Best for Low Trading Fees
SoFi Automated Investing
Annual fee
Minimum Investment
Expected Annual Return
Underlying Investment
Funding Options
Platform Fees
SoFI or Social Finance is a fintech company launched in 2011 by Stanford Business school graduates to provide federal and private student loans. However, the SoFI investment division of the company appeared in 2019 as a provider of brokerage services to passive and active investing in the United States.
SoFI stands out with its low fees and minimum deposit once you open an account. However, if you want to invest in IPOS, you will need to have more than US$3000 on your account. It is also important to note that day traders can only trade if they have at least US $25,000 on their account.
All details
Key Features
- SoFI Automated Investing, formerly known as SoFi Wealth, has charged no management fees since 2018. The platform also charges no advisory or administrative fees.
- SoFI offers a choice of 10 portfolios that have a diversified selection of low-cost ETFs.
- The platform’s services include unlimited access to their team of certified financial planners.
- SoFI does not have tax-harvesting a service that is offered by most of its competitors and can help reduce the tax owed on the investment gains.
- SoFI Automated Investing has a limited track record since its Robo-advisor platform in 2017. This may put off investors who need to put their money in Robo advisors with a proven track record and go for their significant competitors such as Betterment and Wealthfront.
- The platform has an expense ratio on the annual fee charged by mutual funds, ETFs and Index funds. The fee is the ratio of all your investments, and your high expense ratios can impact your returns. SoFi’s expense ratio averages at 0.05%, making it one of the cheapest Robo advisors in the market.
- SoFI charges $75 as a transfer fee, and it is also important to note that the platform does not support wire transfers.
- The platform also supports joint non-retirement account accounts, Roth, Keogh plans, SEP IRAs, traditional IRAs.
- SoFI Automatic Investing also supports automatic rebalancing. Every time your money enters or leaves your account, the platform checks it against your target allocation and rebalances it as close as possible. The platform also monitors your portfolio every day to see if it’s a 5% off target and adjust the portfolio back to the target.
- SoFi offers a high-interest savings account, just like many of its competitors. SoFI money works the same as a checking and savings account that pays 0.25% interest and carries up to $1.5 million FDIC coverage which is six times more than the standard bank account.
- SoFi offers customer support for technical issues through the phone, social media, chats, and email from Monday to Thursday 5 a.m to 7 p.m and Friday to Sunday 5 a.m to 5 p.m Pacific time.
Pros & Cons
The Pros
- Free management
- Automatic rebalancing
- A broad range of low-cost investment
- Great customer support
- Certified financial advisors
- No withdrawal fees
- No inactivity fee
- Fully digital account opening
- No minimum deposit
- User-friendly platform
The Cons
- Does not have tax-loss harvesting
- Limited account types
- Lacks basic research tools
General Information
Other Fees and Charges
SoFI does not charge any deposit fees, and US clients can use ACH, checks, and wire transfers to fund their accounts. The platform has automatic fund features. Once you initiate a bank transfer, SoFI immediately credits your account with a maximum of $5,000 even without having the transfer complete from your bank. This process could take up to two business days in typical cases.
In essence, SoFI invests the money for you, which is an excellent idea for instant trading. This feature compensates for features such as credit/debit cards deposits which happen immediately.
SoFI invests charges, no fees for ACH withdrawals also while wire transfer, on the other hand, will cost you $25per withdrawal.
Disclaimer: This information may differ from what you see when you visit other financial service websites or the product’s official site, but Loan Advisor continues to keep every detail updated and accurate. This site may be compensated through third-party advertisers. However, the results of our comparison tools which are not marked as sponsored will always be based on objective analysis.
How Does Sofi Automated Investing Compare with Other Robo-Advisors in Singapore?
Here is a comparison table of SoFI against some Robo-advisors in Singapore:
Robo-advisor | Minimum Initial Investment | Platform Fees | Annual Management fees | Funding options | Expected Annual return |
SoFI | $0 | – | 0 | Cash | \NotAvailable |
StashAway | No minimum investment | – | 0.8% (Up to $25,000) | Cash &SRS | 34.69% |
Smartly | $50 | – | 1% (Up to $10,000)/ 0.7% (more than $10,000) | Cash | Not available |
Endowus | $10,000 | – | 0.60% for first $200,000 0.40% flat fee for any amount for CPF or SRS money | SRS, Cash & CPF | 15.69% |
Syfe | No minimum investment | – | 0.65% for sum invested of less than $20,000 | Cash & SRS | 23.10% |
Sofi Automated Investing – Our Verdict
SoFI Automated Investing is relatively new to the Robo advisor industry, but it beats the top players in the game. It’s zero management fee makes it a preferred Robo advisor than the other on the market.
SoFi also offers a broad range of low-cost ETFs since it provides a powerful feature for cost-conscious investors who are just starting their investment journey. The platform has attractive bonuses such as interest discounts on student loans and career coaching.
How Do I Create an Account?
Opening an account at SoFI Automated Investing is simple, fast, and fully digital. Your account will be verified in one business day.
Here are the steps on how to open a SoFI Automated Investing account:
- Register for a SoFI account by submitting your name, email address, and password
- Accept SoFI’s terms and conditions
- Choose your main savings goals between a general investing, emergency fund, and retirement
- Select your additional financial goals: How much funds you have now, how much your target is, and your total annual income
- Choose between the pre-set risk tolerance
- Choose your account type (Select between an individual or joint) and state whether your account is for retirement purpose account or nor
- Fill in your personal information such as an address, employment status, and phone number
- Give your data: Social security number, address or other ID details, financial regulatory data
- Select your funding method by linking your bank account
Final Thoughts
SoFI invest is an exceptional online broker with no annual management fee. The platform has a large selection of stocks, ETFs, and cryptocurrencies with a very sleek user interface that is easy to use. SoFI is a beginner-friendly platform with an automated and hands-on feature that favors algorithmic and manual traders.
Key Takeaways
- SoFI is a sleek and straightforward trading platform with class assets such as exchange traded funds, Stocks, IPOS, and cryptocurrencies.
- SoFI does not charge any management fee.
- It has an automated feature that allows your investment portfolio to be run by a Robo advisor. You have to key in your investment goals.
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FAQs
What Is Automated Investing?
Automated Investing uses an algorithm to provide financial guidance and portfolio management for their clients.
Is Auto Investing the Same as Robo Investing?
Robo investing and auto investing can be used interchangeably. They both use the same idea of algorithmic investing and investment advice for clients instead of having humans research and manage your wealth.
Is SoFi Automated Investing in IRA?
Yes.
SoFI Automated Investing offers Roth and traditional IRAs.
Can You Make Money with Sofi Investing? Is SoFi a Good Company to Invest in?
The simple answer is Yes.
Using SoFI’s Automated Investing platform has advantages, especially with affordability, convenience, and human error potential.
How Do You Automate Investments?
To automate your investments, follow the following easy steps:
- Consolidate your accounts
- Put your investing on autopilot
- Consider ETFs and indices
- Hire financial advisors
- Always pay attention to your investments
Can I Have a Joint Account in Automated Investing?
Yes.
Once you create a joint account during the onboarding process, you can have the second account holder receive an email at the email you will provide with the instructions on how they should complete their profile and how to accept their account agreements.
You will require a second account holder to have your account approved.
If the secondary account holder does not get the email with the instructions, go to SoFI.com and go to “Create Account,” and then enter the email provided to them to finish setting up their profile.
How Long Does It Take for The Promotional Bonus to Appear in My Account?
It will appear in your account after ten business days after opening your account. If you do not receive the bonus in 10 business days, contact SoFI customer service representatives through investsupport@sofi.com
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