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Written by Sam Pennington on March 5, 2023
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Robinhood vs SoFi Invest 2024: Best Brokerage?

You've probably heard how important it is to save, invest, and keep track of your personal finances.

Well, one of the first steps to accomplishing these goals is to get your investments in order. And finding the right broker to invest with is a perfect place to start.

However, with so many different online brokers available to choose from, it can be a very difficult task. This is made even harder if you are new or just getting on your feet financially.

That is why in this article, we will be breaking down two popular brokerage services known as SoFi and Robinhood. We'll be giving you the full rundown on the features, fees, pros, and cons of each broker.

Whether you are interested in saving for retirement, investing in stocks, or socking away money for that dream vaca, each of these brokers are unique in what they offer. Let's take a closer look!

Learn More: Robinhood Retirement 3% Match

Robinhood is a popular "all-in-one" investing app.

While they are most well-known for their commission free stock trading, they've recently shaken up the Retirement Investing World too.

Introducing Robinhood Retirement; home of the biggest IRA match on the market.

Robinhood IRA Boost

Here's what you need to know:

  • Robinhood offers 2 types of retirement accounts - the Roth IRA and Traditional IRA
  • All Robinhood investors will get a 1% Match on what they Contribute or Transfer
  • Robinhood Gold members will get a 3% Match - the biggest on the market

And don't worry, this comes with a Portfolio Builder Tool. You don't have to construct your investment portfolio from scratch if you don't want to.

Lastly, you'll even get a free stock worth up to $200 when you open a new Robinhood account using our link.

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Robinhood vs SoFi Invest: The Basics

Robinhood is a commission-free trading app that allows you to invest in stocks, ETF, options, and cryptos. The app has become well-known for its simple interface and beginner-friendly platform.

SoFi Invest is one piece of the SoFi umbrella that also allows investors to invest commission-free. The platform offers stocks, ETFs, and crypto. However, the crypto trading does come with commissions.

Both of these apps are tailored towards beginner to intermediate investors, however they do vary in a few key areas. While Robinhood is more of a stand-alone investing app, SoFi is an all-in-one platform for personal finances. In addition to investing, SoFi offers loans, insurance, and coaching to their users.

FeatureRobinhoodSoFi Invest
Account Minimum$0$0
Commission FreeStocks, ETFs, Options, CryptoStocks, ETFs
Fractional SharesYesYes
Retirement AccountsNoYes
Signup PromotionOne Free Stock!None (referral bonuses are available)
Best ForBeginner investors looking for simplicityInvestors looking for an all-in-one solution

Robinhood vs SoFi Invest: Summary

  • SoFi has a wider variety of accounts and features than Robinhood, especially when it comes to loans
  • SoFi offers automated investing to rebalance, reinvest, and finance your investment goals
  • Robinhood focuses primarily on the stock market and has more competitive investment features for active investors than SoFi
  • Both brokers require no account minimums or fees when you open an account
  • Robinhood Cash Management lets you earn high interest through the online savings account
  • Both have mobile apps that are beginner-friendly and easy to understand
  • Robinhood and SoFi both offer fractional shares so you can buy into even the priciest stocks and ETFs
  • Robinhood has commission-free Crypto trading while SoFi charges for this
  • SoFi does not offer options trading, while Robinhood does commission-free
  • Robinhood offers new users a free stock when they sign up
  • Both platforms offer a retirement account, though Robinhood provides a 1% match on contributions.

Don't forget to grab your free stock worth up to $200 from Robinhood today!

What Is SoFi?

SoFi Robo Advisor

SoFi is committed to being a one-stop shop for all your financial needs.

As a business built on a foundation of success and integrity, SoFi's mission is to be the most reliable broker and company that you can turn to for any service. From investing, to saving for retirement, to student loans, SoFi is designed to be there for you.

SoFi Services Offered

Now, what do I mean by a one-stop shop exactly?

SoFi offers a wide variety of services that can strategically position your money. From private student loans, to automated investing, to homeowner's insurance, SoFi has all of the main features of a bank all in one place.

And what's even better, all of these features can be accessed on the company's digital platform and mobile application!

SoFi Invest Features

SoFi can accomodate all of these top-quality characteristics through the extensive array of features on its platform. You name it, SoFi probably has it. Let's take a look at some of the most important features of the platform.

Mobile App

SoFi is ranked overall at #126 on the App Store which should tell you something about how well regarded it is. The SoFi app lays out important features and tools in a way that is easy to understand, even for newcomers to managing their finances and trying to grow their net worth.

$0 Commissions

SoFi believes that you should not have to pay to invest! 

So it guarantees no extra fees or commissions when you execute a trade on one of the many stocks or ETFs that it offers. This move to cut extra fees shows they are catering to the needs of SoFi members. Basically, you will get access to cheap and reliable services. 

However, do keep in mind they charge a mark up of 1.25% on each crypto transaction. 

Automated Investing

SoFi's automated investing feature takes the stress of picking individual stocks and ETFs out of the equation.

SoFi will take a close look at your goals, whether they are to save for retirement, buy a new vehicle or sock money away for your first house.

Then, it will automatically build a portfolio of securities that matches your risk tolerance. SoFi wants you to reach those goals and fulfill your aspirations, so it automatically rebalances your portfolio and makes sure you are well-diversified across a vast array of investment products.

Stock Bits

Interested in buying shares of expensive companies such as Amazon or Google, but don't have the money to make those trades?

SoFi has you covered. Stock Bits is a feature that lets you buy small percentages of stocks and ETFs. When you do this, you can earn a proportional return depending on the performance of the security.

This means you can invest in the largest and most expensive companies with as little as $1!

For beginner investors, this is huge because it allows them the ability to build a diversified portfolio on the cheap.

SoFi Crypto

If you are interested in Cryptocurrencies like Bitcoin, Ethereum, and Litecoin, SoFi Invest may be a good choice for you.

Cryptocurrency can be traded 24/7 on SoFi's platform and lumped into traditional investment portfolios. With the capability to buy stocks, ETFs, and cryptocurrencies, SoFi makes it possible to create a diverse portfolio spread out among various asset classes.

SoFi does charge a fee for this crypto trading service of 1.25% of the transaction.

SoFi Pros

  • $0 commission on all stock and ETF trades
  • No extra fees or account minimums associated with opening any SoFi account
  • Access to a wide variety of accounts, offering up many different options for you to take a look at 
  • Mobile app to simplify all of the features that SoFi offers
  • Application to apply for a SoFi account is completely online and can be set up in minutes
  • Automated investing that takes into account your risk tolerance and ultimate investment goals

SoFi Cons

  • No tactical trading platform offered
  • Limited access to market research
  • More focused on loans and refinancing options than stock market-oriented features
  • No bond or options contracts offered on SoFi
  • Crypto transactions are marked up by 1.25%

What Is Robinhood?

I'm sure you have heard of this popular online brokerage app by now.

Robinhood has been splashed all over the headlines and acts like a magnet to attract new investors into the market. While highly publicized, you may not have a full understanding of Robinhood's mission and features.

Let's take a closer look now.

Robinhood's Mission

Robinhood's mission is to make the financial markets accessible to all. The company specializes in investing, specifically in the stock market, and has developed a highly acclaimed and recognizable mobile app to supplement its top-notch investment features.

Robinhood Features

Robinhood's features are widely recognized for competitive pricing and reliability. For example, its mobile app has received many awards over the years for being simple and effective.

And no doubt, there are more accolades in Robinhood's future!

$0 Commission Fees

Robinhood offers $0 trading fees for all stocks, options, crypto, and ETFs

Cash Management

Robinhood Cash Management is a unique feature that lets you earn high interest on all uninvested money that you move into your savings account?

This is especially attractive for people who know how to be patient and wait for the right opportunity to get into the market. 

That's because when you keep funds in your cash management account, you can transfer them instantly to your investing account. A standard transfer from an external account could take up to 3 business days. This could be the difference between getting in on a good trade and missing the boat entirely.

Robinhood Fractional Shares

On the Robinhood platform, you can buy slices of shares instead of having to buy the whole thing. This can allow smaller investors to participate in some of the largest and most expensive companies listed on the market!

Like SoFi's Stock Bits feature, Robinhood lets you buy fractions of companies and receive proportional returns based on stock movements.

For example, if you are interested in buying a stock that costs $100, but only have $10, you can buy 1/10 of a share and receive all of the stock appreciation gains/dividends on that 10% ownership.

Not a bad deal, especially if you want a piece of pricy names Amazon and Google.

Customer Support

Robinhood provides members with a highly detailed customer service help center with hundreds and hundreds of questions and answers. If members are unable to find the answer they are looking for, they can also email or request a phone call. Both emailing and requesting a phone call are managed within the app under "Help" inside of settings. Members can expect an answer to their email within 1 business day or a phone call within 30 minutes.

While this may not be as convenient as a simple phone number that you can call, it is more efficient for Robinhood as many questions can be answered in the help center.

Robinhood Gold

Robinhood Gold members gain access to the typical features in a normal Robinhood account with additional research and a reduced interest rate with margin. 

Much of the extra Robinhood Gold functionality is tailored towards shorter-term traders. Long-term investors in most cases won't get much use out of the additional benefits.

These extra features come at a price, and will be covered in the "Robinhood Fees" section below.

IRA With A Match

Many platforms offer individuals the ability to invest in a retirement account, namely an IRA. With Robinhood, you also have this option. However, it comes with an extra perk: matching.

Most people are aware of what a 401k is - a retirement account offered by many employers. An IRA, or an Individual Retirment Account, is one that individuals can open on their own without their employer. A 401k is often highly prioritized because many employers offer a match of some percentage. For example, an employer may offer to match the contributions made by an individual up to 5%. With an IRA, their is no match.

However, with Robinhood's IRA, you instantly get an extra 1% of every dollar you contribute. This is a great way to augment your retirement account.

Robinhood Fees

While Robinhood does keep its costs to a minimum for its users, there are still some fees associated with margin and its Robinhood Gold Account.

Robinhood Gold Account Fee

There is a fixed $5 monthly fee for Robinhood Gold accounts.

A Robinhood Gold account may be worth it for someone who is looking for both high-quality research and also a reduced interest rate with Margin trading. 

Marginal Interest Fees

Investing on margin is when you borrow money from your broker to finance your investments. Interest payments made for the investor go back to Robinhood on that cash borrowed.

With Robinhood Gold, you can take out $1,000 of margin with no interest payment needed.

However, after that $1,000 minimum, you will be charged a 7.25% yearly interest fee. Be careful when investing on margin as it can be very risky without knowing your way around. Without Robinhood Gold, you can still access margin, though the interest rate increases to 11.25%. 

Robinhood Pros

  • $0 commissions on all stocks, ETFs, crypto, and options 
  • Award-winning mobile application simplifies the investment process
  • No account minimums, deposit, or withdrawal fees
  • $1,000 instant deposits allow you to get up and running faster
  • FDIC insurance backs up to $1.25 million in cash for cash management account

Robinhood Cons

  • Limited amount of accounts offered compared to SoFi
  • No ability to "short" a security (bet on the price going down)
  • Research is limited without paying the $5 monthly fee for Robinhood Gold 

SoFi vs Robinhood: The Final Verdict

Now that we have outlined the features, fees, pros, and cons of both Robinhood and SoFi, it's time to come to a final decision on which online broker is best. It is safe to say that both SoFi and Robinhood have exceptional features but to keep it short, it all depends on you.

Are you looking for a full-service financial company that will offer you student loans, mortgages, refinancing options, and automated investing? If so, then SoFi may be a great fit for you.

If you are more interested specifically in the stock market and using all of Robinhood's top-of-the-line market investing features, it may be a better choice.

Regardless of SoFi Invest vs Robinhood, it is safe to say that both brokers have very outstanding features that make each unique. Only you can choose what's best for your goals and financial future. I hope this article will help steer you in the right direction on your path to financial success!

Article written by Sam Pennington
Sam is a personal finance writer. While in college, he dedicated his spare time to learning about personal finance, investing, and real estate. Sam currently works as a business analyst for one of the top food manufacturers in the world.

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