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In its early stages, Sofi Invest served largely as a mobile app-based βmicro brokerageβ for novice traders. SoFiβs automated system uses a set of sophisticated algorithms to invest your money on your behalf, or you can choose to actively manage your account. This article takes a closer look at the functionality of SoFi Active Investing and how it functions for its customers. If youβre curious about things like βhow does SoFi Active Investing work?β then keep reading.
The Basics
Self-management is at the heart of SoFi Investβs Active Investing feature. The serviceβs target audience consists of novice traders who are just getting their feet wet. Many young investors, with little capital to invest, like the fact that SoFi does not charge a commission on trades. When using the SoFi Active Investing platform, you can buy and sell stocks, ETFs, and fractional shares. SoFi Active Investing stands out from its competitors because it is one of the few companies that makes it easy to trade cryptocurrency.
Become an Insider
SoFi Active Investing requires only a single dollar to get started, but unlike other brokerages, it offers a smaller selection of traditional investment vehicles. It lacks the depth of features found at longer-standing competitors like Fidelity. So, what are the upsides and downsides of SoFiβs active investing strategy?
Pros
- Cryptocurrency trading
- Fractional shares
- Commission free stock and ETFs
- $1 account minimum
- Free financial counseling
Cons
- No access to mutual funds
- No access to options trading
- A smaller selection of tradable assets
How does SoFi Active Investing work
So how does SoFi Active Investing work? Individuals who want hands-on control of their investments may appreciate the SoFi dashboardβs flexibility and ease of use. With an active SoFi account, investors can purchase and sell assets whenever they like, and they can choose whether or not to reinvest dividends. However, because of its restricted selection and inability to access pink sheets, it is not the best platform for day trading. Although it provides access to more cryptocurrencies than Robinhood, it is most often compared to Robinhood due to the similarities between the two services and the types of stocks offered for trade. The interface is simple and doesnβt have any of the flashier features of more advanced brokerages. However, it does have tools that most traders and professionals need, like stop limits and price alerts.
Summary
The SoFi Active Investing trading platform is great for investors who wish to be more involved in their financial decisions. Instead of leaving investment decisions to the algorithm of the SoFi Automated Investing service, SoFi Active Investing account members can take control with this version of Sofi Invest. Some prefer this, especially the ability to withdraw from trade if it is not moving in the desired direction. This platform is ideal for those who want to take a more hands-on approach to manage their finances and trading.
FAQs
1. How does SoFi Active Investing work Β with mutual funds and options trading?
The SoFi Investing platforms do not currently provide mutual funds or options.
2. How does SoFi Active Investing work with margin investing?
SoFi Investβs margin trading is accessible to Active traders only and costs a flat 3% per trade.
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