SoFi Active Invest Review: Low-Cost Trading With Perks

If you’re new to investing, you might not know where to start. Investing apps are becoming more and more common. That’s great if you like having a lot to choose from, but how do you know which app you should be using?

There are several beginner-friendly platforms out there, like SoFi Active Invest. The app is designed for do-it-yourself investors who aren’t necessarily experts but like a more hands-on approach. 

In our SoFi Active Invest review, we’ll talk about the pros and cons of the app, who it’s best suited for and some of its features. 

What Is SoFi Active Invest?

SoFi Active invest is a user friendly app that gives people a way to start investing with no account minimums and no commission on stocks and ETFs¹. That means you don’t have to pay to invest your money.  

It allows you to dip your toe in investment waters with stocks and ETFs, plus fractional shares that cost as little as $5 ³(restrictions apply). The platform also provides real-time investment news and education to help people on their investing journey. This makes it ideal for do-it-yourself investors with beginner to intermediate levels of experience. 

It’s important to note that the automated investment account with SoFi, or its roboadvisor, is separate from active investing. However, you can access both accounts within the same app. 

Features and Investment Options

Here are some of the features SoFi Active invest offers:

• Stocks & ETFs: zero-commission trades.
• Fractional shares: starting as low as $5 ³(restrictions apply). These allow you to own a portion of a company’s stock rather than the whole thing. 
• IPO access: Eligible members can invest in IPOs, aka initial public offerings, before public launch. An IPO is when a private company sells stock to the public for the first time. This is a unique opportunity for new investors, as IPOs are typically harder to access for the average investor. 
• Alternative investments: Includes real estate, commodities, private credit and pre-IPO unicorns². Unicorns are private companies worth at least $1 billion. 
• Margin investing ⁵: Allows you to borrow against current investments to buy stocks and ETFs.
• SoFi Member Perks: Includes access to financial planners, community events and career coaching⁶.

And right now, if you fund a new Active Invest account with as little as $50, you could earn up to $1,000 in stock*.

Fees and Account Minimums

There’s no account minimum with SoFi Active Invest and you can buy and sell stocks with no commissions and no contract fees. There is an inactivity fee of $25 if you don’t login for six months, but you can avoid this by being an active member. See the full fee schedule here. 

Zero commission is a huge benefit for new investors, because it lowers the stakes a little more as you’re learning. However, if you decide to also open an automated investment account with SoFi, that will come with advisory fees. 

User Experience and Platform Design

Because SoFi is a digital-first fintech company, its mobile app is user friendly with an intuitive design. It’s highly rated on the App Store at 4.8/5 stars. It has a 4.1/5 star rating on Google Play. 

Although the simplified process makes things quick and easy, it does come with more limited research tools. For example, an app like Fidelity has customizer screeners to help you research and compare investments. 

Pros and Cons of SoFi Active Invest

Safety and SIPC Coverage

All investments come with risks, and there are no guarantees of returns. However, SoFi is registered with Financial Industry Regulatory Authority (FINRA), a nongovernmental organization that aims to protect investors and regulate brokers. It’s also a member of the Securities Investor Protection Corporation (SIPC), which protects up to $500,000 per account ($250,000 cash). This protects the investor in case the broker experiences financial trouble. 

The app also supports two-factor authentication and biometric logins to keep your information secure. 

How SoFi Compares to Other Platforms 

Robinhood is also well-known for being beginner friendly. It also charges zero commission, but its app isn’t as highly rated as SoFi overall (4.2 Google Play, 4.3 Apple), so user experience tends to be the big difference. Fidelity’s app is both highly rated (4.6 Google Play, 4.8 Apple) and offers more research tools and investment products. However, SoFi is better for new investors who value simplicity. 

Who Should Use SoFi Active Invest?

SoFi Active Invest is great for beginners, do-it-yourself investors and those who want a more active role in their investments. It’s a low-cost platform that’s easy to use, so it allows new investors to ease into it. It also might be a good fit for you if you currently or plan to use SoFi’s other financial products, like its automated investment platform or checking and savings account. If you’re a more experienced investor who wants additional tools and features, you have other options that have more advanced research and analytics capabilities. But newbies can find comfort in the ease of use with SoFi Active Invest. 

Bottom Line: Is SoFi Active Invest Right for You?

We would recommend SoFi Active Invest for a new investor or one who’s still trying to build up their knowledge. Although it wouldn’t necessarily hurt a more experienced investor, SoFi caters to beginners. If you need in-depth analysis and more options, you can find that with other apps like Fidelity. 

However, if simplicity is what you’re looking for, SoFi Active Invest could be a good way to start investing. You can “learn by doing,” starting small with fractional shares and paying zero-commission stocks and ETFs¹. It doesn’t take long to sign up.

FAQs About SoFi Active Invest

1. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.
2. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org).
3. There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.
4. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options.
5. Utilizing a margin loan is generally considered more appropriate for experienced investors as there are additional costs and risks associated. It is possible to lose more than your initial investment when using margin. Please see https://www.sofi.com/wealth/assets/documents/brokerage-margin-disclosure-statement.pdf for detailed disclosure information
6. SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.

*Promotion Disclosures

1. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease.
2. Terms and conditions apply*. For 401k rollovers, existing SoFi IRA members must complete 401k rollovers via this link For SoFi members without a SoFi IRA, a SoFi IRA must first be opened, and 401k rollover must be completed utilizing Capitalize via this link SoFi and Capitalize will charge no additional fees to process a 401(k) rollover to a SoFi IRA. SoFi is not liable for any costs incurred from the existing 401k provider for rollover. Please check with your 401k provider for any fees or costs associated with the rollover. For IRA contributions, only deposits made via ACH and cash transfer from SoFi Bank accounts are eligible for the match. Click here for the 1% Match terms and conditions.
3. Must be a SoFi Plus member at the time a recurring deposit is received into your SoFi Active or Automated investing account to qualify. Bonus calculated on net monthly recurring deposits made via ACH and paid out as Rewards Points. See Rewards Terms of Service. SoFi reserves the right to change or terminate this promotion at any time without notice. See terms and limitations.