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SoFi Automated Investing Review: Low Costs and More

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SoFi (named for "social finance") quickly became known for its customer-centric approach to student loans and other lending. Now it's making a splash with its impressive SoFi Invest platform.

The SoFi Invest platform lets customers invest in stocks, mutual funds, ETFs, and cryptocurrencies.

For investors who prefer to keep investments on autopilot, SoFi offers automated investing.

In this SoFi Automated Investing review, we'll take a deeper dive into the robo-advisor platform and look at the pros and cons to help you decide whether it's right for you.

Ratings Methodology

Full SoFi Automated Investing review

This robo-advisor is a good fit for: Passive investors seeking a low-cost robo-advisor that offers the best of both worlds: automated investing and access to human advisors.

Pros

  • Low costs
  • Access to human advisors
  • Online and mobile experience

Cons

  • No tax-loss harvesting

Top perks

Low costs

SoFi Automated Investing is one of the best robo-advisors for low costs. The company charges no management fee and has no account minimum -- investors can put their money to work with as little as $5.

The underlying investment funds may come with their own fees. SoFi has its own proprietary ETFs and is waiving fees on these for Automated Investing customers until at least mid-2022, but the standard fees are certainly on the lower end of the spectrum.

There are also no fees for money transfers, and you won't pay anything to set up or maintain your account. If you use SoFi's invest platform for active investing (for example, to buy a specific stock), you won't pay any trading commissions.

Access to human advisors

Few robo-advisors offer access to a human financial advisor, and those that do tend to limit access. SoFi Automated Investing customers get unlimited access to financial advisors. All of SoFi's advisors are Certified Financial Planners and are bound to the fiduciary standard, which means they won't attempt to sell you products simply for a high commission but instead are required to put your best financial interests first.

Automatic rebalancing

SoFi automatically adjusts your investments quarterly to make sure your portfolio has a good balance of risk and return, based on your financial goals.

Online and mobile experience

SoFi's simple-to-use online and mobile apps are standout features. Notably, its iOS and Android apps are highly rated.

The apps let you access all SoFi products, which means you could manage your banking, investing, and lending all in one place if you take full advantage of a SoFi membership.

Discounts on other SoFi products

SoFi Automated Investing customers who make recurring deposits of $20 or more get interest rate discounts on other SoFi products, such as personal loans and mortgages. Qualifying members also get free career coaching and access to SoFi member events.

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What could be improved

No tax-loss harvesting

Tax-loss harvesting is a strategy where you (or your broker) sell certain investments that are losing value with the goal of offsetting taxable gains across your portfolio. This reduces the amount of tax you owe on your investment gains.

SoFi doesn't offer tax-loss harvesting service, a potentially large drawback for investors with large accounts or who are otherwise in high tax brackets and want to reduce their tax bill.

Alternatives to consider

If you want tax-loss harvesting: Schwab Intelligent Portfolios could be a good alternative to SoFi, with some features you won't find in SoFi's Automated Investing platform, including tax-loss harvesting.

If you're seeking a full-featured broker: TD Ameritrade checks the boxes for nearly all investing and banking needs under one roof. While SoFi offers similar versatility across its product suite, TD Ameritrade is worth considering when it comes to trading platforms and access to investment vehicles, from mutual funds to bonds and CDs.

How SoFi Automated Investing works

In addition to standard brokerage accounts, SoFi Automated Investing offers IRAs (traditional and Roth), SEP-IRAs, and lets members roll over existing retirement funds into a SoFi account. Members can access accounts through SoFi's online portal or through its user-friendly mobile app.

SoFi Automated Investing customers can choose from several investment portfolios offering a variety of risk levels and investment goals. If you aren't sure which one to choose, don't worry -- you can answer questions about your financial goals, current assets, and income, and SoFi will do the rest.

As with most robo-advisors, the portfolios are composed of exchange-traded funds (ETFs) that put your money into a mix of stocks, bonds, and other asset classes. Unlike many competitors, SoFi uses some proprietary ETFs in its Automated Investing portfolios, another way it keeps expenses low.

Services offered

SoFi Automated Investing offers automatic rebalancing, which means it automatically adjusts your investments on a regular basis to maintain your desired risk level and investment goals. For example, if your portfolio contains a 50% stock and 50% bond mix, and the stock market rises dramatically, the value in your portfolio might be tipped toward 60% stock and 40% bond. SoFi automatically adjusts your investments by selling some stocks and buying some bonds to regain the 50/50 mix.

SoFi investment customers also have access to a high-interest savings account, which pays an APY on cash balances, which varies over time and rivals some of the best online savings accounts.

SoFi is well-known for its outside-the-box approach to financial services. Automated Investing clients who invest at least $20 per month get access to some unique and valuable perks, such as free career coaching, in-person member events, and discounts on SoFi lending products.

Pricing and fees

SoFi Automated Investing is among the cheapest robo-advisor platforms. You'll pay no account management fees and minimal investment expenses, so you keep more of your returns than you would with many of SoFi's competitors.

Service/Item SoFi Automated Investing Cost
Account management fee 0%

Customer service and support

There are two types of support clients of a robo-advisor could need: investment advice and help with technical issues. We already mentioned that SoFi customers get unlimited access to human financial advisors, and you can schedule appointments via phone or video call. SoFi's advisors can't advise on the purchase of specific securities, but can offer guidance on your overall financial goals. You can reach a financial advisor by logging into your account in the app or online.

For technical support, you can access a SoFi Invest rep via email anytime or via online chat or phone Monday through Thursday 5 a.m. to 7 p.m. PST, and Friday through Sunday 5 a.m to 5 p.m. PST. To reach support via phone: (855) 525-SOFI (7634).

SoFi Automated Investing is right for you if:

  • You want an automatic investment service with a bare minimum of expenses.
  • You want access to a human financial advisor whenever you need it.
  • You're already a SoFi lending or banking customer or are considering taking out a personal loan or mortgage.
  • You aren't too concerned with tax strategies on your investments.
  • You're a newer investor with little upfront capital to contribute.

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