What is SoFi Invest?

Jeremy BiberdorfBy: Jeremy Biberdorf

April 27, 2023April 27, 2023

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SoFi Invest is a comprehensive investment platform offered by Social Finance, Inc., more commonly known as SoFi. This platform allows both new and experienced investors to build their wealth and achieve financial independence through a wide range of investment options. In this article, we will explore the features of SoFi Invest, the types of investments available, and the advantages of using this platform.
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SoFi Invest: A Comprehensive Investment Solution

SoFi Invest, offered by SoFi Securities LLC, is a user-friendly platform that aims to cater to both hands-on and hands-off investors. With SoFi Invest, users can trade stocks, fractional shares, ETFs, and more. This platform’s main goal is to help individuals build wealth and achieve financial independence by offering a broad range of investment options tailored to their risk tolerance and financial situation.

Tailored Solutions for Diverse Investors

With no minimum deposit requirement, SoFi Invest caters to a wide array of investors by offering a versatile range of features. Here is an in-depth overview of the primary features and their respective target audiences:

  1. SoFi Automated Investing: Perfect for beginners or busy investors, this feature provides a hands-off investment experience. SoFi Invest recommends a portfolio with no annual management fee (fund and brokerage expenses apply) and assists with goal setting, automatic rebalancing, and diversification. This is ideal for those new to investing or those seeking a more passive approach.
  2. SoFi Active Investing: Designed for proactive investors, this feature allows commission-free buying and selling of stocks and ETFs. With no account minimums and access to educational resources and a community of SoFi members, this feature is great for experienced investors or those wanting to actively manage their portfolios in taxable and retirement accounts.
  3. Retirement Investing: Offering a variety of retirement accounts, including Traditional IRA, Roth IRA, and SEP IRAs, SoFi Invest provides a wide range of investment options without commission fees. Investors can choose between active and automated IRAs and receive guidance from financial advisors. This feature is perfect for those planning for retirement and desiring investment flexibility.
  4. Options Trading: Targeted at experienced investors, this feature allows users to pursue higher percentage returns or limit risk. SoFi Invest’s user-friendly platform offers educational content to help users grasp the intricacies of options trading. This is suitable for those experienced in or wanting to learn more about options trading.
  5. IPO Investing: Designed for investors interested in participating in IPOs before they’re publicly traded, SoFi Invest enables Active Investing members to express their interest and confirm buy orders to secure shares upon transaction settlement. This feature benefits those wanting to invest in emerging companies with potential for growth.
  6. Fractional Share Trading: Ideal for those wanting to invest in high-priced stocks without committing large sums, SoFi Invest permits investors to buy real-time shares for as little as $5, commission-free. This feature is suitable for those looking to diversify their portfolios or invest in high-priced stocks more affordably.
  7. ETFs: SoFi Invest offers an assortment of Core and Thematic ETFs catering to various investor preferences. Core ETFs provide low-cost, diversified options for long-term wealth building, while Thematic ETFs grant access to rapidly growing industries. This feature is ideal for investors seeking portfolio diversification or investment in specific sectors. Note that these funds have management fees (expense ratio) paid by the fund itself, which can reduce returns. No mutual funds are offered.

Exclusive Experiences

SoFi Invest users can enjoy exclusive experiences, such as access to investor alerts, investor email alerts, investor fact sheets, and investor presentations. These tools and resources help users stay up-to-date with the latest developments in their investments and make informed decisions.

SoFi Technologies and Its Various Offerings

SoFi Technologies, the parent company of SoFi Invest, offers a comprehensive suite of financial products and services, including:

  • SoFi Money: A cash management account that combines the features of a checking and savings account, offering competitive interest rates and no account fees.
  • SoFi Wealth LLC: A robo-advisory platform designed for hands-off investors, offering personalized investment portfolios based on users’ risk tolerance and financial goals.
  • SoFi Bank: A digital bank that offers competitive interest rates on savings accounts and a seamless digital mortgage experience.
  • SoFi Mortgage: A fintech mortgage lender that provides users with competitive mortgage rates and a streamlined application process.

Is SoFi Invest Legit?

Yes, SoFi is a legit financial services company. Founded in 2011, SoFi has established itself as a reputable provider of a variety of financial products, including personal loans, student loan refinancing, mortgages, credit cards, investing, and banking services.

SoFi is regulated by various federal and state agencies, and its subsidiaries hold necessary licenses to operate in the United States. For instance, SoFi Securities LLC, the entity that operates SoFi Invest, is registered with the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).

Additionally, SoFi has gained a positive reputation among users and industry experts, which is reflected in its customer reviews and ratings on various platforms. However, it is essential to do your research and consider your personal financial situation before using any financial service, including those offered by SoFi.

Final Thoughts – What is SoFi Invest?

SoFi Invest is a comprehensive investment platform that provides a range of investment options and exclusive experiences for investors seeking financial independence. Whether you’re a hands-on or hands-off investor, SoFi Invest has a solution for you. With no minimum deposit requirements and a range of features, SoFi Invest caters to diverse investors seeking investment flexibility.

So, if you’re looking to take control of your financial future, consider exploring the features and advantages of SoFi Invest. Click here to get started with SoFi Invest today!

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Jeremy Biberdorf
Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He's a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.

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