Today’s investors care about many things. At the top of that list are two important items: fees and account minimums. In this article, we are reviewing two platforms that excel in both of those categories. These two platforms are Webull and SoFi Invest.
Without trading commission fees or account minimums, investors can have their cake and eat it too with Webull and SoFi Invest.
While both are relatively new to the investing industry, both have impressive offerings that allow all investors to get their financial life in order with ease. Let’s jump in and see why investors are talking about Webull vs Sofi Invest!
SoFi Invest has many features of interest to the investment community. Options such as automated investing, retirement saving, IPO investing, and fractional shares make this app a top contender. SoFi also has many other features to help round out your portfolio as you try to become financially independent.
Webull is an app geared toward day trading and as such, has plenty of research available for investors who prefer to invest with speed and with accuracy. Although the platform does not offer any fractional shares, it does offer paper trading and retirement accounts so investors can feel confident in their future.
|Commission Free||Stocks, ETFs, Options||Stocks, ETFs|
|Signup Promotion||2 free stocks worth up to $1,850||1 free stock worth up to $1,000|
|Main Customer||Day traders and intermediate investors||Beginner investors and long-term investors|
Webull Review 2021: Best Free Investing App?
SoFi Invest Review 2021: Best Investing App?
||Invest With SoFi|
Although founded relatively recently, Webull competes with some of the top investment platforms because of its user-driven trading platform.
Focused mainly on mobile-app execution, Webull has recently improved its desktop platform with the release of Webull desktop 4.0. Let’s dive in and check out some of this platform’s features.
Although similar to other platforms like Robinhood that specialize in mobile-based trading, Webull offers features other leading brokerages lack. These features are available to help investors have the greatest chances of success.
With Webull, there aren’t any commissions on trading stocks, ETFs, or options.
Not only are there no commissions, but these accounts also come with no minimums, meaning anyone can hop on the app and get started with any sum of money.
In addition, options are available with Webull for $0 commissions or contract fees. This is an incredible offering is that is not very common in the industry.
With Webull, you can open a retirement account to focus on your long-term wealth-building strategy. These retirement options include Traditional, Roth, or Rollover IRAs.
These tax-advantaged accounts mean that you’ll be able to shelter some of your gains from taxes, depending on the account you choose.
Using Webull’s Paper Trading features means you can see if you are the next Warren Buffett without betting the farm. You can practice trading without any risk of losing actual money because it’s all a simulation.
Webull offers users a trading simulator with $1,000,000 to trade with. These funds, of course, are not real but they mimic the market exactly so you can see what would have happened based on your decisions.
This feature makes it so you can take this app for a spin without committing big bucks and helps you familiarize yourself with the stock market without risking your own money.
One of the best things about Webull’s platform is the amount of research and data at your fingertips. In just the app on your phone, you have access to a wide variety of advanced tools and data to help you make the best decisions.
This is something that other brokerage accounts, such as Robinhood, have failed to do and it has cost them users.
Webull offers interactive charts, level II market data, and multiple technical indicators to help investors know what trades to make.
However, a word to the wise: all this information can be a bit overwhelming. So do your research and make sure you are focusing on the most important data points without suffering from analysis paralysis.
SoFi, otherwise known as Social Finance, is a popular conglomerate of personal finance tools. You’ve probably seen the commercials or received fliers in the mail boasting the ability to save you money on your student loans due to SoFi’s robust loan refinancing program.
While SoFi does seem to have a stronghold on the lending and refinancing side, let’s focus on its less well-known sector of SoFi Invest.
This platform uses its expertise to help investors succeed in several key areas. These are Active Investing, Automated Investing, Crypto Investing, and IPO Investing.
Together these features, along with the many other financial tools offered, have helped over 1 million customers.
Before jumping into the nuts and bolts of each investing area, it’s important to note SoFi Invest’s community-centric program.
Some of these benefits range from career coaching to financial planning advice and discounts on other SoFi products. This is a great perk that helps SoFi Invest differentiate itself from the ever-growing number of financial products out there today.
The SoFi Invest community is there if you need help with specific questions or just want some more educational resources. This is a feature that is not found on many other investment platforms.
With Active Investing, you can trade stocks and ETFs with absolutely no account minimums or profit-eating commissions.
Instead of making investors wait until they can afford the whole stock, SoFi Invest offers its version of fractional shares with what it calls Stock Bits.
With Stock Bits, you can invest in dollar amounts instead of numbers of shares. This means that a share with a price tag of $500 can be purchased partially for $250 in exchange for ½ a share. This feature alone makes it so your money goes further on SoFi Invest.
While this does not change the risk portfolio of your holdings, it does allow you to diversify your funds in a more efficient way. With fractional shares, you don't have to spend your money all on one stock but you can spread it across several different holdings.
While not all blue-chip stocks are available for fractional shares, SoFi Invest has made it so that 43 of the most common stocks or ETFs are available.
When you sign up for a SoFi Invest account, you could be eligible to win a free stock valued from $5 to $1,000! There is no investment necessary. You will just need to download the app and see the new stock added to your portfolio. See this link for the terms and conditions.
If you're not a genius at picking individual stocks and let's face it, who is, you may consider investing in one of SoFi Invest's specialized ETFs. Here are some options below:
With this, members can sign up and fill out a questionnaire and SoFi will build a personalized portfolio and manage it with no management fees!
They also offer the following retirement accounts: Roth, Traditional, or SEP IRA.
In addition to creating this portfolio for you, they will rebalance it too. This ensures that you are staying on track.
It’s important to keep in mind that while there are no management fees charged by SoFi Invest, there are other investment expenses that need to be taken into consideration. The most common one is the expense ratio of an investment fund.
SoFi Invest claims these range from 0.03% to 0.08%. While you may think these are rather high, take a look at standard expense ratios in the industry.
Cryptocurrency is quite the buzzword thrown around nowadays. But where is the best place to take advantage of all the hype? Well, SoFi Invest is a good option.
They are so confident that after you sign up to trade crypto on the platform, SoFi will give you $10 in Bitcoin for free.
Crypto trading is also open 24/7, unlike public exchanges. But also unlike trading stocks on SoFi Invest, this is not free of fees.
A 1.25% fee is added to every crypto transaction and all crypto trades need to be above $10 in value and have a maximum of $50,000.
In addition, to protect user data, no crypto can be transferred outside of SoFi Invest to an external wallet.
If you have an account balance of at least $3,000, you could be eligible to participate in IPO trading at the list price. Previously, retail investors like you and me were not able to participate in IPO investing and needed to wait until the stock was publicly listed. Now, investors can submit an indication of interest and have the chance to trade at the IPO price.
While no transaction will take place until the stock is publicly listed, the investors will be able to purchase at the IPO price.
Webull offers users a great experience on their mobile-first app and gives users access to several advanced research tools and stock information rarely found with other brokerages.
SoFi Invest, on the other hand, offers several other tools that investors love such as fractional shares and automated investing.
Both offer taxable and retirement accounts with $0 minimums.
If you are looking to trade stocks actively and conduct research, Webull may be a better option to consider. They are a research-oriented trading platform.
If you do not want to construct your own portfolio, SoFi Invest can do this for you with the Automated Investing feature. They can also offer fractional shares and allow users to participate in IPO trading.