- The Ascent
- Best Online Stock Brokers
- Best Robo-Advisors
- SoFi Automated Investing Review
The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.
SoFi (short for "social finance") has created quite a buzz in the lending world, and now it’s built an impressive investment platform: SoFi Invest. It’s known for its customer-focused approach to personal loans and more. The investing platform offers customers the ability to invest in stocks, mutual funds, ETFs, and even cryptocurrencies. For investors who prefer to keep investments on autopilot, SoFi also offers its Automated Investing platform. In this SoFi Automated Investing review, we'll take a deeper dive into the platform and look at the pros and cons of this robo-advisor.
Ratings Methodology
![ToolTip Icon for Star Rating.]()
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Rating image, 4.5 out of 5 stars.
4.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Bottom Line
With no management fee or account minimum, anyone can get started with SoFi Automated Investing and cut their costs.
Fees:
$0 per trade, expense ratio 0.03%-0.08%
Account Minimum:
$0
Open Account
On Secure Website.
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 get started with $1. The underlying investment funds have their own expense ratios, but these range from 0.03%-0.08%, which is among the lowest for any ETFs. There are also no fees for money transfers, and you won't pay anything to set up or maintain your account. If you choose to use SoFi's investment platform for active investing (for example, to buy a specific stock), you won't pay any trading commissions.
Access to human advisors
Many robo-advisors don't offer access to human financial advisors, and those that do tend to limit access. SoFi Automated Investing customers get unlimited access to financial advisors. Not only that, but all of SoFi's advisors are registered investment advisors and are bound to the fiduciary standard, which means they are required to put your best interests first.
Automatic rebalancing
SoFi adjusts your investments quarterly to ensure risk and return are balanced.
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.
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 clients also get free career coaching and access to SoFi member events.
TIP
Buying your first stocks: Do it the smart way
Once you’ve chosen one of our top-rated brokers, you need to make sure you’re buying the right stocks. We think there’s no better place to start than with Stock Advisor, the flagship stock-picking service of our company, The Motley Fool. You’ll get two new stock picks every month from legendary investors and Motley Fool co-founders Tom and David Gardner, plus 10 starter stocks and best buys now. Over the past 17 years, Stock Advisor’s average stock pick has seen a 609% return — more than 5x that of the S&P 500! (as of 2/10/2021). Learn more and get started today with a special new member discount.
What could be improved
No tax-loss harvesting
Tax-loss harvesting is a strategy by which certain losing investments are strategically sold in order to offset taxable gains elsewhere in a portfolio, thereby lowering the amount of tax owed. 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.
Alternatives to consider
If you have at least $5,000 to invest and 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 and robo-advisor: TD Ameritrade check the boxes for nearly all investing and banking needs under one roof. While SoFi offers similar versatility across its product suite, TD Ameritrade clearly outshines when it comes to trading platforms and deep 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 allows clients to roll existing retirement funds from former employers into their new accounts. Clients can access accounts through SoFi's online portal, or through its user-friendly mobile app.
SoFi Automated Investing customers can choose from 10 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, or ETFs, that offer 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 that your investments are automatically adjusted 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, SoFi automatically re-adjusts your investments to maintain this mix.
SoFi investment customers also have access to a high-interest savings account, which pays an APY on cash balances that varies over time, but 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 more.
Pricing and fees
SoFi Automated Investing is among the cheapest robo-advisor platforms. With no account management fees and minimal investment expenses, investors keep more of their returns than they would with some of SoFi's rivals.
| Service/Item | SoFi Automated Investing Cost |
|---|---|
| Account management fee | 0% |
| Investment fund fees | 0.03%-0.08% |
| All-in fees | 0.03%-0.08% |
| Other account charges | None |
Customer service and support
There are two types of support that 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 they can schedule appointments via phone or video Monday through Friday, 10a.m.-7p.m. EST.
For technical support, SoFi's help desk is available Monday-Thursday, 7a.m.-midnight EST, and Friday-Sunday, 7a.m.-8p.m. EST.
SoFi Automated Investing is right for you if:
- You want an automatic investment service with a bare minimum of expenses.
- You want access to human financial advisors whenever you need it.
- You're already a SoFi lending 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 up-front capital to contribute.
About the Author
Matt is a Certified Financial Planner® and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.
Share This Page
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.
