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This content is for informational purposes only and is not intended to provide financial advice.
When you’re picking platforms that will help you invest, the choice you make right now can and will affect you for years to come – choosing the right platform from the get-go is vital. In this review, we will go over two of the largest commission-free stock trading platforms in the US: SoFi Invest and Robinhood.
Founded in 2019, SoFi Invest is an online stock trading platform and investing app headquartered in San Francisco. It offers access to stocks, ETFs, and IPOs listed on US markets and supports fractional shares. Additionally, it offers financial services, including savings, checking, and borrowing platforms (SoFi Save, Spend, and Borrow). SoFi Invest is marketed towards beginners and experienced investors alike; for beginners, there’s a robo advisor, and for experienced investors, there’s margin trading and support for over 30 crypto assets.
Robinhood, on the other hand, is a more specific financial service provider: it focuses on online brokerage services. Robinhood was launched in 2013 and is one of the most established brokerage services around. In 2021 it reported over $100 billion in assets under management and over 23 million active users. The Robinhood platform supports most types of securities, but margin trading and crypto support are very limited.
In this SoFi Invest vs. Robinhood review, we will compare the two platforms side by side, consider all the features and benefits of each, and make a recommendation.
Keep in mind this is a quick summary of these products; for a more in-depth analysis, check out our SoFi Invest vs. Robinhood Full Review.
SoFi Invest & Robinhood Plans
Starting with the similarities; both platforms offer access to:
- No trading commissions
- No minimum deposits
- Access to Stocks, ETFs, and IPOs
- Recurring deposits
- Access to Fractional shares
- Insured by the SIPC for up to $500,000
Robinhood has two plans: the Robinhood Basic plan, which is completely free, and the Robinhood Gold plan, for $5/month ($60/year). SoFi, on the other hand, has only one plan – and it’s free. The SoFi platform earns most of its revenue from share lending to other trading platforms, and that’s how it can afford to not charge fees or offer a paid subscription.
This doesn’t mean in any way SoFi is not secure – in fact, both Robinhood and SoFi are members of the Securities Investor Protection Corporation (SIPC), and all assets are insured for up to $500,000 (including cash claims for $250,000). For a more in-depth review of SoFi’s model, here’s our detailed review.
SoFi Invest vs. Robinhood Basic Plan vs. Robinhood Gold Plan
Platform | SoFi Invest | Robinhood Basic plan | Robinhood Gold plan |
Monthly subscription | Free | Free | $5/month ($60 year) |
Trading Commissions | $0 | $0 | $0 |
Minimum Deposit | $0 | $0 | $0 |
Number of Supported Securities | 4,000+ | 5,000+ | 5,000+ |
Stocks, ETFs, and IPOs | Yes | Yes | Yes |
Crypto Support | Yes | Very limited | Very limited |
Margin Trading | Yes. (3% interest) | No | Yes. (4.25% interest) |
Fractional Shares | Yes | Yes | Yes |
Research Tools | Limited | No | No |
Transfer Out Fees | $75 | $100 | $100 |
Automatic Rebalancing | Yes | No. DIY investing only | No. DIY investing only |
Instant deposits | Yes. (Up to $500) | No | Yes. (Up to $50,000 instantly) |
Additional Service | SoFi Save, Spend, Earn, and Borrow | No | No |
Insured | Yes | Yes | Yes |
Compared to the basic Robinhood plan, SoFi Invest comes ahead in almost every metric. SoFi offers access to Margin trading with very low fees (3.0%), instant deposits for up to $500, access to a robo advisor, and some very basic research tools. The Robinhood basic plan doesn’t support any of those, and even though SoFi’s research tools are very basic and won’t be winning awards any time soon, they’re miles better than Robinhood’s complete lack of tools.
The Robinhood Gold plan is closer to SoFi; it does support margin trading (albeit with interests almost 50% higher than SoFi’s) and instant deposits for up to $50,000. However, for $60 a year, you’re better off sticking with SoFi no-fee, no-subscription model.
If you’re into crypto, it’s worth mentioning that both Robinhood plans have access to a (limited) selection of 7 crypto assets and don’t charge trading fees. SoFi, on the other hand, supports over 30 – but charges a 1.25% fee on crypto transactions. For more info about Robinhood’s offerings, check out this quick Robinhood features review.
Our Pick
Based on the fees, services, and basic features offered by these platforms, our recommendation is SoFi Invest. Even if you are a DIY investor using an external research tool, the marginally higher stock offering of Robinhood (5,000 vs. 4,000) is not nearly enough to justify paying a subscription.
Sign-Up Process
Signing Up With SoFi Invest
Signing up for SoFi Invest is very quick, and accounts are validated in just a couple of minutes. Here are the steps:
- Visit SoFi Invest’swebsite
- Click the Invest Now button at the top right or the Open an Account button
- Enter a valid email and confirm it by clicking the link they send
If you use our special link to create your account you will get a welcome bonus of $25 towards a stock of your choosing, approved immediately after you fund your account for at least $100.
Signing Up With Robinhood
Technically, anyone can register and create a Robinhood account using a VPN, but the company is primarily for US citizens and supports only US markets. To create an account, you only need a valid email address. Here are the steps:
- Visit Robinhood website
- Click Sign upon the top right
- Enter your email and await the confirmation link
To activate the 30-day free trial immediately, sign up using this link.
Choosing Your Plan
If you’re still unsure which plan to pick, these are our recommendations.
- If you’re not looking to spend any money yet and want to test very basic features and get a feel for the platform, you can try out both SoFi Investor Robinhood basic.
- If you’re looking to start investing and want access to some basic research tools, margin trading, and access to a robo advisor, you should pick SoFi Invest
- If you’re an experienced investor looking for a large offering of securities and crypto, low transfer fees, and automatic rebalancing, you should pick SoFi Invest
Usually, when it comes to trading platforms it’s a good idea to start with the basic plan and upgrade as necessary – just keep in mind the transfer-out fees. In this quick comparison of SoFi Invest and Robinhood, we go a bit more in-depth about the selection process and how to pick the best service for you, so make sure to check that out if you have any questions.
Sofi Invest Fees vs. Robinhood Fees
SoFi Invest
- SoFi Invest Basic Plan: Free
- Crypto Trading Fees: 1.25%
Robinhood
- Robinhood Basic Plan: Free
- Robinhood Gold: $5/month ($60/year)
Conclusion
SoFi Invest is a great trading platform with a good mix of securities. SoFi offers solutions for beginner investors, starting with robo advisor and automated portfolio rebalancing, and for advanced investors, there’s margin trading, fractional shares, and crypto support. SoFi invest works best for experienced investors who can take advantage of its no-fee trading and who use external tools to do most of their research.
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