SoFi Active Invest Review | Credit Shout
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SoFi Active Invest Review

By Taryn Estrada / May 30, 2021

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SoFi Active Investing is aimed to help new investors get started in trading, with commission-free trades of stocks, ETFs and fractional shares. SoFi also offers cryptocurrency trading, which has been growing in popularity for years.

When we decided to write this SoFi Active Investing review, we looked at a wide range of different factors. Here’s what we learned.

What Is SoFi Active Invest?

SoFi offers a wide variety of different services, one of their newest offers is called SoFi Invest. SoFi Invest focuses on helping new investors with free exchange-traded funds and stock trades. If you have a SoFi Active Invest account, you’ll also have the opportunity to buy and sell cryptocurrencies, such as Bitcoin, Litecoin, and Ethereum, as well as fractional shares of blue-chip companies such as Amazon and Netflix.

The self-directed brokerage continues to grow its financial offering to customers, which includes SoFi Money (online cash management) and SoFi Robo-Advisor (automated investing). These different memberships have a wide range of benefits, including access to financial advisors and educational seminars.

SoFi also offers student loans, if you want to learn more: SoFi Student Loans Low Rates With No Fees.

SoFi Active Invest Can Benefit

  • New/Beginner Traders
  • Active Traders
  • ETF Investors
  • Fractional Shares
  • Crypto Traders/Investors

SoFi Investing is interesting to a number of different audiences, from crypto traders and investors to ETF inventors and new traders. Is it right for you?

Let’s take a look at what Sofi Active Invest has to offer.

Sofi Active Invest Benefits

Commission Free Trades – One of the best features of SoFi Active Investing is their commission free trades. They immediately became a competitor to Robinhood, offering free stock and ETF trades. However, unlike other brokers, they don’t have options trading. Now that free trades are commonplace,  SoFi and Robinhood have lost some of that edge.

No Account Minimum – You will need cash to trade, but SoFi has no account minimum to open your account. You can immediately begin to buy and sell both stocks and ETFs.

Fractional Shares – SoFi Active Investing was among the first brokerages in the United States to offer fractional shares. FS refers to buying a piece of a share rather than having to purchase the full share price. For traders and investors that want to purchase shares from companies like Apple and Amazon, this is an increasingly attractive option. It gives new investors of all types a cost-effective way to build a diversified portfolio.

The offering itself is known by SoFi Bits, which allows investors to buy commission-free fractional shares of nearly 40 brand name public companies, which also includes Facebook, Starbucks and Alphabet (Google),  as well as fractional shares of ETFs. While SoFi Bits was an early leader in this category, competitors have noticed their success in this area: Robinhood, Fidelity Investments, and Interactive Brokers also offer fractional shares to customers.

While SoFi Automated Invest customers are given direct investment advice, the advisors won’t give SoFi Invest brokerage customers specific suggestions on stock trades.

Cryptocurrency – First launched 2019, SoFi Crypto allows users to buy and trade three cryptocurrencies, those include Bitcoin, Ethereum and Litecoin. While we love the feature being added, you won’t get free trades with this. Rather,  SoFi will add a 1.25% charge based on the amount of each cryptocurrency trade.

Free Financial Counseling – Another attractive offering is the unlimited access to SoFi’s financial advisors at no additional charge to help with long-term financial strategy. Advisors are certified financial planners with the Series 65 designation (or similar), which requires them to operate in your best interest. SoFi also offers free career counseling and access to educational events for brokerage users.

Making sound financial decisions is vital to growing a strong portfolio. Here’s 6 ways to make good financial decisions.

Is SoFi Active Investing For You?

If you’re a new investor, we think so. SoFi Active Investing has a number of attractive features new investors can benefit from:

  • No account minimum
  • Free financial counseling
  • Commission free stock
  • Commission free ETF trades
  • Fractional shares
  • Cryptocurrency

If you’re a long-term or experienced investor, it will likely not be for you. SoFi Active Invest doesn’t have mutual funds and index funds, nor do they have options, forex and futures trading. If you’re looking for an option that includes those, you’ll likely want to choose another platform.

If you’re new to investing or just getting started, definitely check it out to see if it could be for you.

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Editorial Discloser: Opinions expressed here are authors alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.