Sofi & Robinhood Investing App/Guide: A Comparative Look

Sofi & Robinhood Investing App/Guide: A Comparative Look

Sofi & Robinhood: If you are new to investing and want automated guidance or access to financial advisors, then this information will definitely be of interest to you. SoFi invest and Robinhood invest app may simply be your best option.

It has been observed that some have the desire of investing, but getting started seems daunting since they are diving in alone. In investing, there is a lot to understand, and if you make the wrong decision, you could lose your hard-earned money.

Sofi Vs Robinhood Investing App/Guide: A Comparative Look

As a result of the fear associated with losing one’s hard-earned money, there is the establishment of the web-based investing apps like SoFi Invest and Robinhood. Both companies offer investors a way to invest without the hassles or high management fees.

A Brief History of SoFi Invest

SoFi started as a student loan refinancing company in 2011, and it launched SoFi personal loans a few years later, and in 2017 added SoFi Invest.

A Brief History of Robinhood Invest

Robinhood began in 2013, as a bare-bones investing app that let one trade stock options with no commissions.

However, though both companies started in completely different year, time and places, they have both risen to be viable players in the investment industry, thereby always leaving customers perplex on which to choose when investing.

In this discourse, there will be a comparative evaluation of Robinhood and SoFi Invest so as to ascertain which is appropriate for a given business or service. This comparison will cut across the following:

  • Investment Options
  • Human Advising
  • Tax-Loss Harvesting
  • Minimum Deposit

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A Comparative Look at Sofi and Robinhood Investing App/Guide

  1. Investment Option

On Investment options, below are some of the comparative stands between SoFi Invest and Robinhood Invest;

 

A Comparative Look at Sofi and Robinhood Investing App/Guide

  • Robinhood Investing App/Guide

Robinhood has several investment options which investors with taxable brokerage accounts can try out such as individual stocks and exchange traded funds (ETFs), option and margin trading and crypto currency trading.

However, one should be aware that not many established investment companies offer crypto currency trading. This could be as result of either because they are still relatively new or because so many crypto exchanges have gotten caught up in corruption scandals and cyber attacks.

Thus, if you are looking for a solid way to invest in crypto without some of the added risks that come with using exchanges, Robinhood may be a better option over SoFi.

  • SoFi Investing App/Guide

When considering an investment option, SoFi Invest offers the following IRAs: SEP, rollovers (from a 401(k) to an IRA), Roth, and traditional. It also offers both individual and joint taxable brokerage accounts.

Hence, you can choose between SoFi Automated Investing, a robo-advisor service that invests mainly in ETFs, or SoFi Active Investing, which is similar to Robinhood’s offering.

The demarcation between the two as ovserved above is that Robinhood does not offer any kind of robo-advisor, while SoFi does not offer any crypto or options trading, therefore making your choice entirely dependent on what type of investing you want to do.

  1. Human Advising

On human advising, below are some of the comparative stands between SoFi Invest and Robinhood Invest;

  • SoFi Investing App/Guide

On human advising, SoFi Invest offers unlimited access to its certified financial planners (CFPs) at no additional charge; all of their advisors are Series 65 certified as well, which means they have a fiduciary responsibility to act in your best interests.

What this means is that, if you are a SoFi member, then you have access to these financial advisors as much as you need, whether you are just starting out with financial goal planning or you need advice on a trade you are thinking about making.

What the above means is that, SoFi Invest exposes one to great level of financial advisors at a low or no cost rate.

  • Robinhood Investing App/Guide

When it comes to human advising; Robinhood runs a bare-bones operation in order to keep costs down. What this means is that you will not get any access to financial advisors through the program.

  1. Tax-Loss Harvesting

On tax-loss harvesting, below are some of the comparative stands between SoFi Invest and Robinhood Invest;

  • Robinhood Investing App/Guide

Under Tax-loss harvesting, Robinhood promises to provide you with tax documents, however, it will not automatically do any tax-loss harvesting for you. You can still do it manually, but that might be too advanced for novice investors.

  • SoFi Investing App/Guide

On the other hand, when it comes to tax-loss harvesting, SoFi Invest plans to launch automated tax-loss harvesting to all of its members by the end of 2019. This means that you only have to take them at their word and give this round to them.

  1. Minimum Deposit

On, minimum deposit, below are some of the comparative stands between SoFi Invest and Robinhood Invest;

  • SoFi Investing App/Guide

When it comes to minimum deposit, you should know SoFi has no minimum account balance, but in order to start, you will need either $100 as a one-time opening deposit, or you can set up a $20-per-month automatic debit from a checking account to fund your investment portfolio.

  • Robinhood Investing App/Guide

On the other hand, Robinhood doesn’t have a minimum balance either, but unlike SoFi it needs no minimum to start your account. Their Gold members have access to margin trading starting at $5 per month for $1,000 worth of buying power; for a standard brokerage account.

Despite this, there is no amount that is too small to begin with. This makes Robinhood especially attractive to new investors who do not have a lot of money to start with or do not feel confident enough to deposit large amounts.

In a Nutshell

From the foregoing therefore, you can see that the SoFi Invest and Robinhood Invest are just unique in their own ways. Choosing either of them to a large extent depends on the type of business or services you intend to run.

In a Nutshell

This therefore means that, whatever you choose, it’s imperative that you understand your own aims and goals and comfort level before signing up for any of the two online brokerage service.

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