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

SoFi Active Investing is geared toward young investors getting their start in trading, with commission-free trades of stocks, ETFs and fractional shares.
Profile photo of Alieza Durana
Written by Alieza Durana
Lead Writer
Profile photo of Arielle O'Shea
Edited by Arielle O'Shea
Lead Assigning Editor
Fact Checked
Profile photo of Andy Rosen
Co-written by Andy Rosen
Lead Writer/Spokesperson

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.


The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Our Take

4.2

NerdWallet rating 

The bottom line:

SoFi Active Investing's $0 trading commission and $0 account minimum is attractive to new investors, and the addition of mutual funds in 2024 makes the broker even more well-rounded and appealing.

SoFi Active Investing
Fees
$0
per trade
Account minimum
$0
Promotion
Up to $1,000
in free stock for users who sign up via mobile app
Learn more

on SoFi Invest's website

Pros & Cons

Pros

  • Commission-free stock, options and ETF trades.

  • Free financial counseling.

  • IPO access.

Cons

  • Low interest rate on uninvested cash.

Compare to Similar Brokers

Current Product

NerdWallet rating 

4.2

/5
NerdWallet rating 

4.9

/5
NerdWallet rating 

4.3

/5
NerdWallet rating 

5.0

/5

Fees 

$0

per trade

Fees 

$0

per online equity trade

Fees 

$0

per trade

Fees 

$0

per trade

Account minimum 

$0

Account minimum 

$0

Account minimum 

$0

Account minimum 

$0

Promotion 

Up to $1,000

in free stock for users who sign up via mobile app

Promotion 

None

no promotion available at this time

Promotion 

1 Free Stock

after linking your bank account (stock value range $5.00-$200)

Promotion 

None

no promotion available at this time

Learn more

on SoFi Invest's website

Learn more

on Charles Schwab's website

Learn more

on Robinhood's website

Learn more

on Interactive Brokers' website

Get more smart money moves — straight to your inbox

Become a NerdWallet member, and we’ll send you tailored articles we think you’ll love.

Full Review

Where SoFi Active Investing shines

Beginner investment platform: SoFi Active Investing is squarely aimed at young investors with free trades of stocks, exchange-traded funds and options, plus fractional shares of blue-chip companies such as Amazon and Netflix. The company launched mutual funds in 2024, which helps set it apart from competitors like Robinhood and Webull that don't offer access to these.

IPO access: SoFi offers unique access to initial public offerings before they're traded on the public markets — all SoFi account holders are eligible. This is notable because IPO access is often only available to institutional investors.

Related products: The self-directed brokerage is part of the San Francisco company's growing line of financial products — which includes robo-advisor SoFi Automated Investing and online cash management account SoFi Banking — and gives members benefits such as free educational seminars and meetings with financial advisors.

Access to financial advisors: All SoFi clients have unlimited access to the company's financial advisors at no extra charge to help with long-term financial strategy.

Where SoFi Active Investing falls short

Low interest rate on uninvested cash: Many brokers have started paying higher cash sweep rates to reflect the high-interest rate environment, but SoFI's cash sweep rate still stands at just 0.01%.

SoFi Active Investing is best for:

  • Active traders.

  • ETF and mutual fund investors.

  • Fractional shares.

  • Options.

SoFi Active Investing at a glance

Account minimum

$0.

Stock trading costs

$0.

Options trades

No contract fees.

Account fees (annual, transfer, closing, inactivity)

No account fees; $100 partial or full outgoing transfer fee; $25 inactivity fee is easily avoided.

Interest rate on uninvested cash

0.01%

No-transaction-fee mutual funds

Over 6,000.

Tradable securities

  • Stocks.

  • Options.

  • ETFs.

  • Mutual funds, including alternative asset funds.

  • ADRs.

Trading platform

Slick interface; limited tools.

Mobile app

Access to core account functions including tracking, quotes and trading. Available on iOS and Android.

Research and data

Limited selection of research and tools.

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

Phone and chat support 5 a.m. to 5 p.m. PT, 7 days a week.

More details about SoFi Active Investing's ratings

Account minimum: 5 out of 5 stars

SoFi has no account minimum.

Stock trading costs: 5 out of 5 stars

SoFi Active Investing came out of the gate as a competitor to Robinhood, offering free stock and ETF trades. However, toward the end of 2019, free trades became the industry standard at online brokers, causing the offerings from SoFi and Robinhood to lose their edge.

Options trades: 5 out of 5 stars

SoFi's commitment to low-cost trading also shows in its new $0 options trade offering, which charges no contract fee.

Account fees: 2.5 out of 5 stars

SoFi Active Investing charges no annual fee, though there is a $100 full or partial outgoing transfer fee. There is a $25 annual inactivity fee, but you can avoid that without much work: As long as you log in to your account at least once every six months, you can waive this fee.

Interest rate on uninvested cash: 1 out of 5 stars

SoFi offers a low 0.01% interest rate on uninvested cash, and even to receive that, you have to opt into it. This is a departure from some other brokers, where the default interest rate on uninvested cash can be as high as around 5%.

Number of no-transaction-fee mutual funds: 5 out of 5 stars.

In Feb. 2024, SoFi launched mutual funds on its platform. The selection includes over 6,000 funds, all of which can be bought and sold with no transaction fees. SoFi's mutual fund catalog includes liquid alternative funds, including commodities, precious metal commodities and real estate.

Tradable securities available: 4.5 out of 5 stars

SoFi Active Investing may be leading the way with fractional shares, options and now IPO offerings. It also offers ADRs, or American depository receipts, which allow customers to easily buy shares in foreign companies.

Editor's note: In Nov. 2023, SoFi Active Investing ended its crypto offering. Customers with crypto accounts at the brokerage were given the option to transfer those crypto assets to Blockchain.com

SoFi Active Investing. Upcoming changes to SoFi's crypto services. Accessed Nov 29, 2023.
.

Trading platform: 3.5 out of 5 stars

SoFi Active Investing offers a straight-forward trading platform with very limited features without the bells and whistles serious traders may enjoy.

It does have a simple interface for new investors, though, and some of its offerings help the company live up to the "social" aspect of Social Finance. For instance, you can look at the holdings of well-known traders to see how your ideas compare to theirs.

Signing up and funding your account are relatively easy, though unless you have a clear idea of what you want to invest in, you may wind up having to look elsewhere as you decide what to buy. SoFi doesn't have a lot of the screening, comparison and research tools that its top-tier competitors offer.

SoFi's trading hours are relatively expansive: from 9 a.m. to 8 p.m. Eastern, and SoFi does facilitate over-the-counter trades for free.

It's also important to note that SoFi does accept payment for order flow, which is a common practice among discount brokers. But it does mean that SoFi (and many others) may earn more if it routes your order to the market maker that offers the best payment rather than the optimal consumer price.

The company's execution quality is 95.97%.

🤓Nerdy Tip

The average execution quality of all brokers we review was 97.4% as of Aug. 31, 2023. That means 97.4% of orders sold for at a price that was at or better than the National Best Bid and Offer. Executing at or above the NBBO means you may receive a price improvement or a better share price than you were originally quoted.

Mobile app: 5 out of 5 stars

SoFi Active Investing has two free mobile apps, available for iOS and Android, both highly rated by iOS and Android users, that allows users to make trades, as well as track performance and get real-time quotes.

Research and data: 2 out of 5 stars

Sofi has a sampling of free online resources, such as historical data and stock performance, as well as webinars and live events. But it lacks the research capabilities you might find elsewhere.

Customer support options 3.5 out of 5 stars

Customer support is available via email and chat, as well as by phone from 5 a.m to 5 p.m PT every day. Note, however, that investing-specific help is only open on weekdays.

Is SoFi Active Investing right for you?

SoFi Active Investing has attractive features for new investors: commission-free stock, ETF and options trades, a $1 account minimum, free financial counseling and cutting-edge offerings including fractional shares and IPOs. The broker has consistently improved its offerings over the years, especially with the addition of mutual funds in 2024.

How do we review brokers?

NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokers by assets under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgments 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 more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars).

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

Learn more

on SoFi Invest's website