SoFi

SoFi

4.5

(4 Reviews)

Robo Advisor

SoFi

SoFi

All-in-one investing that's easy to use. Build confidence as an investor. Trade stocks, fractional shares, and ETFs or start automated investing. Plus, members have unlimited access to financial planners.

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Highlights

Auto Track Available

-14.93%

Asset Class Return30d

#40 Rank

In Robo Advisor30d

avatars

Invest from

$5

Receive $5 to $1,000 in free stock for users who sign up via mobile app

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Overview

SoFi’s mission is to help people reach financial independence to realize their ambitions. And financial independence doesn’t just mean being rich—it means getting to a point where your money works for the life you want to live. All-in-one investing that's easy to use. Build confidence as an investor. Trade stocks, fractional shares, and ETFs or start automated investing.

Things to Know

  • You make money on

    Value + Dividends

  • Fees

    0%

  • Min Investment

    $5

  • Payout frequency

    Quarterly

  • Term of investment

    Zero

  • Target Return

    7% - 10%

  • Liquidity

    Easy

  • Open to

    All Investors

  • Mobile Application

    iOS, Android

Top Perks

  • Start investing with as little as $5 with 0% fees

  • FREE financial planning with human financial planners ($590 value)

  • FREE access to exclusive SoFi events

How you make money

When you invest with SoFi, you get access to financial planning with human financial planners at no extra charge. They provide personalized advice based on your unique financial situation and goals ($590 in value, free of charge).You can use there self directed trading and invest on your own or you can use their robo advisor for hands off investing. With SoFi you can also automatically reinvest your dividends, invest in crypto, and even purchase fractional shares of stock, called Stock Bits, for as little as $5. You earn with SoFi through returns generated from stock price appreciation and dividends. 

 

For reference: according to historical records, the average annual return from the S&P Index since its inception in 1926 through 2018 is approximately 10%–11%. The average annual return since adopting 500 stocks into the index in 1957 through 2018 is roughly 8%. Adjusted for inflation, the historical average annual return is around 7%. However, it's important to note that each Robo has their own investment strategy that can influence returns.

How SoFi makes money

For SoFi Invest, they used to make money from management fees, but recently decided to offer their Automated Investing (formerly known as SoFi Wealth), a robo-advisor, with no SoFi management fees. They also offer Active Investing, the ability to buy and sell individual stocks and ETFs, without any account minimums or commissions. Through Active Investing, they earn revenue in a variety of ways, all of which help to keep the service free for their members. They earn interest from both uninvested cash held in the account (through an FDIC sweep program that also helps keep your cash safe) and from securities that are lent to institutions that need to borrow shares. They also earn a small amount of money from rebates that they receive from market makers through their clearing firm, Apex Clearing, for choosing them as their execution partner.

 

Sofi also offers many products beside their investment services such as banking, lending, credit card, insurance, and many more products. Sofi generates revenue from many different avenues.

Is it safe?

The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities). Clearing and custody of all securities are provided by APEX Clearing Corporation. SoFi Securities is a Member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash).

  • Established

    2011

  • Country Available

    US Only

  • Assets Managed

    $12B

How You’re Taxed

Capital Gains

Capital Gains

As with any stock realized stock gains, investors are subject to capital gains tax. If gains are realized within one year, you are taxed at your income tax rate. If gains are realized after one year, you are subject to a long-term capital gains tax of 0% to 20%. A common service that some robo-advisors offer through their systems is automatic tax-loss harvesting. Tax-loss harvesting is a deliberate strategy whereby any loss from the sale of a security in a taxable account is used to offset a capital gain or taxable income, thereby reducing the tax paid.

Reviews

4.5
  • 5

    3

  • 4

    0

  • 3

    1

  • 2

    0

  • 1

    0

Reviews (4)
N

Nopolo

After testing out for a couple months...... I like what I see with the performance and ease and other plus’s other platforms offer. I like the ability to buy investments by dollar amounts rather than per share. Others let you do this with Mutual funds but not brick and mortar stocks such as Att Coke ect. And you cannot beat the no cost portfolio management!

J

Jjiibbeerr

Very nice app! The only issue I have is I wish they would make it more user friendly for people that are new to investing. First week I got a scary email about being labeled as a pattern day trader. It makes someone very nervous when not knowing the rules and regulations. Especially when your hard earned money is involved. I wish they had a deal where they warned you before placing a trade about PDT that way newbies could learn easier because investing should be fun. Now I’m almost scared to touch anything.

J

Jolly

This app has pretty much everything you’d want. It’s also really nice to see updates and enhancements constantly being released.

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