SoFi Invest vs. Robinhood

SoFi Invest® and Robinhood are among the top mobile-first trading platforms available today.

Both platforms offer no-fee commission trading on stocks, exchange-traded funds (ETFs) and options, with no per-contract fees, as well as fractional share trading and matching IRA contributions.

SoFi Invest distinguishes itself by providing financial advisory services and access to mutual and interval funds.

On the other hand, Robinhood stands out with its access to cryptocurrency trading and an exceptionally user-friendly trading platform. It’s also known for its intuitive design and ease of use.

These trading apps are both excellent choices, catering to different investing needs and preferences.

Here’s a detailed comparison of their features.

SoFi Invest vs Robinhood: A quick comparison

• SoFi terms and conditions

  INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
  
  Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.
  
  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).
  
  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.
  
  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
  
  Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser.
  
  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
  
  Probability of Member receiving $1,000 is a probability of 0.028%
  
  Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.
  
  Robo Advisor:
  Automated investing is offered through SoFi Wealth LLC, an SEC-registered investment adviser.
  0.25% fee is based on your account value. The wrap program fee may cost more or less than purchasing brokerage, custodial, and recordkeeping services separately.

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How features compare

	SoFi Invest	Robinhood
Robo-advisor	Yes	No
Human financial advisor	Yes, at no additional cost	No
Fractional shares	Yes	Yes
IRA match	1% match on contributions and rollovers	3% year-round match but requires a $5 monthly Gold membership, or get a 1% match without Gold
Cash sweep rate	0.02% APY	4.5% APY, but requires a $5 monthly Gold subscription
IPO access	Yes	Yes
Instant buying power	Yes	Yes
Paper trading	No	No
24/5 trading	No	Yes
Educational resources	Yes	Yes

How the platforms compare

SoFi Invest and Robinhood offer user-friendly but distinct trading platforms tailored to different types of investors.

SoFi Invest’s platform is clean and ideal for beginners

SoFi Invest features a clean, user-friendly interface designed for effortless navigation across its suite of integrated financial services, making it easy to manage investments alongside other SoFi products like loans and banking.

This seamless experience is particularly ideal for beginners, as the platform simplifies the investing process with clear instructions and accessible features. However, it lacks the research and analysis tools that Robinhood provides.

Robinhood’s platform is sleek, intuitive and beginner-friendly

Robinhood’s platform is renowned for its sleek, minimalist design that appeals to tech-savvy investors. The intuitive, beginner-friendly interface makes navigation and executing trades quick and straightforward.

While its trading tools may not be as extensive as some other brokers, Robinhood offers advanced charts, analyst ratings, a trading trends indicator and Morningstar research, providing valuable insights for making informed investment decisions.

The similarities

SoFi Invest and Robinhood are leading contenders among stock trading apps, offering user-friendly platforms that cater to beginners with no-fee commission stocks, ETFs and options, and no options contract fees.

Both platforms also provide access to IPOs, fractional shares and educational resources to help traders and investors learn and grow.

Unique in the industry, SoFi Invest and Robinhood both offer matching IRA contributions. SoFi Invest provides a 1% contribution match on ACH deposits and a 1% match on 401(k) rollovers of at least $20K. Robinhood, on the other hand, offers a 3% match on contributions for Robinhood Gold members and a 1% match for those without Gold. Additionally, Robinhood offers a 1% match on IRA transfers and 401(k) rollovers, regardless of Gold membership.

Which broker is better for beginners?

Robinhood excels in providing a low-cost, intuitive trading experience that simplifies investing. The platform makes it incredibly easy to sign up and start investing, offering some of the lowest fees among brokers we regularly review. Its straightforward and helpful educational content is ideal for those just starting, and its IRA match program can incentivize beginners to kickstart their investing journey.

Conversely, SoFi Invest offers a more holistic and supportive environment for new investors. It provides comprehensive educational resources, access to robo-advisor and complimentary financial planners. These features create a well-rounded platform that caters to beginners seeking guidance and robust financial planning support.

While Robinhood is an excellent choice for those wanting a simple, cost-effective way to invest, we believe SoFi Invest is better suited for beginners due to its extensive resources and personalized support.

Which broker is better for advanced traders?

SoFi Invest’s platform offers a straightforward investment experience with a basic chart, company details and news updates, which can be sufficient for beginners seeking a no-fuss way to invest.

Although SoFi Invest supports options trading, it remains beginner-friendly by only allowing level 2 options execution, meaning you can buy calls and puts and sell to close positions.

On the other hand, Robinhood’s platform is equipped with advanced features such as detailed charts, analyst ratings, research reports and level 2 market data from Nasdaq. Additionally, Robinhood includes a trading trends indicator that displays the trading activity of Robinhood customers, hedge funds and company insiders, providing more comprehensive insights to help you make informed decisions.

Robinhood also supports up to level 3 options trading, enabling complex options strategies like straddles, strangles and spreads. Given these advanced tools and capabilities, Robinhood is the clear choice for more experienced and advanced traders.

Which one’s safer and more reliable?

SoFi Invest and Robinhood’s brokerage accounts are SIPC-insured up to $500,000, including $250,000 for cash claims.

Additional insurance policies, security measures and security for their cash sweep programs vary a bit, and both brokers have been fined in the past.

Additional insurance policies

Security measures

Cash sweep insurance

Fines

SoFi Invest
In May 2024, the Financial Industry Regulatory Authority (FINRA) censured and fined SoFi Securities $1.1 million for not establishing and maintaining a proper Customer Identification Program for its cash management brokerage account, SoFi Money.

This oversight led to $2.5 million in stolen funds. SoFi settled with FINRA, neither admitting nor denying the charges.

In response to the fraud, SoFi increased staff training and enhanced its customer identity verification logic and fraud identification processes.⁽³⁾

Robinhood
In June 2021, FINRA fined Robinhood approximately $70 million, the largest financial penalty ever ordered by FINRA, for misleading customers regarding options trading and for outages experienced in March 2020. Robinhood settled with FINRA, neither admitting nor denying the charges.⁽⁴⁾

SoFi Invest vs. Robinhood: Which one’s better?

While SoFi Invest offers a wider range of investment options, robo-advisor and complimentary access to financial planners, we think Robinhood provides a superior all-around investment platform.

Robinhood’s intuitive trading experience, user-friendly design and absence of inactivity fees make it an excellent choice for beginners. Additionally, it offers robust trading tools and resources that cater to more advanced traders and investors.

Robinhood also excels with its more generous IRA match program, 24/5 market access, 24/7 customer support and an impressive cash sweep program that pays 4.5% APY for Robinhood Gold subscribers.

For these reasons, we believe Robinhood is the better option.

Alternatives to SoFi Invest and Robinhood

Both SoFi Invest and Robinhood are excellent choices for beginners due to their user-friendly interfaces and no-fee commission trading. However, if you’re looking for more advanced trading tools, there are other platforms worth considering.

• Moomoo. Moomoo is another mobile-first trading app that offers commission-free stocks, options and ETFs with no option contract fees. Unlike other beginner-focused platforms, Moomoo provides advanced trading tools comparable to those of larger brokers. These include advanced charts with drawing tools and indicators, analyst ratings, real-time level 2 market data and various stock analysis tools. However, Moomoo has limited account types and does not offer IRAs, making it less versatile for retirement planning.
• E*TRADE. E*TRADE, the brokerage arm of investment bank Morgan Stanley, offers a comprehensive range of investment options, including stocks, options, mutual funds, bonds, futures and certificates of deposit (CDs). Although E*TRADE does not offer fractional shares or an IRA match program, it compensates with its extensive investment options and advanced tools suitable for both beginners and advanced traders.

See how even more brokers stack up

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