SoFi Active Investing Review: A Clear Standout Broker

SoFi Active Investing packs in essential perks such as no trading commissions, no account minimums, and a high-quality mobile app experience. Learn more about this stock broker with our SoFi Active Investing review.

This stock broker is a good fit for: Beginner stock and ETF investors seeking a high-quality mobile experience and low commissions.

Top perks

No trading commissions

Most brokerages have scrapped trading commissions for online stock and ETF trades. SoFi Invest is no different. However, SoFi Invest also offers options trading with no per-contract fees, which is somewhat of a rarity in the brokerage industry.

No account minimums

You can open a SoFi Invest account with no minimum amount.

Buy fractional shares

SoFi Invest lets investors buy fractional shares of stock. In a nutshell, investors can buy a portion of a share of stock for as little as $5. This means that not only can investors open an account with a tiny deposit, but they can actually invest that tiny amount of money -- even in stocks whose share prices are relatively high.

All-in-one app

SoFi has an easy-to-use app that serves as the functional home base for its investing platform and other financial products. It is highly rated, with 4.8 out of five stars on the App Store and 4.2 out of five stars on Google Play.

Retirement accounts

Unlike some of the other low-frills brokerages, SoFi Invest offers traditional, Roth, and SEP IRA accounts to its investors, both active and automated.

Lots of educational resources

SoFi Invest does a great job of educating its customers about all of its financial products and accounts, and its brokerage is no exception. The platform offers extensive educational resources for investors who are just getting started or who want to advance their investing knowledge.

IPO investing

Most brokers reserve IPO investing for investors who either have a high net worth or are very active. SoFi Invest allows all active investing members to participate in IPOs with no minimum account balance or investment amount.

Mutual funds

SoFi Invest now offers more than 6,000 commision-free mutual funds on its platform. Minimums are low, and folks can invest in mutual funds through their brokerage and retirement accounts.

Alternative funds

Alongside mutual funds, SoFi Invest offers alternative funds, including access to venture capital. In the discount brokerage universe, that's uncommon. Folks can invest in alternative funds through their SoFi Invest brokerage and retirement accounts.

Discounts on other SoFi products

If you use SoFi Active Investing, you'll become a SoFi member. This entitles you to discounts on other products offered by the company. For example, if you end up taking out a personal loan, you can get a discounted interest rate because of your relationship with the company.

Retirement matching 

SoFi Invest is one of the few brokerage platforms that gives investors a bonus for retirement contributions. SoFi Invest's standard matching rate is 1% of eligible IRA contributions, and this includes both new contributions and transfers of assets or cash from outside accounts. So, if you roll an old 401(k) with $20,000 into a SoFi Invest IRA, you can get a $200 bonus for doing so. There are certain conditions to meet before you can keep the bonus, but this is a big differentiator. 

What could be improved

Account types

SoFi Invest offers traditional brokerage accounts (both individual and joint), as well as traditional and Roth IRAs. It also offers SEP IRAs -- a favorite of self-employed individuals. However, it does not offer SIMPLE IRAs, solo 401(k) accounts, UGMA/UTMA accounts, trusts, and several other account types you might be interested in.

Trading platform

SoFi Invest's desktop and app-based trading platforms are easy to use. However, they don't have as many features as some of the other top brokerages. Active investors and those who want features like stock research, charting tools, and other advanced features may want to look elsewhere.

Like most other brokerages, SoFi Active Investing doesn't charge commissions on stock trades. However, it does charge a 0.5% purchase fee for alternative funds.

On all stock and ETF trades, investors will pay $0 in transaction fees. Options trading is also available, and has no per-contract charges or commissions. SoFi Invest offers mutual funds and alternative investments; the platform charges $0 commision fees for mutual funds, but fund managers may charge fees independent of SoFi Invest. After the first 60 days (which started on Jan. 29), SoFi Invest will begin charging a competitive 0.5% purchase fee on alternative funds.

Investors can buy and sell stocks, ETFs, and other investment types through SoFi Invest's desktop platform. They can also use its highly rated app, which also serves as the home base for all of SoFi's financial products.

The SoFi app is known for its ease of use. It's currently rated at a 4.8 out of 5 in the Apple App Store, and a 4.2 out of 5 in the Google Play Store.

SoFi Active Investing does offer margin at a flat rate of 10% for members. In the current interest rate environment, this is in line with what most other brokers offer.

SoFi Active Investing is designed as a low-frills platform. It's primarily targeted at beginning investors, and does not offer access to third-party stock research at this time. Investors who like to analyze stocks might prefer a full-featured brokerage.

• You're a beginning investor. SoFi Invest is geared toward beginning investors. It isn't intended to be the best place for experienced investors who are analyzing stocks.
• You want to keep all of your finances in one place. SoFi is well known for its loan products, especially personal loans. It also offers the SoFi Money account, which combines the best features of checking and savings accounts. And SoFi Invest has one of our top-rated robo-advisors, SoFi Automated Investing. With an all-in-one app and a wide range of financial products, SoFi can be a great choice for people who want to keep their investments in the same place as their other financial accounts.
• You want to invest in mutual funds. Not many discount brokers offer mutual funds. SoFi Invest combines a clean, modern interface with a broad range of investment options. 

RELATED: SoFi Active Investing Promotions

At The Motley Fool Ascent, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and account types; however, we also take into account features like research, education, tax-loss harvesting, and highly rated mobile apps. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

See our full methodology here: Ratings Methodology