SoFi Automated Investing Review 2024: Pros, Cons and How It Compares

SoFi Automated Investing's range of low-cost ETFs and free management make it an attractive option for cost-conscious investors.
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Written by June Sham
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Our Take

4.9

NerdWallet rating 

Reviewed in: Oct. 2023

Period considered: Aug. - Oct. 2023

The bottom line:

Free management and access to financial advisors and career counselors make SoFi Automated Investing a solid choice for beginning and younger investors.

SoFi Automated Investing
Fees
0%
management fee
Account minimum
$0
Promotion
1% match on IRA contributions
Only offers made via ACH are eligible for the match. ACATs, wires, and rollovers are not included.
Learn more

on SoFi Invest's website

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Paid non-client promotion

Pros & Cons

Pros

  • Broad range of low-cost investments.

  • Free portfolio management.

  • Access to certified financial planners.

  • 1% match on IRA contributions.

  • No account minimum.

Cons

  • Limited account types.

  • No tax-loss harvesting.

Compare to Similar Brokers

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Fees 

0%

management fee

Fees 

Varies by Advisor (free initial consultation)

Fees 

0.25%

management fee

Fees 

0.25%

with a balance over $20K or qualifying recurring deposit. Otherwise, $4/month.

Account minimum 

$0

Account minimum 

$150,000

Account minimum 

$500

Account minimum 

$0

$10 to start

Promotion 

1% match on IRA contributions

Only offers made via ACH are eligible for the match. ACATs, wires, and rollovers are not included.

Promotion 

3-Month Satisfaction Guarantee

Promotion 

Get a $50 customer bonus

when you fund your first taxable investment account

Promotion 

None

no promotion available at this time

Learn more

on SoFi Invest's website

Learn more

on Zoe Financial's website

Learn more

on Wealthfront's website

Learn more

on Betterment's website

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Paid non-client promotion

AD

Paid non-client promotion

AD

Paid non-client promotion

AD

Paid non-client promotion

NerdWallet doesn’t invest its money with this provider, but they are our referral partner – so we get paid only if you click through and take a qualifying action (such as open an account with or provide your contact information to the provider). Most importantly, our reviews and ratings are objective and are never impacted by our partnerships. Our opinions are our own. Here is a list of our partners and here’s how we make money.

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Full Review

Where Sofi Automated Investing shines

Management and administrative fees: Since 2018, SoFi Automated Investing (formerly known as SoFi Wealth) has charged no management fees. It also charges no advisory or administrative fees.

Broad range of low-cost investments: SoFi clients have a choice of 10 portfolios using a diversified selection of low-cost ETFs.

CFP access: SoFi’s service includes unlimited access to a team of certified financial planners.

Where SoFi Automated Investing falls short

No tax-loss harvesting: SoFi does not offer tax-loss harvesting, a service offered by many of its competitors that can reduce taxes owed on investment gains.


SoFi Automated Investing is best for:

  • Beginning and younger investors.

  • Hands-off investors.

  • Investors who need financial planning guidance.

  • Cost-conscious investors.

  • Users with low balances.

SoFi Automated Investing at a glance

Reviewed: Oct. 2023

Period considered: Aug. - Oct. 2023

Account minimum

$1.

Account management fee

$0.

Investment expense ratios

Portfolio expense ratios average 0.03%.

Account fees (annual, transfer, closing)

$75 full outgoing transfer fee.

Portfolio mix

ETFs from 12 asset classes; choice of 10 strategies with allocations representing different risk levels for taxable and tax-deferred accounts.

Socially responsible portfolio options

None.

Accounts supported

  • Individual and joint non-retirement accounts.

  • Roth, traditional, SEP and rollover IRAs.

  • Keogh plans.

Tax strategy

Tax portfolios have exposure to municipal bonds.

Automatic rebalancing

Portfolios are automatically rebalanced if there's a 5% drift for any security.

Human advisor option

Free, unlimited access to certified financial planners.

Savings account/cash management account

Members have access to SoFi checking and savings account, which has a competitive APY for direct deposit members.

Customer support options (includes how easy it is to find key details on the website)

Customer support is available by chat and phone Monday through Thursday 5 a.m. to 7 p.m. Pacific; Friday through Sunday 5 a.m. to 5 p.m. Pacific.

More details about SoFi Automated Investing's ratings

Account minimum: 5 stars

Some robo-advisors have steep account minimums. This can be a disadvantage for those who want to open accounts with relatively small amounts. SoFi Automated Investing is an accessible robo-advisor with a $1 account minimum.

Account management fee: 5 stars

SoFi Automated Investing charges no management fees. By comparison, major robo-advisors such as Wealthfront and Betterment charge 0.25% annually.

Investment expense ratios: 5 stars

An expense ratio is an annual fee charged by mutual funds, index funds and ETFs. The fee is a percentage of your total investment, so high expense ratios can eat away at your returns. SoFi Automated Investing has expense ratios averaging 0.03%, competitive with some of the cheapest robo-advisors out there, including those from Vanguard Digital Advisor.

Account fees: 4 stars

SoFi charges a $75 full outgoing transfer fee.

Portfolio mix: 4.5 stars

SoFi clients have a choice of 10 portfolios based on risk tolerance and investment objectives, using a diversified selection of low-cost ETFs that give exposure to U.S. stocks, developed international stocks and emerging markets, as well as high-yield and Treasury bonds.

Socially responsible portfolio options: 1 star

For some investors, being able to choose socially responsible investments is a top priority. SoFi doesn’t provide an option for socially responsible investing, which may be considered a drawback for some.

Accounts supported: 4 stars

SoFi Automated Investing supports joint non-retirement accounts, Keogh plans, Roth, traditional, rollover and SEP IRAs.

Tax strategy: 2 stars

SoFi does not offer tax-loss harvesting, an investment strategy that can significantly reduce capital gains taxes. In taxable accounts, the practice involves selling losing investments to offset the gains from winners. It’s available among many of SoFi's competitors.

Automatic rebalancing: 5 stars

As with some of the most popular robo-advisors, SoFi Automated Investing provides automatic rebalancing. Every time money enters or leaves your account (for example, a deposit), SoFi checks your portfolio against the target allocation and rebalances it as close as possible. In addition, the advisor monitors your portfolio daily to see if it's more than 5 percentage points off-target and, if so, will adjust the portfolio back to the target.

Human advisor option: 5 stars

SoFi stands out here. All clients have unlimited access to the company's financial advisors at no extra charge. These advisors are CFPs or pursuing their CFP designation, which holds them to a fiduciary standard that binds them to operate in your best interest. They’re also noncommissioned advisors, meaning they don't make money off of specific trades or actions they recommend.

On top of this, advisors are available at a range of hours and through various contact methods. You can schedule a phone or video appointment Monday through Friday 4 a.m to 5 p.m. Pacific time. This is a great advantage for newer investors or those looking to access certified financial planners.

Savings account/cash management options: 5 stars

In 2022, SoFi launched a new bank, so customers now have access to checking and savings accounts. The accounts pay up to 0.50% for direct deposit members and carry up to $1.5 million in FDIC coverage. Other features of the online bank include no account fees, which include overdraft, minimum balance, and monthly fees. Customers can also take their paycheck up to two days early and get up to 15% back when they use their SoFi debit card at local establishments.

Customer support options: 4 stars

Customer support for technical issues is available via phone, social media, and chat 5 a.m. to 7 p.m. Monday through Thursday and 5 a.m. to 5 p.m. Pacific time Friday through Sunday.

Other features you should know

SoFi offers goal planning to help you save for retirement, a down payment on a home, college or something else. The robo also offers bonuses to all members and there is no monthly minimum to be a member. Members can receive complimentary career coaching as well as members-only events such as dinners and talks. They’re also eligible for reduced interest rates on SoFi loans. If you already have your student loans or a mortgage with SoFi, or are planning on taking out a loan, extending your relationship with the company could be worth something extra to you.

Is SoFi Automated Investing right for you?

In many respect, SoFi competes — and even beats — top players in the robo-advisor industry. SoFi’s free management is attractive compared with other robo-advisors that charge a management fee of 0.25% or more. But it's especially enticing relative to competitors who charge significantly more and offer similar unlimited access to advisors.

With a broad range of low-cost ETFs, SoFi provides strong features for cost-conscious investors, especially those just starting out. These beginners are also more likely to find value in SoFi’s member bonuses, particularly its career coaching and interest discounts on student loans.

How do we review robo-advisors?

NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. robo-advisors. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.

We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across 16 factors. The final output produces star ratings from poor (one star) to excellent (five stars).

For more details about the categories considered when rating robo-advisors and our process, read our full methodology.

Learn more

on SoFi Invest's website