What Is SoFi Invest?
SoFi Invest is an online investing app and stock trading platform based in San Francisco. It was launched in 2019 and is, alongside SoFi Money, the two newest additions to the SoFi family of financial solutions. SoFi Invest offers new investors access to robo-advisor services through their Automated Investing tool and experienced investors access to self-directed tools on their Active Investment offering.
Supported securities include the usuals like stocks, ETFs, and IPOs listed on US markets, plus fractional shares, 30 of the biggest cryptocurrencies, and margin investing. Other SoFi financial products include SoFi Bank and SoFi Borrow. Since its inception in 2011, SoFi has funded over $50 billion in loans and boasts more than 4 million active users.
Is SoFi Investing Good For Beginners?
If you have no experience investing, SoFi Invest is an excellent option. With their Automated Investing tool, you can invest in a diversified portfolio of stocks chosen by a set of tried-and-tested computer algorithms. The best part is that you won’t have to worry about rebalancing your portfolio and keeping it diversified – SoFi takes care of all that for you. For those reasons, SoFi Invest is an excellent option for new investors or investors who can’t afford to spend hours every day picking stocks.
For experienced investors, there’s Active Investing, which includes all the tools self-directed investors will need, like real-time data, curated content, and customizable watchlists and alerts. Additionally, you will have access to unique investment opportunities like fractional shares, crypto, and margin investing, which allows you to leverage the other investments you hold with SoFi and reinvest in more stocks and ETFs. We go over this and all other features in our full SoFi Invest review.
Does SoFi Charge A Monthly Fee?
No – SoFi Invest doesn’t charge a monthly fee. The only fee to watch out for is the withdrawal fee.
- Minimum Investment: None
- Management Fees: Free
- Commissions: Free
- Bank Wire Fee (Withdrawal): $25 (or $0 for ACH withdrawals)
- Fund/ETF Fee: Variable (depends on the fund)
If you invest in Funds/ETFs through SoFi Invest, you may have to pay a fee to the manager of that fund as you would if you invested directly in that fund. SoFi doesn’t earn any commission from this fee.
Signing Up With SoFi Invest
SoFi Invest is only available for investors in the US that are at least 18 years old. Additionally, you will need US citizenship, permanent residence, and a valid Social Security Number (SSN).
Signing up for SoFi Invest is very quick and won’t take more than a couple of minutes. If you use our link to sign up, you can earn anywhere from $25-$500, depending on the SoFi product you sign up for. Here are the steps to sign up:
- Visit SoFi Invest’s website
- Click the Invest Now button at the top right
- Enter a valid email address
- Verify your email by clicking the email they send you
- Fund your account
Supported funding methods include linking your SoFi Money account or savings account and transferring directly, personal checks or ACAT transfers, and bank wires. Alternatively, you can set up recurring deposits or grow your retirement savings with a SoFi IRA.
Is Sofi Investing Legit?
Yes – SoFi is completely legit and safe to use and invest in. SoFi Invest has more than 3.5 million active users as of late 2022 and continues to grow exponentially. Just in 2021, over 1.6 million investors joined the platform.
SoFi invest is a member of the SIPC and offers coverage for investors for up to $500,000, including $250,000 for cash claims.
How Do I Get My Money Out Of SoFi Invest?
There are two ways you can get your money out of your SoFi Invest account: through the mobile App and the official website. The whole process may take between 1-3 business days; here are the steps:
- Visit the official website and log in (or open your SoFi Invest app)
- Select the Invest account you want to withdraw from
- Click on Manage and then Withdraw
- Choose an amount and select the account that will receive the funds
- Finally, click Review and verify all the information
Keep in mind that you can only withdraw your balance that qualifies as Withdrawable Cash – that means funds that are already cleared and settled.
If you sell crypto or another asset, your proceeding will first qualify as Buying Power – you can use that to purchase other assets within SoFi immediately, but you will need to wait between 1-5 business days before it qualifies as Withdrawable Cash.
How Does SoFi Make Money With No Fees
SoFi Invest earns most of its income by lending out shares to other trading platforms to increase liquidity – that’s how it can afford to keep fees low and charge no commissions on trades or management fees.
Rest assured that SoFi Invest is completely safe; both SoFi Invest and Apex Clearing (their custodian) are active members of the Securities Investor Protection Corporation (SIPC). Your brokerage account is protected for up to $500,000, including a $250,000 clause for cash claims.
SoFi Invest Trustpilot Reviews
SoFi Invest has decent reviews from its users, and it holds an average rating of 4.2 on Trustpilot. Here’s what some of those users have to say about SoFi Invest:
“I joined SoFi in 2013 and have been extremely satisfied with its services. Their growth has been amazing, and the products exceed what other finance companies offer.” – Kelly E.
“SoFi has been an advantageous company to work with. I have found excellent interest rates, ease in financing, and excellent communications.” – Rebeca T.
“In today’s financial environment, having a resource like Sofi, that we have used in the past for our financial needs. They were able to help us quickly and easily to consolidate some high interest credit cards.” – David H.
“The experience was easy and fast. Exactly what I expect from a reputable company. Keep up the good work guys.” – Joshua O.