SoFi Automated Investing Review

SoFi Automated Investing at a glance

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SoFi Automated Investing is best for hands-off investing

SoFi Automated Investing could be the perfect fit for the investor who wants hands-off trading. Whether you want the extra support or are simply too busy, SoFi’s automated model takes the work out of investing. SoFi robo investing is quick and straightforward, making it an excellent choice for beginners or those who want to benefit from expert guidance.

What we like about SoFi Automated Investing

There are several benefits to SoFi robo investing, such as a low account minimum, access to financial advisors and SIPC protection for your funds.

Several account types

One of the best parts about SoFi is its versatility. SoFi offers both individual and joint accounts for investing. It also offers a series of retirement accounts, including traditional, Roth and SEP IRA accounts. If you have an old 401(k) from a former employer, you can roll that over as well.

SoFi also has a banking side. In addition to its checking account, it has a high-yield savings account that features an impressive APY to make you money on your savings. It is just another way to grow your portfolio with SoFi’s many services.

SIPC protection

Your money is protected with SoFi. Both SoFi Securities and its securities custodian, Apex Clearing, carry protection for the securities in your brokerage account. They will cover up to $500,000, including $250,000 for claims for cash, as members of the Securities Investor Protection Corporation (SIPC).

Socially responsible portfolio

In addition to its Classic and Classic with Alternatives portfolios, SoFi offers its Sustainable portfolio, a socially responsible option focused on growth and performance. It targets companies that meet certain environmental, social and governance (ESG) criteria, using more than 10 stocks and bonds to make up your portfolio.

Low minimum

You don’t need thousands or even hundreds of dollars to begin investing with SoFi. Instead, you only need $50 to deposit into your account.

This amount is significantly lower than competitors like Wealthfront, which requires a $500 minimum opening deposit. If you do not want to invest a ton into your new account, SoFi makes it easy to get started.

Where SoFi Automated Investing falls short

When weighing the pros and cons of SoFi Automated Investing, it is also important to consider its drawbacks, such as its management fee, lack of tax-loss harvesting and lack of weekend support.

No tax-loss harvesting

While most brokerages offer tax-loss harvesting, SoFi Automated Investing does not. This feature normally helps lower your taxes when it comes to your investments. That makes this a big drawback when comparing SoFi against other brokerages like Betterment that do offer this feature.

Management fee applies

For many years, SoFi did not have a management fee. That is why investors were surprised when there was a 0.25% management fee added last year for SoFi robo advising. Still, SoFi joins other popular brokerages that charge an advisory fee, such as Interactive Brokers’ annual performance fee of 20%.

No weekend support

SoFi offers generous hours for its customer support during the week, but it is not available on weekends. That means if you have a question, you will have to wait until the weekend is done before you can get an answer.

Is SoFi Automated Investing legit?

As a registered bank, SoFi is a legitimate company that follows industry regulations to protect both your money and your data. However, it hasn’t been a smooth road for SoFi when it comes to security.

In 2024, SoFi was fined $1.1 million by the Financial Industry Regulatory Authority (FINRA) for failure to “establish and maintain a reasonable Customer Identification Program.” FINRA found that SoFi approved some 800 brokerage account applications that belonged to stolen or fake identities.

Today, it has taken corrective measures. SoFi partnered with Cloudflare for greater security, adding an extra layer of authentication to protect consumer data. It also employs two-factor authentication to better secure your account and uses security protocols like SSAE18 SOC2 and PCI DSS, in addition to third-party penetration testing completed at least annually.

How is SoFi’s Automated Investing different from SoFi Invest?

SoFi Automated Investing is less hands-on than SoFi Invest, its self-directed investment arm. It works as a robo-advisor to automatically select and invest in securities. It is a great choice for novice investors who need guidance and support when beginning their investment journey.

SoFi Invest is more suited toward advanced investors who want self-directed investing. You have the option of using SoFi’s automated services if you want, but you can also trade stocks and ETFs and invest in IPOs at your own pace. If you are comfortable investing and want to call your own shots, SoFi Invest is the better option for you.

How to sign up for SoFi Automated Investing

Setting up your account with SoFi Automated Investing is a simple and straightforward process.

On your desktop:

1. Visit SoFi’s website, navigate to its Automated Investing page and select Invest now.
2. Enter your personal information, including your name, state email and password.
3. Check the box after reviewing the terms and agreements. You will be taken to your dashboard where you can manage your account. However, to invest, you must download the mobile app.
4. Download the SoFi mobile app on the App Store or Google Play, then open the app and log in.
5. Set up two-factor authentication, enable or decline Face ID and turn on notifications.
6. Select Invest.

On your mobile phone

1. Download the SoFi mobile app on the App Store or Google Play.
2. Select Get Started with SoFi.
3. Choose Investing.
4. Enter your personal information, including your name, state email and password.
5. Check the box after reviewing the terms and agreements.
6. Choose an account type.

From there, you will need to provide your personal details, such as your birthday, social security number and financial information. You will also be asked questions about your investment strategy and preferences.

Be sure to verify your email using the link in the email sent to you.

Customer experience

Compare SoFi Automated Investing to other platforms

Compare similar platforms by available asset types, trade fees and minimum deposit requirements. Select Go to site to sign up for an account.

SoFi Robo Advisor

★★★★★

Finder rating 4 / 5

Go to site

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Available asset types

ETFs

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Annual fee

0.25%

---

Minimum deposit

$50

---

Signup bonus

N/A

Wealthfront

★★★★★

Finder rating 4.5 / 5

Go to site

---

Available asset types

Stocks, ETFs

---

Annual fee

0.25%

---

Minimum deposit

$500

---

Signup bonus

Get $50

Frec

★★★★★

Finder rating 4.4 / 5

Go to site

---

Available asset types

Stocks, Mutual funds, ETFs

---

Annual fee

0.1%

---

Minimum deposit

$20,000

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Signup bonus

N/A

Frequently asked questions

Is automated investing a good idea?

Automated investing can be a fantastic way to benefit from hands-off trading with lower fees and access to human financial advisors when you need it. However, all investments carry risk, so it is important to regularly review your investments and educate yourself using SoFi’s many resources.

How long does SoFi Automated Investing take?

It takes just minutes to set up SoFi Automated Investing. After creating an account, you only need to download the mobile app on the App Store or Google Play to begin investing.