers:

📊 Key Features & Offerings

1. Beginner-Friendly Investing

SoFi Invest makes it easy for new investors to get started:

  • Buy fractional shares of top stocks and ETFs with just $5

  • No account minimums and no trading fees

  • Simple interface with curated stock collections (e.g., “Tech Innovators,” “Dividend Payers”)

  • Automated investing with pre-built diversified portfolios

2. Crypto Without the Confusion

Unlike dedicated crypto exchanges, SoFi offers a streamlined experience for buying and selling digital assets:

  • Trade ~30 popular cryptocurrencies (Bitcoin, Ethereum, Solana, etc.)

  • Instant funding via linked bank accounts

  • No wallet required — SoFi acts as custodian

  • Clear fee structure: 1.25% markup on crypto trades

3. Automated Investing (Robo Portfolios)

Let SoFi handle your portfolio with automated investing:

  • Goal-based portfolios tailored to risk tolerance and timeline

  • No advisory or management fees

  • Automatically rebalanced over time

  • Includes exposure to stocks, bonds, and ETFs

4. Retirement Accounts

SoFi supports tax-advantaged investing via:

  • Traditional IRAs

  • Roth IRAs

  • Rollover IRAs

  • Easy contributions and educational tools for retirement planning

5. IPO Investing

Get early access to public offerings — a unique feature for retail users:

  • Participate in IPOs before they hit the public markets

  • Requires a few eligibility steps (active SoFi Invest account, completed profile)

  • Historically rare access for non-institutional investors

6. All-in-One Financial Ecosystem

Being part of SoFi’s platform means:

  • Seamless integration with SoFi Checking/Savings, Loans, and Credit Card

  • SoFi Credit Card cashback can be applied to your Invest account

  • Personalized financial planning with access to CFPs for SoFi members

Check out the Top 5 crypto exchanges for 2025

⚖️ Pros & Cons

Pros

✅ $0 commission trades on stocks and ETFs
✅ Fractional shares for accessible investing
✅ Simple, clean app and interface
✅ Free robo-advisor with automatic rebalancing
✅ Retirement accounts included
✅ Access to IPOs and crypto
✅ Full financial suite (banking, loans, investing)

Cons

❌ Limited crypto selection and functionality (no wallet withdrawals)
❌ No advanced trading tools (e.g., options, margin, screeners)
❌ Limited research tools compared to platforms like Fidelity or TD Ameritrade
❌ 1.25% crypto trading markup is higher than some exchanges
❌ IPO investing access isn’t guaranteed

📱 User Experience

  • Mobile App: Clean, modern, and beginner-friendly; integrates banking and investing under one roof

  • Web Platform: Simple and useful, but not built for technical or active traders

  • Support: Access to live chat, email, and financial planners (for members)

🔒 Is Gemini Safe?

Yes — SoFi is a regulated U.S. broker-dealer:

  • Securities are SIPC-insured (up to $500,000)

  • Banking features FDIC-insured through SoFi Bank

  • Registered with FINRA and the SEC

  • Strong account security measures (2FA, encryption, biometric login)

📈 Who Should Use SoFi?

Best for:

  • First-time investors looking for an easy, low-cost way to get started

  • People who want banking + investing in one app

  • Passive investors who want automated portfolios

  • Retirement savers looking to contribute to IRAs

  • Users interested in dipping their toes into crypto and IPOs

Not ideal for:

  • Advanced traders who need charts, options, or margin

  • Dedicated crypto users who want wallet control or altcoins

  • DIY investors looking for deep research and screeners

  • Day traders or high-frequency traders

🆕 What’s Coming Soon?

SoFi continues to enhance its offerings:

  • Expanding educational content for financial literacy

  • Adding new asset classes (e.g., potential for more crypto or alternative assets)

  • Deeper integration with SoFi banking and credit

  • Ongoing improvements to the mobile experience and robo investing UX

💡 Lowcountry Ledger’s Take: SoFi Invest is a beginner-friendly, all-in-one investing app offering commission-free trades, automated portfolios, crypto access, and retirement accounts—ideal for passive investors, but limited for advanced traders.

Want to explore SoFi?

You can sign up here and start your investing journey on a platform that takes safety seriously. Sign up below to receive $25 in stock.👇

📘 SoFi & Investing Glossary

🔰 General Investing Terms

  • Stock: A share of ownership in a company. When you own stock, you're a partial owner of that company.

  • ETF (Exchange-Traded Fund): A basket of stocks or bonds that trades like a stock. ETFs help diversify your investments.

  • Fractional Share: A portion of a full stock. SoFi lets you buy as little as $5 worth of a stock, even if the full share costs hundreds.

  • Portfolio: Your collection of investments — like stocks, ETFs, and crypto — held in your account.

  • Diversification: Spreading your money across different assets to reduce risk.

  • Robo-Advisor: An automated investment service that builds and manages a portfolio for you based on your goals and risk level. SoFi offers this free of charge.

  • Rebalancing: Adjusting your portfolio over time to maintain your target mix of assets (e.g., 60% stocks, 40% bonds).

  • Asset Allocation: How your money is divided between different types of investments (like stocks, bonds, or cash).

💼 SoFi-Specific Features

  • SoFi Invest: SoFi’s brokerage platform where you can trade stocks, ETFs, and crypto, or use automated investing.

  • Active Investing: A SoFi Invest account type where you pick and trade your own stocks and ETFs.

  • Automated Investing: A SoFi Invest feature where SoFi builds and manages a diversified ETF portfolio for you, based on your goals.

  • SoFi Credit Card: A cashback credit card where rewards can be applied directly to your SoFi Invest account to buy stocks or crypto.

  • SoFi IPO Access: Lets eligible members buy shares in certain companies before they go public.

🔐 Account Types

  • Brokerage Account: A standard investment account for trading stocks and ETFs. Taxable.

  • Roth IRA: A retirement account where you invest after-tax money, and withdrawals in retirement are tax-free.

  • Traditional IRA: A retirement account with potential tax-deductible contributions; taxes are paid when you withdraw in retirement.

  • Rollover IRA: An IRA where you move funds from a 401(k) or other employer plan after leaving a job.

📈 Crypto on SoFi

  • Cryptocurrency: Digital currency like Bitcoin or Ethereum. SoFi allows trading ~30 cryptos.

  • Custodian: A third party (in this case, SoFi) that holds your crypto securely for you.

  • Crypto Markup: SoFi charges a 1.25% fee on crypto transactions (built into the price you pay or sell at).

💲 Fees & Funding

  • Commission-Free Trading: SoFi charges $0 to buy or sell stocks and ETFs.

  • Management Fee: An annual cost for managing an investment account — SoFi charges $0 for its automated investing.

  • ACH Transfer: Electronic transfer from your bank account to fund SoFi Invest.

🧠 Investor Mindset Terms

  • Risk Tolerance: How much market volatility you're comfortable with. SoFi uses this to build your robo portfolio.

  • Time Horizon: How long you plan to keep your money invested. Longer horizons generally allow for more risk.

  • Dollar-Cost Averaging (DCA): Investing the same amount regularly (e.g., $100/month), regardless of market conditions. Helps reduce the impact of volatility.

  • Compound Growth: Earning returns on both your original investment and the returns it generates — it adds up over time.

SoFi Invest FAQ

1. What is SoFi Invest?

SoFi Invest is SoFi’s investing platform that lets you trade stocks, ETFs, and crypto, or use automated investing portfolios — all commission-free. It’s designed to be beginner-friendly with no account minimums.

2. How do I open a SoFi Invest account?

You can sign up via the SoFi app or website in just a few minutes. You’ll need to provide personal info like your Social Security number and link a bank account to fund your investments.

3. Is there a minimum deposit required?

No. You can get started with as little as $5 thanks to fractional share investing.

4. What can I invest in with SoFi Invest?

You can invest in:

  • Stocks and ETFs (including fractional shares)

  • Approximately 30 cryptocurrencies like Bitcoin and Ethereum

  • Automated portfolios with ETFs (robo-advisor)

  • IPOs (for eligible users)

  • IRAs (Traditional, Roth, and Rollover)

5. What’s the difference between Active and Automated Investing?

  • Active Investing lets you pick your own stocks, ETFs, and crypto.

  • Automated Investing builds and manages a diversified portfolio for you based on your goals — with no management fees.

6. Can I trade crypto on SoFi?

Yes. You can trade major cryptocurrencies like Bitcoin, Ethereum, and Solana. SoFi acts as the custodian and charges a 1.25% markup on trades.

7. Does SoFi Invest charge any fees?

  • Zero commissions on stock and ETF trades

  • No management fees for automated investing

  • 1.25% markup on crypto trades (built into the price)

  • No account opening or maintenance fees

8. Can I invest for retirement with SoFi?

Yes. SoFi supports:

  • Traditional IRAs

  • Roth IRAs

  • Rollover IRAs

You can invest through either Active or Automated accounts.

9. What is SoFi’s IPO investing feature?

Eligible users can participate in select IPOs before they’re publicly listed. You’ll need to complete a brief profile and meet eligibility criteria to access IPO shares.

10. Is my money safe with SoFi Invest?

Yes:

  • Stock and ETF investments are SIPC-insured (up to $500,000)

  • Crypto is custodied by a partner and not SIPC-insured

  • SoFi is a registered broker-dealer with FINRA and the SEC

  • Strong security features include two-factor authentication, biometric login, and data encryption

11. Can I schedule recurring investments?

Yes. SoFi makes it easy to set up automated recurring buys for both stocks and crypto — a great way to dollar-cost average over time.

12. Does SoFi offer financial advice?

Yes. SoFi members get free access to financial planners (Certified Financial Planners, or CFPs) who can help with investing, retirement planning, and more.

13. Can I use SoFi Credit Card rewards to invest?

Yes. You can redeem SoFi Credit Card cashback directly into your SoFi Invest account and use it to buy stocks, ETFs, or crypto.

14. How do I withdraw my money?

You can sell your investments and transfer funds back to your linked bank account. Stock and ETF sales typically settle in one to two business days.

15. Can I transfer investments from another broker to SoFi?

Yes. You can initiate an ACATS transfer to bring in your existing investments. SoFi may reimburse transfer fees (check current promotions or support for details).

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